Activating Dublin

Urbact Summer School, August 2013An introduction to Dublin:

Supporting Tech Start ups #bestplacetostart

Jamie.cudden@dublincity.ie @jcudden

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Dublin Region

The Dublin City Region is the administrative and political capital of Ireland and home to an estimated 1.2m people accounting for almost 28% of Ireland’s population

Ireland’s population is 4.2 million (2006)

Dublin accounts for 39% of national economic output (47% for the GDA) , 2012

• Dublin City Council

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Background

“The Dublin city region accounts for four out of every ten jobs, just under half of all goods and services produced and nearly half of Ireland’s tax revenue. Ireland needs a strong Dublin.”

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Dublin – International Comparisons

•Dublin is a small city in the international scale and we certainly outperformed in relation to our size.•Mercer Quality of living (2012) places Dublin in the top quartile of global cities (35th)•The capital of a small island – open economy that is outward looking – •2nd most globalised country in the world (Ernst & Young, 2012) •A hub for US investment: Since 1990 there has been more capital investment (189 billion) into Ireland compared to the BRICS combined.

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Difficult times since 2007…..

•Property bubble•Banking Bailout•EU / IMF rescue programme•Austerity programmes•Unemployment•Collapse in GDP•Change in government•Economy stabilising 2012-2013

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Unemployment challenge

• - Unemployment in Dublin has increased from about 4% in 2006 to over 13% in 2012.....now 11% in 2013

• - Over 120,000 jobs lost in the Dublin Region.

• - The construction sector has been particularly badly effected

• - In 2006 the construction industry in Ireland represented 24% of national GDP employing 1 in 7 people.

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• Dublin was the 50th richest city by GDP per capita ($52,100) out of 300 largest global metros (2011/12), Brookings Metro Monitor, 2012.

• Dublin was one of the worst economic performers 279th out of the top 300 largest global metros in 2011

http://www.brookings.edu/research/interactives/global-metro-monitor-3

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Dublin ranked overall the fourth most prosperous city in the 2012/13 UN prosperity index

Report: http://www.unhabitat.org/pmss/listItemDetails.aspx?publicationID=3387

News Article: http://www.irishtimes.com/news/dublin-ranked-fourth-most-prosperous-city-in-un-index-1.1313782

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Dublin 13th friendliest place in world (Cork 20th and Kilkenny 9th , Conde Nast traveler survey, 2013

“Ireland’s most famous metropolis is also among its kindliest. This “big, bustling city with great museums” is “full of history and likeable people.” “The friendliest natives I have ever encountered,” gushed one visitor, “the gift of Irish gab lives!” Another Dublin enthusiast noted that every local they came across had “a smile in their voice and a joke at the ready.” With “so much to see and do” and, of course, “wonderful pubs,” “inviting” Dublin “should be on everyone’s bucket list.”

http://www.cntraveler.com/daily-traveler/2013/07/world-travel-dublin-auckland-cork-friendly-unfriendly-cities_slideshow_item7_8

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Best things about Dublin (as identified by people that live here)

•“Vibrant international city with a small town feel”•“Dublin has a buzz that others city's don't have”•“That it has the diversity and energy of a young and vibrant 21st century city”•“Compact city where you can see a city, a fishing harbour and the mountains all in one day”• “It’s nice and compact so that where ever you go you’ll always know someone nearby.”•“Lots of interesting people means lots of interesting events and venues, and because of it’s size you hear about them and can get to them easily.”

* www.yourdublinyourvoice.ie

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Foreign Direct Investment

•Dublin has one of the best track records for FDI in Europe. Voted the ‘Best to Invest’ European Metro in 2012 and third best in 2013. •The Economist Intelligence Unit ranked Dublin number one in having the best “human capital” in the world.

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Dublin Attracting Foreign Attract Investment...

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Dublin Attracting Foreign Attract Investment...

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Source: Frontline Ventures Ireland Tech Start Up Guide

Dublin Attracting Foreign Attract Investment...

