Dietmar Harhoff - UniMunich LMU - GSVA - Stanford Engineering - Feb 6 2012 - Version 20120211

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

2

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

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

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

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.

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

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.

8

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

10

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)

11

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

12

Entrepreneurship and VC in EuropeEntrepreneurship and VC in EuropeVC Investment by Country of Portfolio Company as a Share of GDP in Selected Countries

13

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

16

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

17

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

18

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

19

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

20

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

22

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

23

GSVA teamGSVA teamChairman: Dietmar HarhoffCEO: Dirk KanngiesserVP BusDev: Oliver Hanisch

mentorsmentorsAdvisory Committee Silicon ValleySteering Committee GermanySteering Committee Germany

24

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

25

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

26

Dietmar Harhoff - UniMunich LMU - GSVA - Stanford Engineering - Feb 6 2012 - Version 20120211

Technology

Transcript of Dietmar Harhoff - UniMunich LMU - GSVA - Stanford Engineering - Feb 6 2012 - Version 20120211