dietmar harhoff - unimunich lmu - gsva - stanford engineering - feb 6 2012 - version 20120211
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I ti d E t hi iInnovation and Entrepreneurship in GermanyGermanyGerman Technology and Life Sciences Startup Bridges with Silicon Valley
EEITL SeminarStanford University Dietmar HarhoffDietmar HarhoffUniversity of Munich
F b 6th 2012February 6th, 20121
AgendaAgenda
• The LMU Entrepreneurship CenterR h d I ti i G• Research and Innovation in Germany
• Entrepreneurship and VC in Germany• German Silicon Valley Accelerator – A New Bridge ‐History, Concept and Outlook
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THE LMU EC OF TODAY IS THE RESULT OF JOINED EFFORTS
Timeline2000 20082007 2011
Initial donation of500 000€ f R lf
establishment off l t t
Winner of majortt t
Development of 500,000€ from Rolf Dienst, Founder of
Wellington Partners toProf. Dietmar Harhoff
formal structureand creation ofLMU EC Lab
governmentt grant -400,000€ per year
for 3 years2007-2010
the major entrepreneurship community in the region of Munich
Studentsper year
100 600 700 1000
Number ofNumber ofincubatedstart-ups
0 0 16 49
Number ofindustry 1 1 2 18
Page 3 July 2011
partners
WHAT WE PROMISED AND WHAT WE ACHIEVED: THE LMU EC AS A CATALYZER FOR ENTREPRENEURSHIPCATALYZER FOR ENTREPRENEURSHIP
Milestones achieved in 3 yearsMission
We educate tomorrow‘s entrepreneurial leaders
TeachingExpansion of course offering from1 faculty in 2007 to all 18 facultiesof the LMU in 2010
We support the creation of successful ventures
Lab49 start-ups and over 120 new jobsin 43 months and over 4 million € in financing raised for founders & start-ups
We promote a culture of entrepreneurship
CommunityOver 7‘000 membersin our online community portalwww.entrepreneurship.info
We make outstanding contributions in entrepreneurship research
Research 5 research projects in the fields of entrepreneurship and intrapreneurship
Page 4 July 2011
LMU Entrepreneurship Center COMMUNITY
Dr. Thomas Strüngmann
Walter Gunz, Founder of Media
Erich Lejeune, Selfmade entrepreneurStrüngmann,
Founder of HexalFounder of Media Markt
Selfmade entrepreneur
Mark Zuckerberg, Founder of Facebook
Oliver Samwer, Internet entrepreneur
Arndt Kwiatkowski, Internet pioneer
Heinz Herrmann Thiele Knorr Bremse
Page 5 July 2011
Internet entrepreneur Internet pioneer Thiele, Knorr-Bremse
LMU Entrepreneurship Center LAB: SUCCESSFUL EARLY-STAGE INCUBATOR FOR 49 START-UPSINCUBATOR FOR 49 START-UPS
Our Support Services: Currently 49 Teams (Selected Examples):
*
Key Success Indicators:
Material Support *
*
**
• Over 120 jobs created
• Over 4 M€ of Angel & VC financingfor the start-ups
Coaching and Mentoring
**
• Over 1.7 M€ in governmentfunding for founders of 28 teams
• Survival rate of over 85% 6 h f I b i
Financing SearchSupport
** *
*
months after Incubator exit
• Various Awards for LMU EC Start-ups, ie. Munich Business Plan Competition, Start-up of the
Training & Seminars
p pMonth, Financial Times, Tesla Award, German Multimedia Award etc.
Page 6 July 2011
* 35% of all exiting teams have recieved Angel or VC financing
LMU Entrepreneurship Center: Structure and Governance
Ludwig-Maximilians-University MünchenMünchen
Foundation forEntrepreneurship atthe LMU München
100%subsidiary
Cooperation agreement*
A model for future cooperations between
universities and businesses
Tech Transfer Center & Spin Off Services
Innovation Chair
TeLMU Entrepreneurship
Center
(C f lt i tit tiLMU
Entrepreneurship
businesses
(Cross-faculty institutionwithin the LMU)
EntrepreneurshipGmbH
Page 7 July 2011
* Cooperation agreement between three parties: LMU München, Foundation andGmbH
Research and Innovation in GermanyResearch and Innovation in GermanyMost of the slides used in theMost of the slides used in thefollowing slides orginate fromannual reports of the Expert Commission Research andInnovation.
The next report „Gutachten 2012“ will be handed to ChancelorMerkel on February 29th, 2012.
English language pdf versionsavailable at www.e‐fi.de.
