Transcript Slide 1

Aalto Start-Up Center
-Business Incubator from Finland
Case Arabus: business incubator activities
focusing on creative businesses
Ms. Marika Paakkala, Project Director, Aalto University School of
Economics, Small Business Center
29.9.2011
Aalto University
Merging the three leading universities in Finland
ACE Aalto Centre for Entrepreneurship
Small Business Center
Under the Aalto University School of Economics
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SME business education programmes
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SME research, focused in entrepreneurship
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Incubation services
–> Aalto Start-Up Center
Arabus Business Incubator
www.start-upcenter.fi
www.pienyrityskeskus.aalto.fi
Start-up development process in Aalto
Pre-incubator  Incubator  Post-incubator
• Aalto University –based business
ideas
(incl. AES, Venture Cup etc.)
• Young Business Academy and
Small Business Center
entrepreneurship training
• Advisory-clients from Tekes, Ely
Center and others
• Creation of new
companies and jobs
• Business coaching
• Development of tools
and methods
• Increased
internationality
• Facility solutions
• Virtual incubator
•Post-incubator companies as
case studies for training
•Collaboration, networking,
shared clients with present
incubator tenants
•Tailored business programs
•Internal quality studies of SBC
and its network
•Company spinoffs
• Success stories e.g. Footbalance Oy, Futurice Oy / one of Europe’s fastest growers (2800
%), GWEB (Microsoft award / Global Start Up of the Month), Sopima Oy (Microsoft award /
European most promising technology start-up);
• VC investments in 50 companies
• Growth company cluster in Ruoholahti (Acceleration Center co-operation with Technopolis)
Co-operation and deal flow
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Aalto University
Centre of Economic development
Entreprise Helsinki
Innovation Centre (Keksintösäätiö)
Uusimaa region incubator network
Diges r,y (National association for developing the
creative industries in Finland)
Employment and economic development office
Tekes – the Finnish Funding Agency for Technology
and Innovation
Serial entrepreneurs
Other actors in CI
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Business incubation in Finland
Started during the years 1987-1988 mainly tentatively
– 3 waves of business incubation
• 1987-1994 wave of experiments and establishment
• 1995-2001 wave of expanding
• 2002-2010 wave of specializing, networking,
internationalisation, privatisation and the wave of
polytechnics and universities
CREATIVE ENTREPRENEURSHIP
- CASES
Strategic planning is conducted in cooperation with
the Ministry of Education & Culture, as well as with
the Ministry of Employment & the Economy and
with the essential interest groups.
www.creativeindustries.fi
CIF is a coordinator for the national
development programme for business growth
and internationalization in the creative
industries 2007-2013. It also coordinates and
supports the realization of development
projects funded from the national development
project.
• TAIVEX -training program for art exports.
• ”Kestävät Palikat” -executive education for
the architects.
• Managerial Programme for the Events in CI
•(in co-op. with Academy of Sibelius)
Public and private organizations engage with
education and research projects
Regional development work strengthens
regional competitiveness and attractiveness.
The network is the key success factor for the
creative industry.
Business services and
education:
• Arabus - Design, Media and Art
Business Start-Up Center offers
business development, training,
facility and equipment services to
SMEs and entrepreneurs in the
creative sector.
• ”Luovien alojen yrittäjyys EteläSavon vahvuudeksi” Entrepreneurship coaching in CI
South Savo Regioni.
International research and
development strengthens the
knowledge:
• CreaEnt project is linking of
knowledge and innovation to
sustainable development and
competition of Central Baltic Region
(CBR) and development a best practice
model of entrepreneurial education and
networking for creative industry in
Finnish, Estonian, Latvian and Swedish
universities.
• CIF improves the framework
conditions of the creative industries
in the Nordic countries and in the Baltic
region through the KreaNord -project.
Arabus business incubator
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Established in 1996
Part of the University of Art and Design Helsinki until 2008. Now part of Aalto Uni.
Part of the Uusimaa region incubator network
Portfolio: Almost 30 creative sector start-up companies with strong growth potential.
ASUC total: Almost 80 start-up companies, approx. 170 employees.
The mission of the Arabus incubator is
to promote entrepreneurship in
the field of creative sector and
industries, which have a growing
importance in national economic growth
”The Business incubator for companies which
are seeking for rapid growth and success!”
ARABUS Profile
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Design
- Concept and product design
- Usability
Media
- Internet, digital, AV and conventional media
Content production
- Culture production
- Content production for internet, mobile and conventional
media
Performing arts
- Acting, choreography, dance
Defination by Ministry of Employment and the
Economy, Creative industries in Finland:
“Animation production, architectural services,
film and TV Production, Art and art galleries, crafts,
sports and adventure services, advertising and
marketing, design services, music and program,
game
industry, radio and audio production, art and
antiques trade, dance and theatre, media”
Management
 Aalto-university
 School of Economics
 Small Business Center
1. Management team (strategy work)
2. Steering group ( financers, Aalto Uni specialists, group of external experts)
3. Advisory board members: D.Sc. Jukka Ala-Mutka, CEO, Cone Advisor Oy, D.Sc. Erkko
Autio, professor, Imperial College, London, MA Helena Hyvönen, Executive Dean, Aalto University
School of Art and Design, D.Sc. Petri Parvinen, professor, Aalto University School of Economics,
D.Sc. Markku Virtanen, professor, Aalto University School of Economics
4. Aalto Start-Up Center team (total 6 members, selection process, development
of service portfolio, marketing issues etc operative work)
FOCUS AREAS
Creative Industry & Information and Communication Technology
INNOVATION & GROWTH
• Existing company under 3 years
• Innovative, scalable business idea with a growth potential
• Existing business plan incl. finance plan for the first year
DREAM TEAM
APPLICATION PROCESS
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Application through Aalto Start-Up Center’s web pages
www.start-upcenter.fi/en
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Face to face meeting with Business Advisor
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Team meeting once a week,
decisions made within 1-2
weeks
Aalto Start-Up Center and Arabus services
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Enter incubator
Information
and training
Facilities
Networking and
development
Mentoring
services
- Training and
information events
form various areas of
business
- Furnished premises,
Office Suite,
conference rooms,
private Intranet and
broadband
- Events with other
entrepreneurs and
stakeholders
- Development- and
coaching programs
- A broad and
experienced network
of business
professionals
Growth
program
Business advisor
services
Development
program
Sales
program
Business advisor
services
O yrs.
