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What's next for (early-stage) startups in the German state of NRW?

Vidar Andersen
October 12, 2018

What's next for (early-stage) startups in the German state of NRW?

These were the slides for my Keynote at the Ruhrsummit 2018. For more information, see http://requestforcomments.org

Vidar Andersen

October 12, 2018
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  1. RUHRSUMMIT 2018
    WHAT’S
    NEXT
    NRW

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  2. MORE
    VIDARANDERSEN.COM
    VIDAR ANDERSEN
    • STARTUP FOUNDER
    • EDUCATOR
    • INNOVATION ADVISOR
    FOUNDING PRINCIPAL
    +ANDERSEN & ASSOCIATES

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  3. LET’S
    GO BACK

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  4. BUT WE
    STILL HAVE
    CHALLENGES

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  5. FOUNDERS INVESTORS ECOSYSTEM GOVT.
    access to very-
    early-stage 

    & early-stage
    funding
    very-early-
    stage to early-
    stage to Series
    A quality deal-
    flow
    brain-drain brain-drain
    brain-drain
    (recruitment) deal drain
    danger of
    permanent 

    “Amateur
    Hour” in NRW
    tax-drain
    brain-drain
    (experience /
    advice)
    … … …

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  6. SEED SERIES
    A
    GAP

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  7. STARTUP
    SUPPORT
    PROGRAMS
    WHAT’S THE DIFFERENCE

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  8. GROWTH DRIVEN FEE DRIVEN INDEPENDENT
    STARTUP STAGE Early to later Very-early to later Pre–formation to early
    EXAMPLES
    • Active seed investors
    • Accelerators
    • Incubator
    • Co-working
    • Course
    • Startup weekend
    • Business creation
    Competition
    • Hackathon
    RISK PROFILE IF STARTUP
    QUALITY REDUCES
    HIGH MEDIUM LOW
    WORKSPACE
    Optional, benefits include
    closer links with portfolio
    Essential, but threshold
    size not apparent
    Optional
    NUMBERS OF PARTICIPANTS Low (e.g. 6–12) Medium (e.g. 50–150)
    Medium – High

    (e.g. 50 to thousands)
    SELECTIVITY OF PARTICIPANTS High Medium Low

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  9. PROGRAMS
    BY STAGE
    WHAT’S COMMON WHEN

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  10. PROBLEM
    OR NEED-

    FIT STAGE
    SOLUTION-
    FIT STAGE
    PRODUCT-
    MARKET 

    FIT STAGE
    COMPANY
    BUILDING
    STAGE
    DISCOVER SCALE
    VALIDATE
    EXPLORE
    CUSTOMER
    CREATION
    STAGE
    STARTUP STAGES
    PRE-SEED
    SEED
    SERIES A-Z

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  11. COURSE
    STARTUP
    WEEKEND
    CO-WORKING
    SPACE
    COMPETITION ACCELERATOR INCUBATOR ACTIVE SEED
    PRE-STARTUP ASPIRATION
    INTENTION
    BUSINESS
    MODEL
    DISCOVERY
    VERY-EARLY
    STAGE
    EARLY STAGE
    LATER STAGE
    MOST COMMON LESS COMMON UNCOMMON

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  12. HOW
    PROGRAMS
    MAKE 

    MONEY
    KEY SOURCES OF REVENUE

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  13. ACCELERATOR
    CO-WORKING
    SPACE
    ACTIVE SEED COMPETITION INCUBATOR COURSE
    EQUITY RENT EQUITY SPONSORS RENT SPONSORS
    FEE FEE
    PERCENTAGE
    OF EARNINGS
    FEE
    CATERING &
    EVENTS FEE
    PERCENTAGE
    OF EARNINGS
    CATERING &
    EVENTS
    PUBLIC
    MONEY
    PUBLIC
    MONEY
    SPONSORS SPONSORS
    MOST COMMON
    LESS COMMON
    SPONSORS

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  14. TOPOLOGY
    OF PROGRAMS
    BY STAGE AND MOTIVATION

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  15. ACTIVE SEED
    GROWTH
    DRIVEN
    RENT / FEE
    DRIVEN
    INDEPENDENT
    PRE-FORMATION VERY-EARLY STAGE EARLY STAGE LATER STAGE
    ACCELERATOR
    INCUBATOR
    COWORKING
    COMPETITIONS
    COURSES

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  16. ACCELERATORS
    & INCUBATORS
    WHAT’S THE DIFFERENCE?

