SIB Net Small Innovative Business Promotion Network NEWSLETTER. Spring 2011, No2
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1 SIB Net Small Innovative Business Promotion Network NEWSLETTER Spring 2011, No2
2 Month Day Year Vol. 1 Issue 1 SIB Net project ensure complex activity package to increase creativity, business readiness and develop financial schemes for the support of perspective business ideas Article by Alise Brice Creativity seminars Creativity seminar was aimed to help idea holders improve and develop their ideas into the real business plans. Session of creativity seminars included four creativity seminars two took place in Riga, one in Ventspils and one in Tartu. Every creativity seminar consisted of theoretical and practical part but emphasis was more on the practical part working individually and in groups on creativity exercises and case studies. In the evaluations participants have mentioned some aspects that could be developed but in general the conclusion is that the methodology that was prepared in this project by VUC and SSER works fine and only some minor adjustments are needed. Liene Riekstiņa The evaluation from participants was positive on average. They were active and participated with passion in all activities. Liene Riekstiņa, Trainer of the Creativity Dear readers, We are excited to contemplate the 2nd milestone of SIB Net project because each step helps us to better feel "breath" of the new entrepreneurs and investors enabling us to help them in finding each other. Creators of Newsletter 2 Ieva Stumpe, participant in the third creativity seminar in Ventspils How did you like this seminar? In my opinion, the seminar was well prepared and organized. The seminar consisted of different kinds of theoretical models and also interesting practical exercises. Is it important to participate in this kind of seminars? This seminar was very useful and gave important skills, generating new ideas and solve different kind of problems in business area. What kind of new information and skills did you gain? We had the opportunity to learn more about different kinds of modules and theories, for example, 4 P, 5 whys and also Bono s method 6 Thinking Hats, so I improved my theoretical knowledge as well. Is there a necessity to organize creativity seminars in the future? I think that everybody enjoyed the seminar and gained great experience, new information and knowledge. Thank you for the well organized event!
3 Article by Elza Ozola Cross-border Business Plan Competition Within the framework of SIB Net project we tried to find entrepreneurial gazelles that have ideas containing clever and creative technological solutions. Competition s participants were from Latvia and Estonia, and in total 59 competitive and promising ideas were submitted. Ideas are related to different sectors, but the majority of submitted ideas have a common feature green thinking and environmental protection. Some ideas that can be mentioned: Protecting the coastline against erosion; Taking advantage of the tidal change to produce electric power; Various facilities related to reducing the water consumption; In the first stage of the competition 38 ideas were submitted from Latvian participants and 21 ideas from Estonia s participants. Out of these ideas, 10 Latvian and 5 Estonian projects were developed to business concepts and business plans were drawn up. Business plans have to meet certain requirements, for instance, technical features of the idea, profit, and innovation. To draw up the business plans successfully, participants received help from external experts. News from Ventspils and Tartu pre-incubators PLACE PHOTO HERE, OTHERWISE DELETE BOX Tartu Science Park Vaido Mikheim Future activities Create a network of Business angels in Tartu region Popularize the awareness of Business angels What are the main goals preincubators have reached until now? In total there have been signed 17 agreements, out of which: 2 pre-incubator clients have registered companies and have been accepted to the business incubator. The Preincubator has his own premises and a small conference room. VHTP participated in several marketing campaigns with a goal to attract new clients. Two seminars organized by VHTP and Swedbank took place in Ventspils and Talsi and the responsiveness was great participants. "Brave Idea Support Programme" and Become an entrepreneur in 5 days! - all these activities were successful and 8 business ideas got our support from business incubator. What are the main goals pre-incubators have reached until now? Currently, there are 12 agreements in total which have been signed with new entrepreneurs and 4 clients who have already joined the incubator. Tartu Science Park participates in several marketing campaigns, for example, Start IT up and Tiger The campaign Tiger 2011 brought four new inspiring business ideas, containing clever and creative technological solutions. We also conducted an action How to bring in venture capital as a starting entrepreneur, which brought together about 50 participants. The main issues discussed were early phase investments and SeedBooster programme. Ventspils High Technology Park Ilze Krieviņa Future activities Create a network of business angels and mentors in Kurzeme region Create a network of pre-incubators in Latvia
