entrepreneurship & venture capital...2015/11/25 · • 40,000 minds & souls behind them…...

Entrepreneurship & Venture Capital Entrepreneurship & Venture Capital for a Global Techfor a Global Tech--based Economybased Economy

Ordem dos Engenheiros | 25 November 2015

José Epifânio da Franca

1. To change the economic paradigm;

2. To drive economic competitiveness, globally;

3. To create well paid employment opportunities for relevant, highly qualified talent;

4. To combat the outbound flow of knowledge and talent.

It is a decisive imperative for PortugalIt is a decisive imperative for Portugal

Tech-based start-ups & Venture Capital investment

2Connect your Future | 05 November 2015

Why?

What?

How?

3Ordem dos Engenheiros | 25 November 2015

More than Money!

Why?

What?

How?


More than Money!

Why?

1% = 702 M€

2014

5

The Economy today


Pace of exports is reaching normality


What we have is not enough

7

3% annual Exports growth in 10 years = 34%

1.5% annual GDP growth in 10 years = 16%

In 10 years, net additional contribution of exports to GDP would be less than 10%


More is needed!

� Circa 2025:

• 100 new companies (start-ups at birth…), all global by design!

• 40,000 minds & souls behind them… fighting and winning in the world!

• Accelerated corporate development: 0 -> 40 M€ in 10 years!

• 4 billion euros of aggregated business volume (about 6% of present total exports; about 10% of present exports of goods)!

Investing for a knowledge economy


1% = 702 M€

2025

By 2025: economic transformation kicks-in


1% = 702 M€

2035

By 2035: a modern economy is established


Why?

What?

How?


More than Money!

• Technology (and scientific too…) foundations!

• Economically relevant, highly qualified talent!

• International recognition!

• Open to the World!

• Global operational and organizational networks!

• Strong partnerships of all regional and national stakeholders!

• Well defined, long-term goals (10+ years)!

• No change of course, whatever the powers of the day!

12

• Global economic relevance!

10 Key Attributes to make it happen


•• Personal entrepreneurship Personal entrepreneurship

is critical!is critical!

•• Cultural revolution is Cultural revolution is

needed!needed!

•• World references are a World references are a

must!must!


10 Key Personal ingredients

Why?

What?

How?


More than Money!

10-100+ M€

And still more capital

Risk Value

0.5-1 M€ Capital

2-5 M€

More Capital

Capital, Risk, Value

1-2 years 2-5 years 5+ years Time

The 3 critical profiles of a technology-based start-up

Commercial-graded credit risk

Hands-off for commercial

debt

OK for commercial

debt


• Investing in a promise

• All is new: technology, industries, markets

• High-level of uncertainty

• Information gaps

• Market conditions

• Nature of assets

• Investment knowledge still very limited

• Not appropriate for banks or public markets to fund

The Equity Gap of tech-based start-ups

How to fund tech-based start-ups?


Number of companies Capital Needed

Early-stageEarly-stage 20 per year

2.5 M€ per company

50 M€/year500 M€ in10 years

(50% public)

SeedSeed 40 per year

0.5 M€ per company

20 M€/year200 M€ in10 years

(100% public)

In 10 years: 1.700 M€ Public?: 650 M€ National private?: 750 M€ International private?: 300 M€

It is the top that matters

17

Scale-upScale-up 10 per year

10 M€ per company

100 M€/year1.000 M€ in 10 years(20% public)


2015 was a good year


Feedzai, raised about $17 million

Talkdesk, raised about $22 million

Uniplaces, raised about $24 million

This must be the norm, rather than the exception!

Veniam, Unbable, …

Why?

What?

How?


More than Money!

Economic

Success for Globalization

UniversityStudents, PhDsand post-docs

Serial Entrepreneurs

Veterans ofGlobal Companies

Culture ofInnovation &

Entrepreneurship

World-classAcademic

Institutions

CorporateSpin-offs

CorporateR&D

TechnologyIncubators

GlobalVC Community

GovernmentSupport

It is more than just MONEY!


More and better Deal Flow is needed

• Deal flow with quality and volume is essential to build-up a strong, sustainable ecosystem;

• Start-up projects spun-off from existing companies is very limited;

• The Scientific and Technology ecosystem remains the most important source of start-up projects. However…

o PhD participation is still very limited, albeit the increased number of PhDs being produced

o Young Professors are mostly absent from the start-up movement

o No incentives specifically designed to promote participation in the entrepreneurial ecosystem


A Decisive Imperativethat can not be missed!

A Decisive Imperativethat can not be missed!

Entrepreneurship for Entrepreneurship for

a Global Techa Global Tech--based based

EconomyEconomy

entrepreneurship & venture capital...2015/11/25 · • 40,000 minds & souls behind them…...

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