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Some Recent Coverage

“Emerging Tech: Dublin one of 9 International Startup Hubs to Watch”

“New Silicon Valley on the emerald isle”

“Ireland best country to invest in Western Europe. Dublin third best metro”

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New Alliances: City Leadership Alliance

Local Government: Lord Mayor & Chair of DRA,

City & County Manager&

Economic Development State Agencies :

IDA & EI

Business :CEO & President, Dublin Chamber , & Individuals

from the Creative & Knowledge sectors

Higher Education Institutions:

Presidents / Vice-President DCU, UCD, TCD, DIT

See: www.creativedublinalliance.ie

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- Activating Dublin is a new initiative (2012-13) established with the support of McKinsey &Co- An alliance led by Business (Dublin Chamber of Commerce) and the city (Dublin City Council)

where private, public, and social sectors act together to deliver ‘action’ based projects that will make Dublin more competitive internationally. Activating Dublin has the potential to deliver a net increase of 40,000 jobs by 2020, along with a potential value add of EUR6-8bn and a global reputation as one of the world’s best city regions in which to live, work, and visit (McKinsey, 2013).

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Digital Initiatives underway....

Online / eCommerce

Partners best practice first of its kind globally

20 Pilot companies going through 6 workshops

Develop ‘playbook’

Results guiding gov’t trading online voucher scheme

This pilot scheme will, I believe, provide the model for the introduction of a new Business Online Voucher for all SMEs to the value of €2,500. The target is an increase of 2,000 in the number of businesses trading online, creating 3,200 jobs.

- Minister Richard Bruton TDThe Irish Independent (2 May 2013)

Tech Startup / Innovation

In-depth workshops

Draft report on strengths & assets aimed at realising full potential

Next Steps

Business case testing

Work with key players to develop implementation plan

Pilot initiatives or drive implementation process

Cash-flow & ePayments

Developing a toolkit:

Rapid Diagnostic for company specific business case

Feeds into personalised implementation guide

Campaign to change B2B behaviour

Use toolkit as part of a wider awareness campaign

Activating Dublin: #bestplacetostart

A report on maximising the potential of the Tech Startup ecosystem in Dublin

Full Report: http://www.dubchamber.ie/docs/newsletters/best-place-to-start-activating-dublin-tech-startup-report.pdf

*Selection of slides from the main report

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Process of report development

Working Group

Initiative themes- Coordination- Facilitation- Regulation

Report

Initiative Workshops

Working Group

The initial assessment by McKinsey & Co included: Conducting a baseline of Dublin’s position on key

indicators and benchmarking against comparator cities, and

Consultations with more than 100 diverse multi-sector stakeholders from public, private, and social sectors to identify key themes for future regional development

Based on these finding a Working Group was set-up with specific experience in the area of startups. Building upon the original analysis and the experience of the group the three key themes to address were identified:

Coordination Facilitation Regulation

Separate themed workshops were conducted by the theme leaders drawing on expertise and knowledge along these lines.

The group also engaged internationally with those in the startup community to find best practice.

Based on this work the Steering Group has compiled the following report with recommendations and a delivery model to implement the recommendations.

Activating Dublin consultation & analysis

Activating Dublin Steering

Committee

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Dublin has the startup ‘assets’ necessary to be a world class tech startup hub

TOP 8 EUROPEAN STARTUP ACCELERATORS AND INCUBATORS RANKED

Seedcamp Pan European

Startupbootcamp  Tetuan Valley (Spain)

Startupbootcamp Eindhoven

Springboard  London / Cambridge

Openfund  Athens

NDRC Launchpad Dublin

Propeller Venture Accelerator Fund

Dublin

Startupbootcamp (HealthXL)

Dublin

Source: Independent Study commissioned by TechCocktail - http://tech.co/top-8-european-startup-accelerators-and-incubators-ranked-seedcamp-and-startup-bootcamp-top-the-rankings-2011-06

Venture Capital – Investments as % of GDP (2012)

http://www.evca.eu/uploadedfiles/home/knowledge_center/evca_research/2012_Pan-European_PE&VC_Activity.pdf

In the EU, Ireland is ranked first by the World Bank for ease of starting a business and consistently in Forbes’ top list of 'Best Countries for Business' report.

