2.M7.4 Strategy For Start-Up Companies 2021

Strategies for Start-up Companies
Prof. Dr. Rolf Meyer
Strategies for Start-up Companies / Prof. Dr. Rolf Meyer March 2019 1
Prof. Dr. Rolf Meyer, Professor of Entrepreneurship, rolf.meyer@fhnw.ch
–Since 1998 at FHNW
–Entrepreneurship teaching at
BSc, MSc, MBA/EMBA level
–Entrepreneurship research
–Start-up Coach
–(re)married, 50 years old, 2 children
School in Uganda
–http://www.bssk-uganda.org
SSRCC
 Center for market research and market entry, located in Harbin,

China
 For FHNW
Virtual Incubator, Business plan navigator
 www.getlaunched.io / https://fhnw.getlaunched.io
 Slavisa Tavic Rolf Meyer
INTRODUCTION
Definitions
Definition of Entrepreneurship
Someone who exercises initiative by organizing a venture to take benefit of

an opportunity and, as the decision maker, decides what, how, and how much
of a good or service will be produced.
An entrepreneur supplies risk capital as a risk taker,

and monitors and controls the business activities. The entrepreneur is usually
a sole proprietor, a partner, or the one who owns the majority of shares in
an incorporated venture.
According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs

are not necessarily motivated by profit but regard it as a standard for
measuring achievement or success.
Schumpeter discovered that they
 greatly value self-reliance,
 strive for distinction through excellence,
 are highly optimistic (otherwise nothing would be undertaken), and
 always favor challenges of medium risk (neither too easy, nor ruinous).
Read more: http://www.businessdictionary.com/definition/entrepreneur.html#ixzz3zkdtcNPW
Development of the term Entrepreneur
Middle Ages Actor and person in charge of large-scale production projects
17th century Person bearing risks of profit (loss) in a fixed-price contract with
government
1876 Francis Walker: distinguished between those who supplied funds and
received interest and those who received profit from managerial
capabilities
1934 Joseph Schumpeter: entrepreneur is an innovator and develops
untried technology
1964 Peter Drucker: entrepreneur maximizes opportunities
1985 Robert Hisrich: entrepreneurship is the process of creating something

different with value by devoting the necessary time and effort;
assuming the accompanying financial, psychological, and social risks;
and receiving the resulting rewards of monetary and personal
satisfaction.
Source: Hisrich (2015): Entrepreneurship
Definitions of Start-up
Early stage in the life cycle of an enterprise where the entrepreneur moves from
the idea stage to securing financing, laying down the basis structure of
the business, and initiating operations or trading.
Read more: http://www.businessdictionary.com/definition/startup.html#ixzz3zkcN8FEG
A startup is a human institution designed to create a new product or service under

conditions of extreme uncertainty
Eric Ries: Lean Startup
Types of Start-ups: 1. Small Business Start-ups
It is a fact that the vast majority of startups are still the same old small
businesses. Travel agents, plumber, electricians, carpenters, storefronts,
consultants etc. are some of the types of startups that fall under this category.
It is a fact that these types of small businesses struggle to hog the limelight of
the popular media but the truth is that these small business owners work as
hard as any other startups in the Silicon Valley. The good thing about these
small business startups is that they mostly hire local talents and thereby
contribute to the local economy. The purpose of these startups is to earn
enough money to feed their families. Small business entrepreneurs rarely
make it to the magazine cover but they do play a prominent role in the
economic development of the country.
Type 2: Lifestyle Start-ups
We are now seeing an increasing number of startup companies who are blurring
the line between passion and profession. For example, people, who are
passionate about drawing, are launching animation startup companies as it
gives them the perfect opportunity to do what they do best. People who have
some level of expertise in sky jumping are now offering sky jumping training as
well; this is another form of lifestyle startup. Lifestyle Startup is all about
pursuing ones passion and finding a way to earn money through it.
Type 3: Buyable Start-ups
The cost of designing and developing a mobile based or web based app has
plummeted massively and this has given birth to the new breed of Startup
Company known as buyable startup. Some of these startup companies are not
even looking for traditional Venture Capitalists rather they are trying to raise
money for their startups by opting for angle finding or crowd funding. However,
this type of startup is generally sold to a third party after some time in return of
a handsome amount of profit. This type of startup is gaining traction and is
most likely to become more popular in coming years.
Type 4: Social Start-ups
Unlike other types of startups, social startups are not driven by profit rather they
are driven by a powerful cause. Just because social entrepreneurs are fighting
for a cause it does not mean that they are any less passionate about success
or adverse to the idea of making profit. Unlike traditional startup companies,
the goal of most social startups is to make the world a better place. However,
there are some social startups who are into wealth creation as well.
Type 5: Scalable Start-ups
Scalable startups are vastly different from small business startups despite the fact
that they too have very humble beginnings. Unlike small business startups,
scalable startups aim high. They believe that their ideas can change the world
and the perfect examples are Facebook, Twitter, Skype and their likes.
Scalable startup revolves around a simple but powerful concept and they
always look for financial investors to raise capital for their dream idea.
Landau‘s classification of entrepreneurial types (Landau 1982)
Gambler Entrepreneur
High
Risk bearing
Consolidator Dreamer
Low
Low High
Innovativeness
Types of entrepreneurship (Kirkby 2004)
Entrepreneurship Personal type Attributes
Innovator Imagination originality, inspiration, love,

transformation
New designer / enabler Intuition evolution, development,
symbiosis, connection
Leader Authority direction, responsibility,
structure, control
New entrepreneur Will achievement, opportunity,
risk-taking, power
Animateur Sociability informality, shared values,
community, culture
Adventurer Energy movement, work, health,
activity
Behaviours, skills and attributes of entreprising people (Gibb A. 1993)
Skills Behaviors Attributes
Problem solving Acting independently Self-confident
Creativity Actively achieving goals Autonomous

Persuasiveness Flexibly responding to Achievement-orientation
challenges
Planning Coping with and enjoying Versatile
uncertainty
Negotiation Taking risky actions in Dynamic
uncertain environments
Decision making Persuading others. Resourceful
Commitments to make things
happen. Opportunity seeking.
Solving problems / conflicts
ENTREPRENEURSHIP
international comparison
Total early entrepreneurial activities (GEM report 2020/21)
(Vietnam: last figures for 2017: 23.3 %)
GUESSS Survey: the intention of students becoming an entrepreneur
Ideas for a start-up / new venture
Where do ideas come from?
- Flash of inspiration
- R&D
- Own (bad) experience
- Own strengths, talents, connections, access to resources, …
- Analysing the environment (e.g. PESTEL, chapter 6, page 91)
- Analysing markets and identifying opportunities
- New technologies
- Analysing megatrends
- Sustainable development goals
- Using creativity techniques
-…
How to proceed, if …
1. You have a detailed idea

 go to business model
2. You have a vague idea

 use some creativity technique and go to business model
3. You don’t have any ideas

 use own experience
 use megatrends
in combination with some creativity techniques
Creativity Techniques
Task
There is a cake for 8 friends. Cut the cake with a knife with 3 cuts into 8 pieces.
Definition of creativity techniques
Creativity techniques are methods that encourage original thoughts and divergent
thinking. Some techniques require groups of two or more people while other
techniques can be accomplished alone. These methods include word games,
written exercises and different types of improvisation. Creativity techniques can
be used to develop new materials for artistic purposes or to solve problems.
Most creativity techniques use associations between the goal (or the problem),
the current state (which may be an imperfect solution to the problem), and some
stimulus (possibly selected randomly).
Some creativity techniques
a) Intuitive methods to create ideas (aim: 100-400 ideas per 30 minutes!)
– Brainstroming – Randomness techniques

