The road to becoming a

Roadmap | 3

Welcome to the HUB!

You are reading this booklet because you have shown interest in joining the HUB Network. Great! The following pages should give you a better idea of what the HUB is all about, how you can join our network and anything else that may be important to know before embarking on the exciting journey of founding a HUB.

The story of the HUB Founding a HUB What makes a HUB Getting started What happens next? A sneak preview Finances & Legal Onboarding Process FAQ

4 6 8 14 16 22 25 26 28

4 | The story of the HUB

The story of the HUB | 5

The story of the HUB

The HUB was founded in 2005 to create a dedicated space to inspire, connect and empower people who wanted to realize enterprising ideas for sustainable impact. There are plenty of people with good ideas for a better world. What seems to be missing are enabling environments that help these people with support from like-minded souls move from intent to action, and from action to impact. We set out to create spaces that borrow from the best of a prototyping lab, a start-up incubator, an inspiring office, a learning space and a think-tank to create a unique ecosystem for social innovation. Spaces with all the tools and trimmings needed to grow and develop new ventures for sustainable impact by providing access to the right experience, knowledge, networks, finance and markets. But above all, spaces for meaningful encounThe idea was simple!

ters, exchange and inspiration, full of diverse people doing amazing things. The idea has been spreading like wildfire and resulted in the emergence of a global movement to create HUBs across five continents. To date, there are more than 30 open HUBs and many more in the making, ranging from London to Melbourne, Johannesburg to Sao Paulo, San Francisco to Singapore. The ambition is clear: To become a truly global network of 100 thriving HUBs in the key regions and cities of the world by 2015, building a vibrant community of entrepreneurial people who work at the leading edge of social innovation through collaborative action. Locally embedded and globally connected.

how the HUB was born

6 | Founding a HUB

Founding a HUB
There are many ways of engaging in the field by being an entrepreneur, an investor or starting a HUB. HUB members as well as many HUB founders are at the cutting edge of social innovation. If you are excited about bringing a HUB to your city, a city that holds the potential to build a thriving community of impact creators and feel that you are the right people to bring this community together, continue reading. Please note though that the journey to found a HUB is a long-term commitment of at least 510 years and requires your full dedication to meet all the challenges that will emerge along the process. If you are up for it though, it is also a magical experience and you will find plenty of support from within the HUB Network to make it work once we commit to each other.
long-term commitment

8 | What makes a HUB

What makes a HUB | 9

What makes a HUB

We see ourselves as curators of the physical, virtual and social spaces where the change we want to see in the world is happening. Our spaces and communities are designed to help materialise this change by offering a unique mix of infrastructure, connections, inspiration and learning to people who want to move their ideas from intent to action and to impact, bringing about sustainable solutions to the social, economic and ecological challenges faced by our time. So what makes a HUB? Essentially, a HUB consists of three distinct elements. It is a vibrant community of passionate and entrepreneurial people who share an underlying intention to bring about positive change and act as peers to cross-fertilize and develop their ventures. It is a source of inspiration that provides meaningful content through thought-provoking events, innovation labs, learning spaces, incubation and facilitated conversations that matter.

Finally, it is an inspiring space that offers a flexible and highly functional infrastructure to work, meet, learn and connect. The magic happens where these three elements connect and are brought to life through the art of hosting.

the Hub Experience

10 | What makes a HUB

What makes a HUB | 11

Our value proposition Ultimately, we would like the HUB to become a global platform where people from all corners of the planet connect and engage in collaborative action to realize enterprising ideas for a better world. We strive to be an integral part of the budding global infrastructure for social innovation and a trust-building agent among the various communities that strive for positive change. In order for this to happen, we are building an accessible, yet closely-knit, bottom-up driven network of high-quality spaces that commit to each other as interdependent peers in the realization of our shared vision. We are thus setting the ground for trans-local collaborations and global partnerships that create value for our members and the world we live in. But there is more: By joining the HUB network, you will get access to our collective wisdom and learn how to build a thriving HUB. You will receive invaluable support from a dedicated tutor, an assigned Sister HUB, and our global talent pool. You will be able to attend regular conferences where we share knowledge and best practices with each

other. Naturally, you will also benefit from our shared ICT systems and you will be given the opportunity to operate under a co-owned HUB brand. In the end, however, the biggest value may simply be to actively take part in the shaping of a global movement, which is rapidly becoming one of the most dynamic players in the social innovation space, exploring ways of shaping the future of our world.

