(As a Nordic startup) - Why Berlin?

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WHY BERLIN?NORDIC BUSINESS EVENT - MARCH 27TH 2014

LOWER EAST LAB, BERLIN

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HI! I’M VIDAR ANDERSEN• NORWEGIAN LIVING IN COLOGNE, DE

FOR LAST 9 YEARS

• 17+ YEARS PROFESSIONAL EXPERIENCE CREATING ENTERPRISE SOFTWARE FOR F500 AND GOS

• STARTUP FOUNDER & ENTREPRENEUR (HITS & MISSES)

• CORPORATE ENTREPRENEURSHIP CONSULTANT TO F100 CORPORATIONS WITH ANDERSENDIERICK.COM

• EDUCATOR (NEXT INSTRUCTOR, UNIVERSITY LECTURER ON STARTUP ENTREPRENEURSHIP & LEAN LAUNCHPAD INSTRUCTOR, EXIST COACH)

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SOME WHO I’VE WORKED WITH

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SOME OF WHAT I’VE FOUNDED

Gauss The People Magnet

OneSec

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I’VE BEEN AROUND

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LEAN LAUNCHPAD EDUCATORS JUNE 2013 @ STANFORD UNIVERSITY

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LET’S CONNECT//[email protected]

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WHY GERMANY?FIRST THINGS FIRST

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WHY GERMANY?• EXCELLENT INFRASTRUCTURE

• EXCELLENT ECONOMIC & POLITICAL STABILITY

• EXCELLENT HIGHER EDUCATION & RESEARCH UNIVERSITIES

• ENTREPRENEURIAL - 5 MILLION SELF-EMPLOYED + LARGEST NUMBER OF “HIDDEN CHAMPIONS” 1.300 + 33 F100

• THE ENGINE AND THE LARGEST OF THE EUROPEAN ECONOMY & POSITIVE GROWTH

• LARGEST SINGLE MARKET IN EUROPE

• IN THE PHYSICAL CENTER OF EUROPE

• FREE FLOW OF QUALIFIED TALENT - ESPECIALLY YOUNG & CEE DEMOGRAPHY

• 33 OF GLOBAL FORTUNE 100 ARE HEADQUARTERED HERE

• COMPATIBLE CULTURE & RELATED LANGUAGE

• NORDICS ARE HELD IN HIGH REGARD RIGHT OFF-THE-BAT (UNFAIR ADVANTAGE)

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DEUTSCHE TELEKOM, DEUTSCHE POST DHL, LUFTHANSA, BAYER, E.ON, METRO, FRANZ HANIEL, RWE, THYSSENKRUPP, BERTELSMANN, VOLKSWAGEN, DAIMLER, ALLIANZ, SIEMENS, BASF, BMW, MUNICH RE GROUP, DEUTSCHE BANK, ROBERT BOSCH, LANDESBANK BADEN-WÜRTTEMBERG, DEUTSCHE BAHN, CONTINENTAL, HERAEUS HOLDING, DZ BANK, EDEKA ZENTRALE, PHOENIX PHARMAHANDEL, COMMERZBANK, ENERGIE BADEN-WUERTTEMBERG, TUI, MARQUARD & BAHLS, FRESENIUS, KFW BANKENGRUPPE

33 GLOBAL F100

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1.300 GERMANHIDDEN CHAMPIONS

• RELATIVELY SMALL BUT HIGHLY SUCCESSFUL AND MOSTLY UNKNOWN COMPANIES

• NUMBER ONE, TWO, OR THREE IN THE GLOBAL MARKET, OR NUMBER ONE ON THE COMPANY'S CONTINENT, DETERMINED BY MARKET SHARE.

• LOW LEVEL OF PUBLIC AWARENESS.

• REVENUE BELOW $4 BILLION

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WHAT MAKES UP A SUCCESSFUL

STARTUP CLUSTER?A MODEL

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WHY BERLIN?AND NOT LONDON, AMSTERDAM, PARIS OR COLOGNE?

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“ARM, ABER SEXY”

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http://www.flickr.com/photos/sorosh/682495857/

- BERLIN MAYOR KLAUS WOWEREIT

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WHY BERLIN?• LOCATION - NATURAL & TRADITIONAL BEACH HEAD FOR NORDICS

• ACCESS TO EMBASSIES AND TRADE ORGANIZATIONS

• ACCESS TO STILL RELATIVELY CHEAP OFFICE SPACE

• ACCESS TO NATIONAL AND INTERNATIONAL VENTURE CAPITAL

• ACCESS TO YOUNG TALENT, INTERNATIONAL QUALIFIED WORK FORCE

• ACCESS TO EXCELLENT RESEARCH UNIVERSITIES & ENTITIES

• ACCESS TO NATIONAL AND INTERNATIONAL CORPORATIONS & ORGS

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WHY BERLIN?

