Date post: | 08-Aug-2015 |
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Business |
Upload: | thomas-evans |
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Sponsored by:
Roadshow Deck - April-2015
Who are we and what do we do?
The Facts
-Spanish Startups raised over 104 million in the first half of 2014.
-Over 8.3 million tourists in August 2014. 52.7 million sun-seeking visitors a year.
-Europe’s fifth largest economy GDP of 1022 Billion.
-Barcelona is the Mobile World Capital providing a scope for tech/mobile Startups & innovation.
-Cost of living is 58% lower than London. Excellent public and privateinfrastructure and state support for entrepreneurs.
-Natural European gateway to the growing Latin American economies.
-Growing sectors & innovation - sustainable energy, agriculture, smartcities, financial and Access to top Business, Tech and Creative talent.
Why Not Spain?
Main Problems:
The language barrier (only 22% speak English).
Fragmentation
Between clusters (e.g. Barcelona and Madrid) and between talent-pools of different skillsets.(creatives, engineers and business folk aren’t talking).
Funding: legislation makes it hard for foreign investment.
2 9
Number of start ups
2012
2013
2014
20
Exits
Male to female ratio
97
3
6565
2012
2013
2014
24
Deals
146
Co Working
241
338
Accelerators
98 14
7 414
2012
2013
2014
Crowdfunded companies
146
5521746
Government Initiatives
2012
2013
2014
2 5 8
Number of Investors
210 367
604
2012
2013
2014
Number of VC’s
348
377
377
VC Investment:
221m
208.5m
284m
# deals since 2013Active Ventures Partners 4 Axon Deals 8Bonsai 2Cabiedes and Parnter17 Caixa Risk Capital18 Kibo Ventures 16Lanta Digital Venture 2Natua Capital7Seaya Ventures
5Vitamin K 6
#2
GDP vs Hubs
What we’ve found out
International entrepreneurs in Spain www.startupsmadeinspain.com
1. WHO IS THE ENTREPRENEUR?
-A young male first time entrepreneur from Spain-30 years old (average of the greatest age range respondents)- Masters in Business- Speaks English and Spanish fluently- Passionate about innovation-Does not et involved in the ecosystem - does not provide mentoring. investments, etc.
The Marketplace for Startups
2. WHAT IS HE SELLING
-B2B Service in the mobile/telecomm sector-focused on New markets - new product/concept/ service- To be sold outside of Spain-Spends about a year in developing and launching an MVP- Conservative ambition of capturing between € 1
Million - € 5 Million of the potential market share
And what about the team?
3. TEAM
-2 local co-founders with at least one of them IT expert- about 7 people in the team- Very hard - finding co-founders-Hard - finding and hiring team members - contracts and firing- Not at the level of Managing and paying taxes
What’s the Culture like for getting something started?
4. CULTURE AND INFORMATION
-More or less average in terms of encouragement, social perception, fear of failure, etc.- High feedback rate - mentors are available- High - success stories-Barriers to entry and receptiveness of a new product is average
Who are the Investors?
5. CAPITAL
-In general public funds are easier to get than private funds- Very little access to international investors-Largely raising initial funds from friends and family for launching an MVP- An average of € 50.000-Biggest challenge - meeting the ‘right’ investor and timeframe to getting the funds
The Ecosystem
6. LOCAL ECOSYSTEM
-Mainly in Spain for personal reasons- Pivate sector support missing- Infrastructure good-Education and community support are average - neither encourage nor discourage- Bureaucracy very hard to deal with-Lack of communication between entrepreneurs and policy makers
The Barriers - What’s standing in the entrepreneur’s way?
7. Barriers
-Receptiveness of a new product is average Private sector support missing-Bureaucracy very hard to deal with-Lack of communication between entrepreneurs and policy makers-Very hard finding co founders-Hard finding and hiring team members - contracts and firing-Not at the level of managing an paying taxes.
SoIn summary
Fact and Opinion; Best told separately
- The local government
shave good
initiatives for entrepreneurs but
not well communicated
- lack of awareness
- Lack of women entrepreneurs - about 22% only
- Time barrier to starting a business is improving - creating
and testinga product and
getting feedback
- More startups fail due to problems
between partners, than ecosystem issues such as bureaucracy
- Not knowing
Spanish isa clear barrier
to startup in Spain
-Spanish entrepreneurs may
believe they have a higher
level of English than what it really
is
- Most startups fail and the
entrepreneurs after their 1st failed venture return
to the corporate world
- The investors want to see team profile of people who have
significantprivate sector work
experience.They focus more on the people than the idea.
They do not value the past entrepreneurial experience as much.
- The struggle of egos and language
differencebetween entrepreneurs
and technical co-foundersis usually one of the
main problems of a startup
in Spain
- The ecosystem encourages less merit based startup
teams and more relationship based projects
- Lack of experience - the entities
that do help the startups, don’t follow
upin the long term
after the initial support - t hereby creating ‘hollow’ life for startups rather than
vigorous assessments and feedback
Qualitative Feedback
-The local governments have good initiatives for entrepreneurs but not well communicated - lack of awareness
- Lack of women entrepreneurs - about 22% only
- Time barrier to starting a business is improving - creating and testing a product and the feedback
- More startups fail due to problems between partners, than ecosystem issues such as bureaucracy
- Not knowing Spanish is a clear barrier to startup in Spain
- Spanish entrepreneurs may believe they have a higher level of english than what it really is
- Most startups fail and the entrepreneurs after there1st failed venture return to the corporate world
-The investors want to see team profile of people who have significant private sector work experience. They focus more on the people than the idea. They do not value the past entrepreneurial experience as much.
- The ecosystem encourages less merit based startup teams and more relationship based projects
-The struggle of egos and language difference between entrepreneurs and technical co-founders is usually one of the main problems of a startup in Spain
-Lack of experience - the entities that do help the startups, don’t follow up in the long term after the initial support - thereby creating ‘hollow’ life for startups rather than vigorous assessments and feedback
The EndPlease visit: www.startupsmadeinspain.c
om Follow: @SUMISpain