1. The start-up after incubation period Financial and managerial sustainability of incubators. Oh no… after three years of incubation it is not over yet?! Giordano Dichter Head of Quality and Technical Assistance European Business and Innovation Centre Network TAIEX Workshop creation and development of Start-ups in Technology Parks and Innovation Incubators Chisinau, Moldavia, 21 June 2013

3. General Mission: innovative, innovative and innovative local and sustainable entrepreneurship!!! ProfessionalInnovationIncubationBSO Territory Regional/localEconomic development GrowthCompetitivenessSectors Technological innovationR&DEntrepreneurs SMEs TAGs:

4. Organization: visible, adequate, ppp, represented, sustainable, independent!!! Catchment areaPublic sectorStrategies Adequate Coordination PremisesVisibility StaffAutonomous Private sector Financially Sustainable Positioning TAGs: The EC-BIC Criteria

5. Services: To SMEs, to entrepreneurs, to start-ups... Signposting!!! The EC-BIC Criteria IncubationStart-upsPre-incubation Post-incubation Financial planning CoachingNetworking IPR Access to finance Business modelMentoringTraining TAGs:Business plan Hosting Follow-upDiagnosisProjects Innovation profilingSignposting

6. Activity measurement and evaluation of performance: Tracking, Benchmarking, continuous improvement ReviewCommon indicatorsObservatories Reputation Benchmarking TAGs: Self-evaluation questionnaire

7. Quality: Giving to the community of entrepreneurs and BICs to get positive returns!!! Quality system TQMComplianceProcess BQMC On-site visits TAGs: Self-evaluation questionnaire Customer satisfaction surveys Management information systems

9. A perspective from who’s on the field It’s a tough job! 10,6% conversion rate!

10. But someone’s got to take care of it.

11. And… we are good at what we do! Average survival rate in the EU? 50% - 60%

12. And we do it quite efficiently

13. A slower growth Non-rewarding culture! Unbalanced support measures! YOU BET! A tough environment Are entrepreneurs sailing through troubled waters?

14. Life is not easy! It’s tough out there What NOW?

15. EU Incubation Process

16. Question #1: Do I want to engage in the post-incubation process? You have graduated from my incubator!  JOB DONE! It’s time that my efforts go to support someone else.  I’m using public funding, man, there are others on the line! Don’t be too greedy!  It will cost me too much to engage, so good luck!  Mission NOT Accomplished!  All right, all the above is true but, 3 years of support will not give you the highest chances of success.  It is a total different game out there now!

17. Question #2: Sustainability, how?  EASY!  I have public funds and my government pays for all my costs! Nothing to worry about!  Lucky chap! But.. Are you sure? Resources are getting scarcer!  The Public sector has other alternatives for job creations  what is your real added value?  what is your value for money?  What is your ROI?  What is your PBP? Are you SURE you are good enough to have government continuing to pump money in your system for ever?

18. Question #2: Sustainability, how?  Hard enough, thank you, life is not easy! What do they expect from me, to turn into gold everything just by touching stuff?  My local government provides me with nothing!  It has provided funding for the building, but running costs are not paid for, or are paid for, but not enough for me to make an impact! Then, my friend, you may want to take some time to analyse your business model! You do it for others, time to look at yourself! We can’t continue to rely on public sector funding for ever! EU local governments support to BICs has passed from 73 to 60% (-7% only in the last 2 years!).

19. The most common scenario: 1.I need to rely on creative business models to achieve self sustainability 2.YES, follow-up after graduation is a goal of my incubator QUESTION #3 How can I engage in post-incubation support without going bankrupt?

20. The three phases of incubation Usually, pre-incubation is totally subsidized: It is a COST Center. Commonly enough the incubation period is partially subsidized: it is a COST center although we can see places where incubation is a profit center. The post-incubation period instead has no common thread but wisely enough most incubators have managed to transform it in a positive revenue source.

21. What are you offering?  Entrepreneurs Alternative life style From idea to company  SMEs Acceleration program Soft-landing programs Innovation diagnostics/upgrading I18N and C15N Industrial spin-offs  Government Social/cultural/mentality change Job creation Wealth creation International standing  Donors Smart enablers of your strategies Advise on your long-terms strategies Strategic partner  Private sector Visibility of tech/businesses first CSR sponsorship  NGOs (local and International) Partnership Subcontracting opportunities  Universities Attractive route to work for students Commercializing IP in IT? Spinout Entrepreneurship program  Investors High quality deal flow  Diaspora Possibility to return home into interesting business Personal Social Responsibility Investment/outsourcing opportunity

22. Who can provide you what?  Entrepreneurs o Fee for services o In-kind services from incubates or other incubatees  SMEs o Consulting fees  Government o “official approval” o Trust by association o Possible subsidies  Donors o Project o Cash  Private sector o Cash from sponsorship o Fee for services o Access to facilities  NGOs (local and International) o Dealflow o Cash  Universities o Deal-flow o Better prepared entrepreneurs o Access to IP to look for opportunities  Investors o Incubates to next stage of development o Success fee  Diaspora o CSR o Success fees o Value for incubates (investments) Revenue / Added Value

23. Key Activities Entr. SMEs Govt Donor PS NGOs Uni / CoE Investors Diaspora Pre-incubation Incubation Acceleration Marketing strategy PR Project MGT C15N – I18N Training Match Making

24. Post incubation phase  how to make it profitable? Consulting Fees Build your fee structure 100% paid Reputation! Not only to ex-incubatees! But also: free expertise, free mentorship programs  the former incubatee is one of the most valuable assets of an incubator!  PAYBACK Time!

25. We believe the EU incubation industry can help… a few statistics EC-BICs’ start-up services

26. EC-BICs’ development services

27. Services for SMEs delivered by BICs

28. Questions? Thanks for the patience! Giordano Dichter Head of Quality and Technical Assistance European BIC Network T: +32 2 7611083 E: gdi@ebn.eu S: g.dichter W: www.ebn.eu