Business Creation in KIC InnoEnergy 25th June 2012 Elena Bou KIC Innovation Director
Index 1. KIC Innovation Strategy 2. The InnoEnergy Highway 3. Integration of Entrepreneurship in KIC InnoEnergy Activities 4. Achievements until today 5. Fostering Excellence: Innovation Network Development Activities 2
1. STRATEGY 3
Analysis on the Entrepreneurship in the Energy sector Entrepreneurship ecosystem R.C Business Approach Access to knowledge & technology Technology transfer & commercialization Entrepreneurial initiative Access to market Univ. Business Creation Support Services Access to finance Source: Bou, 2010 4
Analysis on the Entreprenuership in the Energy sector Entrepreneurship ecosystem R.C Business Approach Access to knowledge & technology GA AP Technology transfer & commercialization GA AP Entrepreneurial initiative GAP Access to market Univ Business Creation Support Services Access to finance GAP 5
KIC Unique selling proposition Why is it different? We fill the existing gaps Gap 1: Business opportunities coming from technology are not easily identified. Traditional objective: number of patents. Why? Lack of systematic process + academia and researchers lack of business orientation. KIC InnoEnergy aims to bridge this gap through a systematic scouting process involving industry needs and training programmes to change culture among researchers and academics (e.g. From Science to Business course) Gap 2: Traditional support services for business creation (incubators) are usually close systems with low business approach and few of them specialized in the energy field. As a consequence: few start-ups and/or spin-offs, low impact or with a doubtful future sustainability. KIC InnoEnergy aims to bridge this gap through a European business accelerator specialized in energy and open to any business opportunity (coming from KIC or not), where entrepreneurs will receive services and value through 4 dimensions (Technology, Market, people, capital): The InnoEnergy Highway TM Objective: future Google s of the energy field Gap 3: New ventures have difficult access to market. KIC InnoEnergy fills this gap including customers/industry all through in the value chain. Gap 4: Access to finance is crucial as energy ventures are highly capital intensive KIC InnoEnergy fills this gap establishing his own European VC network and Investment Fund. Gap 5: Energy is a heavily regulated sector across the value chain KIC InnoEnergy bridges this gap establishing a continuous dialogue with legislators (e.g. Annual Meeting) 6
Innovation and Business Creation An integrated Strategy The creation of new business and the growth of existing level ones is a key priority of KIC InnoEnergy. Vision: the most relevant in the energy field: More potential to be in the stock market in 5 years time KIC InnoEnergy Highway 1 Ideas Management Pre incubation Stage Incubation Post Incubation Entering Pre requisit First evaluation:ok Positive Opportunity Assessment Still exists opportunity Exists an Opportunity+product/service Start up already created possitive assessment Gate 0 Gate 1 level 2 Gate 2 Gate 3 Gate 4 Gate 5 Capturing Opportunities Opportunity Assessment More numberof jobs created td / Pull-external Push external Events Preliminary Analysis Market competitive assessment (IP, Tech, commercial) Team assessment (leadership, skills & competences) Coach Assignment Customer/Industry Discovery(1) (product market fit) MARKET ANALYSIS (identifying opportunity quantitative analysis) IP Rights protection (patent application) Business Creation workshops Customer/Industry Discovery (2) (product market fit) Start up Legal constitution & equity construction Business Model Definition Business Model Quantification (Business Plan v.0) Commercial action / Support/ business consulting Launching customers Growing & Business Development Assessment Manufacturing scale up Technology Transfer (Scouting Technologies) Venture Captial / IPO funding Pull-internal Push-internal Innovation novelty assessment Roadmap Design Technology Enhancement Pre seed funding Team creation Customer/Industry Validation Industrialization Business management workshops Seed Funding (1) Business Plan Marketing & sales workshops Seed funding (2) Internationalization Value T: Technology M: Market P: People T M P M M T P M T P M M M T P M M P Signed Documents BC Service Agreement Definitive BCS Agreement + addendums kic accreditation Tangibles Deliveries Business case v.0 Roadmap Business Case & Market Analysis Business Model 1st euro Business Plan Poc Final Prototype Business Plan v.0 Pre serial units Checking points (after activity) X X X X X X X X Highest revenues growth rate: x% (CAGR) the most sustainable ones with higher survival rates the most international ones. Create and/or boost innovation ecosystems Innovation Network Development Unit Target customers Internal clients: entrepreneurial and business creation initiatives coming from KIC partners (universities, students, research centers and industry) External clients: entrepreneurial and business creation initiatives coming from any external customer (entrepreneur, researcher, SME or company).. who are not part of KIC InnoEnergy 7
2. THE KIC INNOENERGY HIGHWAY 8
VALUE PROPOSITION Distinctive features Focus Only one focus: specialized in sustainable energy Global Scope Bring the assets of the European Network and its top notch players in each discipline One European business accelerator with 6 entry points Launching Customers Commitment in the process to find the first client to the entrepreneurs / start-ups Process High added value itinerary adapted to the entrepreneur Market oriented process supported by first class experts 9