– Brainwriting (6-3-5) – Superposition
– Brainwriting pool – Bionic
– Edison-principle – Tilmag-method
– Mind mapping – CATEWOE
– KJ-method – Force-Fit-Game
– Bisoziation
b) discursive methods to create ideas (aim: 10-50 ideas per 30 minutes!)
Morphological box
Osborn checklist
SCAMPER / SCAMMPERR
Analysis of relevance-tree
c) combined methods
Creative Problem Solving (Osborn/Parnes)
Thinking hats from DeBono
Walt-Disney Method
TRIZ
ARIZ
Open Space (Harrison Owen)
Find 76 different creativity techniques under …
http://www.diegm.uniud.it/create/Handbook/techniques/List/
Elements of creativity techniques
To speculate
– What would be if ...
Negation
– What‘s no solution? What shouldn‘t be done? What‘s "out of the box„
Retrospection
– How used it to be done?
Future prospects
– How would it be done in the future?
Mix
– Thoughts, Solutions, Problems
"Tabula rasa"
– Forget everything. Start again at zero.
Inspiration
– How do other people, companies etc. do it or solve similar problems?
Visualisation
– Picture, Diagram, Pictogram
Phrasing
Alphabetise / Analogy
– A as , B as , C wie ...
To fragment
To reduce
Generalize
Modify
Systematise
– E.g morphological box
Associations
– How would nature solve the problem?
Discuss
– Discussions with other people. Q&As
Batchjob
– Make a brake, oversleep it, change location, go out…
Recommended Creativity techniques
– Brainstorming (chapter 5, page 74)

– Brainwriting (chapter 5, page 78)
– Morphological Box (chapter 5, page 81)
– SCAMPER (chapter 5, page 89)
– Starbursting (chapter 10, page 140)
– The six thinking hats, deBono (chapter 10, page 143)
– The refraiming matrix (chapter 10, page 153)
Own Experience
Think about your own experiences
– Think about situations, when you where annoyed about something

– at school / education
– at work
– at home
– on holiday / leisure time
–…
– Think about what exactly made you angry

– Think about potential solutions/options, how it should be
MEGATRENDS
Mega trends
Mega trends are major trends or movements.

Mega trend refer to a major movement in pattern or emerging trend in the
macro-environment. It is an emerging force that will have an impact on the kinds
of products consumers will priorities when buying in the future.
Megatrend 1: Individualism
Today’s increasingly individualistic consumers place considerable value on self-

expression and asserting their individual identity. This also includes exerting
their power and control as consumers. The Individualism mega-trend
represents consumers’ desires to be themselves and be recognized as having
personal needs rather than being part of the mass market. Consumers seek
products that make them stand out from the crowd and provide them with (or
at least reinforce) a sense of personal and social identity. This mega-trend
represents values such as “being me”, “trusting myself”, “finding my own
answers” and “making my mark on the world” in a world of opportunity and
liberating freedom where people can live their lives as they please.
Megatrend 2: Female Shift
The expression ‘female shift’ denotes the fundamental change of the male-
dominated world that we live in. Traditional gender role models are being
reflected upon and are gradually being overcome. Women gain more and
more power and influence on economy and society, on science and politics.
Thus, habits in both professional and private life are undergoing huge
changes.
Megatrend 3: Silver Society / demographic change
The demographic change in most countries increases liefe expectations and

supports a «downaging»: People are getting older later.
Megatrend 4: Presumers & Custowners

Presumers just love to get involved in the process of producing their products and
services. Custwners move from passively consuming products towards
funding or investing in the companies they are buying from.
Megatrend 5: New learning
keywords: digital learning, importance of learning, war for talents….
Megatrend 5: New work

Keywords: work-life-balance, merge of work and private time
Megatrend 6: Health
keywords: importance of health, liefestyle, healthy food, cloths… corporate health
Megatrend 7: Cleantech
Keywords: Energy saving, resource saving, organic food, share economy
Megatrend 8: Connectivity
Keywords: interactivity, social media
Megatrend 9: Urbanism
keyword: majority of people lives in cities, mobility, arachitecure
Sustainable development goals
17 SDG
Technologies
Digitale Kerntechnologien
Geschäftsmodelllinnovationen Schwyz_Next 13.1.2021 50

BUSINESS MODELS
Canvas Modell
by Alexander Osterwalder
Source: Clark, Osterwalder, Pigner, Business Model You, 2012, S. 53

Canvas Modell
http://www.businessmodelgeneration.com/canvas
Lean Canvas

Business Model Navigator (St. Gallen)

Geschäftsmodell
Produkt/
7 Schlüssel Modell Dienst-
leistung Konkurrenz
Markteintritt
Kunden
Geld
Gründungs-
person(en)
Ressourcen
Geschäftsmodelllinnovationen Schwyz_Next
13.1.2021 56
7 Keys Model (chapter 1, page 12)
by Rolf Meyer
Comparison of busines models
Business Model Business Model Canvas 7 Key Model (Meyer)

Innovation (Gasmann) (Osterwalter)
Who? Customer segments Clients
What? Value proposition Products / services
Competition
How? Distribution channels Market entry
Customer relationship
Key partners Resources
Key activities
Key resources
Value? Cost streams Cash
Revenue streams

Customers
Element 1: Customers and their needs and their
needs
Define:
- Target group(s)
- Market(s)
- Needs to be met
Important questions:
- Who are our clients?
- What are their needs?
- How big is our market?
- What‘s the purchasing power of our customers?
- What is expected to change in the next years?
Customers
Element 1: Customers and their needs and their
needs
Supporting tools:
– Market analysis / market research
– Evaluation of customer’s satisfaction
– Measurement of customer’s benefit
– Customer observations
Element 2: Our products/ services Products/
services
Define:
- Goods to be produced
- Goods to be sold
- Services to be rendered Our
goods
Our
compa
Important questions: ny
- What kind of goods and services do we offer?
- What attributes, emotions, values etc. are connected with our goods/services?
- Which needs/demand do we meet?
- What are our costs?
Element 2: Our products / services Products/
services
Supporting tools
– Strength / weaknesses
– Value chain analysis
– Cost accounting Our
– See also element 5 goods
Our
– Measurement of customer’s benefit compa
ny
Value proposition
Beating the
Element 3: Beating the competitors competitors
Define:
- Strategy
- Why should customers come to us and not to our competitors?
- What do we better/worse than our competitors? What are our USPs?
Beating the
Element 3: beating the competitors competitors
Supporting tools
– Competitor analysis
– Measurement of customer’s benefit
– Strategic Management
– SWOT Analysis
– Blue Ocean Strategy
USP
Access to
Element 4: Access to customer
customers
Define:
- Distribution
- Marketing
- How do we reach our customers?
- How do they know about us?
- How do they know the quality of our goods/services?
Access to
Element 4: access to customer
customers
Supporting tools
– Marketing strategy
– Marketing plan
Element 5: Money Money
Define:
- Who will pay for what
- How much will who pay
- What are our revenue streams: Quantities * prices!
- Can we earn money with our business?
- Will the revenues cover the costs?
- Under which conditions?
Element 5: money Money
Supporting tools
– Financial accounting
– Cost accounting
– Budgeting
– Accounting for investments
– Break-even analysis
Founder as
Element 6: Founder as a person
a person
Be aware of:
- Own character
- Strenghts and weaknesses
- Knowledge
- Experiences
- Network
- Motivation
Element 7: Resources Resources
Be aware of:
- Resources needed
- Resources available
- Resources missing
- Am I ready putting my own resources into this project?
- Do I have access to missing resources?
Types of Innovative BUSINESS
MODELS
Typ Nr. 1: Add-on
Ticket: 49.90 Basic offer
+ seat 10.00
+ Luggage 50.00
+ Insurance 8.00 Add-ons
+ CO2 compensation 5.00
+ Food 14.00
+ Credit card fee 5.00
Total 141.90
Geschäftsmodelllinnovationen Schwyz_Next 74
Typ Nr. 1: Add-on
To be used in… Guiding questions:

– Restaurants – Can I split my offer into a basic offer
and add-ons?
– Tourism – Is there a price sensitive basic offer?
– education – Can I add to my basic offers some
add-ons?
– Apps/Games
–…
Many more industries
Bonus: Fake-Add-ons (ugly brother)
Example «The economist»
Online USD 59 68 % 16 %
Kombi Print/Online USD 125 32 % 84 %
Print only USD 125 0%
Typ Nr. 4: Auction
Typ Nr. 4: Auctions (Auktionen)
To be used in… Guiding questions:

