Startups + crowdfunding

@Centuria Innovazione Faenza, 2013 Credits Saul Klein template

EVCA, AIFI, Klein for data

Class  1967  Università  di  Torino,  drummer/surfer  1995-­‐97  Italia  online  97/98  Lycos    99/02  Vitaminic,  founder  CEO  03/04  Buongiorno  Vitaminic,  M&A  05/06  Kite-­‐surfing  /  sabbaPcal  /angel  investor  07/founder  and  chairman  of  dpixel  www.dpixel.it  Part  Pme  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 ‘hands on venture capital’ @dpixel: -  Acceleration (Barcamper >1.000 applications) -  Seed fund (9m euro) vintage 2010 -  19 investments -  4 exits, 2 writeoffs

Advisor of Telecom Italia Working Capital: -  30 grants 3.000 applications) -  25k euro + acceleration program -  Managing accelerator of Lambrate (Milano)

How  does  the  Italian  innovaPon  ecosystem  looks  like?    

loosely connected small islands

What we aim for

New  legal  framework  for  startups  in  Italy:    -­‐  Fiscal  incenPves  for  investors  (20%  tax  deducPon)  -­‐  Less  red  tape,  more  flexibility  on  labour  (6  months  contracts  

renewable  for  4  years)  -­‐  Less  painful  to  fail  (bankrupcy  law  exempPon)  -­‐  Srls  are  treated  like  Spa  (can  issue  shares  classes  and  opPons)  -­‐  Stock  opPons  and  work  for  equity  (tax  free)  -­‐  Equity  crowdfunding  regulated  first  country  in  the  world  to  issue  a  

regulatory  framework  through  Consob  (1  equity  plaiorm  approved,  4  under  approval)  

-­‐  Simplified  bankrupcy  process  -­‐  CerPficaPon  of  incubators  -­‐  Access  to  2,5m  debt  guarantee  for  bank  loans  -­‐  Startup  visa  (upcoming)  -­‐  Fund  of  funds  (in  the  works)  

 

Registro Startup oggi: 1.344 startup iscritte al registro di Infocamere, 12 incubatori certificati

TOP FIVE! 269 Lombardia

146 Emilia Romagna 137 Lazio

117 Veneto 114 Piemonte

50% delle startup

Italy  (AIFI,  2012)  in  a  snapshot:  28  firms  acPve  in  early  stage  

136  investments  totalling  135  mln  euro  40%  high  tech  

46%  iniPal  -­‐  54%  follow  on  

Some home truths about business of innovation

10k business ideas

1k firms started

100 VC funded

20 IPO

2 market leaders

Nobel  Prize  in  

Economics  2006  

Professor  Edmund  Phelps  

Less than 10% of business ideas even get started

55% of US venture capital investments are written off

0  

5  

10  

15  

20  

25  

30  

35  

40  

45  

50  

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

 %  Cost   %  Value  

62% of EU investments are written off

0  

10  

20  

30  

40  

50  

60  

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

 %  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  

creaPng  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  starPng  to  build  waves  of  similar  dimensions  

And we have a generation with nothing to lose….

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

2012 (0,17% in the US)

European outlook

35x  difference  

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

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

.  

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

5  IPO  

159  trade  sale  

300  write  offs/sale  to  mgmt  

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

incubators

And a new generation of funding and crowdfunding platforms

Startups    

SMEs  

How it all started: donation based

then reward based

then equity crowdfunding

SEC regulation about to be issued: 1 mio USD (yearly) for any company through

regulated portals

How  does  it  work  in  Italy    -­‐  Startups  can  raise  up  to  5m  euro  on  authorized  plaiorms  

(banks,  SIM,  special  list  by  Consob)  -­‐  1  plaiorm  authorized,  4  under  process  -­‐  Campaign  must  be  subscribed  at  least  5%  by  qualified  

investors  in  order  to  be  completed  -­‐  Qualified  investors:  banks,  bank  foundaPons,  SIM  and  

Incubatori  cerPficaP  -­‐  Consob  regulaPon  issued  defines  responsabiliPes  for  the  

issuer,  the  plaiorm  -­‐  Diripo  di  recesso  -­‐  500  euro  per  order  max  MIFID  exempPon  (1.000  euro  per  

year  max),  5k  /  10k  for  companies  MIFID  exempPon  -­‐  orders  must  be  passed  through  bank  or  SIM  

gianluca@dpixel.it  Twiper:  dgiluz  blog:  dgil.uz      

Thank you, questions?