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Research and Innovation in GermanyResearch and Innovation in Germany
• R&D* performed by three major groups– enterprises (46.9 billion € – 67%)– universities (12.6 billion € ‐ 18%)– public research organizations (10.2 billion € ‐ 15%)
• overall R&D intensity now at 2.82% of GDP (since 2009 en par with USA)( p )
• R&D as well as exports strongly focused on automotive, chemicals and machineryautomotive, chemicals and machinery
• much smaller role of ICT, pharma and life science
*Note: data for 2010 9
Research and Innovation in GermanyResearch and Innovation in GermanyR&D Expenditures as a Share of GDP in Selected Countries
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Research and Innovation in GermanyResearch and Innovation in Germany
G i h l di R&D f• Germany is not among the leading R&D performers(top group comprised of Sweden, Finland, Korea, Japan)Japan)
• structural reasons: industries with high R&D intensitynot strongly represented in Germanynot strongly represented in Germany
• export success almost exclusively driven byestablished industriesestablished industries
• result: political economy not always in favor of VC and entrepreneurship (with some notable changesand entrepreneurship (with some notable changesrecently)
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Entrepreneurship and VC in GermanyEntrepreneurship and VC in Germany
G h b l i h i i f• Germany has been lagging other countries in extent ofentrepreneurship, startup rates and VC investments.Si id 1990 i bli t h t• Since mid‐1990s various public support schemes tostimulate entrepreneurship
public support for VC funds– public support for VC funds– early‐stage support for foundes (EXIST founder stipends)– build‐up of entrepreneurship centers at universitiesbuild up of entrepreneurship centers at universities– a.k.o. Bayh‐Dole for Germany (in 2002)
• moderate success with some clusters being particularlymoderate success with some clusters being particularlysuccessful
• no breakthrough yet for VC tax treatment andno breakthrough yet for VC tax treatment andregulation
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Entrepreneurship and VC in EuropeEntrepreneurship and VC in EuropeVC Investment by Country of Portfolio Company as a Share of GDP in Selected Countries
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Entrepreneurship and VC in GermanyEntrepreneurship and VC in Germany
h h hi h h i• Why are there no high‐growth startups in Germany (Europe)? Why no SAP‐repeat?
• Main reasons?– lack of research results and ideaslack of research results and ideas– lack of capable entrepreneurs– cultural aspects– cultural aspects– lack of appropriate regulation and incentives
t t l E k t– structural reasons: European marketfragmentation
… and some bright spots despite the complaints14
Early Stage Venture Capital Investments 2008‐ 2011 by Bundesland
140
2008‐ 2011 by Bundesland
Baden‐Württemberg
Bayern
100
120 Berlin
Brandenburg
Bremen
80
ent(M€) Hamburg
Hessen
Mecklenburg‐Vorpommern
60
Investme
Niedersachsen
Nordrhein‐Westfalen
Rheinland‐Pfalz
20
40 Saarland
Sachsen
Sachsen‐Anhalt
0
20
2008 2009 2010 2011**
Schleswig‐Holstein
Source: BVK/PEREP Analytics. ** 2011 data estimated based on Q1‐Q3 data.15
German SiliconGerman Silicon Valley Acceleratory
A New BridgeHistory, Concept and OutlookHistory, Concept and Outlook
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GSVA historyGSVA history• by no means a new concepty p• inspired by Austrian, Canadian, Scandinavian, … examples• very helpful report on bridging organizations by Eilify p p g g g y
Trondsen• model validated with in‐depth research of several startup
cases, including Aloqa (an LMU startup)• concepts refined and financing secured in 2010 and first
half of 2011
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GSVA programGSVA program• 3 months participation in GSVA program for selected p p p g
startups • 3 months extension possible• program over 3 years, EUR 2.5m• 42 companies, 19 extended stays• hosted in Plug & Play Tech Center, Sunnyvale• main sponsor BMWi (90%), external sponsors 10%p ( ), p
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Who can apply?Who can apply?• incorporated in Germanyp y• typically not older than 3‐5 years• ITC space (HW, SW, internet, mobile, wireless, medical p ( , , , , ,
devices)• business plan demonstrates growth potential and
international expansion plans
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GSVA objectivesGSVA objectives• understand Silicon Valley and US „Business y „
Environments“ • develop and understand a US go‐to market strategy• gain market feedback from US beta‐customers• benchmarking of business plan• introduction to fundraising process (business angels/VC
investors)• successful networking / pitching• benchmarking of management team
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GSVA is successful whenGSVA is successful when …• … startups successfully enter the US marketp y• … startups establish a presence/operations in Silicon Valley• … startups will be more successful in its German/European p / p
markets upon return• … overall learning (networking, go‐to market strategy
definition, team mapping etc.)
• … GSVA becomes a permanent two‐way bridge for contacts between founders, mentors, venture capitalists, business
langels21
GSVA servicesGSVA services• office space p
startups are provided with a dedicated semi‐open office space for 1‐2 persons including conference room access and high speed internet.
• kick‐start workshopt t ti i t i 3 d t i i t idstartups participate in a 3 day training camp to provide an initial overview
• networking events• networking eventsstartups have access to network and community events
• visa supportvisa supportstartups are supported in obtaining appropriate US visa
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GSVA mentoringGSVA mentoring• mentoring fine‐tuned to each startup’s needsg p• core group of mentors plus specialized mentors• Startup to be accompanied by one lead mentorp p y• particularly important themes
• US go‐to‐market strategy• marketing, sales and business development• communication & presentation skills• financing strategy• team building and completion
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GSVA teamGSVA teamChairman: Dietmar HarhoffCEO: Dirk KanngiesserVP BusDev: Oliver Hanisch
mentorsmentorsAdvisory Committee Silicon ValleySteering Committee GermanySteering Committee Germany
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Important GSVA datesImportant GSVA dates• 2012/2/1 – first startups have arrived at GSVA/ / p• 2012/2/2 – launch event GSVA Silicon Valley
• 2012/3/28 – selection of Q3/Q4 2012 participants2012/3/28 selection of Q3/Q4 2012 participants• 2012/3/28 – launch event GSVA Berlin at TU Berlin
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GSVA contactsGSVA contactswww.germanaccelerator.comg
[email protected] @g+1 (408) 840 [email protected]@germanaccelerator.com+49 (89) 2180 [email protected]@germanaccelerator.com+1 (408) 320‐5720
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