– Online-sales – Which offers can be sold in
auctions?
– Used goods – What is the best channel: online or
– Art events?
– Customer events
– Charity projects
Typ Nr. 9: Crowdsourcing
Outsoucring to the crowd
Geschäftsmodelllinnovationen Schwyz_Next
79
Typ Nr. 9: Crowdsourcing
To be used in: Guiding questions:

– Access to brainpool – For which challenges do we need
ideas?
– Access to cheap resources – Which tasks could we outsource?
– Lean access to resources – Is quality assurance done?
(pay only when you need

them)
– Access to know-how, ideas,
specialists
Typ Nr. 10: Customer Loyality
Typ Nr. 10: Customer Loyality
To be used in: Guiding questions
– How can I get in touch with my

–Loyality programmes customers?
–Loyality points – How can I increase customer loyality?
– What can I offer for loyal clients?
–Customer events
– How do I communicate with my
–Birthday gifts clients?
Typ Nr. 14: Experience Selling
Offer the customers more than just a product / service

- Emotions
- Values
- Experience
Typ Nr. 14: Experience Selling
To be used in
Guiding questions
– Which experiences, values, emotions
– Tourism
… can I offer?
– restaurants
– How does my customer Journey look
– Luxury goods like?
– Many more industries
Examples
Balenciaga: IKEA:
2000 Dollars 50 Cents
Typ Nr. 15: Flat rate
«All you can eat» «à discrétion»
Typ Nr. 15: Flat Rate

– Software – Do my offers apply for a flat rate
system?
– Apps – What are my variable costs?
– Infrastructure intense – For which clients is a flat rate model
attractive?
businesses
– In general: businesses with

low variable costs
Typ Nr 48. : Subscription
Sell subscriptions instead of single goods
Typ Nr. 48: Subscriptions (Abo)

– Goods used every day – Which products do clients need
regularly?
– entertainment – What is the added value of a
– Sports subscription for the client?
– Consulting services
Typ Nr. 44. : Robin Hood
Do something good - take it from the rich and give it to the poor
Typ Nr 44. : Robin Hood

– Fashion (Nikin) – Which activities fit to our
strategy/mission?
– Regulary needed goods – What is the added value for our
clients?
– Many more industries
More innovative business models (cash)
18 Freemium
21 Hidden Revenue
35 Pay per use
36 Pay what you want
More innovative business models (market entry)
2 Affiliation
7 Cross-selling
12 Direct Selling
13 E-commerce
16 Fractional Ownership
Even more types of innovative business models
– 8 Crowdfunding – 33 Open Source

– 11 Digitisation
– 40 Rent instead of Buy
– 17 Franchising
– 45 Self Service
– 20 Guaranteed Availability
– 22 Ingredient Branding
– 46 Shop in Shop
– 26 Licensing – 50 Target the poor
– 30 Mass Customisation – 55 White Label
Playing with the toolbox
All these types can be used, combined, and adjusted to your business
model
Evaluating Business Ideas
Thinking in options – try to develop different options
t io n
n o p
s o a
is al
q u o
a t u s
St t io n s
7 o p n s
3– p t io
a s o
u in t
e c o
so b
n a l
ca
t io ns
ia
Va r
Innosuisse Startup Training Module 2 Business Concept @ FHNW 97

3 basic criterion to evealuate an idea
Ein Geschäftsmodell muss folgende 3 grossen Kriterien möglichst gut erfüllen
Innosuisse Startup Training Module 2 Business Concept @ FHNW 98

Checklist (chapter 2, page 27)
–Following the 7 Keys to GetLaunched Model
–Self assessment
–Assessed by colleagues, experts, coaches…
criterion -- - + ++ remarks
The target segments are
Clients clearly defined
The needs of our target groups
are known in detail
Many attributes, attitudes and
characteristics of your target
groups are known
The needs of your target
groups are strong and so far
unmet
The target groups are big in
numbers
The target groups will be
growing in the near future
The target groups have a high
purchasing power
The target groups are not price
sensitive in our business
The target groups are easily
reachable
criteria -- - + ++ remarks
Our offers (goods/services)
products are defined in detail
The related, representing

values, emotions, and
attributes of our goods and
services are known and
consistent
Our products/services meet

exactly our clients’ needs
Our products/services differ

from them of our competitors
Our products/services create

a higher benefit for the clients
then those of our competitors
The production of the goods is

feasible for us
Products (2)
Our offer (goods or services)

can be protected by patents or
in a different way from being
copied by our competitors
The production costs are

known in detail
Our products/services can be

produced / offered cheaper
than those of our competitors
Our products and services are

scalable (average costs per
unit will decrease significantly
with any additional unit being
sold)
Our goods/services are not

easily being copied by our
competitors
Market entry
We know our clients already
There is already a strong

relationship between us and our
clients
Our clients are reachable easily

and at low costs
The market entry is financially

feasible for us
There are good ideas available

for effective and cost saving
marketing activities
Competition
The main competitors are known
There are no really powerful

competitors
The competitors‘ price level is

higher than ours
The probability of painful activities

against our market entry by the
competitors is low
There are comparative

advantages and unique selling
propositions
cash criteria -- - + ++ remarks
We know our cost structure in
detail
The planned resources and
expenses are sufficient to
achieve the targeted turnover
The targeted price is clearly

above the costs of production
The fixed costs are low
The starting capital needed is
low
The needed starting capital is

available
The liquidity will be sufficient

at any time
Founder(s)
The founder(s) are aware of their
motivation and aims
strengths
weaknesses
The founding team has the same
aims and main values
The founder(s)‘s strengths and
motivation fit well with the
business idea
The founder(s)’s personality,

knowhow and experience are
convincing to succeed with this
start-up
There is a written contract

between the founders
Resources
The resources needed are known
The resources needed are available
Missing resources can be organized

within reasonable time and at
affordable costs
The needed know-how to succeed

with this start-up is known
The existing core management

team covers the needed know-how
Core partners are identified and a

partnership agreement seems to be
feasible
An action plan shows the next steps

to start the business
Lean Start-up
Lean Management: Some principles from the case TOYOTA
Lean Management came up in the 1990ies and is a term for

different techniques.
Aim: make production more efficient!
Focus: producing industry
Some principles:
- Inventory management / just-in time (keep resources moving)
- Production of small batches (produce only, what clients want/ordered)
- Cooperation with strategic suppliers
- Continual Improvement Process (CIP)
Lean Start-up
2011 Eric Ries

The lean startup
How today’s entrepreneurs use
continuous innovation to create
radically successful businesses
A startup is a human institution

designed to create a new product or
service under conditions of extreme
uncertainty
Lean Start-up: principles shown from getLaunched.io
GetLaunched.io is an online platform for developing and evaluating business

ideas as well as business plans.
Founded by Slavisa Tavic end of 2014, currently 12 employees
Concurrent, agile, and iterative development

– development of prototype parallel to designing marketing/sales activities and
setting-up suitable organization
Development together with the clients
– Test prototypes, beta-versions etc. with real clients
(pioneers and early adopters)
– Make sure you get honest feedbacks
– Continual improvements (what clients really want!)
Develop and test your MVP (minimal viable product)

– A minimum viable product (MVP) is the "version of a new product which allows
a team to collect the maximum amount of validated learning about customers
with the least effort" (similar to a pilot experiment).
– Early tests of business model, product, features, processes, activities
– build-measure-learn feedback loop
Use resources (not necessary own them!)