To apply for the
incubator:
- Business idea with
growth potential
- Existing company and
business plan
- Application through
Aalto Start-Up Center’s
web pages
- Decision within 1-2
weeks after all necessary
material has been sent
Business advisor
services
3 yrs.
Business modeling
Sales action plan
Ensuring continuation
of growth
-Modeling of company’s
business
-Strategic alternatives, policies
and focus points
- Definition of customer value,
competition field and supply
- Ensuring funding
- Cornerstones of sales
- Defining purchasing criteria
- Tailored sales action plan
- Practical sales training
- Managing growth stage
- Defining genuine competitive
advantage
- Securing necessary resources
- Planning of growth-driven
financing
Softlanding services
• Technopol and ESA (Estonia)
• Northtown technology center
(Lithuenia)
• Kristal business incubator (Russia)
• Northtown Technology Center
(Latvia)
• Several partnership agreements in
process (Sweden, England…).
Funding in 2010
7.8
ESF
10.8
49.7
31.7
City of Helsinki
Helsinki School of
Economics
Entrepreneurs
Costs
3.20%
8.80%
4.2 %
Materials and accessories
Staff costs
45.20%
38.60%
Purhasing costs, services
Travel costs
Other costs
COMPANIES
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Aalto Start-Up Center has 80 companies. Companies are from creative
industry (30), or developing: mobile- (10), internet- (20) or software services
(20).
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~25% of all applicants are selected ( ~ 200 appl. year 2010)
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The entrepreneurs are 36 years old by averige and 80% of them has a
academic education(2/3 has Aalto background)
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The top funders for our companies are: ELY, Centres for economic
development, transport and the environment, Finnvera, Tekes– the Finnish
Funding Agency for Technology and Innovation, Ministry of Education and
Culture and business angels
According to Aalto Start-Up Center survey
2009-2010
Figures and results
• Results in Arabus company and job figures (1.5.200830.4.2011)
- 56 selected companies
~20% of all applicants are selected
- 35 new established companies, of which 15 have been set up by
women> new companies
- 117 employees, of whom 36 are women
- Team size ~ 2 entrepreneurs
- The entrepreneurs was 36 years old by averige.
112 persons belonged to the age group: 25-44 years old
- Since 1996 about 200 companies have been selected to Arabus
 Aalto-university and Arabus do regular study on its customer base
 86 % survival rate after ten years
 32% of postincubator companies are considered fast-growing
Incubated companies 2008-2011
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Fields:
Communication services
Faschion designers
Usability Designers
Industrial Designers
Digital and social media
Arcitecture services
Game industry
Arts trade, art management
Sports and experience services
Video and animation services
Living lab
Examples:
www.communicea.fi
www.kaksitva.com
www.scope.fi
www.saunasavu.com
www.omakirja.fi
www.penandhammer.com
www.tribestudios.com
www.artchortcut.com
www.boxy.fi
www.brinkHelsinki.fi
www.digitalliving.fi
Challenges
A) Companies and entrepreneurs
B) Incubator activities:
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Difficulties in the business consept
modeling
Lack of business skills
(management, marketing etc.)
Problems with the Entrepreneurial
team building
Lack of understanding the importance
of self-leadership
Funding issues
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How to educate creative people in
entrepreneurship?
How to find new and interesting
entrepreneurial teams?
Consulting Process Development
How to find suitable mentors?
Interaction with markets (partnerships,
co-operation)
Interaction within the incubator
Customer base is fragmented (due to
broad definition of the
creative industry)
Funding issues
Contact information
Aalto Start-Up Center
Hiilikatu 3
00180 Helsinki
Finland
Activities in St. Petersburg
Ms. Elena Mochnikova
+358504385737
Email:[email protected]
Further information about
Aalto Start-Up Center:
Ms.Marika Paakkala
Project Director
Mobile: +358 40 829 2286
Email: [email protected]
Information about Baltic sea
co-operation and partnerships:
Ms. Natalia Narits
+358 40 5638 453
Email: [email protected]
More information about
creative sector:
Mr. Bengt Forsström
Project manager
+358 407034984
Email: [email protected]
Softlanding services (Estonia)
Eeva Riistama
+358 40 550 4805
Email: [email protected]
More info and application form:
www.start-upcenter.fi
Thank you for
your attention
and
Welcome to
Aalto Start-Up Center!