Public & Private Connectors in the Estonian Entrepreneurial

Ecosystem Andrus Viirg Enterprise Estonia Silicon Valley andrus.viirg@eas.ee International Workshop “ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP”

Nov.7, the Hague, Netherlands

ENTERPRISE ESTONIA State foundation for Business Support & Development: Investment, Trade, Innovation/Technology and Tourism

promotion + the Space Office of Estonia implementing agency of the EU structural funds in Estonia

budget of 1.3 billion USD (2007-2013)

about 300 employees

providing financing/grant products, advice, partnership opportunities and training

Investment, Trade, Tourism & Innovation Promotion

– assisting international companies to estonianize

– assisting Estonian companies to internationalize

– Foreign (promotional) Offices in

Stockholm, Helsinki , Hamburg, London,

Moscow, St. Petersburg, Oslo

Shanghai, Tokyo and

Silicon Valley

slide by Robin Wauters during Seedcamp Week in London (sept.2011), where out of 20 companies 4 Estonian startups presented (were the finalists)

With 0.2% of EU population Estonia produces ca 20% of EU (successful) startups #estonianmafia & 500Startups

Estonia produces a disproportionate number of startups per capita

Behind the scenes:

e-Estonia

Estonia's capital Tallinn - (david jones)

LES ECHOS/Worldcrunch

birthplace of Kazaa & Skype e & m services electronic ID card from 2002 e-taxboard, e-voting,... m-parking 98% of bank transactions electronically NATO Cyber Defence Centre EU IT Agency HQs

Doing Business in Estonia

• simple tax system – flat 21% income tax

– NO Corporate Income tax (21% tax on dividends only)

• efficient company setup and reporting based on e-government solutions

• limited grant schemes (subsidies) for business support

The Phenomenon

• Serial entrepreneurs

• Ambient Sound Investments (ASI) www.asi.ee

• Estonian Startup Leaders Club www.startupleadersclub.com

• Garage48 (a boot-camp initiative to build new web and mobile

services in just 48 hours) www.garage48.org

• EstBAN (Estonian Business Angels Network)

• ESTVCA (Estonian Venture Capital Association)

• International Accellerators & Co-Working Spaces – StartupWiseGuys www.startupwiseguys.com – GameFounders www.gamefounders.com

– Technopolis Ülemiste www.technopolis.ee/en

Public Connectors of the Estonian entrepreneurial ecosystem

• Enterprise Estonia o Grant schemes for starting the business, product development, expanding to foreign

markets, employee training www.eas.ee/en o StartSmart (EST- FIN network for startups,...) www.start-smart.me/en o BrainHunt www.ajujaht.ee/english/ o Network of Foreign Rep. Offices

• Estonian Development Fund & SmartCap o Monitoring & Growth Programs www.arengufond.ee/eng o Governmnet VC arm www.smartcap.ee

• Tallinn Tech University o Mektory (Innovation & busines center) www.ttu.ee/projects/mektory-eng/

• Tallinn Science Park Tehnopol www.tehnopol.ee/en

o Prototron, prototyping fund

Education and awareness

Idea testing Prototyping Product Market fit/ Entering market

Expansion

Cap

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Estonian startup ecosystem

networking, networking, networking... the power of Global Networks & Social Networking

www.europeanentrepreneursatstanford.com

www.siliconvikings.com & Nordic Bridge Organizations

www.CleantechScandinavia.com

www.Slush.org www.Latitude59.com ConnectEstonia; SeedForum; Seedcamp,.... European Innovation Academy www.innovationacademy4u.com

• Feeding the Entrepreneurial Mindset – University Entrepreneurship Programs & Study Tours/Benchmarking

– Use of Social Networking Tools

– Developing core competencies (cyber security; EV charging infra)

• Risk Capital Formation & Venture Funding – Government Venture Fund

– Incubator/accellerator models

– PublicPrivatePartnerships

• Role of the Government (regulations) – Starting the business made easy

– But.... • still legal & mental obstacles in business liquidation process

• confusing tax regulations on option schemes (seen as fringe benefits)

Key Takeaways Entrepreneurial Ecosystem in Estonia

Serial Entrepreneurship in technology startups with scalable business models & products is the KEY! BUT..... the focus should be going to Mars not just creating another social network! Combination of Entrepreneurial & Innovation Ecosystems

+ Tech Entrepreneurs, Companies and Universities working together: Tech Transfer + Research with Commercialization Potential