Startup Ecosystems Bjoern Lasse Herrmann, Founder of Compass & Startup Genome Bitspiration Conference, Krakow
Agenda Compass & Startup Genome The players and their pain points Why and how ecosystems matter Role of the ecosystem and how they differ Examples of companies leveraging ecosystems
Startup Genome Based on Stanford study 2010 In collaboration with Stanford, Berkley & Oxford Extracted expert knowledge from thought leaders Built Predictive Models, Contributory Database & Artificial Intelligence Published the three reports with ~50k downloads adopted by 100+ Universities
Compass.co the first analyst in the cloud
The painpoint? Players: Entrepreneurs, Investors, Talent, Service Providers, Corp Dev and Policy Makers Entrepreneurs: Which ecosystem is the right to start and/or to expand my company? Investors: Where are good companies that give me good returns? Policy Makers: How can we help local ecosystems to grow? Corp dev: Where are the companies that we can acquire? Talent & Service Providers: Where are the right companies to work for?
Explosion of Technology Entrepreneurship Entrepreneurial Enlightenment
Massive Impact on Economy 90% Job Growth in the US
The Big Shift = socioeconomic structural shift 50% of the service industry will turn into software
Role of Ecosystem 1. Attract Talent 2. Empower/Inspire talent to start new companies or to join companies 3. Providing talent with capital, knowledge, mindset and support infrastructure to succeed. At different stages of the company different types of funding sources and infrastructure is required. 4. Retaining Companies & Talent
Role of Ecosystem 1. Seed - first few startups within a concentrated area e.g. Route 128 in Boulder or University Avenue in Palo Alto. 2. Hype - first success stories, more talent and investors migrate 3. Independence - ecosystem becomes self sustaining 4. Integration - local & global consolidation of talent and capital 5.1 Sustained Expansion - global integration and continious growth 5.2 Ossified Expansion - slow renewal, flat growth 6. Contraction - braindrain, no renewal
Ecosystem Index Startup Output Index: The startup output index represents the total activity of entrepreneurship in the region, controlling for population size and the maturity of startups in the region. Funding Index: The funding index measures how active and how comprehensive the risk capital is in a startup ecosystem. Company Performance Index: The Company Performance Index measures the total performance and performance potential of startups in a given startup ecosystem, taking into account variables such as revenue, job growth, and potential growth of companies in the startup ecosystem. Mindset Index: The mindset index measures how well the population of founders in a given ecosystem thinks like a great entrepreneur, where a great entrepreneur is visionary, resilient, has a high appetite for risk, a strong work ethic and an ability to overcome the typical challenges startups face. Trendsetter Index: The trendsetter index measures how quickly a startup ecosystem adopts new technologies, management processes, and business models. Where startup ecosystems that stay on the cutting edge are expected to perform better over time. Support Index: The support index measures the quality of the startup ecosystem s support network, including the prevalence of mentorship, service providers and types of funding sources. Talent Index: The talented index basically measures how talented the founders in a given startup ecosystem are, taking into account age, education, startup experience, industry domain expertise, ability to mitigate risk and previous startup success rate. Differentiation Index: The differentiation index measures how different a startup ecosystem is to Silicon Valley, taking into account the demographics and what types of companies are started there.
Ecosystem Ranking
Painpoints of Krakow - no paying if forward culture - little support infrastructure - raising money - going/thinking global - ability to pitch - too many people focus on Polish market - investors are little or not educated
Global Ecosystem Soundcloud Ostrovok Citusdata Lemon Accel, Greylock, Andressen Horowitz and 500 Startups
Questions? Check out the Compass at compass.co send us an email at bjoern@compass.co download the report at blog.startupcompass.co Follow me at @bjoernlasse Text