A detailed overview of Sheffield City Region Local Economic Partnership's strategy for the Creative & Digital Industries sector, including ideas about the region's digital ecosystem and collaboration centre network. Follow more at http://collabojam.net.
3. Digital Ecosystem ‐ SWOT
Strengths Weaknesses
Talent (private sector and HE sector) IT supply chain controlled by non cloud
Resources (P&HE) model
Strong grass roots community with HE insItuIonal Internal culture
common desire and common vision of UK Funding model
future plaForm
UK incubaIon model
Russell Group UniversiIes
NaIonal policy approach prevents criIcal
Pool of experienced and track record mass or scalability
operators from Web 1 community.
Globally trusted governance environment
Globally trusted supply chain partner
Tech savvy emerging UK employee base
London based scalable venture finance
Opportuni2es Threats
Coalescing of digital community Current run rate = negligible market share
in digital economy plaForm
Refocusing of local government
procurement to Open source and cloud UK PLC business exisIng plaForm not fit
for purpose in terms of global
based with local supply
compeIIveness nor in order to support
Associated innovaIon creates condiIons innovaIon and growth
for UK to own sizable market share of
digital plaForm
Ability to aUract significant venture
funding to scalable ecosystem
ModernisaIon of UK enterprise
operaIonal funcIons
Export of UK owned and UK developed
digital products and services
4. UK overview
NaIonal hub and spoke network of
UniversiIes Data Centres Incubators
Major clusters around
London –
oxford Edinburgh/
Bristol Birmingham Yorkshire North East Glasgow
cambridge
brighton
TechCity in London (UK Hub)
Fed and underpinned by all naIonal clusters
CollaboraIon cluster
New data centre village infrastructure
5. ICT Value Chain
Venture finance Massive underinvestment in UK plays
Links to other global US & Europe = Strong – everywhere else = weak
innovaIon hubs
Public sector Private sector Controlled by legacy IT models
procurement procurement
HE Research Needs to be private sector led / driven
Needs raising up the value chain
Grass roots community and formalising
Broadband infrastructure Data Centre infrastructure
not fit for purpose
(connecIvity and data centre)
6. ICT underpins naIonal innovaIon
• new ICT ecosystem underpinning all economic acIvity in UK PLC and specifically
innovaIon and growth in sustainable energy healthcare and advanced
manufacturing TICs
Healthcare Sustainable Advanced Professional Business EGovernment
energy Manufacturing and financial efficiency Learning and
services educaIon
BROADBAND/CLOUD CLOUD PRODUCTS
ICT TIC INFRASTRUCTURE AND SERVICES
7. Pockets of world class across the country
Hubs Research based Private sector successes –
• Techcity innova2on in spite of weak
• Cambridge science park • Russell group ecosystem
• Daresbury science park • N8 • Lastminute, Freeserve,
• Media city etc 365media, Pace Micro, PlusNet
Nothing brings them all together
8. Economic model and benefits
Growth &
Business
innova2on
Industry
Reduced cost
Engagement Product / Service
Services innovaIon
Future proofing
Manufacturing economic segments
Technology Retail Self determinaIon
(not just serving
Commercialised IP Public Sector foreign owners /
sourced internally foreign market
via collaboraIon demand)
(HE & PS segments)
9. IncubaIon 2.0
EvoluIon started with and matured with www.techstars.org
www.ycombinator.org, then • World class development lifecycle
www.plugandplaytechcentres.com (intensive collaboraIve bootcamp)
• World class networking
• World class business review
• World class mentoring
• World class funding access
Business failure rates reversed…
10. UK IncubaIon
Business link Seedcamp.org replicated the
was the answer for 99% of start‐ups… ycombinator model and has established
and 9 out of 10 UK start‐ups sIll fail… a strong US and European funding
network, and springboard.com is
replicaIng the techstars model.
11. Going beyond the US model
Idea development – Collabora2on
Incuba2on 2.0
Grass roots engagement centres
Virtual and physical interacIons • Techstars programmes in all • Coalescing all private sector
