surfing the green wave: how to build an ecosystem for clean tech entrepreneurs

Surfing the Green Wave How Europe can build an ecosystem to turn our

carbon addiction into new business

Frans Nauta Global Clean Tech Finland

9 September 2015, Helsinki@fnauta

sanderijn cels jorrit de jong frans nauta

Agents of Change

strategy and tactics for social innovation

Surfing theGreen Wave

2008 2012 2016

Climate-KIC Accelerator

Data points

• Started in 2012

• 13 cities in CH, D, DK, F, H, I, NL, UK, PL, SP

• 164 teams entered accelerator 2014

• Circa 40% make it to Stage 3

• Portfolio has attracted > 100 M€ in funding

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891

1939

Fred Terman @ Stanford

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891 1941

1951

1939

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891 1941

1951

1939 1958

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891 1941

1951

1939 1958

1

5

4

3

2

Five ecosystem issues

• Lack of startup culture in academia

• Startup acquisition by corporations

• Government funding beyond paper

• EU Venture Capital

• Leadership issue

1

3

2

4

5

Slush EU for Clean Tech1

Less R&D subsidies2

years to market ➡

R&

D foc

us ➡

5 10 15 20

Corporations GovernmentR&D Time Horizon USA Corporations

1970

1980

19902000

years to market ➡

R&

D foc

us ➡

5 10 15 20

US Corporations Government

R&D Ecosystem USA

US Venture Capital

years to market ➡

R&

D foc

us ➡

5 10 15 20

EU Corporations Government

R&D Ecosystem EU

EU Venture Capital

Action funding3

Action funding3

Time for EARPA

• Funding for action

• Challenges model

• Bringing in the best & brightest

• And then kick them out again

➡ Revolving door policy

VC asset class

Bill

ion

$

0

1000

2000

3000

4000

5000

2009 2010 2011 2012 2013 2014

EU+IS North America Rest of World

Source: Clean Tech Groep, I3 database, 2014

4

Israel’s ‘Fincubator’

• Incubator combined with investment fund

• 100 k€ VC, 500 k€ government funding, 30%

• Tender process

• 23 Fincubators

- Market focus

- Regional spread

➡ Corporates are getting in on the action

Existential threat & vision = great things

• USA - 40ies R&D War

• Netherlands - 50ies Water management

• Israel - 50ies Defense

• USA - 60ies Moonshot

• Denmark - 70ies Wind power

• Germany - 80ies Green energy

5

Politicians are like VC’s

Summarized

• Slush for Clean Tech

• Less R&D subsidies

• Action funding - EARPA

• Fincubators

• Much better sales

1

3

2

4

5

Thank you for your attention

@fnauta