Date post: | 15-Jan-2017 |
Category: |
Business |
Upload: | bbva-innovation-center |
View: | 297 times |
Download: | 2 times |
FINTECH SERIES BY innovation edge
‘STARTUP’UNIVERSE
THE TAKEOFF OF EMERGING
COMPANIES IN A COMPETITIVE WORLD
Universities fight to attract future startup01 ‘Startups’: Europe
request entry 02 Women in ‘Startups’? 03
04 05 INFOGRAPHIC
Twenty startups to watch in 2016
Twenty startups to watch in 2016
‘Startups’: Europe requests entry
01
Thirty European technological companies
are worth 30 billion euros. The Old
Continent is breaking barriers in digital
transformation.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Silicon Valley seems to be on
another planet when we talk
about startups, although the
differences between Europe
and America are becoming
less, according to a study by
the consultancy company
Roland Berger. For the last few
years, the European ecosystem
has favored the growth of
startups and people no longer
have to dream of having an
office in California to become a
technological giant.
According to the study Can
European start-ups crack the
code? , in the last eight years,
the number of technological
companies in the Old
Continent has grown by 400%.
In Q1 2015, startups brought
in 6.9 billion dollars, 86% more
than the previous year. They
are expected to keep growing
in 2016, and definitively break
the four myths of the European
startup scenario.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Myth 1: Europe isn't
attractive for entrepreneurs.
The study emphasizes that this
isn't true and highlights that in
Europe there are a large
number of "ecosystems", each
with special features and
growth mechanisms. It points
out that London is the place
that attracts the most startups,
which tend to develop in urban
and dynamic surroundings.
Also Berlin, "poor and sexy",
which offers a hugely creative
environment;: its streets bring
together different languages
and attract different
entrepreneurs from around the
world. Paris is at the other end
of the scale, at least 12,000
startups are based in the
French capital, feeding off a
special talent, especially in
engineering. We mustn't forget
other attractive cities such as
Amsterdam, Barcelona, Dublin,
Copenhagen and Helsinki.
Myth 2: Europe doesn't have
a capital.
A point that is true to a certain
extent, but which is changing,
according to the report. Access
to funding, or the lack of it, has
always been one of the big
competitive complexes for
European startups . 2 years
ago, European startups
managed to raise 8 million
dollars in funding from US
sponsors and just 3 million
from European investment.
A trend that's gradually
changing. The number of
European companies that have
managed to get "seed capital"
has grown by 600% since
2009. Looking beyond the
numbers, there is also a series
of structural changes in the
European financial
environment. In first place, it's
becoming increasingly less
expensive to set up a company
since many of the technical
and infrastructure costs have
reduced thanks to the cloud,
which offers open and free
software. Secondly, the report
highlights that European
startups are on the way to
offshore funding, in both the
United States and in China.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Myth 3: Talent shuns
Europe.
According to the study the
opposite occurs, and although
it states that the European
scenario has been more
difficult to access and has put
up barriers for India or Eastern
Europe (due to the language,
English language and some
restrictive labor laws), the crisis
that has devastated the old
continent has achieved
something that politics didn't. It
created the urgent need for
change in the economic model
and it showed people that
working for a large firm isn't
synonymous with security. The
crisis made the ecosystem
mature rapidly, offering new
opportunities for young talent.
To attract the most talented,
able and committed people
there must be a creative
ecosystem that leads the local
scenario. And Europe is trying
to facilitate the mobility of its
workers to drive digital
disciplines.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Myth 4: The European
business environment is not
approachable for startups.
This has changed a lot in
recent years. The study
emphasizes that there is not a
unique European digital
market, but there is a decent
digital infrastructure in each of
the independent digital
markets. The penetration of
hubs is good and the
conditions in the offline world
has enabled Europe to have a
series of advantages -a large
number of market leaders in
variable, complex and technical
fields, in addition to a strength
in automobiles and
engineering.
European startups can make
traditional companies earn
money in the digital world.
