Конференція «Entreprepreholic»
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Technology Investment Company Kyiv, Ukraine Cisco Entrepreneur Institute, Growth Up Conference www.kmcore.com May 2011
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Transcript of Конференція «Entreprepreholic»
Technology Investment CompanyKyiv, Ukraine
Cisco Entrepreneur Institute, Growth Up Conference
www.kmcore.com
May 2011
2011 World Bank Report Ukraine: "Ease of Doing
Business" rank 145 (out of 183)
“I Fed My Dog Potential, But my Dog Died?”
Why Ukraine Needs Entrepreneurs
Knowledge
Passion
Fire
Anatomy of an Entrepreneur
Agenda: Entrepreneurship & Innovation
Potential: you have to do something with your potential
The myth about “good ideas”
Why US continues to lead the world in innovation?
Other examples: Israel, India, Ireland…
How Silicon Valley drives innovation
Criteria for driving success?
The “Developing” World
Where is Ukraine today?
KMCore
No shortage of ideas Ideas can come from anywhere Innovation is the “profitable implementation of ideas. Actual implementation of ideas that create social and
economic value Example: Google – 20% of engineers time allocated to work
on personal ideas #1 success factor: management team which can drive growth
The Myth about Ideas?
The Case of Silicon Valley
Long standing “Culture of Innovation” (does this exist in CIS?)
Silicon Valley has 20% of the world’s software/hardware firms
Ranked #1 for World Competitiveness
800 US VC firms - 70% in Silicon Valley
More than 30 Angel Investor Groups planting seeds
Silicon Valley reinvents itself: clean-tech, green-tech, biotech….
The GDP in Silicon Valley more than 3X national average 1% of US population generating 5% GDP Best conditions to commercialize ideas regardless of social
status or background 2009 Global Insight study: VC backed companies created 12.1
million jobs - generated $2.9 trillion revenues Unique complex, innovative capability - financial, economic
and social ties
Entrepreneurship in Silicon Valley
Developing world approaching rich countries for innovation
New business models, no legacy – new types of innovation
22,000+ multinationals based in developing world
Multinationals expect 70% growth in developing world
40% growth from two countries: China and India
100% of university graduates in India fluent in English
Largest English speaking country in the world? CHINA
More internet users in China than entire US and all of EU
Wipro India reverse outsources to Egypt
But ! Renault and Indian partner to build cheaper ($2199) car than Nano
The Developing World
Tata Nano $2500
Why Technology is Important – some Facts
India – more than 10 million trained IT specialists
Taiwan – technology makes up 50% of the economy
Ireland – exports $1B of Software
China – attracts more foreign direct investment than US
Israel has more than 4000 tech companies and 100 VC’s
Israel has 70 companies traded on NASDAQ
US venture capitalists invested close to $18 billion in 2010
Combined revenues of companies created by the VC industry contributed 17.6% of US GDP in 2009
USA Still Attracting The Best Talent
1/3 of silicon valley engineers skilled immigrants Many become future entrepreneurs Ecosystem of VC’s, investment banks, law firms, consultants
and accounting firms Complex relationships with global giants such as Google,
Intel, Cisco, Hewlett Packard People “incubated” in large companies, go and start new
companies – often competing or innovating (creating a cycle of innovation)
Intel Corp. - Andy Grove – Hungary
Google - Sergey Brin – Russia
Sun Microsystems - Andreas Bechtolsheim - Germany
eBay - Pierre Omidyar - France
Yahoo - Jerry Yang – Taiwan
Paypal, Slide - Max Levchin - Ukraine
Global US Companies Founded by Immigrants
Promotes productivity and economic growth
Addresses societal needs
Supports national and global markets
Creates new, high-value, knowledge based jobs
Creates new wealth (regardless of social status)
Advances competitive advantage
Creates a higher standard of living
Ukraine Should Be Interested in Entrepreneurship and Innovation!
Promoting competition, stimulating small business Creating conditions for attracting investment Encouraging internet deployment Improving Telecom/Internet infrastructure Education system producing specialists required by business Proactive: Ireland, Israel, India even Russia (Skolkovo?)
So, how much is the Ukrainian government doing?
Government Policy Impact on Building an “Innovation Society”
Innovation is a critical factor of competitiveness and growth for Ukraine
Conditions should be created for venture capital and entrepreneurial activity to thrive
The Road Ahead…
Incubation and support of small businesses will drive innovation
Ukraine has to compete globally for financial and intellectual resources
Designed by Apple in California..
but… Assembled in China?
…Decide to compete with China on an ‘Assembly Economy’?
Will Ukraine in thethe next 25 years…
…Or “compete” with California on a ‘Design Economy’?
Or maybe the 3rd option??
Where are the Ukrainian Apples?
Where are Ukraine’s Silicon Valley, Stanford, Google, Apple …?
Stanford
OracleKMCore USA
Through Creation and Support of Small Business and Entrepreneurship
We can and must foster an “Innovation Culture!”
‘assembly’culture ‘design’ culture
Here’s to the crazy ones, the misfits,
the rebels, the troublemakers, the
round pegs in a square hole, the
ones who see things differently.
They push the human race forward,
and while some may see them as
crazy ones, we see genius, because
the people who are crazy enough to
think they can change the world, are
the ones who will do it.
Apple Computer advertising, 9/27/97(quoted from Guy Kawasaki’s book Rules for Revolutionaries)
KM Core is a Technology Investment Company based in Kyiv, Ukraine which capitalizes on the history of science and R&D in Ukraine, Russia and CIS.
We believe that innovation exists everywhere and strive to turn potential into successful and growing businesses.
I invite you to visit our web-site to see our portfolio of investmentswww.kmcore.com
KMCore
