Viadynamics The emerging global Incubation landscapes and the evolving roles of Innovation Centres and Accelerator Programmes UKSPA Conference Dublin June 2015
Approach\What Making innovation happen Viadynamics the expert innovation partner We help people and organisations who want to build their businesses, grow their brands or transform their products and services. Like them we believe the future can be different and better and that innovation is the best way to create new value and deliver growth. For over 16 years we have worked with global organisations, ambitious challengers and high potential start-ups. Defining, shaping and making the new 2015 Viadynamics\Credentials 2
Via\Approach Defining, shaping and making the new We help businesses, organisations and leaders maximise the impact and resolve the uncertainties of innovation Define set new directions & optimising choices Strategies, platforms, roadmaps and portfolios we generate, assess and prioritise the opportunities that will translate strategy into action. Shape develop new leaders & innovation capabilities People, cultures and processes we provide training, tools, techniques and the support to shape innovation leaders and teams. Make spearhead new solutions & ways of working Businesses, products, services, and brands we help to design experiences that are compelling for customers, consumers and users. Innovation opportunities 2015 Viadynamics\Credentials 3
Via\Collaborations 2015 Viadynamics\Credentials 4
Encounters\Unipath Unipath 2015 Viadynamics\Credentials 2014 Viadynamics\BAT 5
Via\Collaborations 2015 Viadynamics\Credentials 6
2015 Viadynamics\Credentials 7
IDEAS SOLUTIONS 2011 Viadynamics\Presentation title here 8
IDEAS SOLUTIONS 9
Via\Collaborations Acceleration and incubation Building, supporting, growing, mentoring Accelerator programmes in a University setting Eight week programme to define and shape a number of opportunities Building the Incubator Developing the programme and assembling the mentors Making the case for expansion How to do more, and how to do it even better Mentoring individuals and teams Addressing gaps in their capability and expertise Social enterprise accelerator programme Running the London chapter 2015 Viadynamics\Credentials 10
Why does this matter? 11
Via\Landscape Joseph Schumpeter and Creative Destruction Taking a long term look at economic performance process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one 12
Via\Landscape Joseph Schumpeter and Creative Destruction Today s economies dominated by new companies 13
Via\Landscape Warren Buffett, billionaire investor And start-up avoider I don't look to jump over 7- foot bars: I look around for 1-foot bars that I can step over 14
Via\Landscape Warren Buffett, billionaire investor Investing in growth of US auto industry poor return 300 US car companies in 1930. only 3 today 15
Via\Landscape Warren Buffett, billionaire investor Ditto aircraft.. 16
Via\Landscape How can both men be right? When they clearly are? 17
Via\Landscape How can both men be right? When they clearly are? 18
Via\Landscape How can both men be right? When they clearly are? 1. There is an imperative to build the businesses of tomorrow 19
Via\Landscape How can both men be right? When they clearly are? 1. There is an imperative to build the businesses of tomorrow 2. Investing early is likely to lead to financial losses 20
Via\Landscape How can both men be right? When they clearly are? 1. There is an imperative to build the businesses of tomorrow 2. Investing early is likely to lead to financial losses 3. We have to find smart ways of working that minimise these losses 21
Via\Landscape How can both men be right? When they clearly are? 1. There is an imperative to build the businesses of tomorrow 2. Investing early is likely to lead to financial losses 3. We have to find smart ways of working that minimise these losses 4. We have to share the costs, the risks and the pay-offs for the wider good.. orchestrate the ecosystem 22
Via\Landscape Concorde; financial failure or business success? What was the impact on Rolls-Royce and Airbus? 23
Acceleration & Incubation 24
Via\Landscape History of supporting & encouraging innovation A growing phenomenon» Innovation centres, incubators & accelerators are popping up everywhere with increasing frequency» Three generations of activity can be observed, with a 4 th generation perhaps emerging today 25
Via\Landscape History of supporting & encouraging innovation A growing phenomenon» 1 st generation centres (- 1980s) basic space and shared services (often trying to build new businesses - wake of closure of large employers) only 12 such centres in US in 1980 NBIA - National Business Incubation Association 26