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Appendix 4 – Enterprise Supports in Dublin Source: Presentation by Joanne Hession, QED on “Dublin, the best city in the world to start a business” (2013)

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Dublin’s thriving Start Up Eco-System

Business & Sales

DesignersDevelopers

IXDA

Craft

Refresh

UXPA

Tech P.Dublin Beta

Python meetups

Ruby meetups

Node.js

Angels / Mentors / VCs …. banks

Incubators / Accelerators

Multinationals

IDA / EI / Enterprise Boards

* At the core of a startup founding team there are three roles: Developer, Designer & Business/ Sales people

Space

Legal

Accounting

Comms & networks

There are over 20 informal gatherings of developers, designers, etc. on a weekly or monthly basis in Dublin.

Dubstarts

Universities

Adapted from Eamon Leonard’s contribution at workshop

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The biggest web summit outside of the US

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But in the international benchmarks.....

Global Genome Report: data-driven ranking of the World's Top 20 Startup Ecosystems . Q: Why is Dublin not featured here?

Cities were evaluated based on eight criteria, including the performance of companies located there and access to talent. Besides Tel Aviv and London at number seven, North American cities dominated the top 10 in the study, which was paid for by Telefonica.

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Mission

Objectives

Prize

Opportunities

Strengths

Dublin recognised as the #1 EU hub for tech innovation where companies will start up, scale faster, live longer and go further;

double the domestic rate of aspiration to start a business; sustain Dublin’s thriving startup ecosystem; and create at a minimum 2,800 jobs and contribute €200 million p.a. to the Dublin economy.

Thriving organic ecosystem (NB: don’t try to control) Supportive base of international companies (eg Google,

HP, PayPal, Intel, FB..) & investment promotion (IDA & EI). Multiple high quality innovation centres available to

startups (e.g. 3 of 8 Top European Accelerators). Pro-business climate.

Make Dublin the best place to start a tech business

Increase the number & quality of startups, growth rate, employment and overall economic contribution of Dublin’s tech startup community.

This can be achieved through the targeting of domestic entrepreneurs & spin-outs, international entrepreneurs, and scaling startups.

Coordination | Greater coordination of the marketing, outreach and promotion of Dublin as the best place to start (targeting domestic & international entrepreneurs).

Facilitation | Foster a more accessible and interconnected cluster eco-system (making it easier to start and providing the right environment to grow & scale).

Regulation | Enhance a pro-startup regulatory environment and visa regime.

Executive Summary

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Our recommendations

1. We believe that there should be a single strategy for Dublin as the best tech startup city, backed up by the resources & accountability to deliver that strategy through coordination across government agencies, local government and the other members of the startup ecosystem.

2. We have identified three key strategy areas around our themes of coordination, services and regulatory supports.

3. We have scoped six further recommendations to turbocharge our Tech Startup City.

Our recommendations are broken down into one overarching recommendation and six further recommendations that are grouped around three themes:

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Our recommendations

Provide coherent coordination, marketing, outreach and

promotion to tell a one city story

Ensure the regulatory environment is pro-startup and

is viewed as open to international startups

Promote a coherent story for the city to attract

high quality startups

Support stakeholders to

build linkages and create new high

int’l profile activities

Improve & clarify current regulations

that support startups in Ireland

Develop a new streamlined visa

process for international startups & investors

Help startups find the services they need so they can focus on starting & growing their businesses (e.g. office

space, legal, accounting..)

Provide one-stop portal to help

startups in search of supports &

services

Identify & address gaps in Dublin’s

cluster linkages to maximise growth & scaling in the

cluster

Make Dublin the best place to start a tech business. This requires a single regional strategy and the tools, resources & people to deliver it.

