Presentazione di PowerPoint

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IFISE
Starting to plan for Seed and Start-up Capital
Sources in Italy
Vittorio Modena University of Pavia
IFISE - Third Meeting, Pavia October 14-17
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Outline

• Administrative decisions and project status (in
  short)
• Second meeting objectives
• Existing programmes for high-tech enterprises
  fostering in Italy.
• Major planning guidelines-Brainstorming
• Seed Capital Sources Planning-Brainstorming

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Administrative Issues

1. Ending Phase 2 - Field Surveys
2. Starting Phase 3 Planning for public programmes
3. Light Delay Are we asking for more time?
4. Second Interim Report has been sent to the EC

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2nd Meeting Objectives

1. Results presentation
2. Planning guidelines
3. Issues to be clarified for better planning from
   each team

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General Planning Issues

1. Relating to general Italian RD situation
   (preliminary phase-According to Morris)
2. Integration of our recommendations with existing
   legal framework, optimal planning or both?
3. Separating seed from start-up capital according
   to the continuity of public intervention
   (following the Israeli scheme)

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General Planning Issues

1. Public seed capital hardly existing to be
   created
2. Start up capital (Venture Capital Funds)
   Existing, to be shaped or directed
   (geography/sectors etc)

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General Issue Low RD (I)
1998
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General Issue Low RD (II)
1998
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General Issue Low RD (III)
Total RD personnel per thousand labour force 1998
High (Over 20 of EU mean)
Average Low (Below 20 of EU mean)
Italy
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General Issues Sectoral Specialization

• Low specialization in the classic High-tech
  sectors
• Specialization in the mechanics/industrial
  automation sectors

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General Planning Issues Geography

• North much better than South.
• No international level HT clusters
• Milan, Rome Pisa are interesting (but not in a
  single field)
• Many small and medium sized cities throughout
  Italy mostly with a technical university
• VC and private incubators concentration in Milan
• Many Italian potential entrepreneursoverseas !!

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General Issue Geography (II)
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Law 297 and the existing framework (I)

• Fast Changing Programmes
• Law 297
• Startech
• European Programmes (BICs, ETF)
• Regional Programmes Lombardia Fund of funds and
  law 35/96.
• Sicily - mostly implementation of National or
  European Programmes

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Law 297 and the existing farmework (II)

• Law 297
• Enacted 8/1999 started operation 2/2001
• Up to 0.5M Euro
• 50 of eligible research cost 25 of
  precompetitive costs
• Only Public employees are eligible (professors,
  researchers Ph.D Students), but other entities
  may join them (funds, banks, financial
  institutions)

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IFISE
Law 297 and the existing farmework (III)
Law 297 performance February-September 2001 3
Proposals (for new start-ups) !!!!

• Possible reasons
• Scarce potential (but start-ups do exists)
• For public employees only
• Undefined academic regulationno conflict of
  interest available

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Startech Programme by Sviluppo Italia

• Very new programme (Started May advertised only
  since September 15,2001)
• Investing in ventures smaller than 2.6 ME
• Investing up to 0.5M Euro
• Disinvesting within 5 years
• Not for profit (can get money back at most)
• Regional teams of consultants/evaluators
• Around 150 proposals received hitherto
• Everyone is eligible

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BRAINSTORMING GENERAL ISSUES 15 minutes
think 3 ideas each presentations
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BRAINSTORMING GENERAL ISSUES
LONG LIST - General

1. For a limited time University of Pavia should not
   consider the conflict of interest (see L297).
   Creation of few success cases.
2. Grants to companies that let people go, promise
   to take back the person in case of failure of the
   project
3. Assistance in preparing a plan and advice on how
   to continue
4. Compulsory courses (in scientific faculties)
   preparing to the steps necessary to establish a
   company.
5. Invite venture capitalists at university
6. Simplify the law (L297)
7. Public funds to university incubators (around 20
   selection). The incubators should admit also
   projects from outside university.