– Freelancer
– Use online resources
– Integrate clients / suppliers
Principle: Agile Engineering / MVP (lean start-up)
 Minimum viable product instead of feature complete
 Build-Measure-Learn iterations in small batches instead of version complete &

waterfall process
 Good enough vs. perfect – Speed is of the essence
 Data/test driven design – hypothesis testing
 Automated acceptance testing + user stories / scenarios; describe what we want to

see the software do, then automate the verification that the software actually does it
 Continuous deployment, multivariable A/B testing, pair programming (XP), Scrum

and Kanban
Lean Start-up
Concurrent, agile, and iterative development

– development of prototype parallel to designing marketing/sales activities and
setting-up suitable organization
Development together with the clients
– Test prototypes, beta-versions etc. with real clients
(pioneers and early adopters)
– Make sure you get honest feedbacks
– Continual improvements (what clients really want!)
Lean Start-up
Develop and test your MVP (minimal viable product)

– A minimum viable product (MVP) is the "version of a new product which allows
a team to collect the maximum amount of validated learning about customers
with the least effort" (similar to a pilot experiment).
– Early tests of business model, product, features, processes, activities
– build-measure-learn feedback loop
Build – Measure – Learn Cycle
Crowdfunding
http://www.swisscrowdfundingassociation.ch/platforms/
Corwdsourcing
DROPBOX
Dropbox hat sich entschieden, noch weiter zu gehen und überhaupt kein Produkt
hergestellt.
Stattdessen gaben sie vor, die Software bereit zu haben, indem sie ein
Erklärvideo erstellten.
Sie wollten überprüfen, ob ihre Idee zur Dateisynchronisierung für viele
Menschen interessant ist.
Über Nacht zogen sie über 70.000 potentielle Kunden an, die ihre E-Mails
hinterließen und die Produkte so schnell wie möglich erhalten wollten.
https://www.youtube.com/watch?v=w4eTR7tci6A

Entrepreneurial Ecosystem
Ecosystem
An ecosystem is a community of living organisms in conjunction with the nonliving

components of their environment (things like air, water and mineral soil),
interacting as a system.
Entrepreneurial Ecosystem
An entrepreneurial ecosystem or entrepreneurship ecosystem refers to

the social and economic environment affecting the local/ regional
entrepreneurship.
"Ecosystem" refers to the elements – individuals, organizations or institutions –

outside the individual entrepreneur that are conducive to, or inhibitive of, the
choice of a person to become an entrepreneur, or the probabilities of his or her
success following launch. Organizations and individuals representing these
elements are referred to as entrepreneurship stakeholders.
University-based Entrepreneurship Ecosystem
In academic settings, entrepreneurship ecosystems commonly refer to programs

within a university that focus on the development of entrepreneurs and/or the
commercialization of technology or intellectual property developed at the
university level
Every start-up needs different resources
Cash
Know-how
Manpower
R&D facilities
Office facilities
Event locations
...
==> the existing ecosystem is important organizing all these resources within reasonable
time to reasonable costs.
Every Start-up deals with different challenges
- Legal aspects (IPR, taxes, licences, Bewilligungen, ...)

- Acquisition (clients, partners, suppliers)
- technology
- ...
==> the ecosystem helps mastering these challenges
Incubators
Types of incubatores
Regional business incubator

These incubators operate locally with the aim of developing the regional economy.
They are normally public funded, offer infrastructure for a low price and offer office
and process support (often outsourced). Their networks are local and often informal.
University incubator
The aim of these incubators is to promote academic entrepreneurship, to increase
the technology and know-how spill over from academics to the corporate world.
They normally offer physical infrastructure, office and process support (often
focused on scientific advice). Their network is normally strong within their home
university and to business plan competitions.
 Independent incubator
Independent incubators operate as for-profit organisation with the aim of
creating successful start-ups. They often have own funds to invest in their own
start-ups. Their services often include a hands-on but strong consulting capacity,
project and marketing management.
 Company-internal incubator
These for-profit incubators are set-up by their parent companies to exploit or
leverage internal ideas. They focus mostly on company-internal employees and
support them primarily with strong in-house technical skills.
 Virtual incubator
These for-profit incubators support “would-be-entrepreneurs” with mostly
standardised, impersonal online support, process guidance, management
consulting and the (online) access to regional networks.
Supporting activities (Von Zedwitz and Grimaldi)
Service category Services Sources of Competitors
competitive
advantage
Physical Office space, desk, Favourable Municipalities,
infrastructure PC, telephone rent/lease terms, science parks, real-
amenities volume discount, estate/landlords
shared use
Office support PC & equipment, IT support & lease, Science parks, real-
support, secretary & reception services, estate operators
mail, security safety & protection
Access to capital Direct investment, Own incubation fund, Venture capitalists,
access to VCs, milestone business angels
pseudo salaries instalments, road-
shows
Process support Coaching, mentoring, Preferred client Law & accountancy
consulting & legal agreements, start-up firms, consultants,
training, business business angels
planning
Networking Key employees, “Rolodex”, internal HR firms, networking
customers, suppliers, matching making, organizations, VC
collaborators travel support and business angels
Types of incubator services Type Perceived Perceived Difference
effectiveness importance
Affordable space and building
F 3.45 3.77 -0.32
facilities
Credibility/visibility enhancement F 3.26 3.52 -0.26
Office equipment F 3.32 3.17 +0.15
Abduh et al. Shared office services F 3.28 3.15 +0.14
Assistance to gain government
C 2.62 3.24 -0.62
grants/loans
Sales/marketing C 2.69 3.23 -0.54
Referral C 2.84 3.17 -0.33
Training and education C 3.00 3.17 -0.17
General counselling / mentoring C 2.82 3.13 -0.31
Business plan and/or strategic
C 2.66 3.03 -0.37
planning
Financial management C 2.66 3.00 -0.31
R&D C 2.29 2.86 -0.57
Product development C 2.26 2.78 -0.52
Government procurements and
C 2.48 2.72 -0.24
regulations
Employment assistance C 2.24 2.65 -0.41
Legal patent/intellectual property C 2.36 2.64 -0.27
Assistance to acquire outside
C 2.20 2.45 -0.25
debt/equity
Peer networking, sharing
information, experience, problems, N 3.08 3.26 -0.18
etc.
Conducting business with other
N 2.85 3.05 -0.20
client(s)
Accessibility to external networks,
N 2.91 3.35 -0.44
External information and resources
Business-related people N 2.88 3.28 -0.40
NATECD
NATECD stands for National Agency for Technology, Entrepreneurship, and

Commercialization Development. NATECD is a national platform under the
ministry of Science and Technology (MOST) to promote the startup economy
in Vietnam by providing training, mentorship, business incubation &
acceleration and financial aid to new startups and enterprises.
In May 2015, the NATEC successfully organized TECHFEST, an anchoring

event similar to Echelon of Singapore, which gathered innovators,
entrepreneurs, investors, tech experts and media.
NATIF (1/2)
The National Technology Innovation Fund (NATIF) was setup in 2015 by Ministry of
Science and Technology with US$47 million capital. 50% of the fund is used for S&T
research carried out by enterprises, import technologies and foreign expertise for
technological innovation. The other half of the fund is used to provide preferential
loans, guarantee commercial loans or lent as soft loans.
Viet Nam has some 500,000 businesses and it is small effort by government to help
businesses grow by renewing their production technologies and their management.
The fund is aimed at the super small, small, medium and large businesses where
the research and development section is either not present or very weak. The
foundation gives direct investment to businesses from the fund so that they can
have a technological renovation. Since the foundation’s capital is very small when
compared to the total number of businesses in Vietnam, it is really competitive to
secure funding from NATIF.
NATIF (2/2)
The long term goal of foundation is to increase capital from government to small
businesses and well as contributions from private organizations. The capital
will be used to renovate technologies of Vietnamese businesses so that they
can compete with global businesses. The NATIF is also planning a strategy for
the use of use of annual work plans of the Fund; issued specific regulations for
the Fund operations.
IPP
The Finland-Vietnam Innovation Partnership Program (IPP) is a venture capital co-funded by
the Vietnam’s Ministry of Science and Technology (MoST ) and Finland’s Ministry for Foreign
Affairs in 2009. It is a first grant-based bilateral development cooperation program between
the government of Finland and a lower middle-income Vietnam in the science and
technology sector. The role of Innovation Partnership Program (IPP) is to promote
innovation, develop entrepreneurs and facilitate new startups and initiatives to create
sustainable development of Vietnamese ecosystem on the national and international level.
The program is running into its second phase (2013-2018) after achieving its goal set in the first
Phase. The Phase II of program is aim to build an ‘innovation ecosystem’ by strengthening
the institutional capacity and cooperation between stakeholders to create innovative
products and services. The second phase of programme is also being implemented by
Vietnam’s Ministry of Science and Technology (MoST) in which 12 Vietnamese “Innovation
Champions” are selected for startup training. IPP is also funding 22 projects in Ha Noi, Ho
Chi Minh City, Da Nang, and Can Tho.
mLab East Asia
In September 2012, mLab (mobile application laboratory) East Asia was launched
in Ho Chi Minh City by funding from Finland’s Ministry of Foreign Affairs, Nokia
Corporation and support of World Bank. It was fourth mLab followed by three
mLabs in Armenia, Kenya, and South Africa. The mLab provides incubation,
mentoring, technical assistance and financing to mobile entrepreneurs
and innovators. The mission of mLab is to improve the productive capacity of
enterprises in Vietnam (and region) and build a co-working space for mobile
developers and entrepreneurs. The mLab partners with UNICEF and infodev
(Private Sector Development Network of the World Bank Group) to organize
hackathons and competitions which generates impressive ideas and
applications.
The mLab East Asia is located in Saigon Hi-Tech Park, Ho Chi Minh City.
Vietnam Silicon Valley
Silicon Valley Ecosystem in Vietnam was launched in June 2013. It is an initiative

