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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 private

infrastructure and state support for entrepreneurs.

-Natural European gateway to the growing Latin American economies.

-Growing sectors & innovation - sustainable energy, agriculture, smart

cities, 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

20Exit

s

Male to female

ratio

973

65 65

2012 2013 2014

24Deals

146Co

Working

241 338

Accelerators 98147

414

2012

2013

2014

Crowdfunded

companies

146

552

1746

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 2013

Active Ventures Partners 4 Axon Deals 8Bonsai 2

Cabiedes and Parnter 17 Caixa Risk Capital 18Kibo Ventures 16Lanta Digital Venture 2Natua Capital 7Seaya Ventures 5Vitamin K 6

#2 GDP vs

Hubs

What we’ve foundout

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

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

getting 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

their 1st 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 struggle of egos and

language difference

between entrepreneurs and

technical co-founders

is 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 up

in 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.com

Follow: @SUMISpain