14 | Getting started

Getting started | 15

Getting started
If you are serious about founding a HUB, you first need to ask yourself whether your city really holds the potential to build a successful HUB. A HUB can only unfold its magic if there is a critical mass of social innovators with exciting initiatives to materialize positive change. Otherwise the ecosystem doesnt work and you end up with a co-working space, which is great, but not what a HUB is. So be clear on whether you will be able to attract at least 200+ members who work on sustainable solutions for the challenges of our time, out of which a significant number should be social entrepreneurs, i.e. people with innovative ventures that have the potential to scale for systemic impact. This core is usually what brings the HUB to life and gives you credibility when seeking finance and building partnerships. So try to talk to as many people as possible about your vision of founding a HUB to get a sense for the potential.
potential of your city

Dont make a business plan just yet. There will be time for that. We have a great toolkit that can help you build the right business model for your context. And chances are that you will anyway have to fundamentally change your assumptions during the process. So, are you really interested? At this point we would like to get to know you a little better. Wed like you to register your interest with us in a slightly more detailed format than when you registered through the website earlier. The purpose of this is to know a little more about you from an early stage to be able to better help you on your journey to decide whether you are a HUB founder or not. You can register your interest here: http://bit.ly/HUBinfo

size of your community

16 | What happens next?

What happens next? | 17

What happens next?

Well get back to you with all the details of the process, criteria, hoops, bells and whistles. We want you to be fully informed before you venture on this journey. The path is adventurous enough as it is, which is why we designed the HUB info package for you! Youll receive this package upon registration. Once you feel confident about the potential of your city, it is time to find a team that brings the right qualities together to found a HUB. From experience we can say that the following archetypes will make a great founding team.

Build a team Lead Entrepreneur Whether informal or formal, this role is typically the person that convenes the team in the beginning, holds everyone accountable, and holds the initial spark. However, this role can shift multiple times between people during the process or be shared between several people. Community Host You cant just hire people to convene a community for you. Your community will be looking to you as a group of founders to build this community and lead it. A community needs to be nurtured bottom up and culture needs to be set early on. Its hard to change culture months into the life of any organization. Business Practitioner Someone who has run a business with an annual turnover of EUR 300.000 or more, knows how to tell a P&L from a cashflow sheet and can soundly steer the financial mechanics of the HUB.

18 | What happens next?

What happens next? | 19

Space Curator HUBs are living, learning spaces for impact and need to embody this. Its not just about throwing some tables, coffee and a wifi router into a derelict building and hope for the best. The space has to support both your vision and business model. Events and Programming Designer The HUB will be a bored and uninspired community without high level programming, educational courses, incubator and accelerator programs. Youll need someone who can master most of this and learn the rest. Business Developer Last, but far from least, you will need a person who can lead the work on innovating on your business model, products and activities and build relevant partnerships that can elevate the HUB to the next level.

If you dont feel you have the right team, dont do it. In our experience teams that are too small or have rushed the decision on who their core team is end up struggling to make it work and often fail in the process. Experience has also shown that the initial HUB community is often a reflection of the founding team. Accordingly, make sure you have the kind of networks represented in your team that should build the core of your community: social entrepreneurs, creative thinkers, impact investors, etc. Last but not least, be aware of the fact that founding a HUB is a long-term commitment that may require your full dedication for at least 510 years to make it fly. Founding a HUB is not a walk in the park.

You attract who you are!

22 | A sneak preview

A sneak preview | 23

A sneak preview
For those of you who cant wait for the info package, or just want a little bit more information, read on: There are two major steps in joining the HUB Network: Becoming a HUB Candidate and then an official HUB Initiative. Becoming a HUB Candidate As HUB Candidate you have the exclusive right for 6 months to explore the feasibility of founding a HUB in your city. To gain this status, you need to submit an application form with information about your team and the potential of your city. Within this application, you will also need to indicate which HUBs you have visited and who has offered to formally back your application. You will find the link to the application form in the HUB info package. Upon submitting this, someone from the global onboarding team will get in touch with you for a personal interview. Based on this, a review committee will come together to as-

sess your application. If successful, you will sign a Memorandum of Understanding that will give you the right to explore the feasibility of a HUB in your city and use the HUB Candidate logo in the process. You will also receive a feasibility tool-kit, the HUB Practice Handbooks, you will be assigned to a HUB Associate as a tutor and you will be invited to any upcoming HUB induction seminars, which are designed to ensure that you are given all the information you need to judge whether a HUB is feasible in your context. From a HUB Candidate to a HUB Initiative Once you have completed your feasibility study, you can submit it to the global management team, which will give you feedback and ask for a resubmittal if necessary. You will then need two existing HUBs to formally back your application before you can apply for HUB Initiative status at the HUB Associations General Assembly. The General Assembly is the core of our global governance mechanism and the place

dedicated support & induction seminars

1 submit application

4 submit feasibility study 5 two HUBs to back your application

2 team interview

24 | A sneak preview

Finances & Legal | 25

where all existing HUBs can express their views and vote on important matters relating to our collective future. The global management team and your tutor will help you navigate this process. You need 2/3 of all votes to pass as HUB Initiative in the HUB Association general assembly. From this point onwards, you are a non-voting member of the network and can participate in the HUB governance conversations. You will also get a customized HUB logo and presence on our global website. You will then have a further 18 months to get a HUB up and running in your city.
6

Finances & Legal

In return for joining the network, you will need to sign our shared license agreement and pay a joining fee. The payment is split into three installments: one when you apply as a HUB Candidate, one when you become a HUB Initiative and the final one when you finally open your doors. The payment is spread out to accommodate the economic challenges of a start-up venture. Upon opening, you will be contributing 2.5% of your revenues towards global operations. At this point, you are a full member of the network and get voting rights to take part in global decision-making.
sign license agreement & pay joining fee 3 installments:

need 2/3 of all votes at GA!