One of the main reasons the
Europeans would do well
adopting the strategies of a
new market -a blue ocean-:
create its own opportunities
beyond the American model.
Europe must take advantage
of the low costs compared to
the United States, to create a
startup. For example, the
average annual salary for
digital workers in Silicon Valley
is around 195,000 dollars,
reaching 291,000. In Europe,
the highest levels reach
127,000 dollars.
Having broken the four myths
that followed European
startups, the Old Continent
must take advantage of its
political leadership, values and
traditional experience to keep
driving the digital
transformation in 2016.
Several groups aim to change in 2016
the current landscape of technology
companies dominated mostly by men.
Women in startups?
02
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
“Welcome to the misogynist
world of startups”; Why are
there so few women leading
startups?; What Silicon Valley
thinks about women; Women
and startups: an impossible
combination? These are some
of the headlines in the media
highlighting the little presence
of women in technology
companies. A landscape that
groups like Women Hackers
Action Tank (WHAT) aim to
change with initiatives fighting
for women's role in technology.
The figures show their very
limited presence. To give an
example, in the United States in
the '80s almost 40% of
computer engineering
graduates from universities
were women. Today they only
represent 14%. Society now
sees women as "not belonging
to the technology
environment". In Europe,
specifically in Paris, the
revolutionary programming
school École 42- with around
1,700 students- only has 10%
of women.
Annie Kahn, the Le Monde
journalist and member of
Women Hackers Action Tank
(What), stressed in an article
published in the French
newspaper the need to “reverse
this trend to break this glass
ceiling that, paradoxically,
technology has been unable to
break”.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Digital is associated with men,
although last year the
presence of women grew
according to the Global Startup
Ecosystem Ranking 2015.
Although it points out that the
lack of gender equality is
widespread in the world of
startups, the trend for
entrepreneur women is
changing, since the number of
women setting up startups has
grown by 80% in recent years.
In 2012, 10% of startups had
been set up by women,
compared with the global
average of 18% among the
Top 20 in 2015. In the United
States, Chicago, with 30% of
founding women, has the
largest percentage.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
The figures change and it its
clear that Silicon Valley does
not want a repeat of the trial for
machismo held last February
when Ellen Pao filed a lawsuit
against the venture capital firm
Kleiner Perkins Caufield &
Byers, charging them with
gender discrimination.
A trial that even though it
ended up becoming a soap
opera -and ruled against the
worker- seemed to make clear
that discrimination on grounds
of sex in Silicon Valley is a real
problem in the country of
opportunities.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
03
US academic institutions are changing their
curriculum and are launching themselves
into an innovation race to meet students'
entrepreneurial ambitions.
Universities fight to attract future startup
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
The original charter of
Houston's Rice University,
which is among the 30 top
universities in the United
States, written in 1891, states
that the institute's principles are
based on promoting literature,
science and the arts. According
to the New York Times, Rice
now seems to be interested in
engaging the next generations
of the Facebook Founder.
It is not the only university that
has launched itself into the
innovation race. And they have
not got it easy. Around 10
years ago it was enough to
offer a few business courses,
workshops and classes. But
students, inspired by the
success of billionaires in Silicon
Valley, expect universities to
teach them how to turn their
ideas into entrepreneurial
projects. In 1985, US
university campuses only
offered around 250 business
courses, according to a report
by the Ewing Marion Kauffman
Foundation (which funds
education and business
training). By 2013, more than
400,000 students received
this type of course.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Rice, in particular, offers
academic courses in business
strategy and funding,
extracurricular workshops on
startups and a summer
program for studies who wish
to set up a business. In August,
the Texan university
announced a multi-million
"business initiative" to develop
more courses and programs in
this field. The university
managers also say that they
hope to set up a business
center that provides support to
the students' projects Elite
institutions have embarked
on a race toward innovation.
Harvard opened an Innovation
Lab in 2011 that has helped
more than 75 new companies.
