the recipe for creating a successful startup ecosystem
DESCRIPTION
A thorough review of what makes a great ecosystem for entrepreneurs. It's not enough to have a great idea or a great team, as an entrepreneur you need a supporting environment that will help you succeed. In this presentation you can find the main ingredients that create a good ecosystem for startups along with a review of main European startup ecosystems.TRANSCRIPT
Tzahi (Zack) WeisfeldHead of Microsoft Ventures Global Accelerators
The Recipe For Creating a Successful Startup Ecosystem: View of the European Startup Hubs
Microsoft Ventures
Networking Infrastructure
(Volume\Velocity)
Microsoft Ventures
Mentors(Sr. Entrepreneurs)
Angel Investors
GovernmentSupport
Service Companies
(Finance, Marketing, Legal, Relevant
Expertise)
VCs
Accessible Domain Expertise
Local Success Stories
What makes a healthy,
active startup ecosystem?
Universities
Multi National R&D Centers (MNCs)
Successful Startups
Failed Startups
Company Builders (Berlin)
Army (Israel Specific)
Global Tech
Companies
Public
Markets
Top Startup Ecosystem
Talent Feeders ExitCulture
Comparing the Countries: Deals
2013 Startup Funding Compared -Top EU Ecosystems
Microsoft Ventures
$2,300
$1,676
$787
$552
$392 $384
$117 $115
662
368
196
90 7739 37 37 0
100
200
300
400
500
600
700
$-
$500
$1,000
$1,500
$2,000
$2,500
TLV UK Germany France Russia Sweeden Denmark Finaland
Money Deals
Israel
Microsoft Ventures
Number of Startups: 4,800 Startups
Key Startup Clusters: Consumer Internet, AdTech, Security, Gaming, Mobile tech and apps.• High competencies in: Machine learning, Security and networking,
Consumer Experiences.
Accelerators, Incubators, HubsActive M&A by MNC
Early Stage and Microfunds
VC’s
Startup Ecosystem in Israel
Accelerators, Incubators, HubsAccelerators, Incubators, Hubs Accelerators, Incubators, HubsStartups Enterprise, SecurityAdTechConsumer Internet, Gaming
4800
30002500 2500
TLV London Berlin Paris
London
Microsoft Ventures
Number of Startups: 3,000 Startups in Tech City.
Key Startup Clusters: Fintech, eCommerce, Entertainment Media and Gaming.• Emerging Clusters: Adtech, Edtech, Smart Cities.
Startup Ecosystem in LondonAccelerators, Incubators, HubsVC’s
Smaller Funds and Microfunds
Accelerators, Incubators, HubsAccelerators, Incubators, HubsStartups eCommerceConsumer, Mobile, GamingFinTech
Government
Encourage investments in Startups
Tax Breaks (SEIS, for example)
Encourage Internationalism
Simplified Entrepreneur Visa
Simplified Exceptional Talent Visa
Encourage Flotation in London
Eased regulation on new/small LSE flotation
Reduce Cost of Doing Business
Eased corporate taxes for SMBs
Proactively support startups
Committed purchasing 25% of budget from
SMBs by 2015
Tech City
Created an organization to create and
promote a startup
geographic cluster in East London.
4800
30002500 2500
TLV London Berlin Paris
Berlin
Microsoft Ventures
Number of Startups: 2,500 tech startups.
Key Startup Clusters: eCommerce, Consumer Internet, Gaming and Mobile Apps, Adtech.
Startup Ecosystem in BerlinAcceleratorsCompany Builders
Microfunds
Accelerators, Incubators, HubsAccelerators, Incubators, Hubs Accelerators, Incubators, HubsStartups eCommerceConsumer, Mobile, GamingAdTech
VC’s Euro VCs investing
Corporate Funds Incubators Hubs and coworking centers
Acquired by EBay
In Munich
4800
30002500 2500
TLV London Berlin Paris
Paris
Microsoft Ventures
Number of Startups: 2,500 tech startups.
Key Startup Clusters: eCommerce, Consumer Internet, Gaming and Mobile Apps, Adtech.
Startup Ecosystem in ParisAcceleratorsGov’t, Taxes, RegulationVC’s
Microfunds
Accelerators, Incubators, HubsAccelerators, Incubators, HubsStartups eCommerceConsumer, EntertainmentAdTech
Taxes as High as 75%
Drive costs up, intimidate investors
Stringent Labor Laws
Very difficult to fire, extensive social
benefits, drive costs up.
A Cultural Focus on France
Impedes global scale potential, as
many startups are France minded,
building apps in French for France.
Euro VCs investing
Startup Hubs and Incubators
Coworking for social
entrepreneurs
Search Tech
4800
30002500 2500
TLV London Berlin Paris
Summary
Microsoft Ventures
• Not all startup ecosystems are created equal
• Startup ecosystems differ significantly in maturity
• There are critical ingredients for success
• Developing new successful startup ecosystems is tough and takes time to mature
• Culture is the toughest one to develop
• Government approach is key to success
Microsoft Ventures
To learn more about Microsoft Ventures and the accelerator program visit our website:
https://www.microsoftventures.com/