THE KIC INNOENERGY HIGHWAY What are we looking for? Researchers we look for new technologies to be launched into the market Inventors we look for new inventions to be launched into the market Entrepreneurial people we look for business people who want to create their own business Students we look for young entrepreneurs who want to create their business 10
KIC InnoEnergy Highway TM Activities (1/2) level 1 Ideas Management Pre incubation incubationstage Entering Pre requisit First evaluation:ok Positive Opportunity Assessment Still exists opportunity level 2 Gate 0 Capturing Opportunities Gate 1 Opportunity Assessment Gate 2 Pull-internal Pu Innovation sh-internal Pull-external Push external Events Preliminary Analysis novelty assessment Market competitive assessment ( Tech, commercial) Team assessm co Coac ent (leadership, skil mpetences) ch Assignment Roadmap Design Customer/Industry Discovery(1) (product market fit) (IP, lls & MARKET ANALYSIS (identifying opportunity quantitative analysis) IP Rights a protection (patent pplication) Business Creation workshops Customer/Industry Discovery (2) (product market fit) Technology Enhancement Pre seed funding T: Technology M: Market T M P M M T P M T Value P: People Signed Documents BC Service Agreement Definitive BCS Agreement + addendums Tangibles Deliveries Business case v.0 Roadmap Business Case & Market Analysis Poc Final Prototype Checking points (after activity) X X X X X 11
KIC InnoEnergy Highway TM Activities (2/2) Incubation Post Incubation Exists an Opportunity+product/service Start up already created possitive assessment Gate 3 Technology Transfer (Scouting Venture Captial / IPO funding Gate 4 Gate 5 Te chnologies) Team creation Start up Legal constitution & equity construction Business Model Definition Business Model Quantification (Business Plan v.0) Customer/ /Industry Validation Industrialization Business management workshops Seed Funding (1) Commercial action / Support/ business consulting Launching customers Business Plan Marketing & sales workshopss Seed funding (2) Growing & Business Development Assessment Manufacturing scale up Internationalization P M M M T P M M P kic accreditation Business Model 1st euro Business Plan Business Plan v.0 Pre serial units X X X 12
4 axis: People, Market, Technology & Capital Marketing & sales workshops Business management workshops Team creation Business Creation workshops Coach assignment Team assessment (leadership, skills & competences) Market competitive assessment Customer/Industry Discovery( (product market fit) MARKET ANALYSIS (identifying opportunity- quantitative analysis) Business Model Definition Business Model Quantification (Business Plan v.0) Customer/Industry Validation Commercial action / Support/ business consulting Launching customers Business Plan Innovation novelty assessment IP Rights protection (patent application) Technology Enhancement Industrialization Pre-seed funding Seed funding (1) Seed funding (2) KIC offers value through 4 main axis 13
3. INTEGRATION OF ENTREPRENEURSHIP IN KIC INNOENERGY ACTIVITIES 14
Integrating Education and Business Creation General Structure of educational Programs Des sign CURRICULUM + KIC CRITERIA General Content Entrepreneurship Specialization Internship Joint Business Plan² Implemen ntation Common courses Local universities¹ + Specific course 1 month length Business School + Cen nter of Excellence 1 Cen nter of Excellence 2 Cen nter of Excellence n + [ 3 months ] + [ 1 month ] Period 1 Period 2 Explore House Evaluation CONTINOUS EVALUATION Note 1: see Annex 1 for clarifying definitions Note 2: Business Plan should be done in groups together with MSc Management students- see product 2 + FINAL PROJECT Business Plan² Committee composed by RC, UNI, companies, BS 15
Integrating Education and Business Creation General Structure of educational Programs Des sign CURRICULUM + KIC CRITERIA General Content Entrepreneurship Specialization Internship Joint Business Plan² Implemen ntation Common courses Local universities¹ + Specific course 1 month length Business School + Cen nter of Excellence 1 Cen nter of Excellence 2 Cen nter of Excellence n + [ 3 months ] + [ 1 month ] Period 1 Period 2 Explore House Evaluation CONTINOUS EVALUATION Note 1: see Annex 1 for clarifying definitions Note 2: Business Plan should be done in groups together with MSc Management students- see product 2 + FINAL PROJECT Business Plan² Committee composed by RC, UNI, companies, BS 16
Example of integrating Entrepreneurship and Education Supporting KIC Innoenergy students in business plans competitions A team of students from the KIC InnoEnergy MSc Select reaches finals of anti-poverty business competition in the HULT Global Case Challenge - The Clinton Global Initiative (Energy challenge). The team reached the finals after taking part in a regional heat in London. Although they did not win the regional final, they subsequently took part in the online contest and won through to New York. The team received a "good luck" message from EU Education, Culture, Multilingualism and Youth Commissioner, Androulla Vassiliou In her message to the team, Commissioner Vassiliou said: "When creating the EIT, Europe wished to promote the innovation capacity of students like you so they can bring concrete answers to modern societal challenges. Your success in this competition is also a success for this new approach to innovation in Europe of which you are the first ambassadors. Supported by The project: Solar Lighting for Africa http://www.youtube.com/watch?feature=player_embedde d&v=i0talu7suk4 17