Via\Landscape History of supporting & encouraging innovation A growing phenomenon» 2 nd generation aimed to provide specialist inputs that start-up businesses lacked, 70 new centres were opening p.a. in the US by 1987» Mentoring is the new, big idea NBIA - National Business Incubation Association 27
Via\Landscape History of supporting & encouraging innovation A growing phenomenon» 3 rd generation from mid 2000 s onwards, post dot-com bubble, post globalisation - NBIA estimates there are more than 7,000 centres worldwide» Networking is the new benefit. NBIA - National Business Incubation Association 28
Via\Landscape History of supporting & encouraging innovation A growing phenomenon An emerging 4 th generation sees the larger accelerators expanding internationally, others becoming more specialised, many new entrants and ways to dip into an ocean of activity. NBIA - National Business Incubation Association 29
Via\Landscape Example: Innovation Centre Innovation Centre London BioScience Innovation Centre The London BioScience Innovation Centre (LBIC) provides a focus for life sciences activity in the UK capital, offering laboratory and office facilities of an exceptionally high standard and a professional front door that cannot fail to impress. Owned by the prestigious Royal Veterinary College, LBIC is home to over 50 biotechnology and life science companies in central London, including small start-ups and more established players. 30
Via\Landscape Example: Incubator Incubator NovaUCD NovaUCD is the hub for new ventures and entrepreneurs at University College Dublin. NovaUCD is a purpose-built, state-of-the-art incubation facility for knowledge-intensive companies. At NovaUCD, a comprehensive business support programme for client companies is provided. This programme comprises advice, seminars and workshops as well as facilitated access to the NovaUCD network of researchers, business leaders and investors. 31
Via\Landscape Example: Accelerator Accelerator Mass Challenge Currently there is a gap between the resources these entrepreneurs need and the ability of the entrepreneurial ecosystem to provide them. We are addressing this gap by launching the world s largest accelerator program and startup competition. We use the power of competition to create urgency, and to identify and aggregate high-impact teams and resources. We strengthen and accelerate entrepreneurs by providing them high-quality, personalized mentorship and by connecting them to potential team members, advisors, customers and sponsors. (The Boston programme is a 4 month commitment.) 32
Via\Landscape Example: Competition Competition HULT prize The annual competition for the Hult Prize aims to identify and launch the most compelling social business ideas start-up enterprises that tackle grave issues faced by billions of people. Winners receive $1m in seed capital, as well as mentorship and advice from the international business community. 33
Via\Landscape Example: Meta-Accelerator Meta- Accelerator Unilever Foundry Every day 2 billion people use a Unilever product, across 400 brands in 190 countries. This means that we can offer innovative companies unrivalled opportunities to scale. The Unilever Foundry is the hub for Unilever s engagements with technology innovators. Through the Foundry, people and companies can access Unilever s expertise through The Academy, pilot projects with our brands and receive investment from Unilever Ventures. 34
Via\Landscape Different approaches across the landscape Offerings Brief Description Office Space Lab Space Explicit Tenancy Duration Money Front of House Support Back of House Support Publicity Programm e Mentors Competition Cash prize and publicity Innovation Centre Office space Incubator Accelerator Office space and on-going support Time-bound guidance and support Meta- Accelerator Networks of multiple accelerators 35
Via\Landscape Different plays across the landscape Competition Innovation Centre Incubator Accelerator Meta-Accelerator 36
Emerging Best Practise 37
Evidence of growth potential Via\Best Practise Needs change as companies develop A dynamic Incubator needs a mix of companies and programmes high Up and Comers Incubate Long Shots? Accelerate Big Wins! Leverage success stories Safe Bets Support» Accelerator programmes quickly sift through lots of Long Shots to identify Up and Comers» Incubation programmes add most value to and create most value from Up and Comers but may need a few Safe Bets, to create a stable base» but how patient and well funded do you need to be? low low Business maturity Technology and business readiness high Adapted from Mark P. Rice, Worcester Polytechnic Institute, MA, USA 38
