growing helsinki’s startup ecosystem€¦ · • most popular ecosystem report: 2017 = 200,000...

Growing Helsinki’s Startup Ecosystem

Dane StanglerJune 2017@danestangler

© 2017

Our Common Challenge (and Opportunity)

• “Software eating the world”• Technology penetrating more sectors• Fears over automation and unemployment

• Difficult transition for many regional economies

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To Manage Economic Transition, More Places Trying to Encourage Startups

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Yet the Rewards from Startup Creation and Growth are Concentrated

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Tel A

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Aust

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Global Distribution of Ecosystem Value

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That Concentration Has Not Changed Much

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MORE VIBRANT STARTUP ECOSYSTEMS

What’s Needed

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Startup Genome Empowers Leaders and Builds Local Consensus to Catalyze Action for the Ecosystem

Our Mission: Fuel measurable economic growth by spreading the global startup revolution in cities and countries all over the world

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Data + Knowledge + Credibility

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• World’s largest primary research

from the Voice of Entrepreneurs

• 10,000+ founders

• Two largest global startup

databases plus data from 100 local

organizations

Largest Knowledge Base

• Reports quoted in 100+

publications including FT, WSJ,

Forbes, The Economist

• Most popular ecosystem report:

2017 = 200,000 global views in 2

months

Global Recognition

and Credibility

• 55 cities/28 countries

• 9 factors, 24 sub-factors, 100+

metrics

• First Startup Ecosystem Lifecycle

Model of evolution

• Built by experienced startup

leaders, starting with Steve Blank

Data-Driven &

Comprehensive Methodology

LIFECYCLE AND PERFORMANCE

Our Approach

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Startup Genome: Evidence-Based Policy Engine Based on Primary Research from the Voice of Entrepreneurs

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4) ACT on Specific Levers Proven to Solve Gaps=> Achieve Economic Impact

2) CLARITY on Gapsfrom Scientific Evidence=> Build Consensus for Action

1) FOCUS on the Right Issues at the Right Time=> Maximize Impact

3) STRATEGIZE by Leveraging Local Strengths that MatchAttractive Innovation Sectors=> Accelerate Growth Strategic Budget

Allocations

Lifecycle Evolution

Success Factors

Economic Strengths

Policy Action

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Ecosystem Lifecycle Model

• ICT sector truly subject to global competition

• Most economic impact produced by large scale-ups

• Economic performance increases with ecosystem size

• Large size cannot be achieved with local resources only

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Activation Globalization Expansion Integration

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Helsinki Has Activated Local Resources and Reached Globalization Phase

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Helsinki

Runner-up for Global Top 20

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Size Matters: Increasing Returns in Ecosystem Performance

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3.5

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Exit

Valu

e G

row

th In

dex

Exit Value ($B)

London

Berlin

Amsterdam

Stockholm

Jerusalem

Paris

Global Median

Helsinki

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Triggers Explain Non-Linearity in Growth

• Size grows non-linearly due to impressively large scale-ups

• These ”Trigger” National and Global Resource Attraction

• Large scale-ups and competition for resources are central to creating economic impact

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$100MExits

$BExits

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To Grow Larger and Faster, Ecosystems Must Move from Organic to Inorganic Resources

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National Startup Attraction Global Startup Attraction

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Success Factors Model: Model of Ecosystem Assessment based on Global Voice of Entrepreneurs

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Founder

Talent

Organizations

Funding

Startup Experience

Resource Attraction

Team Local Ecosystem

RESOURCES NETWORKS(Knowledge Flow)

Local Connectedness

GlobalConnectedness

PERFORMANCE

StartupOutput

Global Market Reach

EcosystemValue

Econ

omic

Impa

ct

Exits / Triggers

Local Context

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Global Know-How Fuels the Creation of Startups with Global Potential, Scale-ups and Exits

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Global Market Reach

Exits(Scale-Ups)

Econ

omic

Impa

ct

StartupOutputFounder

Talent

Funding

Organizations

Startup Experience

Resource Attraction

Local Connectedness

GlobalConnectedness

$1B Exit = Global Attraction

GlobalSystem

Resource Recycling & Experience

GlobalKnow-How

Globally-Leading Startups



PERFORMANCE

Billion-Dollar Exits & Unicorns “Trigger” Global Resource Attraction, further fueling Global Relationships and Know-How

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Policies Affect Ecosystem Resources and Connectedness

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Founder

Talent

Organizations

Funding Local Connectedness

GlobalConnectedness

Local Context

StartupExperience

Resource Attraction

Policy

• Laws (e.g. immigration and funding to organizations, programs, and institutions can impact all of these factors.

• Total Budget is key: you cannot move up the ranking without investing more than others.

• Governance structure is important to be efficient—no waste, duplication, lack of coordination.

• Allocations according to priority issues and strategy increase the impact.