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  17. INCUBATOR PRE-ACCELERATOR ACCELERATOR
    Length 6 months to years 5-12 weeks 3 months
    Environment Protective / Nurturing Darwinian Darwinian
    Entry Criteria Low to medium Low to medium High
    Office Space Yes No No
    Cohort-Driven No Yes Yes
    Curriculum No Some Some
    Instructors / Mentors No Some Some
    Funding No No Yes
    Goal “Shelter” “Fitness” See “The 4 Archetypes”
    Examples Factory Berlin, Berkeley SkyDeck

    Launchpad LA, MIT Engine
    Startup NEXT, Stanford StartX, Founders
    Institute, Lean Launchpad, NSF iCorps
    Y-Combinator, TechStars, 

    500 Startups

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  18. THE FOUR
    ARCHETYPES
    OF ACCELERATORS

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  19. INVESTOR—LED MATCHMAKER ECOSYSTEM HYBRID
    Accelerator Goals
    Key stakeholders are
    investors; goal is to look for
    investment opportunities
    Key stakeholders are
    corporates; goal is to provide
    a service for the customer
    base ‘matching potential
    customers with startups’ (NO
    profit orientation)
    Key stakeholders are
    government agencies; goal is
    to stimulate startup activity
    and create an ecosystem
    More than one stakeholder
    (sometimes potentially
    conflicted, not aligned); Goal
    combination of two or more
    of the three archetypes
    (sometimes potentially
    conflicted, not aligned)
    Programme
    package
    Fixed programme length;
    Mentors comprise of serial
    entrepreneurs and business
    angels; often sector specific
    Fixed programme length;
    Internal experts from
    corporates are used as
    coaches and mentors
    Fixed programme length;
    Mentors comprise serial
    entrepreneurs and business
    developers; most developed
    curriculum
    Combination of two or more
    of the three archetypes
    Screening Process
    and Criteria
    Open application; Cohort–
    based system; favour
    venture teams in early
    stages with some traction
    Open application; cohort–
    based system; favour
    venture teams in later stages
    with some proven track
    record
    Open application; cohort–
    based system; favour
    venture teams in very early
    stages
    Combination of two or more
    of the three archetypes
    Funding Structure
    Funding from private
    investors (business angels,
    venture capital funds and/
    or corporate venture
    capital); standard seed
    investment and equity
    engagement
    Funding from corporates;
    seldom seed investment or
    equity engagement
    Funding from

    local, national and
    international schemes;
    experimenting with funding
    structure and revenue model
    (search for sustainability)
    Combination of two or more
    of the three archetypes
    Examples
    YC, Techstars,
    Startupbootcamp,
    ProSiebenSat.1 Accelerator,
    Axel Springer Plug & Play
    Accelerator, L’Accélérateur
    Fintech Innovation lab,
    Microsoft Ventures
    Accelerator
    Climate–KIC, Le Camping,
    Bethnal Green Ventures,
    Scientipôle Croissance
    Bethnal Green Ventures, MIT
    The Engine

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  20. +26
    “accelerators”
    accelerate.nrw

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  21. ENTRY
    CRITERIA
    TOO LOW
    POOR DEALFLOW
    AND/OR SELECTION

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  22. DARWINISTIC
    SELECTION
    FIT STARTUPS
    GO SOMEWHERE ELSE

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  23. THE GOOD
    LEAVES NRW
    OR WON’T
    COME HERE

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  24. SKIN IN
    THE GAME
    ZERO ALIGNMENT
    OR VERY VERY SMALL

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  25. NO SYMMETRY IN
    RISK / REWARD
    BETWEEN THE
    “ACCELERATORS”
    AND STARTUPS

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  26. MOST DO
    NOT GIVE
    FUNDING
    #WTF

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  27. “The symmetry of skin in the
    game is a simple rule that's
    necessary for fairness and
    justice, and the ultimate BS-
    buster.”
    “Never trust anyone who
    doesn't have skin in the
    game.”
    - N. N. Taleb

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  28. WHAT’S
    NEXT
    NRW?

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  29. THE FOUR
    ARCHETYPE
    OF ACCELERATORS
    fifth

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  30. REQUEST
    FOR
    COMMENTS
    .ORG

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