- when becoming HUB Candidate - when becoming HUB Initiative

full access to HUB knowledge, customized logo

- when opening

26 | Onboarding Process

Onboarding Process | 27

Up & Running HUB

Onboarding Process
HUB Initiative HUB Candidate

Acceleration Habitation Running a thriving HUB 2/3 Start-up Fee 2.5% Revenue Share Voting Right & Co-Owner

Realization Mobilization

Feasibility Imagination register on www.the-hub.net/ join-us Invitation Booklet Exploration express interest visit at least one HUB get support from a HUB Commitment deposit HUB Candidate application HUB Info Pack Feasibility Study 2 Recommen dations 1/3 Joining Fee Tutoring from a HUB Associate Signed MoU HUB Candidate Logo

Capital raise Secure lease Community Building Hub Association membership Customized local brand and logo Global website incl. local microsite Selected Sister-Hub Access to Practice Academy Participation in collaboration platform Invitation to global gatherings and conferences

28 | FAQ

FAQ | 29

FAQ
The HUB IP and Brand is owned by HUB Association, the collective of all HUBs, where every HUB has one vote to make global decisions. HUB Association is furthermore the sole owner of HUB GmbH (HUB Company), a charitable company with the mandate to manage global operations and facilitate the development of the network as a whole, similar to hosting a local HUB community. HUB Company is currently run by a dispersed team, several of which are local HUB founders. In order to become a HUB Candidate, there is a flat and one-off commitment fee of 2k, which covers the direct tutoring support you get as a HUB candidate. The calculations for your network joining fee, however, are based on your projected income after three years of operations. HUB Initiatives with projected revenue in running operations of less than 100k pay 10k, HUBs expecting between 100k400k pay 15k and HUBs expecting over 400k pay 20k. 20% of this fee goes to the Sister HUB to compensate for its supHow is the HUB Network governed? Who owns the brand?

port along the start-up process, the rest goes to HUB Company to cover expenses related to facilitating the network. In almost all cases to date, local teams in challenging contexts have managed to raise the fee independently of any assistance from the global network. However, in some cases, we have been known to partner with strategically aligned organisations that have offered funding towards the joining fees and other necessary investments. We are very committed to global diversity and ensuring the HUB is accessible across various national, political and economic barriers. Every HUB contributes 2.5% of its revenue for the further development of the network and help cover global operations, such as ensuring the quality of new HUB initiatives, facilitating HUB to HUB collaboration and setting up global partnerships that create value for our members realizing that we can achieve so much more when we work together. Revenue is currently defined as generated income from membership and space usage for workshops, offices or events.
How is the Network inclusive towards lower income economies?

How much is the joining fee?

What counts as revenue? What is the money used for?

30 | FAQ

FAQ | 31

Most HUBs are still in start-up mode as 70% of our network is less than three years old. However, more than 80% of HUBs over 2 years have a stabilized or positive EBITDA. It has become clear, however, that we need to continuously innovate our business model in order to become fully financially sustainable and pay decent salaries, e.g. through HUB Fellowship programs, HUB Venture labs and HUB Winter schools. This underlines the importance of building a strong community of high-quality people, which may then be leveraged for other revenue streams. There are over 50 teams all across the world that are exploring the idea of creating a HUB in their city. The newest additions to the network will be coming mainly from the Asia, US, Latin America and Eastern Europe, though there are also exciting initiatives in Africa and the Middle East, which we seek to support with the development of strategic partnerships, leveraging the full power of the network. All very exciting really! We are aware that the HUB is only part of a larger movement for social innovation and that there are many HUB-like spaces out

How many HUBs are already financially sustainable?

there that are doing great work in their respective areas. We very much believe in the power of collaboration and are excited about collaborating with and learning from organisations that we admire. Moreover, we realize that the current HUB model only works in bigger cities but are also evaluating ideas of models which could connect smaller places to the HUB Network on much different conditions. After all, we are all working towards the same vision and the more we collaborate, the faster well get there! Please get in touch with Ioana Constantin from the global team for any further inquiries: ioana.constantin@the-hub.net

How do you relate to the broader social innovation movement?

How many HUBs are currently in the making worldwide?

Who do I need to contact if I have any further questions?

Are there alternative HUB models?

We look forward to getting to know you !

October 2012 Text HUB GmbH | Photos HUB Kings Cross, HUB Madrid, HUB San Francisco, HUB Vienna Illustration Alfredo Carlo | Design Seraina Brugger