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BRAINSTORMING GENERAL ISSUES
LONG LIST General - Continued
8. More money to PhD students 9. Add to
Technological transfer offices an educational
role 10. Specialised small incubator on biotech
investing in the projects 11. Stage also abroad
in RD units of large companies 12.
Multidisciplinary courses 13. Make pressures at
political level especially at national level for
the creation of incubators 14. Connecting the
diffusion of incubators to excellence centres in
universities 15. Incubator in Pavia 16.
Programmes addressed to Italian specialisation,
avoid state overspending
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BRAINSTORMING GENERAL ISSUES
LONG LIST General Continued 17. Manager of
start-up different from the inventor 18.
Incentive to industries in spending more in
RD 19. Create incubators in Italy with high
reputation 20. Act on a regional level 21. Find
partnership with key players within the
community 22. Theoretical recommendation or pilot
implementation? 23. Define a budget 24. Focus on
pre-seed activity. Set up a centre which can
provide training on business. This could be a
pilot and then repeated. 25. Matching fund for
all VC that invest in seed. (deal by deal)
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BRAINSTORMING GENERAL ISSUES
LONG LIST General Continued 26. One more year to
scientific faculties students to evaluate their
work from a market perspective 27. Set up a vice
chancellor committee to report in 6 months key
actions to support entrepreneurship from the
Italian science base and to detail key
barriers 28. Set up a national scientific
business plan contest sponsored by industry. 10
awards per year, minimum 50,000 each 29. Set up
and fund competitively a scientific
entrepreneurship teaching program, where by
scientific university and business schools can
bid for 10m each for 5 years. 30. Help creating
groups of people through specific courses 31. Set
up spin-off offices assisting who has ideas to
develop 32. Help investors to evaluate projects
technologically. Regional basis
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BRAINSTORMING GENERAL ISSUES
LONG LIST General Continued
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Seed Capital Planning (I)

• Do we accept the general philosophy of the
  Technological Incubators Programmes ?
• Integrative incubators (funds-consulting-monitorin
  g, office space etc)
• Offering a chance to any good idea
• Centrally governed
• Quite generous

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Seed Capital Planning (II)

• Sponsor/initiating Institutions
• Universities
• Industries
• Local Authorities

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Seed Capital Planning (III)
Size of grants to projects A few indicators

1. Israeli incubators 300K
2. Israeli Most Frequent Israeli Raising (0.3-0.6M
   - see graph below)
3. Israel Biotech First Raisings (0.4-6M)
4. Italian Biotech Needs (Potential Entrepreneurs)
   0.5-10M?
5. Italian Potential Entrepreneurs (design houses
   sector) 0.6-1M

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Seed Capital Planning (III)
Source Arie Sadovski
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Seed Capital Planning (IV)
? Sectoral / Non-Sectoral / Focused Incubators ?
1.Sectoral are more efficient 2. Non sectoral
will not lose an opportunity 3. Focused usually
provide for a natural specialization 4. What
about a special Biotech incubator?
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Seed Capital Planning (V)

• Sectoral Specialisation Strategy
• In a big city/university a combination of one
  general Incubator 2-3 sectoral?
• What about smaller centers (Catania) or
  Medium-sized (Bologna)? Efficiency or fair
  opportunity?

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Seed Capital Planning (VI)
Is it important that?

1. Decision are made quickly (1 month in the Israeli
   incubator 3-5 month in for the Italian 297/99
   law)
2. There is a central management for all incubators
3. The incubators manager gets incentives/share for
   success.
4. There is a net of experts at national level

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Seed Capital Planning (VII)
BRAINSTORMING SEED CAPITAL ISSUES 15 minutes
think 3 ideas each presentations
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LONG LIST Seed Capital Planning -Continued

2. .

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LONG LIST Seed Capital Planning- Continued

2. .

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LONG LIST Seed Capital Planning -Continued

2. .

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Planning for Seed Capital Sources in Greater
Catania

1. Small and isolated center
2. 1000-1500 researchers in one sector
3. Minimal private venture capital operation
4. Strong public incentives

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Ideas for Catania
1. 2..
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Further Information

1. From Israeli teams
2. From Italian teams

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How do we proceed?

1. Roberto is presenting VC planning issues
2. After the meeting completing and refining reports
   
3. Planning on line