Integrating Research & Technology with Business creation EnThiPV: Improve lifetime of organic solar photovoltaic OPV cells and CIGS using affordable encapsulation. Develop advanced high barrier measurement instrument for industrial use TESCONSOL: Cost effective thermal energy storage systems (TES) for CSP with investment cost < 25 /kwh Energy Efficiency in Industrial Parks: Improvement of energy efficiency in industrial parks with SMEs -Selection based on Business Potential -Market analysis compulsory - Workpackages based on product/ service orientation -Identification of spin-offs to Highway NEPTUNE: Floating LIDAR equipment and software to reduce costs and risks for offshore wind farm site analysis, energy resource and operation condition short term forecast 18
4. ACHIEVEMENTS UNTIL TODAY 19
Innovation and Business Creation Services Achievements until today Gate 0 Gate 1 B.I. captured First filter (Preliminary Analysis) Opportunity Assessment ~ 20 under assessment ~ 16 under assessment >115 Business ideas received 53 Business ideas passed the first filter 16 in the pipeline June 2011 June 2012 20
Innovation and Business Creation Services Achievements until today Business Creation Services Strategic Development of KIC InnoEnergy unique selling proposition InnoEnergy Highway Design and Implementation First entrepreneurs running on the Highway* More than 115 business ventures initiatives captured Characterization of Entrepreneur Impact t team Gender Age segmen entrepreneur/t Female Male Above 40 Between 30 and 40 Less than 30 31% 6% 63% Decrease Energy cost Operational security Lower Gas Emissions 0% 20% 40% 60% 80% 100% 120% 21
Some ventures supported Northstar Telemetrics: Optical Automatic Meter Reader system automates the collection of utility meter data in housing and industry without changing the actual meter infrastructure. Parkgreen: ParkGreen is a modular photovoltaic carport (PV-carport) system thatt integrates t re-charging power points for electric vehicles (EV s) and an interface to intelligent control. The objective is the link between energy generation by renewable resources, e-mobility, energy accumulation and smart-grids.. gids Enerbyte: Enerbyte exploits grid information and offers a tool and familiar commonplace of added- value products and services for the consumers, energy commercializing and distributing companies. It contributes to the transition from a centralized to a decentralized electrical energy system. 22
Some ventures supported HelioCaminus will offer homeowners, residential associations and property managers a high h quality, stylish solar thermal collector whose design blends into virtually any roof, without degrading the building's architecture. Reducing carbon dioxide emissions i from heating of homes and money for the consumers. vision: "A solar collector on every roof." Noem: Sustainable, modular and transportable houses that result in up to 90% energy savings vis-à-vis traditional housing solutions. Worldcoo WorldCOO is an interactive network, where members propose engineering projects of international cooperation and where business and people have the possibility to fund them. 23 23
5. FOSTERING EXCELLENCE: INNOVATION NETWORK DEVELOPMENT ACTIVITIES 24
INDU Innovation Network Development Unit Areas of activity The INDU is the corporate Unit of the KIC in charge of the innovation strategy and the development of the innovation system leading the implementation of their different components assuring learning, development and growth through h three main activities: iti INDU Internal Development InnoEnergy + projects In Company Trainings Improve performance by monitoring performance, identifying best practices and sharing through the network Access to finance Entrepreneurship ecosystem Access to market Access to knowledge & technology Business Creation Support Services Technology transfer & commercialization Entrepreneurial initiative Business Approach Knowledge creation for new tools and methodologies: innovation networks innovation management entrepreneurship 8.00 7.00 6.00 5.00 4.00 3.00 2.00 KA 10 KA 13 KA 9 KA 7 KA 12 KA 6 KA 5 KA 16 KA 11 KA 15 KA 14 KA 4 KA 3 KA 1 KA 2 KA 8 KA 18 KA 17 KA 19 KA 20 Design and deliver internal development workshops to develop and enhance competences and knowledge of KIC team 1.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 25
Innoenergy+ projects On-going g projects 2011-2012 SUCCESS+ Objective The main objective of SUCCESS+ is to inquire about how collaboration of diverse actors in complex projects can be enhanced identification of tools and mechanisms in order to reduce the distance and assure effective collaboration Energy Entrepreneurship Talent (E2TALENT) Objective Empirical study of the energy sector in order to identify and develop key competences of successful energy entrepreneurs Tool and Platform to detect, measure and manage the competences of our entrepreneur teams Mapping Collaboration Potential (k map) Objective Practical study to validate an innovative mapping tool which identifies the Strategy Knowledge Assets and culture of organizations and evaluates the potential to collaborate, in which areas and viability. 26
Thank you for your attention! Elena Bou KIC InnoEnergy Innovation Director elena.bou@kic-innoenergy.com innoenergy com KIC InnoEnergy is funded by: KIC InnoEnergy Boosting Innovation for Sustainable Energy Speaker: Name 27