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

Transcript

1. RUHRSUMMIT 2018 WHAT’S NEXT NRW
2. MORE VIDARANDERSEN.COM VIDAR ANDERSEN • STARTUP FOUNDER • EDUCATOR • INNOVATION ADVISOR FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES
3. LET’S GO BACK
4. 1 2010
5. FAST FORWARD
7. BUT WE STILL HAVE CHALLENGES
8. 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) … … …
9. SEED SERIES A GAP
10. STARTUP SUPPORT PROGRAMS WHAT’S THE DIFFERENCE
11. 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
12. PROGRAMS BY STAGE WHAT’S COMMON WHEN
13. 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
14. 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
15. HOW PROGRAMS MAKE 
 MONEY KEY SOURCES OF REVENUE
16. 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
17. TOPOLOGY OF PROGRAMS BY STAGE AND MOTIVATION
18. ACTIVE SEED GROWTH DRIVEN RENT / FEE DRIVEN INDEPENDENT PRE-FORMATION VERY-EARLY STAGE EARLY STAGE LATER STAGE ACCELERATOR INCUBATOR COWORKING COMPETITIONS COURSES
19. ACCELERATORS & INCUBATORS WHAT’S THE DIFFERENCE?
20. 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
21. THE FOUR ARCHETYPES OF ACCELERATORS
22. 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
23. +26 “accelerators” accelerate.nrw
24. WHY WHY WHY
25. #3
26. ENTRY CRITERIA TOO LOW POOR DEALFLOW AND/OR SELECTION
28. POOR RESULTS
29. #2
30. DARWINISTIC SELECTION FIT STARTUPS GO SOMEWHERE ELSE
32. THE GOOD LEAVES NRW OR WON’T COME HERE
33. #1
34. SKIN IN THE GAME ZERO ALIGNMENT OR VERY VERY SMALL
35. NO SYMMETRY IN RISK / REWARD BETWEEN THE “ACCELERATORS” AND STARTUPS
36. MOST DO NOT GIVE FUNDING #WTF
37. “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
38. WHAT’S NEXT NRW?
39. THE FOUR ARCHETYPE OF ACCELERATORS fifth
40. REQUEST FOR COMMENTS .ORG