Governing mission/ overarching recommendation

Key Strategy Area

Deliverables

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2 3 4 5 6 7

Strategy objectives

Coordination Facilitation Regulation

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The lack of coordination between Dublin’s startup centres & key players may lead to a lost opportunity

Strengths

▪ Supportive base of international companies & investment promotion

▪ Multiple high quality incubation/innovation centres available to startups

▪ Pro-business climate

Gaps

▪ A distinct lack of one story for Dublin

▪ Treatment of each area as a cluster in own right rather than part of a Dublin cluster

▪ Making pro-startup policies more clear, concise on regulation and being a world leader on approach to immigration & visa process

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Taskforce to aggregate and support the use of material about Dublin’s startup cluster – Key participants

Innovation clusters and companies

Government Agencies

HEIs

CoordinationOutreach &

business development

PR & Marketing

Link agencies, HEIs, hubs

and companies together

Better organise regional outreach

Publicise success

internationally

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Initial proposals to support stakeholders to build linkages and create new high international profile activities

Celebrating Success

Startup Billboard

Startup Festival

Engaging the MNCs

Startup Ecosystem Fund

Dublin Mentor Panel

Incubator-MNC

spinout support

International Spotlight

Coordinate data on cluster, publish

Made in Dublin

‘Booker’ Prize for startups

Empowering existing

community

Startup Dublin Survey

Dublin Startup CEO

Forum

Dublin Startup

Association

Attracting New startups

Startup Apprenticeship

scheme

Crowdfunding site for Dublin

startups

Flagship Project

MASS Challenge• 125

Global finalist relocate to Dublin during 4 month accelerator period

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9 of the top 10 Global Software Leaders are in Dublin and 8 of the top 10 US companies are here

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PwC’s Global 100 Software Leaders

1 Microsoft2 IBM3 Oracle4 SAP5 Ericsson6 Symantec7 HP8 EMC (excl. VMware)9 CA Technologies

10 Adobe

Source: Data was compiled by the Global Software Business Strategies Group at IDC.

Fortune 500 US Companies 2013

1 Apple 2 AT&T3 HP4 Verizon5 IBM6 Microsoft7 Amazon.com8 Dell9 Intel

10 Google

Dublin’s Multinational Companies can offer huge potential for startups;

Greater engagement is an important cluster element to develop as there is recognition from the tech MNCs that startups are a critical part of their ‘digital community’,

Mapping Dublin’s multinational landscape and how it links with the community will be a critical part of understanding the cluster’s gaps.

The IDA’s Landscape project offers an important tool in this work - http://www.idaireland.com/app/landscape/

In Dublin

in Ireland

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Example nodes in the Dublin Cluster (current & potential future ones) with their transport links – how do they connect?

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Heuston Quarter/Digital Hub

DIT Grangegorman

Docklands

Luas

Luas

DART

Centres for Science, Engineering & Tech

Co-working space

Meet-up spots

Accelerator/Incubator

Dublin bike locations current and planned

20 minute rule:• Barrow Street to

Digital HubCar 11min /peak 20+minBike 12min

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People with good skills are available

Components of a cluster5

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The eastern sector contains multiple economic sectors that are now embedded in the Docklands Quarter – the primary ones being in the financial, legal and digital spheres.

The western sector contains Digital Hub, St James’s medical campus, Heuston Station and DIT at Grangegorman.

These character area nodes constitute a strategic economic arc and counterpoint to Docklands and as a ‘Gateway’ enjoy major links outwards to the city region and inwards to the central city.

Dublin City Council should seek to address the policies and objectives set out in the Development Plan and where necessary complete the supporting research by the end of 2013 / start of 2014.

Follow up study to see what gaps exist in the linkages across the Dublin cluster

This links to the Dublin City Development Plan RE12 To promote flexible buildings that facilitate work

clusters and affordable work spaces that develop in proximity to each other so as to allow skilled self-employed workers operate independently and also in co.