4 Article by Elza Ozola Success Stories. Estonia. Sportlyzer Sportlyzer has developed artificial intelligence engine for instructing endurance sports amateurs. Sportlyzer s platform as a service provides sports companies with a powerful engine to offer their customers automated personalized training advice as a premium service. How does it work? Sportlyzer s virtual trainer learns customer s background, previous activity and goals. After that virtual trainer composes personalized strategy, adapts training plan to the changes in routine on the fly and gives feedback to trainings. Sportlyzer s virtual coach can be embedded into mobile and online sports applications. Sports tracking devices and sports communities can get their own-style sports environment with a virtual coach and social network. Sportlyzer was founded in July 2009 and raised seed capital from a private angel Rein Lemberpuu and Estonian Development Fund in August In March 2011 Sportlyzer launched a virtual trainer demosite. Within less than 3 weeks more than 1500 users joined Sportlyzer and entered over 3000 workouts into their online workout plans. Everyone is welcome to start using the virtual personal trainer s service at Companies interested in partnership, contact business@sportlyzer.com. Sportlyzer development team operates in Tartu Science Park Incubation Centre premises since August PLACE PHOTO HERE, OTHERWISE DELETE BOX Click & Grow is an automatic plant growing system developed by the Estonian company Click & Grow LLC. Click & Grow was founded in January 2010 and operates in Tartu Science Park Incubation Centre premises since February Click & Grow is the winner of Estonian biggest start-up competition for young entrepreneurs Ajujaht (Brainhunt) in 2010 and raised seed capital soon after competition. A plant growing in the Click & Grow flowerpot does not need watering, fertilising or any other kind of extra care. Everything is taken care of by the sensors, microprocessor and special software in the flowerpot. By combining beautiful design and innovative technology, Click & Grow flowerpots are perfect for anyone who would like to have a little green around the house. PLACE PHOTO HERE, Click and Grow is an easy-to-use, electronic flowerpot that will grow your plants for you.
5 Article by Alise Brice Researches of early stage business needs and finance supply Valdis Avotiņš: Both researches cover the supply - demand sides and provides full picture of existing situation in project regions, thus outlining market weaknesses and failures. Quite often such studies are made by several research organizations or within long time intervals not allowing integration of outcomes and compatibility of recommendations. The intention was to use resources in a most efficient way, therefore we used method of desk research analysis of available studies, research reports and project reports. Riga Planning Region SIB Net Project Manager Common conclusion is that both countries lack in gazelles, deal-flows of knowledge intensive new firms with high growth potential, policy measures rarely meet the needs of nascent entrepreneurs in today's situation. Such critical analysis provides real, not rosy analysis of existing situation and gives important conclusions and recommendations. Both researches will form base for pre-incubator business plans, further feasibility studies of business angels networks and risk capital financing instruments. Feasibility study on technology incubators & New types of incubators Article by Alise Brice Valdis Avotiņš: Government in Latvia has created a number of state support programs to modernize technological capabilities of companies, promote new products and encourage firms in applied research activities. Still, many small businesses with high growth potential find it difficult to acquire risk capital, the equity they need to achieve their ambitions. Merged support approach in a form of technology incubators as a new type of incubators can overcome aforementioned weaknesses. The project will benefit as it covers whole support cycle for new early stage business: generation of new business idea, design of business plan, getting investment readiness, creation of pre-incubators, and developed feasibility studies for following financial instruments - Business Angel Network, Pre-seed Funds and Technology Incubators. In majority of European regions and universities the attitudes towards new type incubators are reluctant, innovation professionals more relay on approaches they know better: Triple Helix policies and traditional models of incubation and technology transfer. We have to be critical to new policy measures and adopt private initiative driven measures and TI scheme definitely is such one. Business angels network research Article by Sandra Rožkalne Forty four new entrepreneurs were interviewed and the majority of them admitted having considerable difficulties during the pre-seed stage, e.g. lack of financial resources or shortage of necessary skills. To overcome these obstacles entrepreneurs mostly turned for support to business pre-incubators and incubators, science and technology parks or relatives and friends. Nonetheless, around 40% of them did not find any support. It was believed that the situation would improve, if qualitative business angels network is created. Therefore eight business angels were questioned who approved that creation of such networks would increase their accessibility and support to entrepreneurs. However, sustainable networks should be of regional scale, because business angels prefer investment in geographically close ideas. Besides, business angels network should be developed around few people who would be trusted by both sides the entrepreneurs and the business angels. The people would be responsible for maintaining successful collaboration between both sides. In turn, the objective of the preincubators and incubators would be equipping the new entrepreneurs for successful collaboration with business angels, because frequently the quality of these ideas (business plans) is quite poor.
6 You are welcome to contact us! Riga Planning Region Liesma Grīnberga SIB NET Project Coordinator Ph.: Skype:liesmagr Ventspils High Technology Park Mārtiņš Velde SIB Net Project Coordinator Ph.: Skype: vatp_pirmsinkubators
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