Last year, New York University
set up a campus-laboratory for
entrepreneurs, and this year
the Northwestern University
opened the Garage, a center
for startups for students.
“Students of today have a thirst
to make an impact and we
need to respond to that”,
Gordon Jones, Dean of the
new Innovation and Design
College at Boise State
University, Idaho, and former
manager of the Harvard
Innovation Lab, explained to
the NYT.
Skills
However, some academics are
skeptical about this
entrepreneurial spirit frenzy
and claim that startup
programs can lack rigor and
values. Some professors even
believe that some universities
are simply repeating the
“innovation and split” models of
Silicon Valley, seeking out
potential clients and possible
investors, instead of
encouraging students to
tackle more complex
problems. Because it is a
question of developing rich
business ecosystems, many
institutions are following the
script written years ago by
Stanford and the MIT, which
consists of academic courses,
practical experience and a
large network of former
students. Princeton also offers
a variety of business courses.
The possibility of creating the
new Instagram or Snapchat is
appealing to students.
However, in a complicated
labor market, in which young
people think that they are
going to switch jobs in a few
years, some students sign up
for startup training in the hope
that they will acquire self-
employment skills.
Some of this spirit was evident
at Rice in October. In a design
laboratory in the engineering
department, the students
involved in the health
technologies program were
working on developing
products for real clients -Malawi
hospitals- like low-cost medical
devices. On the other side of
campus a tour by startups was
being held, bringing executives
from young companies
together with students.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
To back their programs,
universities are collecting money
and looking for mentors among
their former studies who have
been successful and among
local business leaders. The New
York University Laboratory was
funded by Mark Lesbie, founder
and executive director of Veritas
Software, along with his wife
Debra.
However, the workshops at
some university campuses can
clash with the traditional
premise of schools who aim to
educate critical thinkers. “True
innovation is based on
knowledge and long-lasting
concern and interest, not only
on “I thought of something that
had not occurred to anyone
before”, says Jonathan Jacobs,
Chairman of the Philosophy
Department at the John Jay
College of Criminal Justice at
New York University. “Quite
frankly, that is not educating
the people”. And at least a
couple of business professors
say that some universities are
not ensuring that students learn
the basics of starting, running
and maintaining a business.
We will have to wait a few years
to see whether the upcoming
generations continue to dream
about creating startups and
whether the changes to
educational models help them to
do so.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
04Twenty startups to watch in 2016Forbes selects the companies most
likely to make a mark this year.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Inverse
Founded in 2015 and based in
the Bay Area, Inverse is a
digital media source that covers
latest news, TV, movies, music,
digital culture, science and
innovation, all aimed at a male
audience. With around 20
employees its investors include
Greycroft Partners, Crosslink
Capital and Rothenberg
Ventures.
Mobcrush
Founded in 2014, Mobcrush is
a community and platform for
mobile video games. It aims to
boost the global user
community by providing a
simple solution that can be
accessed via mobile devices.
The company has raised 15
million dollars from venture
capitalists Kleiner Perkins,
CrunchFund and Lowercase
Capital.
Product Hunt
Product Hunt curates the best
new products each and every
day. It is one of the most
influential platforms around.
Figures from the tech sector
and venture capitalists use the
platform to seek new startups.
It is the go-to site for product
launch announcements.
Investors include SV Angel,
Naval Ravikant and Greylock
Partners.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Patreon
Founded in 2013 thanks to
the investment of around 17
million dollars by Alexis
Ohanian and Sam Altman,
Patreon is a platform that
allows content creators such
as artists, YouTubers,
photographers, musicians,
authors, writers and others to
create websites for their work
and get support from their
fans. The community currently
has around 2,000 creators.
Based in the Bay Area, the
company employs more than
40 people.
Carousell
Carousell makes it easy to sell
those items that you no longer
use or need. Selling is easy via
the "Snap" list, while buyers can
get what they like by chatting
with sellers via the application.
