Developing an Enterprise Ecosystem

Developing an Enterprise Ecosystem

December 2018 Developing an enterprise ecosystem Training for policy makers Douglas Abrams 6XXXX About the facilitator • Wharton MBA • JP Morgan – Vice President - IB Technology, Global Markets Internet Marketing • Parallax Capital Management – Co-founder and MD - Venture Capital • Extream Ventures – Co-founder and MD - S$20 million VC fund • Expara – Founder and MD - Expara Ventures venture fund and advisory • NUS – Adjunct Associate Professor, Business School, Entrepreneurship • Sasin – Visiting Professor, Venture Capital • RMIT Vietnam – Entrepreneur in residence Douglas Abrams 6XXXX Expara timeline 2000-2018 EIDMV I NUS Extream EIDMV II EV III Expara-GSB Expara 2000 2000 2002 2004 Parallax 2006 2008 Sasin KIMBA 2010 2012 2014 Expara Malaysia Expara Thailand 2018 2016 EAV1 Expara Vietnam BANSEA Expara Japan Overview of Expara Douglas Abrams 3 6XXXX Innovation and Entrepreneurship • Why countries need innovative entrepreneurship • Driving innovative entrepreneurship: enterprise ecosystems • The key players • Singapore enterprise ecosystem • Ecosystem building skills • Outlook for Vietnam’s enterprise ecosystem Douglas Abrams 6XXXX Creative destruction • Innovative entrepreneurs drive long-term macroeconomic performance • Long-run economic growth • Economic fluctuations • Structural adjustment • Accounts for over 50% of productivity growth Douglas Abrams 6XXXX Development of a thriving entrepreneurial sector • Not just an economic "niceto-have" • In the knowledge-and innovation-driven globalized economy of the 21st century • It is a competitive necessity Douglas Abrams 6XXXX Impact of VC-funded companies on econony • US companies receiving VC from 1970-2005 accounted for 10 million jobs and $2.1 trillion revenue in 2005 • 9% of total private sector workforce and 16.6% of total GDP • Job growth rate of 4.1% vs 1.3% and sales 11.3% vs 8.5% Douglas Abrams 6XXXX Companies founded by MIT grads • 25,800 active companies • Employing 3.3 million people • Generating annual revenues of $2 trillion • Singapore: $307 billion; Vietnam $224 billion • Equivalent to the 11th largest economy in the world Douglas Abrams 6XXXX Innovation and Entrepreneurship • Why countries need innovative entrepreneurship • Driving innovative entrepreneurship: enterprise ecosystems • The key players • Singapore enterprise ecosystem • Ecosystem building skills • Outlook for Vietnam’s enterprise ecosystem Douglas Abrams 6XXXX Innovation and ecosystems • Coral reefs – 10% of earth’s surface; 25% of known species • Cities 10x larger than neighbor are 17x more innovative • Residents of city of 5MM are 3x more innovative than resident of town of 100K Douglas Abrams 10 6XXXX Most important to startup success Category Broadband/high-speed internet 4.4 Business plan development and marketing assistance 4.3 Links to higher education/research institutes 3.7 Accounting and financial management 3.6 Access to venture capitalists/non-commercial loan fund 3.5 Linkage to strategic partners 3.4 Intellectual property protection 3.3 Management/key team members identification 3.3 Presentation skills 3.3 Shared administrative and office needs 3.0 In-house investments 3.0 Douglas Abrams 47 6XXXX Team Partners/ Directors Strategic partners Service providers • Portfolio management • Develop internal and external networks • Facility management • Success as a function of:• Time • Tenure • Experience Advisory Board Investors/ Sponsors Douglas Abrams 48 6XXXX Portfolio Management Douglas Abrams 49 6XXXX Key management policies • Discuss alternatives to incubation (if startup not meeting goals/milestones) • Regularly screens and manage network of service providers/strategic partners • Evaluate program effectiveness • Establish milestones and conduct follow-up • Has written marketing plan • Discuss entry and exit plans • Robust payment system Douglas Abrams 50 6XXXX How to improve intervention • Optimize the allocation of the Manager’s time; • Maximize the intervention skills of the Manager • As a rule of thumb; at any one time, the Manager should spend half of his/her time monitoring a portfolio of start-ups • Stage of development- more direct intervention in the beginning, and tapering off to indirect intervention and support when start-ups graduate • No overly dependence on Manager Douglas Abrams 51 6XXXX Characteristics- pro-active and direct intervention • Good rapport with team and start-ups • Highly selective • Robust decision making process • Robust monitoring process • Enhance enterprise learning • Have access to deep and extensive networks • Facilitate capital acquisitions • Participate in deal-making and dealshaping of clients Douglas Abrams 52 6XXXX The process Entry • Deal flow (training, screening) • Due diligence • Deal structuring • Define strategic plan and determine KPIs • Regular mentorship/advisory session Incubate • Quarterly reports Exit • Milestone-based • Raise the next round of funding • to 18 months Douglas Abrams 53 6XXXX Where you find your startups? Entrepreneur organizations Online platforms Startup events Government agencies IHLs/RIs Manager’s personal network Douglas Abrams 54 6XXXX Due diligence ☑ Business profile ☑ Team CV- technical skills and experience, startup experience ☑ Competitive landscape ☑ Cashflow and financial projection ☑ Use of funds ☑ Customer validation ☑ Milestones and time to launch/ new versionproduct and business development Douglas Abrams 55 6XXXX KPIs ☑ Review every months- review, feedback, action, revision ☑ Depending on startup stage- idea, product development, product launch, pre-revenue, revenue ☑ Monitor every month- projected vs actual ☑ Update investors on KPIs ☑ KPIs- product development, sales and marketing, revenue, cost, operations ☑ Examples of KPIs- beta-launch, number of leads, burn rate, user traction, user retention, revenue Douglas Abrams 56 6XXXX Stakeholder management Douglas Abrams 57 6XXXX Who are your stakeholders? • • • • • • • • Deal flow Advisory Deal flow Talent pool Learning IP strategy Corporate matters Finance • • • • • • Research Institute Mentors IHL Startups Incubator Market validation Market access Douglas Abrams Due diligence Industry Partners Venture Capital • • • Accelerator /Incubator Gov Agency Service Partners Deal flow Talent pool IP • • • • Deal flow Syndication Training Policies Leverage Schemes Follow-on investment 58 6XXXX Innovation and Entrepreneurship • Why countries need innovative entrepreneurship • Driving innovative entrepreneurship: enterprise ecosystems • The key players • Singapore enterprise ecosystem • Ecosystem building skills • Outlook for Vietnam’s enterprise ecosystem Douglas Abrams 59 6XXXX Eight pillars of an enterprise ecosystem Accessible markets Human capital/workforce Funding and finance Support system Regulatory framework and infrastructure Education and training Major universities as catalysts Cultural support Douglas Abrams 60 6XXXX Contact us • Douglas Abrams • Expara – dka@expara.com – www.expara.com • You can also contact me on: – Facebook, Linked-In, Line, Whatsapp, WeChat • Singapore mobile: 65-9780-5381 • Vietnam mobile: 84-3732-43624 Singapore HQ Block 71 Ayer Rajah Crescent #$02-10/11 S139951 Regional offices: Bangkok, KL, HCM, Tokyo Douglas Abrams 61 ... entrepreneurship: enterprise ecosystems • The key players • Singapore enterprise ecosystem • Ecosystem building skills • Outlook for Vietnam’s enterprise ecosystem Douglas Abrams 42 6XXXX Enterprise ecosystem. .. “soft-landing” for companies that want to enter another market – Visa and immigration assistance, housing assistance – (1) late-stage- assisting mature companies ready for external financing – (2) modified... innovative entrepreneurship: enterprise ecosystems • The key players • Singapore enterprise ecosystem • Ecosystem building skills • Outlook for Vietnam’s enterprise ecosystem Douglas Abrams 13