of Vietnamese government and its Ministry of Science and Technology to
foster knowledge based economy and technology commercialization in
Vietnam. The Vietnam Silicon Valley offers incubation, mentoring, and
granting funds to innovators and entrepreneurs. The Vietnam Silicon Valley
Accelerator collaborates with experts from all over the world for rich
experience in building the ecosystem. It also invests US$10,000-20,000 in
startups for 5-10 per cent equity stake.
The VSV organizes events which provides convenient channel for investors
and startup can communicate with each other. It also gives the mentorship
and helps startup to connect with global digital network.
Fostering Innovation through Research, Science and Technology (FIRST)
project.
The Fostering Innovation through Research Science and Technology (FIRST) is
a project of World Bank which started in October 23, 2013. The objective of
FIRST projects is to create a scientific and innovation community by designing
and piloting of Science, Technology and Innovation policies. The FIRST
project encourages and funds research and development (R&D) institutions in
Vietnam for growth of knowledge based economy. The project bridges
between Innovation Enterprises and Research and Development Institutes.
The project also provides financing to newly established technology
enterprises, R&D institutes and Science Technology Innovation (STI) consortia
of enterprises.
The First Project is lead by Suhas D. Parandekar and implemented by Ministry
of Science and Technology (MoST) via a Central Project Management Unit.
The estimated cost of project is US$ 110 M and it will be closed in June, 2019.
Hoalac HiTech Service Center (HHSC – HoaLacTOT)
Hoa Lac Hi-Tech Service Center (HHSC)is section of Hoa Lac Hi-tech Park
(HHTP) which is aimed at promoting research and developments activities,
business incubation and training the entrepreneurs in hi-tech areas. The
centre provides services from product design, to commercialization and
production through latest technologies. HHSC also gives entrepreneurship
education to startups and opportunities to get investment and using the funds.
The Centre has also built database of S&T information which is collected from
Ministry of Science and Technology and other departments under it such as:
Department of Intellectual Property and Department of Information,
Mekong Business Initiative
Mekong Business Initiative (MBI) is project funded by Asian Development Bank

(ADB) and Government of Australia for fostering private sector development in
Cambodia, Lao PDR, Myanmar and Vietnam (Greater Mekong Sub-region).
MBI provides expert advisory and help in Enterprise Development,
Financing, Incubation and Acceleration to entrepreneurs. The MBI project was
approved in December 2014 and the execution of project started in May 2015
with cooperation of MBI team leaders, private sector development experts and
coordinators from each country. The Project is being funded by Technical
Assistance Special Fund (US$ 500,000.00) and ATF – Australian TA Grant
(US$ 10.00 million).
Development phases and
financing options
Agenda of financing options
What Goal
Options: Types of start-ups and financing Understand what investors are interested in
options
Players: Where to ask for money Understand where you could ask for money
Procedures: What you need when looking Understand the investment process
for money
Valuation: How to determine the financial Understand the valuation issue and ways
value of your start-up to solve it
Finale Key messages in a nutshell
OPTIONS
Types of capital
Your Own Money

– Cheap, without obligations
Other people’s money

– Gifts, grants, donations (=> consider taxes!) = LOVE MONEY
– Credits, loans (=> interest, pay back on request)
– Risk capital (=> shares, other voting rights)
Money you earn / your company earns

– Revenues
– Pre-sales
Phases, capital need, typical investors
Phase Seed Start-up Growth Expansion

# Staff 1-3 1-10 5-200 100 - …
Capital Need 0 - X0’000 X0’000 - X00’000 X00’000 – X Mio X Mio – XX Mio
Focus Check Idea, build Go to market Get market share Expand

team internationally
FFF&F
Competitions
Business Partners
(*)Business Angels
*Early-stage VCs
*Private Equity, VCs
“Valley of Death”
*: Risk Capital
Types of financing
Credits / loans: Equity / share capital:

You get money for some time and you need Partnership between you and the financing
to give it back (contract) persons: They buy a part of the company
You pay an interest rate which covers: Financing partner has owner’s rights (+
• The cost of the money on the market shareholder agreement rights):
• The risk that you can’t pay the • Voting / shareholder rights
money back • Rights to get part of the money
when you sell the company
Sometimes, you’re asked for securities: No securities, no fallbacks, no limits
House, bank, 2nd/3rd pillar, …
=> be careful!
In case of difficulties, credits / loans have In case of difficulties, they usually get
priority over shares nothing back
Financing: Specialties
Profit-sharing loan (“partiarisches Darlehen”):

– Credit where the interest rate depends on the revenue
Mezzanine / convertible:
– Credit which can / must be later converted into shares
– Useful in very early stages
Term Sheet and Shareholder Agreement:

– Contract between the company and the financing partners
– Very often, define advantages for the financing partner in specific situations
Financing with risk capital: the “Exit”
•Problem: How do the investors get their money back?
•Credit / Loan:
– Company pays the money back IF it has the money
– Often, the loan is converted into equity IF the company is in trouble
•Equity:
– Problem:
– Usually, free buying and selling shares is disallowed in the shareholder agreement
– There is NO market for shares of start-up companies => shares cannot be sold anyway
– Solutions:
– “Trade sale” => the company as a whole is sold to a competitor / customer / supplier / …
– “IPO” => very rarely, needs financial engineering expertise; if done well, can be very profitable for the
existing shareholders
– Selling shares at the next financing round: Rarely works since the new investors want the money to go to
the company
– For very profitable and small companies, shareholders may be happy with a dividend
PLAYERS
Overview
•Not-for-profit money:
– Your own money + “FFF” / “Love Money”
– Awards
– Foundations: grants, allowances
– Microcredits
•Groups with mostly financial interests

– Business Angels
– Private Equity
– Venture Capital Funds
– Banks and other commercial loans
– Business Partners
•Match makers
– Business Angel Clubs
– Consultants, M&A companies
– Match making-platforms
– Crowfunding platforms
Not-for-Profit
•Your own money
•“FFF” / “Love Money”
•Competitions / Awards (SwissUpStart Challenge, Venture 20xx…)
•Foundations
•Micro credits
Your Own Money
•Most important source to set up a new company
•Seed phase, start-up phase
•Sources:
– Your personal savings
– Free-of-charge work
– Loans on your personal assets
•Cheap, no securities required, no strings attached
•First and best source of funds
“FFF” / “Love Money”
•“FFF” = “Family, Friends, and Fools”
•“Love Money” = money from people who like you
•Start-up phase
•Sources:
– Personal loan to you
– Loan to your company
– Share capital
– Inheritance or anticipatory succession
– Guarantee / security on a loan
•Excellent source of funds