RE22 (ii) To consolidate employment provision in the city by incentivising and facilitating the high quality redevelopment of obsolete office stock in the city

REO11 To identify and map the existing and potential clusters in the city region and identify effective supports to optimise the clustering benefits

RE22 (ii) To consolidate employment provision in the city by incentivising and facilitating the high quality redevelopment of obsolete office stock in the city

5a

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Accelerator program that will encourage new high risk startups in strategic areas such gaming and cloud computing

‘Lobby’

Relatively advanced companies paying subsidized rents

‘Core space’

“Mature” startups preparing to spin out of the cluster into surrounding office space

‘Top floor’

Investigate if there is a private sector business case for a building as an icon for the startup community which would provide easy access to a range of startup needs.

5b

Example: Cambridge Innovation Center (Boston/Cambridge) http://cic.us/

• Accountants• Solicitor• Real estate agent • Incubators/accelerators• Administrative support• Angels & mentors

‘Service support centre’

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Implementation timeline and plan

Promote a coherent story for the city to attract high quality

startups

Support stakeholders to

build linkages and create new high int’l

profile activities

Improve & clarify current regulations

that support startups in Ireland

Develop a new streamlined visa

process for international

startups & investors

Provide one-stop portal to support

startups in search of services

Identify & address gaps in Dublin’s

cluster linkages to maximise network

effects

Other recommendations

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3

4

Create a unit/organisation whose aim is to help

Dublin become the most dynamic place for tech

startups

Overarching recommendation

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Conduct a pilot study to separately promote Dublin as a startup

City.

Develop business cases to support 14 individual initiatives

Develop a business case and funding

model and outsource operation of portal

Complete research of Dublin’s cluster and how it is defined. Business case for co-location

space for private sector development.

Engage with D/JELR to get agreement for

pilot of improved visa procedures

Engage with central/local

government and agencies to action

initiatives

Action Resources

Timeline

Engage with DCC and agencies on

establishing a Dublin startup unit.

Address funding model in discussions, believe that any exec. Should

sit within DCC and balance of resources provided pro bono.

Activating Dublin to fund pilot. Discuss funding as part of

planning for expansion of project

Address funding model in individual business

cases.

Funding should be provided through

central government and self financing for any

new processes.

Resources provided by DCC.

Address funding model in business case,

believe it can be self financing.

No incremental resources envisaged.

Sep Oct Nov Dec I Jan Feb Mar Apr May Jun Jul Aug

Unit established and resourced by end June 2014.Look to address sector data issues by Dec 2013.

14 business cases delivered

Business case by end Dec/ Portal online by June 2014

Initial scoping & report

Representations made

Engage with DJEI & D/Justice and action accepted into APJ

Initial pilot

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Work on addressing identified gaps

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A changing role for the city council in the start up space

*selected slides – full background and presentation available here: http://www.dublincity.ie/YOURCOUNCIL/ABOUTTHECOUNCIL/COUNCILDEPARTMENTS/THESTUDIO/THESTUDIO/Pages/StartupCity.aspx

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Thematic Areas Identified for the Start up City Event:

1. ENHANCING DUBLIN’S STARTUP ECOSYSTEM - ONCE UPON A TIME IN DUBLIN – “TELLING OUR STARTUP STORY”

2. PURCHASING POWER / PROCUREMENT3. PROTOTYPED IN DUBLIN: USING THE CITY TO

TEST PRODUCTS AND SERVICES4. SHOW ME THE MONEY.....FINDING NEW MODELS

OF FUNDING AND FINANCING FOR STARTUPS 5. DEVELOPING MARKETS AND HOLDING EVENTS IN

DUBLIN 6. MAKING FOOD EASY 7. ENTERPRISE SPACES AND PLACES: SPACES TO

HELP GROW AND SUPPORT SMALL COMPANIES

Further Information here:http://www.dublincity.ie/YOURCOUNCIL/ABOUTTHECOUNCIL/COUNCILDEPARTMENTS/THESTUDIO/THESTUDIO/Pages/StartupCity.aspx