the key challenges of ICT entrepreneurship in Europe

@Digital Agenda AssemblyBrussels, 2013

Credits Saul Klein templateEVCA, AIFI, Klein for data

Class 1967Università di Torino, drummer/surfer1995-97 Italia online97/98 Lycos 99/02 Vitaminic, founder CEO03/04 Buongiorno Vitaminic, M&A05/06 Kite-surfing / sabbatical /angel investor07/founder and chairman of dpixel www.dpixel.itPart time journalist and blogger (Sole 24 Ore / Wired / dgil.uz / CheFuturo)Kauffman Fellow (KFP Class 14)Mentor Fullbright, Startup Sauna (Helsinki)Teacher @LED Luiss, TechNest/Unical

nice to meet you

What we do @dpixel:- Acceleration (Barcamper >1.000

applications)- Seed fund (9m euro)- Advisory: Working Capital/Telecom Italia

(3k applications), StartCup Calabria, Sinnova, YouthPark, NIDI, Digital Energy

How does the European innovation ecosystem looks like?

loosely connected small islands

22 actions in 5 categories: training, access to talent, access to capital, data policy,

leadership

What we aim for

Some home truths about business of innovation

10k business ideas1k firms started

100 VC funded

20 IPO

2 market leaders

Nobel Prize in

Economics2006

ProfessorEdmund Phelps

Less than 10% of business ideas even get started

55% of US venture capital investments are written off

x<0.5 0.5<=x<1 x=1 1<x<2 2<=x<5 x>=50

5

10

15

20

25

30

35

40

45

50

% Cost % Value

62% of EU investments are written off

x<0.5 0.5<=x<1 x=1 1<x<2 2<=x<5 x>=50

10

20

30

40

50

60

% Cost % Value

But the capital which survives, backs businesses accounting for 21% of US GDP…..

1978 1981 1987 1995 1995 1997 1999 1999 2005

and $1.4tn in new market value

creating 440k new jobs

with $545bn in new annual revenue

serving >1bn customers

Source: HIS Global Insight

In fact if you have something to offer there are now 3bn people connected

to you

4,2 trillion $ market opportunity

In Europe we are starting to build waves of similar dimensions

And we have a generation with nothing to lose….

0,02% of GDP invested in venture capital in 2012

(0,17% in the US)

Some venture stats of Europe

European outlook

35x difference

0,17% in the US (10x Europe)

3.6 BN raised in 2012 by 102 new venture funds (it was 5.2 BN in 2011)

1,9BN divested by venture in 2012 (1.000 companies)

5 IPO

159 trade sale

300 write offs/sale to

mgmt

3.2 BN invested in 2012 (-14%)2.900 startups funded by 556 firms

0,1BN seed 1,8BN early stage 1,3BN later stage

.

353 seed startups > 280k average

1.796 early stage > 1 mln average

839 later stage > 1,5 mln average

Plus a new generation of angels, superangels, angel networks, accelerators,

seed funds, incubators

And a new generation of funding and crowdfunding platforms

Creative & Consumer Electronics Startups

Microfinance SMEs

gianluca@dpixel.itTwitter: dgiluzBlog: dgil.uz

Thank you