There are currently some 26
million products on sale. The
Singapore-based company's
appeal is on the rise. Investors
include 500 Startups, Golden
Gate Ventures and Sequoia
Capital.
Doormint
Doormint is a mobile platform
for on-demand basic consumer
services in the home. Investors
in the startup include Helion
Venture Partners, Kalaari
Capital and Powai Lake
Ventures.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Founded in Mumbai, it has
raised some 7 million dollars.
Belong
Belong scans social networks,
the internet and public data
sources to find potential
candidates for job vacancies.
Based in Bangalore, the
company has raised money
from investors such as Matrix
Partners and Blume Ventures.
Founded in 2014 by Saiteja
Veera, Rishabh Kaul, Vijay
Sharma and Sudheendra
Chilappagari, the company
employs 60 people and is still
growing.
SendinBlue
SendinBlue allows users to
manage contacts, create
newsletters and track results.
The Paris-based company has
raised 2 million dollars from
investors such as Caloga. With
close to 40 employees, it was
set up in 2014 by Armand
Thiberge and Kapil Sharma.
Giphy
Jace Cooke and Alex Chung
founded Giphy in 2013. With
its headquarters in New York,
Giphy is a GIF search engine.
Animated GIFs have been
around for decades, but until
now there was no good way to
browse and discover the best
that the internet has to offer.
Giphy's vision is not just to help
you find GIFs. At present it is
only a search engine but soon
it will grow into a community;
a platform loaded with
materials for GIF artists,
enthusiasts, bloggers and
anyone
interested in finding or creating
the next big meme. Having
raised nearly 23 million dollars,
the company's investors
include RRE Ventures,
Lightspeed Venture Partners,
Lere Hippeau Ventures and
General Catalyst Partners.
Maple
Maple hopes to revolutionize
the home delivery food market
in the city of New York. With
around 50 employees, the
company was set up by Caleb
Merkl and
Akshay Navle in 2014. Since
then it has raised 25 million
dollars from Primary Venture
Partners, Thrive Capital, Andy
Dunn and others.
BitGold
BitGold aims to make gold
accessible and secure for
digital payments. As one
of the star newcomers in
Toronto, the firm has raised 30
million dollars from investors
such as PowerOne Capital and
Soros Brothers Investments. It
was founded in 2014 by Josh
Crumb and Roy Sebag.
Play Buzz
Play Buzz was founded in Tel
Aviv in 2012. It allows users to
play with and create web
content via custom surveys,
lists and questionnaires, and to
include them in a website or
simply share them with friends.
With some 18 employees the
firm has raised 19 million
dollars in investment from
Carmel Ventures, Saban Capital
Group, FirstTime Ventures,
83North and others.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Leesa Sleep
Leesa Sleep is ready to do
battle with established firms
operating in its space. Leesa is
an online luxury mattress
business that breaks the
traditional model by providing
direct deliveries of very
comfortable mattresses, while
also running an industry-
leading social impact program.
It has raised 9 million dollars
from investors such as
TitleCard Capital. The company
was founded in 2014 by David
Wolfe and Jamie Diamonstein.
Voonik
Voonik is a personal style
platform that supports
shopping for clothes and
accessories by combining
multiple stores on a single
platform and allowing users to
view all products at a glance.
The company has raised
investment of 5 million dollars
from Sequoia Capital. Based in
Bangalore, the company
currently employs more than
80 people.
Zoomo
Zoomo is a peer-to-peer mobile
market for used car sales.
From its headquarters in
Bangalore, founders Arnav
Kumar and Himangshu
Hazarika decided to launch the
business in 2014 with the
support of SAIF Partners. Since
then it has raised 6 million
dollars and has a workforce of
more than 100.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Opinio
Opinio is another Bangalore
startup on the list. It provides
delivery services for food and
other products, thus
connecting users with
restaurants, stores, laundries
and pharmacies. With more
than 80 employees and 8
million dollars of investment, its
backers include Accel Partners,
Sands Capital Ventures and
Delhivery.
