A Lean perspective for European SMEs to tackle the vast Asian Economical Landscape

1. maximizing benefits
minimizing risk
A LEAN PERSPECTIVE FOR SMEs
Europe-Asia Connectivity:
what is the impact on trade?
francesco rossi
-
f.rossi@techsilu.com
francescorossi.me

2. BIO / CONTEXT
Europe-Asia Connectivity:
what is the impact on trade?
F.ROSSI@TECHSILU.COM
FRANCESCOROSSI.ME
+ dealing with China since 2010, as a SME
+ 3 projects related to China
+ TechSilu: we connect South-EU & Chinese Tech Ecosystems
2010 2014 2019
+ BENEFITS / - RISKS
CHINA 1.0
cheap
manufacturing
CHINA 2.0
services & finance
demands
CHINA 3.0
market-driven
innovation

3. CHALLENGES FOR SMEs
Europe-Asia Connectivity:
what is the impact on trade?
F.ROSSI@TECHSILU.COM
FRANCESCOROSSI.ME
+ European SMEs (all types) perception of China: shifting, but slowly
+ Dimensions (1): 1.6 € Trillion* into AI invested by China
+ Dimensions (2): an expensive-to-access market, 1.6 € Trillion* worth
+ BENEFITS / - RISKS
staggering numbers to face
* SOURCE: Made in China 2025 plan, Deloitte report
> in an innovation market we can level the play field;
> Chinese SMEs might be experiencing a similar situation

4. WHAT KIND OF CONNECTIVITY FOR SMEs?
Europe-Asia Connectivity:
what is the impact on trade?
F.ROSSI@TECHSILU.COM
FRANCESCOROSSI.ME
+ Silk Road to SMEs can be digital also to reduce access cost
+ SMEs embracing a tech/startup mindset benefit from scalability
+ Silk Road as a two ways street: equity flow is part of connectivity
+ China's internal market is hungry for licensed tech and soft skills
OPPORTUNITIES IN ARBITRAGE (WHAT COMES IN THE EU? WHAT GOES TO CHINA?)
QUICK EXAMPLES
SOFT SKILL
SOUTH EUROPE CHINA
€1.6k
/month
€3.0k
/month
JUNIOR SOFTWARE DEVELOPER
LICENSING
SOUTH EUROPE CHINA
IP PROTECTED
INITIAL PRODUCT BATCHES
LICENSED
CHINESE SCALABILITY

5. DE RISKING AND MAXIMIZING PROFIT (1)
Europe-Asia Connectivity:
what is the impact on trade?
F.ROSSI@TECHSILU.COM
FRANCESCOROSSI.ME
+ Involve individual and private Chinese Capital into early stage startups
+ rules for the investor: no lead investment, no access to IP as its protected by EU laws
+ foster relationship with the stakeholder by aligning: industry, market, know-how
+ SMEs grow locally until they are ready to face expansion in a fast-growth market
BY THE BUILDING BLOCKS
* Hacking some existing laws might be required
> 2 problems, 1 solution: Chinese individual equity in SMEs
1. addressing scarcity of capital for EU Innovative SMEs
2. addressing mutual biased view
RESULTS
IN EARLY STAGE STARTUPS*
€ 3.5
mil

6. DE RISKING + MAXIMIZING RESULTS (2)
Europe-Asia Connectivity:
what is the impact on trade?
F.ROSSI@TECHSILU.COM
FRANCESCOROSSI.ME
+ scout & inform Chinese industrial funds about the European opportunity
+ match an European SME with such funds to provide project financing to the idea
+ allocate production risk to skilled industrial players already in China, in exchange of
licensing
+ Index SMEs' value in Europe to the marketed value of the JV in China, allowing for more
efficient capital raise and quicker growth
BY LICENSED JOINT VENTURES
* Hacking some existing laws might be required
> leverage the existing JV practice to the benefit of SMEs scale-ups
RESULTS
EU SMEs
LICENSING B2B AND B2C
TECH IN CHINA
16 1
TECH SMALL-CAP
INVESTMENT FUND
JUMP STARTING