– Relatively easy to access, if you have wealthy friends / family
– Use with great care
Awards
Typically, awards offer

– Training / Coaching: Seminars, workshops, and coaching sessions
– Networking
– Publicity (for finalists/winners)
– Cash
Foundations
???
Micro Credits
•Loans for people who want to start a new business but cannot offer securities to
the bank
•Start-up money
•If you need a smaller loan and have no other sources
•Viet Nam Bank for Social Policies (VBSP)
Renting, Leasing, Factoring, Flexible Sourcing
•Renting (instead of buying):

– Do not buy machines but rent machine capacity in a factory
•Leasing:
– Leasing company buys the machine and rents it to you
– Legally, similar to a commercial credit
•Factoring:
– Sell your debtors to a factoring partner – get the money immediately, with a discount
•Flexible Sourcing:
– Work with freelancers (at the beginning), hire employees by the hour
– Try group buying schemes
– Buy used equipment (office furniture, cars)
Business Partners
•Some of your customers or suppliers might be interested in helping you

– Diversification of their business
– Access to interesting technology
•Start-up, expansion phases
•Ask for discounts, pre-payments, delayed payments, strategic research co-

operations, ...
•Talk to R&D person, CTO or CEO
•Excellent financing opportunity if you understand the risks

– Always work with a lawyer to check the fine print
Banks and Commercial Loans
•Banking business is heavily regulated

– Little room for negotiation for your account manager
– Generally, finding money with a bank is easy if the risks are very low
•Ask the banks but don’t be disappointed if they can’t help
•Avoid loans where personal backing is required
Business Angels
Types Most business angels do not want to

– Entrepreneurs who have sold their company spend too much time on one project - but
– Wealthy families who invest part of the wealth in some do
start-ups
– Wealthy line managers who want to give Finding Business Angels:
something back
– Through business angel networks (=> “match
makers”)
Invest time, money to support the – Through your personal network (especially
company industry-related)
– Start-up, expansion money
Work with Business Angels if:
Typical investments: – they understand your industry
– CHF 25’000 to CHF 250’000 – can and want to support you
– Minority shareholders
– Wants to sell after 3 to 5 years Beware of “Business Devils”
– Invested in 5 to 20 companies
Private Equity
Money from wealthy individuals/ Typical investments:

families – $ 10’000 to $ 1’000’000
– Portfolio of 5 to 20 investments
Later stage, low risk – Not interested in shares, but takes them
Directly or through their “family Can sometimes be unreliable:

office” – Medium to low interest in your project
– Main interest: management of portfolio,
Mostly well-known people / families network, ...
– Receive extremely many offers
– Generally not interested in start-up
financing
– Very difficult to get funds
Venture Capital Funds
•Organisations that (usually) invest in companies in expansion stage

(sometimes start-up stage)
•Investments normally starting at $ 1 Mio

– Time, effort required to assess the project ($ 30’000 +) must be in reasonable relation to
potential profit
•Understand the goals, focus of the fund
•Ask them only if you match their goals
Crowdfunding (1)
•“Crowdfunding”: A large number of people contribute relatively small amounts of money
•Why?
– A lot of small investments may still add up to a large amount
– Emotional attachment to the investment => help selling
– Small amounts => quick write-offs => little interest
– “Little” investors will probably not interfere with the business
•Why not?
– Can’t expect business support from investors
– Huge overhead
– 100 investors, each CHF 10’000 vs. 5 investors, each CHF 200’000
– Cost of the agency: 5% to 15% of the investment sum
•Advice:
– Consider if you have an easy-to-understand business model (usually B2C)
Crowdfunding (2): Examples
•Crowdinvesting: E.G.,
– www.investiere.ch
– www.c-crowd.com
•Crowdfunding: E.G.,
– 100-days.net
– www.wemakeit.ch
•Loans: E.G.,
– www.direct-lending.net (loans for companies)
– www.cashare.ch (loans for individuals)
•Check out their terms and conditions!
M&A Consultants / Matchmakers
•Individuals who know the market very well and understand where to find investors
•Normally, they are quite selective

– depending on the fee structure
•Fee structure:
– Payment in advance: Don’t
– Payment per hour: Don’t, unless you need to work with them
– Payment based on success: Fees in the range of 3% ...5%
(... 10%) of the transaction volume
•Sometimes related to an incubator / bank / VC
•May help you with your documentation (“dressing the bride”)
•Their network can be of great help

– Try to negotiate transaction-based fee
– No exclusive mandate
M&A Companies
•Companies that make a living from helping finding and selling companies
– Very often, excellent network
– Most companies work in specific industries
•Will work extensively with you to make you more attractive to the buyers
•Hourly and transaction-based fee

– Often require a certain minimum transaction value, i.e. CHF 1M / CHF 10M
– 2% up to 15% transaction fee + hourly fee
•For expansion and exits

– Not for early-stage companies
PROCEDURES
How Much Money do You Need?
•Basis: Your financial plan
•Determine cash flow per period (not: profit or loss)
•Sum of the negative cash flows in the beginning = investment needed
•Example:
Year 1 2 3 4 5
Cash In 0 250 800 2’400 6’000
Cash Out -300 -300 -350 -600 -1800
Cash Flow -300 -50 +450 +1’800 +4’200
Sum (CF) -300 -350 +100 +1’900 +6’100
If you don’t need / won’t get Risk Capital…
•Do you really need money at all?
– Any money you get might be expensive and might need backing by you or your family
•Talk to business partners

– Customers, suppliers
– Former employers
•Talk to your bank(s)

– Some banks (Kantonalbanken) have a mandate to support the economy, so they might help you
•Talk to other banks that might support your vision

– Alternative Bank, Basler Gemeinschaftsbank, …
•Consider Micro-credits
– Check with regional economical support
•Try foundations
– They might like your vision & idea
•Try lesser known competitions

– They might be happy to have any applications at all
Getting Started with fundraising
•Don’t be proud - accept any help you can get
– Especially from industry experts and experienced entrepreneurs
•Apply for
– Awards, such as: Swiss Innovation Challenge Asia (http://www.swisschallenge.org/)
– All other courses / trainings
•Make a business plan and have it verified
•Understand your financing needs:

– Do I need financing at all?
– How much?
– Am I ready to pay the price?
•Develop elevator pitches
•Develop 10 minute pitch
What You Need
•Business:
– Prototype (Functional, industrial, mock-up)
– Business plan
– Team, 80% complete (CEO, CTO, Marketing & Sales)
– Company (founded or ready to be founded)
•Documentation:
– Elevator pitches: 10 secs / 30 secs / 60 secs / 90 secs
– “Teaser”: One-page summary
– Investor presentation: 10 slides with the most important information
– Business plan (Word or Powerpoint)
– Term Sheet and Shareholder Agreement (for risk capital)
Term Sheet and Shareholder Agreement
Term Sheet: Shareholder Agreement:
Contract between shareholders (very short
version) Legally binding form of the term sheet
Basis for the Shareholder Agreement You absolutely need a Shareholder Agreement –
never try without
Usually defines certain advantages for investors
Very technical, often needs a lawyer to support Usually written by lawyers after the term sheet has
been negotiated and agreed on
Must be done right!
Usually, 10 to 30 pages
Reference: SECA Term Sheet Template,
http://www.seca.ch/sec/files/events/SECA_Term_
Sheet.pdf MUST be checked by your lawyer
Some explanations:
http://nkf.ch/wAssets-nkf2/docs/publikationen/ulys
ses_von_salis/Funktionen-einzelner-Vertragsklaus
eln-bei-Venture-Capital-und-Private-Equity-Finanz
ierungen.pdf
Why Investors Want to Work With You
•You make a great first impression:

– Likeable story, suits the investor’s taste
– Cool technology, high potential
– Good management team
– Board members who are well known in the industry
•You make a great second impression:

