SUPPORT SYSTEMS FOR GREEN STARTUPS INCUBATORS AND STARTUP COMPETITIONS IN GERMANY DR. RALF WEIß, BORDERSTEP INSTITUTE FLENSBURG, MARCH 26TH 2014

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1 International Green Entrepreneurship Forum SUPPORT SYSTEMS FOR GREEN STARTUPS INCUBATORS AND STARTUP COMPETITIONS IN GERMANY DR. RALF WEIß, BORDERSTEP INSTITUTE FLENSBURG, MARCH 26TH 2014 An Initiative by: Funded by:

2 CONTENTS 1. StartUp4Climate initiative 2. Incubators 3. Startup competitions and awards 4. Summary and discussion

3 StartUp4Climate initiative National start-up initiative First national startup initiative for a green economy Activities in four fields of action Planned duration: 2013 to 2016 Funded by the German Federal Ministry for the Environment Background The green economy promises to be an immense future market whose share of the global economy is going to double over the next ten years. By 2050 we have to reduce green house gases as far as 95%. Funded by: Support systems for green startups Incubators and startup competitions in Germany 3

4 Our Goals StartUp4Climate pursues the following goals: Consistent alignment of startup support mechanisms with climate protection and ecological sustainability. New incentives and stimuli for green startups in Germany. Support of green startups during introduction and establishment of new technologies and services. Reduction of the German economy s greenhouse gas emissions through the support of innovative startups. Support systems for green startups Incubators and startup competitions in Germany 4

5 Our goals Integration of green economy and climate protection in the Startup Qualification Alignment of Startup Support Systems Increase of Startup Activities Promotion of a G r e e n L o w C a r b o n E c o n o m y with climate protection and ecological sustainability In the area of green economy and climate change Support systems for green startups Incubators and startup competitions in Germany

6 Target Groups Startups and support systems for startups in Germany close to 100 startup and business plan competitions over 200 entrepreneurship and innovation chairs Politics and public authorities (support programs, etc.) over 300,000 startups Federal, state and regional actors, initiatives and facilities Investors and grantgiving organizations thereof 14,000 in the high tech area over 300 incubators and innovation centers 80 Chambers of Commerce and Industry Support systems for green startups Incubators and startup competitions in Germany 6

7 CONTENTS 1. StartUp4Climate initiative 2. Incubators 3. Startup competitions and awards 4. Summary and discussion

8 Incubators in Germany Facts and figures Between 350 und 400 incubators in Germany About 150 incubators are members of the ADT association 80 percent are business incubators by citys and municipalities Current tendency to private incubators Source: Akçomak, 2009 Support systems for green startups Incubators and startup competitions in Germany 8

9 Specialization of incubators Specialized incubators Germany: 23 % USA: 46 % Sector specialization in Germany Biotechnology, ICT, Media Expert views on Green Economy Green economy offers potential Germany: rare, single incubators USA: more often, several incubators Rural vs. urban Need for specific competence Broad vs. narrow view Source: Schwartz/Hornych, 2010 Support systems for green startups Incubators and startup competitions in Germany 9

10 Example 1: UTG Umwelt-Technologisches Gründerzentrum (Augsburg) UTG Augsburg Founded 1998 IHK Schwaben and HWK Schwaben Independent, non profit 120 successful entrepreneurs Concept Building Infrastructure Communication infrastructure Management services Startup advice Networking Umweltcluster Bayern Support systems for green startups Incubators and startup competitions in Germany 10

11 Example 2: LA Cleantech Incubator (Los Angeles) LA Cleantech Incubator Founded 2011 Public-Private-Partnership (50 % public, 50 % private) Independent, non profit 28 Startup companies Concept Plug & Play Space Executive Coaching weekly: 40 Mentors Seminars: Presentation, Finance, Connecting the dots Matchmaking Support systems for green startups Incubators and startup competitions in Germany 11

12 Incubator network Business and technology Clusters Business associations Industry partners Established corporations Science and research Good Practice: Network of incubators Climate KIC incubator network ADT Working Group Green Economy Start-up ecosystem Startup competitions Start-up initiatives Public support schemes (e.g. EXIST) Investors Support systems for green startups Incubators and startup competitions in Germany 12

13 Specific requirements for incubators Infrastructure Laboratory equipment Measurement devices Advice and support Market analyses Technology scouting Patent strategy Business plan / Business model Support systems for green startups Incubators and startup competitions in Germany

14 CONTENTS 1. StartUp4Climate initiative 2. Incubators 3. Startup competitions and awards 4. Summary and discussion

15 Startup competitions (SUCs) in Germany Facts and figures Between 80 and 100 startup competitions National and regional competitions Idea and business plan competitions Source: Kerlen/Prescher, 2010 Support systems for green startups Incubators and startup competitions in Germany 15

16 Geographical scope of startup competitions More recent SUCs have more often a wider regional coverage National Startup competitions with bigger prize money and wider attention Better success rate of awarded start-ups in national competitions compared to regional competitions Source: Schwartz et. al Support systems for green startups Incubators and startup competitions in Germany 16

17 Initiators and organizers of startup competitions Continuously growing involvement of private actors in the funding of SUCs (45 % since 2006) About half of all startup competitions (55 %) are organized in partnership between public institutions like ministries or universities and private institutions like corporations and media 28 percent of all startup competitions by private organizations (e.g. media) Majority of private competitions with supraregional scope Source: Schwartz et. al Support systems for green startups Incubators and startup competitions in Germany 17

18 Specialization of startup competitions More recent SUCs tend to specialize on specific industry sectors or technology fields About half of all startup competitions with sector or technology specific specialization Specialized startup competitions mainly in the ICT, Internet and biotechnology sector Specialized startup competitions are more often supra-regional whereas mixed competitions are more often regional and local Source: Schwartz et. al Support systems for green startups Incubators and startup competitions in Germany 18

19 Green startup awards in different types of competitions Support systems for green startups Incubators and startup competitions in Germany 19

20 Specific requirements for green startup competitions Type of competition Green Economy specialization vs. green economy category Pre-seed competition vs. seed competition Business plan competition vs. business model canvas competition Advice and support Qualification of consultants and jury members Feedback to business idea and concept Qualification modules Networks Support systems for green startups Incubators and startup competitions in Germany

21 CONTENTS 1. StartUp4Climate initiative 2. Incubators 3. Start-up competitions and awards 4. Summary and discussion

22 Support systems for green startups in Germany Startup Qualification Startup Support Systems Startup Activities G r e e n L o w C a r b o n E c o n o m y Support systems for green startups Incubators and startup competitions in Germany

23 Summary and discussion Incubators Currently in Germany there are only a few incubators specialized in the green economy Potential and specific needs of green startups have not been realized by incubators so far There s room for incubators to focus and specialize in the Green Economy field Incubators with a green economy focus need to establish and work with specific networks Startup competitions and awards Currently there are two niche start-up competitions specialized in the green economy Big national competitions don t address young companies and startups in the green economy A national start-up award can create and highlight role models for green start-ups There are limited possibilities to integrate a national green startup award in existing competitions Support systems for green startups Incubators and startup competitions in Germany 23

24 BACKUP

25 StartUp4Climate activities MOTIVATE Climate startup prize, Best practice cases GREEN STARTUPS SUPPORT Startup competitions, Green Economy Startup Monitor CONNECT Events, Sustainability-focused startup portal ADVICE Sustainable business plan, Competency network green economy incubators Support systems for green startups Incubators and startup competitions in Germany 25

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