UNLOCKING THE VALUE OF ICT ENTREPRENEURSHIP ECOSYSTEM A GLOBAL PERSPECTIVE World Telecommunication and Information Society Day Mauritius, 18 May 2016 Anibal Martinez - Denis Lacour - Michel Cordani
CASE STUDY 1 EMERGING STARTUP CULTURE Main issue: No entrepreneurial culture. A few startups, but no growth. Many young people want to create their startup, but they lack experience and resources. Government efforts to support startupers are perceived as not innovative and dynamic enough. Co-working spaces blossom recently ; some designed as start-up hubs, made by entrepreneurs for entrepreneurs Talking about a digital revolution!
ENTREPRENEURSHIP ECOSYSTEM BUILDING BLOCKS Business oriented Leading to high-value jobs 1. EDUCATION Mass-communication partners Build entrepreneurial spirit 5. MEDIA & EVENTS STARTUP ECOSYSTEM 2. FACILITATORS Incubators / Accelerators Develop raw ideas into viable business Business angels / CorporateVC / Private equity / Fast, flexible, accessible 4. CAPITAL 3. STARTUPS Mix of local and international Talking about real entrepreneurs
ECOSYSTEMS GET MEASURED AND BENCHMARKED startupgenome.co? WHAT DO THEY HAVE IN COMMON? They are all cities (not countries), around and over 1M inhabitants
WHY CITIES? SOCIAL ASPECTS Rich history and a mix of various cultural traditions: Entrepreneurs and artists are like-minded, they share a creative and innovative mindset Multicultural diversity fosters exchange of best practice and mutual interest Sense of belonging: Startuppers look to immerse themselves and actively participate to city life, they contribute to make the city vibrant DEMOGRAPHICAL ASPECTS High density of population enabling: Fast access to resources Fast access to market(s) Fast access to private capital Reduction of commuting time
CASE STUDY 2 BERLIN, A SUCCESS STORY Cheap Cash is king Proximity matters! Access to market New place to be for startuppers Vibrant ecosystem Startuppers need to be energized! Mix of startups, freelancers, designers, artists Creativity Connected to other ecosystems International community of startuppers
MAURITIUS BUILDING A SUCCESSFUL STARTUP ECOSYSTEM
MAURITIUS ASSETS THE USUAL STUFF Ease of doing business Work & Live good quality standards Political, social and economical stability Tradition of partnerships between foreign capital and local businesses Advantageous corporate fiscal climate Ability to launch new sectors from scratch: Tourism, Global Business, ICT/BPO The BoI s investors brochure is quite valid for startuppers!
MAURITIUS ASSETS RECENT ADDITIONS Financing - Infrastructure & Services - Mentoring & Coaching - Networking Business Angels more present than traditional financing Growing number of business incubators and accelerators Good potential for African hub for startups, easy access to regional markets
MAURITIAN CITIES WITH HIGH POTENTIAL PORT-LOUIS & MAHEBOURG (EXAMPLES) In synch with startuppers creative mindset Most charismatic historical cities in the Indian Ocean region Economically vibrant (Port-Louis) Emerging cultural movement Porlwi By Light, artists coffee shops, music and theater festivals, etc. Affordable costs Well connected with public transport Pleasant cities to work in and kas poz Offices, co-working spaces and business accelerators Plenty of public and private historical buildings with potential for startup Granary, Chinatown, St Georges in Port- Louis, old Mahebourg
PORT LOUIS
MAHEBOURG
WHAT ABOUT A TROPICAL VALLEY? POWERFUL DIFFERENTIATING BRANDING Historical heritage Pleasant place to live and work Much better cost of living African hub for entrepreneurship Cities surrounded by green / nature Valley of Port-Louis Case Study: Ubud in Bali, Indonesia
THE MODEL: ICT-BPO SUCCESS STORY METHODOLOGY 2004 2016 1. Import talent first 2. Transfer of technology, knowledge and capital 3. Scale-up 4. Emulate with local ventures RESULTS +500 operators, good mix of local and foreign owned Almost 20,000 jobs created KPO gaining traction over BPO
TRANSFORMING AN IDEA INTO REAL LIFE
HOW GOVERNMENT COULD ENABLE THE MISSING ASSETS FACTS Startuppers are ENTREPRENEURS but not necessarily SELF-INVESTORS Few of them will be able to self-invest Average start up capital is 25,000 $ Government Adapt O.P. scheme / visas Distinguish entrepreneurs from investors Promotion: NCB (local), MRC (academia), BoI (global) Start-up / Innovation Tropical Valley Business Angels: IRS people and former executives are good potential investors and mentors. Corporate Venture Capital: Invest in projects rather than in proprietary incubators. Investors Incubators / Accelerators Industry focused Certified business accelerators to recommend viable business plans Start-up visa people have n months to build viable business plans and secure funding (with reporting constraints)
LA PLAGE THE IDEAL DESTINATION FOR ICT ENTREPRENEURS La Plage is an incubator & accelerator. Initiated by ten ICT investors with the help of the Government of Mauritius (PPP: Public Private Partnership) A physical space to catalyse the ecosystem, with a blend of Mauritian and foreign entrepreneurs Selects and curates projects. Provides services dedicated to entrepreneurs (advice, mentoring, training, financing) Business Model: Provides services in exchange of capital (5 to 10%). Partners with different incubators and schools around the world, to maximize impact and exposure. To accelerate its success, Mauritius need to be exposed to the global ecosystem.
I AM AN INTERNATIONAL STARTUPPER. WHY WOULD I COME TO MAURITIUS TODAY? The pitch is all about admin / fiscal benefits > global business, rich expats. Nothing specific for startups (except Startup Mauritius)
CORPORATE VENTURE CAPITAL Corporate venture capital (CVC) is the investment of corporate funds directly in external startup companies. [1] CVC is defined by the Business Dictionary as the "practice where a large firm takes an equity stake in a small but innovative or specialist firm, to which it may also provide management and marketing expertise; the objective is to gain a specific competitive advantage. [2] The definition of CVC often becomes clearer by explaining what it is not. An investment made through an external fund managed by a third party, even when the investment vehicle is funded by a single investing company, is not considered CVC. [3] Most importantly, CVC is not synonymous with venture capital (VC); rather, it is a specific subset of venture capital. In essence, it is best to think of CVC as a subset of venture capital whereby a company is investing, without using a third party investment firm, in an external startup that it does not own. Examples of CVCs include Google Ventures and Intel Capital CVC has the potential to generate jobs, increase investment into early stage, innovative companies, particularly those making use of emerging and developed technologies, foster strategic alliances between growing companies and well established larger corporates, and ultimately grow GDP. An appropriate regulatory and policy framework can provide additional support to assist this fourth wave of CVC to continue its remarkable growth.