– Excellent co-operation with the investor
– Both parties believe in the long-term success of the company and in the long-term co-
operation
Understand Your Investors
•Work (with) the investors – you might need them again

– Angry investors are bad news: Small community...
•Fundraising needs a lot of work

– 10% to 50% depending on your schedule, money required, business plan, ...
– Understand the community and the players
•Start with money that comes without obligations

– Foundations, Competitions, Awards
– Publicity for reasonable cost
•Work with investors that have a certain investment pressure

– You might be lucky...
VALUATION
Valuation
Phase Seed Start-up Growth Expansion

# Staff 1-3 1-10 5-200 100 - …
Capital Need 0 - X0’000 X0’000 - X00’000 X00’000 – X Mio X Mio – XX Mio
Focus Check Idea, build Go to market Get market share Expand

team internationally
FFF&F
Competitions
Business Partners
(*)Business Angels
*Early-stage VCs
*Private Equity, VCs
Value Phantasy Phantasy Real Real

NPV <0 <0 +/- 0 >0
Valuation
•Dozens of methods to calculate the value of a company… - but there ‘s no

correct way!
•Valuation = Determine a price where:

– Company gets sufficient money to reach its goals
– Investors get sufficient shares to allow for a profitable exit
•Price is the result of a negotiation process!
View of the startup:

Needs a certain minimum valuation
View of the investor: Won’t pay more than Valuation

a specific maximum price
Net Present Value for Start-ups
Discount interest rate and NPV
•Example: 10 M investment, 30 M exit after 3 years
Discount Project NPV

interest
rate
0% 20'000'000
10.0% 9'540'000
20.0% 3'720'000
30.0% 390'000
40.0% -1'560'000
50.0% -2'720'000
60.0% -3'390'000
70.0% -3'770'000
80.0% -3'970'000
90.0% -4'050'000
100.0% -4'060'000
Discount rate and NPV (2)
•Estimate for i: “Weighted Average Cost of Capital” (WACC)
•WACC for government organizations: >4%
•WACC for entire industries: 3…11%
•WACC for large stock exchange listed companies: >10%
•WACC for start-up companies

– No historical revenue data available
– No industry benchmark figures available
– 50% of start-ups declare bankruptcy after 5 years
– 75% - 80% of the start-ups can’t pay the investment back
•Estimates: WACC for start-ups: >20% … >50% … >70%
NPV for Startups
Valuation: View of the startup
•Company
•We need CHF 500k to reach:

– 4M Revenue
– 1M Cash Flow
•We probably will not need another financing round
•We want to keep the majority of the votes
•Therefore, we can offer at most 49.9% of the shares
•Therefore, the valuation must be higher than CHF 1M
Valuation: View of the investor
•Plan: Cash Flow of CHF 1M, revenue of CHF 4M

=> potential exit price = CHF 6M (our estimate)
•Multiplier at exit required for this type of investment:

At least 5x
•Required now: CHF 500k

=> Need to sell my shares for CHF 2.5M at exit
•Overall exit price: CHF 6M, my shares CHF 2.5M

=> my shares must be 42% or more of the company
•Required now: CHF 500k = 42% of current value

=> Current valuation = 1.2M or less
The investor’s portfolio
•An average professional start-up investor...

– Reads 50 – 100 business plans per year
– Sees 20 to 50 pitches per year
– Invests in 1 to 2 cases per year
•Selection criteria:
– Knows the industry
– Can add value to the company through his/her network
– Fits into the portfolio
– Many negative criteria:
– Too expensive
– Doesn’t like the team
– Difficult market, unsuitable market strategy
– ...
The investor’s information problem
•Information problem:
– Deciding whether a specific project would be a good investment requires a lot of time
and some money
– Investor: Too many candidates, not enough time => partly emotional decisions
•Your job as a start-up: help the investor come to a decision!

– Be as honest and open as possible
– Never waste the investor’s time
– Provide all information required promptly and accurately
– Get yourself a board and an advisory board with excellent reputation
– If you already have well-known investors on board, new candidates will be more
interested in joining and investing
THANK YOU FOR YOUR
ATTENTION
Bonustrack 1:
CUSTOMER‘S BENEFIT
Measurement of customer’s benefit
Quality
– Quality of the whole cluster of market service
– Only quality from customer‘s point of view is relevant
– Only comparative quality is relevant (compared to the relevant competitors)
Price
– Only price from customer‘s point of view is relevant
– Only comparative price is relevant (compared to the relevant competitors)
How to measure customer‘s benefit?
1. Customers define relevant quality criteria

2. Customers weight quality criteria
3. Customers define relevant competitors
4. Customers grade quality criteria for our company
5. Customers grade quality criteria for competitors
6. Customers rate our prizing compared to our relevant competitors
7. Customers rate prize-quality ratio for the buying process
Who should measure customers’ benefit?
By yourself
Ask…
– … Current customers
– … Past customers
– … Potential customers
Attribute Chart
Competitive
advantage
Competitive
disadvantage
Criterion‘s ranking
low high
Value Map
+
Comparative price
- Comparative quality +
-
Bonustrack 2:
Social Innovation Hubs
INNOSCAPE 2018,
25-26 October 2018, Jakarta
Driving Social Innovation through the effective use of Social Hubs
Prof. Rolf Meyer, (Prof. Pieter Perrett)

University of Applied Sciences and Arts Northwestern Switzerland
1. Research Objective:
Social Innovation Hubs
Pic: Hub Basel, launched in 2017
March 2019 Strategies for Start-up Companies / Prof. Dr. Rolf Meyer 199
What do Social Innovation Hubs offer?
Added Value
2. Study Aims / RQs
• What are the success factors of social innovation
hubs?
• What are the main hurdles and challenges for
these social hubs and how they can be
overcome?
• What are the key learnings for setting up and
running a new social hub? (Best practices)
3. Methodology
Qualitative in nature, inductive approach, multiple case-study approach
Sample: 20 Social Hubs fulfilling our criteria
Semi-structured interviews with the managers of the selected 20 hubs
Metabolic social hub in Amsterdam: used space containing contaminated land
Methodology:
North America: 4 hubs
Interviews
Europe: 15 Hubs
1.ImpactHub Washington DC, USA Middle East: 1 Hub
2.Hive, Vancouver Canada
1.Hub Tel Aviv
3.UBC, Canada
4.Propellor, New Orleans,
USA
Methodology
Interviews - Europe
• 20 Hub interviews 1. Metabolic, Amsterdam
• 9 Impact Hubs (45%) 2. TQ, Amsterdam
• 75% Europe 3. Silversquare, Brussels
4. Betterplace, Berlin
5. ImpactHub, Berlin
6. Idea Kitchen Munich
7. ImpactHub, Munich
8. ImpactHub Zurich
9. Seif, Zurich
10. Ashoka, Zurich
11. ImpactHub, Bern
12. ImpactHub, Geneva
13. ImpactHub, Zagreb
14. ImpactHub, Bucharest
15. Impact Hub, KingsCross London
4. Analysis: Huge diversity
 Focused versus broad approach
Breadth of activity
One social hub in Switzerland:

fields of activity
What is the right balance between having the

right size and offering the depth and quality of
March 2019
services?
Strategies for Start-up Companies / Prof. Dr. Rolf Meyer 205
Incubation vs Acceleration?
Top 5:
Challenges 1.Funding / finances
2.Competition
 What?
3.Developing networks
4.Initiating collaboration
/expectation management /
real estate prices
5.Successful business
model
Other areas of diversity
Supported start-ups
– Strictly social business
– Mixed social and «traditional» business
– Including established SME and MNE
Size
Support activities
– Research
– Coaching & training
– Incubation, acceleration programmes
Partnerships
– Universities
– Research institutions
5. Type 1: Co-working +
Offered Focus on infrastructure related services
Services Some events and coaching, often conducted by
services suppliers such as lawyers,
accountants, designers, consultants etc.
Industry No industry focus. Mix of freelancers and start-
focus ups of all kind of businesses.
Characteristic Co-working spaces with social mission.
s Economic forces drive main activities.
Business Revenue generation mainly by fees of members
model / start-ups. Side income with events.
Challenges Filling space with paying members
Determinants Good location, number of active (=paying)
of Success memberships
5. Type 2: mixed-hubs
Offered Services Infrastructure-related services, networking, training &
coaching. Incubation, acceleration (and innovation)
programmes.
Industry focus Wide range of industries. Welcome is mostly every
start-up, freelancer and selected MNE.
Characteristics Well established community-building activities.
The social mission is often mentioned somewhere,
but hubs are principally open to all kind of start-ups.
Business model Mixed business model, combination of membership
fees (=tenants) and donation/public support, MNE-
partners.
Challenges Network of active and passive members within and
around the hub; partnerships and sponsoring
Determinants of Community building activities, fundraising,
Success
5. Type 3: Focused Innovation Hub
Offered Services infrastructure-related services, networking, training &

