Post on 29-Dec-2015
transcript
How Can We Become More Successful in Fostering Early
Stage Ventures?
Kjell-Håkan Närfelt
Chief Strategy Officer, VINNOVA
kjell-hakan.narfelt@VINNOVA.se
First some words on VINNOVA…
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VINNOVA is Sweden’s Innovation Agency
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2billion SEK were invested in
Swedish R&D 2009 by VINNOVA
BY SECTORBY SECTOR
BY COUNTY WITHBY COUNTY WITHTOP 25 RECIPIENTSTOP 25 RECIPIENTS
1807
R&D projects received funding614
of theseinvolved SME’s
500-250-500200-250150-200125-150100-12575-10050-7520-500-20(mkr)
Public R&D-funding in Sweden per receiving body (budgets 2008)
Univer-sities
12 bn SEK
42%
Univer-sities
12 bn SEK
42%
Swedish ScienceCouncil
3.6 bn SEK
13 %
Swedish ScienceCouncil
3.6 bn SEK
13 %
Formas
0.7 bn SEK
3 %
Formas
0.7 bn SEK
3 %
FAS
0.3 bn SEK
1 %
FAS
0.3 bn SEK
1 %
VINNOVA
1.8 bn SEK
7 %
VINNOVA
1.8 bn SEK
7 %
Energy Agency
0.9 bn SEK
3 %
Energy Agency
0.9 bn SEK
3 %
Space
0.8 bn SEK
3 %
Space
0.8 bn SEK
3 %
Other Civilian
Agencies
2.8 bn SEK
7 %
Other Civilian
Agencies
2.8 bn SEK
7 %
Public reseach
foundations
1.5 bn SEK
6 %
Public reseach
foundations
1.5 bn SEK
6 %
Defence Agencies
1.5 bn SEK
11 %
Defence Agencies
1.5 bn SEK
11 %
Mainly curiosity driven Mainly needs driven
Ministry of Education and Research
Min. ofEnviron-
ment
Min. ofHealth &SocialAffairs
Ministry of Enterprise, Energy and Communications
Swedish GDP 3 220 bn SEK Public R&D funding: 0.84 % of GDP = 27.1 bn SEK
Sustainable societyCompetitiveness of Swedish industry
Improved innovation capabilities
Sustainable societyCompetitiveness of Swedish industry
Improved innovation capabilitiesSweden 2020
Strategy areas
Challenge-led innovation and growth
Information Society 3.0
Health and wellness of citizens
Sustainable and attractive cities
Competitive production in
industry and public sector
Established firms
New companies
Market exploitationintensive
R&D-intensive
The Support System for Commercialisation
Venture Cap, e.g.Industrifonden
Create and Verify
Create and Verify
Innovationsbron
Launch and establish
Launch and establish
Grow and Expand
Grow and Expand
Improve and renew
Improve and renew
VINNOVA
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INNOVATIVESTRENGTH
Investment & Utilization of research and innovation (R&I)
Innovationcapacity
SMEs
Effectivecooperation
Policydevelopment
Globallinkages
Publicsector
Swedish participationin EU R&D programs
BenchmarkingCatalyzing
meeting places
Globallycompetitive innovation
environmentsUniversities
Researchinstitutes
Intermediaries
Bilateral R&Icooperations
R&I projects
Verification
Coaching
R&I projectsfor growth
Participation in Intl cooperation
Industry
Test- andDemo sites
Strategyprocesses
We need to be better in commercialising our research
or..
How Can We Become More Successful in Fostering Early Stage
Ventures?
Is Our Challenge A Funding Gap?
Performance of US and EU Seed Funds?
Fund type 3y 5y 10y 20y
US Early/Seed 1.7 3.7 36.0 21.8US Balanced 4.6 8.4 13.5 14.5
US Later Stage 9.4 8.7 7.5 14.5
US All ventures 4.3 6.4 15.5 17.0
NASDAQ -10.3 -4.6 -3.2 7.3
S&P 500 -10.0 -4.0 -3.0 6.1
EU Early/Seed -1.7 -0.2 -2.4 -1.1EU All Ventures 0.0 2.1 0.4 3.1
EU All Buyouts 8.5 14.1 13.3 14.1
Source: Thomas Reuters Performance Data 2008-12-31
Or are we working ineffectively?
More Money…?
BusinessGrowth
Business Operation
TechnologyInvention
Business Plans, Patents, Prototypes
Valorisation of Research and Technology – Current Situation
Requirement: A Newco AB
After You Have Received Funding…
• It’s all about product development…
• …and execution...– Drives organisation
development– Drives sales and
marketing– Drives costs
Prototyping
Alpha test
Beta test
Launch
Business Operation in early stages
Do ventures fail due to the lack of products or technologies?
No, they fail because they lack customers and proven business operations
BusinessGrowth
TechnologyInvention
Business Operation
• Business System
• Beachhead on market
• Operational Effectiveness
Business Invention
• Verify Business
concept & customer
value proposition• NABC
Valorisation – A Reference Model For Tackling The Right Risks First
• Operational Efficiency
• Innovation
Business Creation
• Verify Sales process &
Business Model• Reference
Customers• Investor Value
Proposition
Conclusions
Focus on verifying your value proposition = customer benefits of
business concepts
Then learn how to sell and make money = business benefits of customer value
propositions
From funding gaps to investment readiness
it’s about customer driven invention and verification of business concepts
From product development and execution to learning and discovery driven processes
it’s about understanding and discovering what will make your venture successful
You are not out there selling
–You are trying to understand the customer, the
competition, the market and the industry
Thanks for Your Attention!