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1. Planning for effective sources of seed and venture capital for high-tech in Italy

Objectives

2. Ascertaining a methodology for the creation of effective seed and venture capital sources in Europe

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Basic Concepts

3. Transferring concepts, not “a parallel study”

1. Planning from below: From potential entrepreneurs to legal framework

2. Branch/Region funds and incubators

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Principal Methodology

• Venture Capital funds - What influences them to invest more in high-tech? What incentives, what infrastructure

• Potential entrepreneurs - What would bring them to set-up their own company?

• Legal framework-Which existing laws can be used and what new laws have to be enacted. What other laws obstruct venture capital for high-tech

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• VC trend: Specialize

• Venture Capitalists’ radius of travel

•Incubators – commuting distance

• Need of a critical mass of potential entrepreneurs in one sector and within one region

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Branch\Region Approach

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Transfering Concepts Yozma examples

• “Trigger Mission” and consequent privatization

• Strong investment by the state, but no interference in the management or in the choice of the management team

• Requirement for partnership with an experienced (foreign) partner

• Preferential returns for private investors

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-3- Transfering Concepts

Technological Incubators - examples

• Mix of objectives (social, periphery development)

• “Always give it a chance” philosophy

• Covering areas neglected by the private sector

• Low investment in the incubator’s management

• Administrative rules: Discipline or obstacles?

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Phases

Phase One - Literature Survey

Phase Two - Field Survey

Phase Three - Planning

Phase Four - Dissemination

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Literature Survey Phase

(Due: November 15)

• Venture Capital in Europe (prof. Murray)

• Venture Capital in Italy (AIFI)

• Italian high-tech (University of Pavia)

• Yozma, Technological Incubators and Israeli high-tech (University of Haifa)

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Field Survey Phase - Israel

(Due: May, 2001)

• Technological Incubators Managers & Entreprenerus Interviews (Technion)

• Venture Capital Funds Managers Interviews (JIIS)

• Sectoral start-up principals interviews (JIIS)

• General start-up survey (UoH)

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Field Survey Phase - Italy

(Due: May, 2001)

• Potential Entrepreneurs Interview (UoP & Cast)

• Venture Capital Funds Managers Interview (AIFI)

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Phase Two - Surveys

Questionnaires and Pilot Discussion(Second Meeting or Virtual Meeting?)

Yozma TechInc.

IsraeliGen. Sur.

IsraeliSt.Up

ItalianVC funds

It. Pot.Ent.

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Planning Phase

(Due: November, 2001)

• The optimal general or sectoral venture capital fund

• The optimal general or sectoral incubator

• Planning laws for Italy

• Verifying our methodology for Europe

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Dissemination Phase

(Due: February, 2002)

• Internet site

• Final Report Editing

• Scientific publications

• Workshop in Pavia

• Workshop in Rome

• Workshop in another European city

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Workpackages Main Linkages (1)

Lit. S. VC Europe Lit. S. VC Italy

Italian VC InterviewsIsraeli VC Interviews

Incentives Planning

Italian Pot. EntInterviews

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Workpackages Linkages (2)

Lit. Survey Italian High-TechPotential entrepreneus

concentrationidentification

Potential entrepreneurs

interviews

Venture Capital Funds Interview

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Workpackages Linkages (3)

Lit. Survey on Yozma, Technological IncubatorsVC and Start-ups in Israel

Yozma and VC Interviews

Technological IncubatorsInterviews

New concepts for planning

Planning Phase

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• What sectors\areas should be chosen?

• Definition of high-tech firms in Italy and Israel

Decisions awaited

• Internet companies and related problems

Area Sector Bologna-Modena Biomedical Instrumentation Catania Electronics Milano Pharmacy