• ENTREPRENEURIAL - 44.228 COMPANIES FOUNDED IN BERLIN 2012

• 2.500 TECH STARTUPS IN BERLIN

• HIGHEST NUMBER OF NEW COMPANIES FOUNDED PER CAPITA

• GROWTH RATE HIGHEST IN GERMANY - 15.3% VS 9% AVERAGE

• 44% OF ALL NEW ENTREPRENEURS IN BERLIN ARE *NOT* GERMAN

• POVERTY == OPPORTUNITY

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3 TOP UNIVERSITIES

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HOW TO MAKE MONEY IN A POOR CITY?

“BERLIN IST ARM, ABER SEXY”

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POOR IS RELATIVE

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http://www.flickr.com/photos/la-citta-vita/5853024104/

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• POVERTY == RELATIVE

• POVERTY == OPPORTUNITY

• INFLUX OF YOUNG HUNGRY EDUCATED PEOPLE

• STRONG ECONOMIC GROWTH

• CHEAP LIVING COSTS / STRONG PURCHASING POWER

• ACCESS TO HOUSING & OFFICE SPACE

• ACCESS TO RISK CAPITAL

• HIGH TEMPO OF NEW COMPANIES == MORE EXPERIMENTS, EXPERIENCE, EXITS

• SCANDINAVIAN PURCHASE POWER == LEVERAGE

• THERE HAS BEEN NO BETTER TIME IN HISTORY THAN NOW

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GERMANY VS

STARTUP ENTREPRENEURSHIP

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http://www.flickr.com/photos/darkismus/4179809968/

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GERMANY VS STARTUP E15P• RISK-AVERSE

• SALARY VS EQUITY

• FAILURE IS FAILURE VS FAILURE IS EXPERIENCE & GROWTH

• BANKRUPTCY PENALIZED AND STIGMATIZED

• COPYCAT-ISM (COPY PROVEN BUSINESS MODELS, DON’T FIND NEW)

• ECOMMERCE / BRICK & MORTAR / SERVICE FOCUS (TANGIBLE)

• SCALABLE CONSUMER TECH / SOCIAL NOT STRONG POINT (INEXPERIENCE)

• INEXPERIENCED NATIONAL VENTURE CAPITAL COMPARED TO US

• TOO FEW EXITS TO DATE TO ENABLE SIGNIFICANT RISK-FRIENDLY ANGELS

• BUSINESS EDUCATION LAGGING, TOO THEORETICAL, NO STARTUP RELEVANCE

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HOWEVER:

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BERLIN != GERMANY

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http://www.flickr.com/photos/frattel/8313013726/

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• “THE FUTURE IS ALREADY HERE, IT’S JUST NOT EVENLY DISTRIBUTED” - WILLIAM GIBSON

• BERLIN != GERMANY (ON AVERAGE)

• (GERMANY != GERMANY - BUT THAT’S A LONGER COMPLICATED STORY)

• MOST STARTUPS FOUNDED PER CAPITA

• MOST RISK CAPITAL AVAILABLE

• MOST INTERNATIONAL YOUNG TALENT AVAILABLE

• INTERNATIONAL TIER-1 VCS ALREADY IN TOWN

• CHANGING CULTURE STILL VERY MUCH A WORK IN PROGRESS BUT BERLIN CLEARLY LEADING THE WAY

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SO… IS BERLIN THE NEW

SILICON VALLEY?

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PLZ?

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NO

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BER - THE NEW SILICON VALLEY?• TEL-AVIV IS LEADING THE RACE FOR THAT TITLE, IF ANY

• STARTUP GENOME RANKS BERLIN #15 WORLD WIDE

• IN EUROPE IT’S ABOUT CITY + CITY - NOT CITY VS CITY

• IN EUROPE IT’S ABOUT CLUSTERS - NOT A SINGLE AREA

• NO LOCATION IN EUROPE WILL EVER GET THE SAME AMOUNT OF SEED FUNDING THAT SILICON VALLEY RECEIVED FROM THE GOVERNMENT (GAZILLIONS)

• AND LET’S FACE IT - IT’S A HIGHLY IRRELEVANT QUESTION

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CHANGING ENTREPRENEURIAL CULTURE AND ACQUIRING THE NECESSARY SKILLS & EXPERIENCE IS STILL VERY MUCH A WORK IN PROGRESS IN EUROPE

BUT BERLIN IS CLEARLY LEADING THE WAY BY SCALE AND TEMPO

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Q & A

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LET’S CONNECT//[email protected]

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(As a Nordic startup) - Why Berlin?

Education

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