Digital Ecosystem actors

1. Mestrado Integrado em Engenharia e Gestão Industrial
Digital Ecosystems and Ecosystem Actors
DIGITAL BUSINESS ECOSYSTEMS
2015-16
António Grilo
Aneesh Zutshi

2. 2
Startup Ecosystem Actors
Accelerators
StartupIncubators
Co-
Workspaces
Universities
Training
Providers
Angel
Investors
Venture Capital
Funds
Research
Centres
Online
Platforms
- Talent
- Funding
Pre-
accelerators
Events,
Meetups

3. 3
Universities
Pre-accelerators Accelerators
Typical Engagement Stage
Angel Investor Venture Capital Funds
Incubators
Bank Loans

4. 4
Incubators
• Providors of office space to startups for a fixed duration, typically
more than an year
• Shared Work-Space or small offices
• Mostly Non-Profit or Publically Supported
• According to International business innovation association
• 54% are mixed-use
• 37% focused on technology business
• 6% focussed on service businesses
• Increasingly getting more active in organising events, mentorships,
and even connection to investors

5. 5
Startup Incubator

6. 6
Accelerators
• Run cohort based programs for startups for a fixed duration, usually a few
months.
• Provide intensive training and mentorship
• Work with the startups to significantly improve their product and business
model so that they can approach large investors.
• Some accelerators invest money in a startup in return for equity.
• Most programs end in a Demo Day event where investors are called.
• Many accelerators are struggling with developing their unique business
model.

7. 7
Accelerator Example – Startup Chile
• 5 Verticals
• Robotics
• Software
• Clean Energy
• Education
• Healthcare
• Started in 2010 with the support of Chilean Government.
• $40.000 of equity free funding
• 1 year commitment to stay in Chile

8. 8
• One of the earliest Accelerator, started in 2005, at Silicon Valley
• $120.000 for 7% Equity
• Twice a year intake
• Succesful Alumni
Accelerator Example – Y-combinator

9. 9
Online Platforms
• Used by accelerators to create online application forms.
• Startups can create profiles.
• Can be used to find talent, cofounders
• Free to use
• Match Angel Investors to Startups
• Help job seekers connect to startups
• Crowdfunding for creative startups
• Find a co-founder

10. 10
Events/Meetups
• Global Startup Community
• 185 Cities and 70 Countries
• World’s most influencial
startup tech event
• 2015 – Dublin
• 2016 - Lisbon

11. 11
Investment
• Angel Investors
• A wealthy individual who provides investment to a Startup
• Early Stage Investment
• High risk, high equity
• Venture Capital Funds
• Professionally Managed Investment Funds
• Larger Investment
• Often for Scale up stage
• Influence the management of the Startup

12. 12
Main Success Factors for Startup Ecosystem
• Educational Institutions
• General as well as specific skill based
• Entrepreneurial Culture
• Motivated Young People
• Risk Tolerance
• Creativity, Ambition, Drive
• Visible Success Stories
• Active Ecosystem Actors
• Sufficient Funding Sources
• Micro Loans, Grants
• Angel Investors, VCs

13. 13
• Human Capital
• Skilled Workforce
• Serial Entrepreneurs
• Government Support
• Easy Regulatory Framework
• Incentives. Eg. Tax Benefits
• Venture friendly legislations. Eg.
Bankruptcy, Contract enforcement,
Property rights, Labour laws
• Easy immigration policy for foreign
workers and entreprenerus
Other Key Success Factors for Startup Ecosystem

14. 14
• Customers
• Proximity to Customers
• Global Connectivity
• Easy Availability of Support Services
• Legal
• Accounting
• Advisors
• Infrastructure
• Telecommunications
• Transport and Logistics
• Energy
Other Key Success Factors for Startup Ecosystem

15. 15
Most Succesful Global Startup Ecosystems

16. 16
• Performance on the funding and exit valuations of startups headquartered in an
ecosystem
• Funding on VC investment in the ecosystem and the time it takes to raise
capital.
• Talent on the quality of technical talent, its availability and cost
• Market reach on the size of the local ecosystem’s GDP and the ease of
reaching customers in international markets
• Startup Experience on first-party survey data that is linked to success of
startups, such as having veteran startup mentors or founders with previous
startup experience
Digital Business Ecosystem Rankings 2015 Parameters

17. 17
Digital Business Ecosystem Rankings 2015
Source: Startup Compass

18. 18
Digital Business Ecosystem Rankings 2015
Source: Startup Compass

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Task for Next Class
• Identify the main actors in the Lisbon Ecosystem:
• Accelerators
• Incubators
• Co-work Spaces
• Angel Investors
• Venture Capital Funds
• Present them in a short presentation explaining their starting date,
and a brief profile.