Via\Best Practise Successful spin-outs and spin-ins» Spin-out from research at Waterford Institute of Technology, Ireland, in 2010» Provides cloud-based enterprise application solutions for m-commerce» Raised 7m in 2013, led by Intel Capital» To fund international growth and grow from 40 to 100 employees» Acquired by Red Hat in Sept 2014 for 63.5m» Spin-in to business incubator at NUI Galway, Ireland» Licensed technology from Georgia Institute of Technology, Atlanta, USA» Began product development in 2011» Successful multi-centre clinical trial ended in 2013» Acquired for US$75M by Thoratec Corporation, July 2014 39
Via\Best Practise Orchestrating the ecosystem The imperatives for success» Operate an Innovation Centre and Incubator Programme that act as magnets for ideas and funding» Assemble the business mentors that become expert guides» Draw in entrepreneurs who bring ideas and pick up the new ideas they find inside» Reach out to the local companies that are the gateway to the world. 40
Via\Best Practise Orchestrating the ecosystem The right people and the right ideas brought together to create Fusion based on the convergence of shared strategic priorities Jobs Vibrant economy Companies of the future Local Ecosystem Gateway to the world Entrepreneurs Idea fuel Support networks Expert guides Innovation Centre & Accelerator Magnet for talent and funding Business Park or University 41
Via\Best Practice Making it happen Critical Success Factors for Acceleration» Start open and expansive more applicants, will return more quality projects» Attract the best people include people with prior business experience» Draw in problems worth solving from across the external landscape» Coalesce the problems worth solving by us into ideas and strong business teams» Be flexible to different speeds allow time to pivot and re-focus around a new need» Leverage mentors and access to external companies» Validated problem + high performance team = success» Communicate successes and build prestige» Track key metrics e.g. jobs created and investment raised by alumni teams 42
Via\Best Practice Making it happen Critical Success Factors for Incubation» Focus on areas where we can create world-beaters that matter to us. Align with accessible ecosystem» Achieve economies of scale through partnerships and complimentary relationships» Pull in teams that are graduates of incubator programmes (wherever they are)» Attract spin-ins, not just spin-outs» Create a mix of current and future plays» Leverage mentors and access to external companies» Provide focused, tailored, structured interventions spin-outs need more support than spin-ins» Track key metrics jobs created and investment raised by alumni companies 43
Via\Best Practise Orchestrate the ecosystem Business parks as orchestrators Local Ecosystem Gateway to the World» Innovation Centres need to attract and orchestrate all the players Entrepreneurs Idea Fuel Fusion Business Park» Support Network need to provide the relevant and complete expertise to guide Innovation Centre nascent businesses Magnet for talent & funding» Local Ecosystem needs to provide market insight, access and funding opportunities Support network Expert guides» Entrepreneurs need to bring their best ideas to the table 2014 Viadynamics\Incubation 44
Via\Landscape History of supporting & encouraging innovation Where is it going? An emerging 4 th generation sees the larger accelerators expanding internationally, others becoming more specialised, many new entrants and ways to dip into an ocean of activity. NBIA - National Business Incubation Association 45
Via\Best Practice Where is it going? Key issues and challenges» Finding a needle in a haystack, when there are over 7,000 centres in operation» Complimentary start-ups finding each other and co-developing» Those that don t make it. Counting the human cost» Competing with California» Innovation ecosystems for the 21 st Century 46
Via\Best Practice Forging connections, in the age of Open Innovation Where is it going? 47
Via\Best Practice Counting the human cost Where is it going? 48
Via\Best Practice Competing with California Where is it going? 49
Via\Best Practice A new breed of innovation ecosystem Where is it going? 50
Via\Landscape Orchestrating the ecosystem Accelerators and incubators play a key role 1. There is an imperative to build the businesses of tomorrow 2. Investing early is likely to lead to financial losses 3. We have to find smart ways of working that minimise these losses 4. We have to share the costs, the risks and the pay-offs for the wider good.. orchestrate the ecosystem 51
Approach\What Contact For more information Nicholas Duggan Partner nicholas.duggan@viadynamics.com M +353 (0)86 8228707 52