Workshop: “Startup Europe!”

Jessica  Stacey,  Nesta  

Digital  Venice,  08  July  2014  

 

The  European  Startup  Ecosystem  A  quick  look  at  the  stats  

Contents  

1.  The  big  picture  

2.  Show  me  the  money  

3.  Nurturing,  networks  and  support  

4.  The  wider  ecosystem  

1.  The  big  picture    What  we  know  about  digital  startups  

High  growth  firms  maHer    

Source:  Vital  Growth  (NESTA,  2011),  based  on  the  ONS  Business  Structure  Database  

2002-­‐05   2005-­‐08   2007-­‐10  

Firms   New  jobs  

Job  crea)on  by  exis)ng  UK  businesses  

Firms   New  jobs   Firms   New  jobs  

New  enterprise  creaVons  

Source:  OECD,  Entrepreneurship  at  a  Glance,  2013  

50

60

70

80

90

100

110

120

130

140

Norway Netherlands Russian Federation Spain Sweden United Kingdom United States

50

60

70

80

90

100

110

120

130

140

Australia Belgium Denmark Finland Germany Italy

90 110 130 150 170 190

France

UK  

Sweden  

Norway  US  

Russian  FederaVon  

Spain  

Australia  

Belgium  

Denmark  

Italy  Germany   Finland  

InnovaVon  in  digital  tech  is  reaching  a  Vpping  point  Digital  technologies  accounted  for  more  than  21%  of  GDP  growth  in  the  world’s  most  advanced  economies  in  the  past  five  years.1    Europe’s  digital  economy  is  expected  to  grow  seven  Vmes  faster  than  overall  EU  GDP  in  coming  years.  2    The  Boston  ConsulVng  Group  esVmates  that  the  digital  economy  will  contribute  a  total  of  $4.2  trillion  to  the  G20’s  total  GDP  by  2016,  which  means  that  if  the  Internet  were  a  naVonal  economy,  it  would  rank  in  the  world’s  top  five,  behind  only  the  US,  China,  Japan  and  India  –  and  ahead  of  Germany.        

   1    MaHhieu  Pélissié  du  Rausas  et  al.,  Internet  MaHers:  The  Net’s  Sweeping  Impact  on  Growth,  Jobs,  and  Prosperity  (San  Francisco,  McKinsey  Global  InsVtute,  2011).    2    European  Commission,  Copyright:  Commission  Urges  Industry  to  Deliver  InnovaVve  SoluVons  for  Greater  Access  to  Online  Content,  IP/12/1394  (Brussels:  European  Commission,  2012).    

 

European  ICT  Poles  of  Excellence  

Source:  European  Commission  JRC-­‐IPTS  

2.  Show  me  the  money    The  funding  environment  in  Europe  

The  three  main  areas  of  early  stage  investment  in  Europe  

 Source:  EBAN:  StaVsVcs  Compendium  2014  

 

European  VC  investment  conVnues  to  lag  the  US  as  a  share  of  GDP  

0  

0.002  

0.004  

0.006  

0.008  

0.01  

0.012  

0.014  

1997   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011  

VC  investment  as  a  share  of  GDP  UK   US   CE  

Crowdfunding  -­‐  it’s  big  business...  

$2.7  Billion  $945  Million  

...and  it  is  taking  off  in  the  Europe  

Raised  in  Europe  through  crowdfunding  in  2012  

Raised  globally  through  crowdfunding  in  2012  

 Source:  MassoluVon  2012  figures  

 

$2.7bn  in  2012,  predicted  to  have  almost  doubled  in  2013  

Source:  MassoluVon  

3.  Nurturing,  networks  &  support  The  rise  of  incubaVon  for  early  stage  ventures  

Growth  of  accelerator  programmes  

15  

•  53  programmes  in  Europe  •  703  companies  accelerated  •  2034  jobs  created    Source:  www.seed-­‐db.com,  March  2014  

www.startupfactories.eu  

Accelerator  and  Incubator  Ecosystem  in  Europe,  2012,  Telefonica    

4.  The  wider  ecosystem    The  impact  of  big  corporates,  universiVes  and  public  policy  

18  

More  corporate  accelerators  

More  corporates  involved  in  VC  

Entrepreneurship  &  innovaVon  in  UniversiVes  

Source:  Graham  (2014),  CreaVng  University  Based  Entrepreneurial  Ecosystems,  MIT  Skoltech  IniVaVve    

Public  policy  

Procurement   Investment  incenVves  

Digital  single  market   EducaVon  

•  Atlan)c  Dri7,  2011,  Nesta,  hHp://bit.ly/1r4Wh18    •  Crowdfunding  Industry  Report,  2012,  MassoluVon,  hHp://bit.ly/1maVnj5    •  European  Commission,  Copyright:  Commission  Urges  Industry  to  Deliver  Innova)ve  Solu)ons  for  Greater  

Access  to  Online  Content,  IP/12/1394  (Brussels:  European  Commission,  2012).    •  European  Digital  Forum,  hHp://www.europeandigitalforum.eu    •  Graham,  R.,  Crea)ng  University  Based  Entrepreneurial  Ecosystems,  (MIT  Skoltech  IniVaVve  ,  2014).  •  Mapping  the  European  ICT  Poles  of  Excellence,  2014,  European  Commission  JRC-­‐IPTS,  hHp://bit.ly/Rlw0yZ  •  MaHhieu  Pélissié  du  Rausas  et  al.,  Internet  MaMers:  The  Net’s  Sweeping  Impact  on  Growth,  Jobs,  and  

Prosperity  (San  Francisco,  McKinsey  Global  InsVtute,  2011).    •  OECD  Entrepreneurship  at  a  Glance,  2014,  hHp://bit.ly/1Va9sS    •  Startup  Europe  Partnship,  hHp://startupeuropepartnership.eu    •  Startup  Factories,  Nesta,  hHp://www.startupfactories.eu        •  Startup  Manifesto,  hHp://startupmanifesto.eu    •  Sta)s)cs  compendium  2014,  EBAN,  hHp://bit.ly/U0aCQt    •  The  Accelerator  and  Incubator  Ecosystem  in  Europe,  2013,  Telefonica,  hHp://bit.ly/1rKXHAr      •  The  European  Seed  Accelerator  Ecosystem,  2014,  Jed  ChrisVansen,  hHp://bit.ly/1qQAwV2    •  The  Rise  of  Corpora)ons  in  Tech  Venture  Capital  Investment,  2013,  CB  Insights,  hHp://bit.ly/1qFViFf    •  Unchaining  Investment,  2013  Nesta,  hHp://bit.ly/1lPO6A6    •  Vital  Growth,  2011,  Nesta,  hHp://bit.ly/1pWcx7j    

References  

jessica.stacey@nesta.org.uk  @JessStacey  

www.nesta.org.uk