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Phase Brings Focus Onto Right Issues at Right Time è Drive Action

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Activation• Build Connected Community

• Grow the number of startups

• Generate 100M+ exits

Globalization• Develop Global Network

• Inject Global Know-How

• Generate $B Exits

Expansion

• Fill Remaining Resource Gaps

• Expand Resources

• Integrate globally

Integration• Integrate ecosystem with local

economy, laws and institutions• Promote diversity locally

INCREASE STARTUP OUTPUT;GENERATE TRIGGERS (EXITS)

Priorities for Helsinki

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Helsinki Has Divergence Between Density and Output

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Density Output

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Despite Small Size, Helsinki Has Considerable Room to Grow Larger Startup Ecosystem

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Increasing Size and Growing Faster Will Require Focus and Action on Key Areas

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Founder

Talent

Organizations

Funding

Startup Experience

Resource Attraction



Local Connectedness

GlobalConnectedness

PERFORMANCE

StartupOutput

Global Market Reach

EcosystemValue

Econ

omic

Impa

ct

Exits / Triggers

Local Context

STRONG INDICATORS, ROOM FOR GROWTH

Early-Stage Funding

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Helsinki Has Strong Funding Base—Needs to Expand and Attract More Foreign VC

• High-level of early-stage funding per startup• Growth of early-stage funding is slower than global median

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London Stockholm Jerusalem Berlin Paris Helsinki Amsterdam

Seed Funding Rounds Led by Local Investors

Global Median

• High percentage of seed rounds led by local investors

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Helsinki Compares Well to Global Median with Experienced VCs—Needs More to Grow Larger and Faster

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0 1 2 3 4 5 6 7 8

Berlin

Jerusalem

Helsinki

Amsterdam

Stockholm

Paris

London

Experienced VC Firm Index

Global Median

HELSINKI HAS STRONG GLOBAL PLATFORM

Global Connectedness à Resource Attraction

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High Global Connectedness Has Helped Helsinki Startups Reach Global Markets

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# Connections to Top Ecosystems

Helsinki

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Definitely Helped by Events Such as Slush

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Connections Made Locally with Startup Leaders in Top Ecosystems

Global Median

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But Helsinki’s Global Connectedness Not (Yet) Leading to Higher Resource Attraction

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National Startup Attraction Global Startup Attraction

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Helsinki Needs to Attract More Entrepreneurs …

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Jerusalem

Helsinki

Stockholm

Berlin

Paris

Amsterdam

London

Global Entrepreneur Attraction # National Entrepreneur Attraction #

Global Median

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… And More Startups from Elsewhere

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0 50 100 150 200 250 300 350 400 450

Stockholm

Helsinki

Jerusalem

Singapore

Paris

Amsterdam

Berlin

Global Startup Attraction # National Startup Attraction #

Global Median

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Related to Low Number of Exits, which Trigger More Resource Attraction, Leading to Greater Startup Experience and Know-How

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Global Market Reach

Exits(Scale-Ups)

Econ

omic

Impa

ct

StartupOutputFounder

Talent

Funding

Organizations

Startup Experience

Resource Attraction

Local Connectedness

GlobalConnectedness

$1B Exit = Global Attraction

GlobalSystem

Resource Recycling & Experience

GlobalKnow-How

Globally-Leading Startups



PERFORMANCE

Billion-Dollar Exits & Unicorns “Trigger” Global Resource Attraction, further fueling Global Relationships and Know-How

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Helsinki Founders Have Know-How and Ambition, but There are Talent Gaps that Resource Attraction Can Help Fill

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Founders with Prior Hypergrowth Experience and Prior Experience as Startup Employee

Founder Hypergrowth Experience Founder 2 Years Experience

Global Median

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Add to This a Worrying Level of Potential Leakage: Helsinki at Inflection Point on Resource Attraction

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Share of Startups Indicating Intent to Leave Ecosystem

Global Median

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One Way is for Helsinki to Attract More Immigrant Founders

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Shar

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Global Median

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To Increase Startup Output, Helsinki Can Also Expand Participation in Startup Ecosystem

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Helsinki Paris Stockholm Berlin Amsterdam Jerusalem London

Percentage of Founders that are Women

Global Median

Accelerating the Growth of Helsinki’s Startup Ecosystem Will Require Focus and Action

• Top Priorities:o Double Startup Output

o Generate more Triggers—Large Exits

• Increase Early-Stage Funding– More Foreign VCs

• Build on Global Connectedness to Increase Resource Attraction– Encourage Recycling of

People and Money• Expand participation

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Thank you! Join our mission!

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JF GauthierCEO

[email protected]

Dane StanglerHead of Policy

+1 (913) [email protected]@danestangler

growing helsinki’s startup ecosystem€¦ · • most popular ecosystem report: 2017 = 200,000...

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