coaching.
Specific incubation and acceleration programmes for
a clearly defined focus
Industry focus Only social businesses. Focussed on selected
industries and/or societal problems.
Characteristics Well established network with experts, researchers,
and other main actors in the specific industry/area.
Business model Heavily relying on public money, foundations, and
support from universities and their alumni.
Challenges Knowledge gathering and knowledge spill over for
selected fields.
Determinants of Long-lasting active partnerships with universities,
Success research institutions, experts and public institutions in
the chosen focus
6. Recommendations
for Social Hubs
 Be aware of your type of social innovation hub …
 … and act accordingly
 Dare focusing on selected fields
 chose partners carefully
7. Conclusion / Further
Research
 Social Innovation Hubs
 a rather new phenomenon with high relevance
 a highly diverse field
 A growing field that still needs further research
 Results give good insights, but are
 principally representative as we chose a qualitative approach
 sure not representative for social hubs in

developing countries
 several aspects need further focused, in-depth analysis
Bibliography
1. Bohas, A., Camus, A., Capdevilla, I., Dandoy, A., Fabbri, J., Glaser, A., . . . Periac,
F. (2016). Coworkers, Makers and Hackers in the city: Reinventing policies,
corporate strategies and citizenship? , Research Group on Collaborative Spaces.
2. Kempner, R. (2014). Incubators Are Popping Up Like Wildflowers… But Do They
Actually Work?
3. Qian, H., Acs, Z. J., & Stough, R. R. (2012). Regional systems of entrepreneurship:
the nexus of human capital, knowledge and new firm formation. Journal of
Economic Geography, 13(4), 559-587
4. Rissola, G., HervÃ, F., Slavcheva, M., & Jonkers, K. (2017). Place-Based
Innovation Ecosystems: Espoo Innovation Garden and Aalto University (Finland).
5. Toivonen, T. (2013). The Emergence of the Social Innovation Community: Towards
Collaborative Changemaking?
6. Van Weele, M. A., Steinz, H. J., & Van Rijnsoever, F. J. (2017). Start‐up
Communities as Communities of Practice: Shining a Light on Geographical Scale
and Membership.
7. Wu, K. Y., & Eriksson Lantz, C. (2017). Building and managing an innovation hub: A
case study of the challenges and opportunities faced by a Northern Swedish
innovation hub.
Bonustrack 3:
How to protect my idea?
INTELLECTUAL PROPERTY RIGHTS
Overview
Trademark
Patent
Design
Copyright
Trademark
Milka
Die zarteste Versuchung seit es Schokolade gibt
Dare to be tender
No trademarks…
pure descriptions
– apple as a fruit can’t be protected
Violation of existing trademarks

Too close to existing trademarks
Procedure: Trademark
register the trademark online (in every country you want)

select the appropriate categories/classes (industries)
pay the fee
registered trademark has to be used within 5 years!
optional: use ® or TM
protection has to be extended every 10 years
Patent
Patent:
the exclusive right granted by a government to an inventor to

manufacture, use, or sell an invention for a certain number of years.
a patent can be sold (or license)
requirements:
– novelty
– commercial usability
– inventing step
Patent: procedure
written application: (in every country you want to protect it)

– description of innovation (drawing)
– pay fee (rather small)
Patent organization(s) checks patent within 18 months

– pay fee
Patent organization(s) publishes patent

patent last max. 20 years
– from year 4: pay annual fee
– optional: +pat+ or pat. pend.
Alternatives
secrecy policy
speed / ongoing improvements
publication (therefore it is not new any more and nobody can patent it)
Brand management and customer loyalty
Design
protection of designs
Design: procedure
written application
– enclose picture, sample …
– pay fee
Patent organization(s) publishes designs

design is protected for max. 25 years
optional: use «mod. dép.»
Copyright
https://youtu.be/nfWlot6h_JM
copyright includes
– right of reproduction
– distribution rights
– right of representation / stage rights
– right of adaption
Copyright
not protected are

– ideas
– business ideas
– content
– concepts
– algorithms (software)
Copyright: procedure
no registration needed. all artistic works are automatically protected with it’s
creation
protection last 70 years after the dead of the author/creator (software only 50
years)
optional: use ©, «copyright», or «all rights reserved»
THE MAIN QUESTIONS:
–WHAT IS IMPORTANT FOR ME?
–WHAT CAN I PROTECT? WHAT
NOT?
–AND HOW CAN I DEAL WITH
CRITICAL
ASPECTS THAT CAN‘T BE
PROTECTED?

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Strategies for Start-up Companies

Prof. Dr. Rolf Meyer

–Since 1998 at FHNW

–(re)married, 50 years old, 2 children

 Center for market research and market entry, located in Harbin,

 Slavisa Tavic Rolf Meyer

Someone who exercises initiative by organizing a venture to take benefit of

An entrepreneur supplies risk capital as a risk taker,

According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs

 greatly value self-reliance,

 strive for distinction through excellence,

 are highly optimistic (otherwise nothing would be undertaken), and

Read more: http://www.businessdictionary.com/definition/entrepreneur.html#ixzz3zkdtcNPW

1964 Peter Drucker: entrepreneur maximizes opportunities

1985 Robert Hisrich: entrepreneurship is the process of creating something

Read more: http://www.businessdictionary.com/definition/startup.html#ixzz3zkcN8FEG

A startup is a human institution designed to create a new product or service under

Eric Ries: Lean Startup

Entrepreneurship Personal type Attributes

Innovator Imagination originality, inspiration, love,

Skills Behaviors Attributes

Problem solving Acting independently Self-confident

Creativity Actively achieving goals Autonomous

1. You have a detailed idea

2. You have a vague idea

3. You don’t have any ideas

– Brainstroming – Randomness techniques

Creative Problem Solving (Osborn/Parnes)

Thinking hats from DeBono

Open Space (Harrison Owen)

– Brainstorming (chapter 5, page 74)

– Think about situations, when you where annoyed about something

– Think about what exactly made you angry

Mega trends are major trends or movements.

Today’s increasingly individualistic consumers place considerable value on self-

The demographic change in most countries increases liefe expectations and

Megatrend 4: Presumers & Custowners

keywords: digital learning, importance of learning, war for talents….

Megatrend 5: New work

Keywords: Energy saving, resource saving, organic food, share economy

Geschäftsmodelllinnovationen Schwyz_Next 13.1.2021 50

Source: Clark, Osterwalder, Pigner, Business Model You, 2012, S. 53

Geschäftsmodelllinnovationen Schwyz_Next 13.1.2021 54

Geschäftsmodelllinnovationen Schwyz_Next 13.1.2021 55

Business Model Business Model Canvas 7 Key Model (Meyer)

Geschäftsmodelllinnovationen Schwyz_Next 13.1.2021 58

Ticket: 49.90 Basic offer

To be used in… Guiding questions:

Many more industries

Example «The economist»

Print only USD 125 0%

To be used in… Guiding questions:

Outsoucring to the crowd

To be used in: Guiding questions:

(pay only when you need

To be used in: Guiding questions

– How can I get in touch with my

Offer the customers more than just a product / service

– Many more industries

«All you can eat» «à discrétion»

To be used in: Guiding questions:

– In general: businesses with