Alodokter
The Alodokter platform
contains comprehensible
information on medicine,
illnesses, health and exercise.
Registered users may also
request medical opinions via
the website. Founded in 2014
by Nathanael Faibis, it has
raised early financing from 500
Startups, Jungle Ventures,
Fenox Venture Capital, Golden
Gate Ventures and Lim Der
Shing.
Save
Save is a promising startup
with its headquarters in Paris. It
offers smartphone repair
services with transparent
prices, either dropping your
phone at one of its shops or
sending it by courier. Founded
by Damien Morin, the
company has raised 17 million
dollars from IDInvest Partners
and 360 Capital Partners.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Droom
Droom is the first mobile
market in India for new and
used cars. With 16 million
dollars invested by Beenos and
Lightbox Ventures, the
company employs more than
50 people after less than two
years in business. Scandeep
Aggarwal had the original idea
in 2014 and has guided the
startup's success since then.
Parcelled
Parcelled is an on-demand
online courier that has
revolutionized the world of
logistics, radically changing the
way we send items. Established
in Bangalore, the company has
raised 5 million dollars from
Delhivery and Tracxn Labs. At
present it employs a staff of 80,
overseen by founder Xitij Kothi.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
05/INFOGRAPHIC
Thirty European technology companies are worth 30 billion
euros. The Old Continent is breaking barriers in digital
transformation.
‘Startups’ europeanin 2015
Share on Pinterest
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
TOP 20 GLOBALLY
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Silico
nV
alle
y
New
York
City
Los
Angele
s
Bost
on
Tel A
viv
London
Chic
ago
Seat
tle
Berlin
Sin
gap
ore
Par
is
São
Pau
lo
Mosc
ow
Aust
in
Ban
gal
ore
Sid
ney
Toro
nto
Van
couve
r
Am
sterd
am
Montr
eal
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
OUTPUT VOLUME OF THE TOP 20
Silicon Valley
London
Los Angeles
Tel Aviv
BerlInBoston
Chicago
New York City
Amsterdam
Seattle
Paris
Austin
Singapore
Vancouver
Montreal
São Paulo
Toronto
Bangalore
Moscow
Sidney
47,3%
10,2%
6,6%
6,5%
6,1%
5,7%
4,5%3,6%
2,5%
2,1%
1,2%
1,2%
0,8%
0,5%
0,3%
0,3%
0,2%
0,2%
0,1%
0,1%
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
‘STARTUPS’ EUROPEAN FIGURES
110 dollars
MILLIONSof accumulated value
of unicorns in
Europe.
6,9 dollars
MILLIONSof increase in the
second half of 2015.
400%faster European
incubation in the
startup ecosystem in
2015 than in 2007.
86%more than in
2014.
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
While French startups attract significantly more venture capital, in Germany, Austria and Switzerland
businesses achieve a higher increase in volume.
A MATTER OF MONEY
France
UK
Germany *
Scandinavia
159
154
81
47
Number of startups
UK
2.5 millions
Germany*
1.8 millions
France
1 million
Scandinavia
1 million
* Germany, Austriaand Switzerland
Startup value(in millions of dollars)
FINTECH SERIES · DECEMBER 2015 · www.centrodeinnovacionbbva.com/en
Easy, quickly and very efficiently
are the keys of personal
management tools (PFM)
‘Robo Advisors’ enter the scene
A new concept in the world of
‘Startups’
A new model of payment: The
revolution of virtual wallets
BBVA Innovation Center
creates the Fintech Serie By
Innovation Edge to keep
informed about the financial
innovation trends with its
milestones, analysis, cases
studie, interviews with experts
and infographics to display the
data that describe each of
these trends.
SERIEFINTECH BY innovation edge
share
ANTERIORES NÚMEROS
Registerto keep up with the lastest trends
centrodeinnovacionbbva.com/en
centrodeinnovacionbbva.com/innovation-edge/en
Follow us:
BBVA no se hace responsable de las opiniones publicadas en este documento.