major tech hubs assets into a collaboraIve
• Full engagement by Russell resource
group and N8 universiIes • Driving public sector
procurement and influencing
local private sector
procurement
13. In summary
Business
UniversiIes All incubators
acceleraIon
• are missing the • have had to be • is all about events,
opportunity by implemented as development,
only focusing on property startups and SME
level 1‐3 of the businesses development
research
commercialisaIon
stack
16. What we will develop
ENTREPRENEURS
• Upskill them SMEs
• Connect them
• Encourage them • Scale them
INTERNATIONAL • Upskill them
• Connect them
innovaIon hubs and
corporates
Higher
Technology
Strategy Board EducaIon
CORPORATES
UNIVERSITIES
Public • Unlock value of IP
• Make aUracIve for
Sector student recruitment
• Generate research
GRADUATES opportuniIes
• Enable to create jobs in area
• Retain them BOOTCAMP
Other regional support
PRIVATE FINANCE • eg. InnovaIon specialists
• AUracted to quality projects
3rd Blue
Sector light
AMRC
DIGITAL REGION
DATACENTRE
• CreaIng projects to • Localised capacity to • Link to it informally
uIlise network and drive support digital ecosystem
innovaIon • NaIonal cloud
infrastructure
• Economic landgrab
17. How do we pay for it?
TIC Innova2on &
Economic
Development Project
funding
Programme
funding
Collabora2on
RGF func2ons
2
Tech
ERDF VC
Accelerator
Enhanced
Capital
DataCo 1 Data Centre
Allowances Privately Funded
Infrastructure
18. 3. Longer term – use trust
model to create a
Commercial model revenue stream from DC
for philanthropic projects
in CDI and associated
growth spaces
2. Leverage funding
availability with private
and in kind match to fuel
the collaboraIon
ecosystem including
events
1. Private fund raise to
create the DataCentres in
Enterprise Zones by
leveraging Capital
Allowances
19. The CDI Ecosystem
Business Schools
Student Enterprise
HIGHER
IP CommercialisaIon EDUCATION
Research SECTOR
KTPs
MarkeIng
Econ Development Teams
PUBLIC City Development Co.s
SECTOR
Seed funding
A round FUNDING
CDI Business Support
Inward Investment teams
B Round & PROF
SERVICES
Collabora2on
Legal, Tax & AccounIng
Hub
Virtual & Physical
(using all HE & LA
property assets) Mentoring
Roadmap ValidaIon
ADVISORY
BOARD Business plan validaIon
SMEs (in region) Network
Corporates (In Region) PRIVATE InspiraIon
SECTOR
Target Businesses (not IR)
20. How is the CollaboraIon Centre Network run?
Advisory Boards (funding CollaboraIon Hub
Governance Board
and tech – split by sector) operaIons
• Senior representaIves from • Panel of proven tech • Sector specific team driving
Local authoriIes, HE sector, entrepreneurs and investors and direcIng public sector,
and private sector. – UK and internaIonal. Will HE sector and private sector
• Responsible for funding and be fluid (ie not all members resource
for selecIng the Advisory involved all the Ime) • Implement and uphold the
Board and any key • Key in aUracIng Ier 1 CCN’s ethos and operaIng
contracts, and for ensuring supporters (incl. companies methodology.
that the park is properly and investors)
supported across the • Responsible for aUracIng,
Councils and the universiIes selecIng and supporIng
• Guardians of the Centre’s entrants to the CCN process
ethos and operaIng • Guardians of the CCNs ethos
philosophy and operaIng philosophy
21. People structure
Collaboration Teams
(sector specific)
Extended team
Inc Public Sector & HE sector
Public sector | HE sector | Private sector
Collaboration Hub
Governance Board Tech advisory Boards Funding Board
Major shareholders
• Public sector
• HE sector
Minority shareholders
• Private sector parIcipants
• Professional Services Partners
22. CollaboraIon Centre funcIons
Start‐up incubaIon & Supply chain
InnovaIon
business acceleraIon collaboraIon
• Industry and cross industry • Mentor led start‐up • Product and service
events incorporaIng Public compeIIons (per industry). innovaIons
sector, HE sector and • Co‐working spaces. • Public procurement.
Private sector parIcipaIon. • Start‐up units / offices. • Corporate procurement
• Technology roadmap • Mentor led corporate
evaluaIon / invesIgaIon / development of SMEs
development.
• Enhanced access to finance
• Networking (physical and
virtual) and content
development.
Supported by professional service partners
23. The value of collaboraIon
Enables best of class to be
Brings together the assets Eliminates replicaIon
established
Enables cross selling and cross‐
Establishes the proposiIon of
ferIlisaIon between industry SImulates innovaIon
“sum of the parts = greater than”
segments
24. ParIcipants
Schools /
Colleges /
UniversiIes
CollaboraIng Tech
industries Corporates
CollaboraIon
Nesta / Centre
UKTI / TSB Tech SMEs
Network
Local
AuthoriIes / Freelancers
NHS / Police
Professional
Services firms
25. InnovaIon through parIcipaIon
Interac2ons Innova2on Startup Business Major
• Social networking • Idea, concept Crea2on Development Projects
• Meet‐ups and prototype • Tech Accelerator • Projects • Corporate and
• Events development • KTPs public sector
• Problem and soluIon • SMEs procurement
sharing
27. CDI Events & AcIviIes
Annual
Showcase event
Quarterly
Review and CollaboraIon camps
Monthly
associated
publicaIon
(all CDI parIcipants)
CollaboraIon camps
Daily
Start‐up boot‐camp (smaller & sector
programmes specific) Blogs
Business acceleraIon Digital publicaIons News bulleIns
programmes (what’s going on)
Physical & • Use of LA and HE owned buildings SCR LEP “Linkedin like” environment
Online • SCR LEP online tender & procurement resource SCR LEP online knowledge base
assets
28. What are collaboraIon camps?
0.5 ‐2 day event held Debate & Idea
evenings or over a development and Structured yet
Par2cipants free flowing Follow‐up is tracked
weekend problem sharing
• Hosted in a LA / HE • Bringing different • CDI evangelists, CDI • Framework and • All captured digitally
owned venue people / organisaIons mentors, CDI agenda is established and tracked online
(locaIon is distributed together to discuss businesses, and published in • Flow into future
around the region topics of interest and entrepreneurs, public advance events
based on explore soluIons to sector delivery heads, • Segments are • Flow into start‐ups,
commercial / problems HE researchers, HE delivered in such a spin‐outs or projects
technology themes) • ICT and its social or commercialisaIon way as to maximise
• Review and commercial use is the people, funding parIcipaIon and
associated publicaIon common theme people, business sharing
support people,
chamber of commerce
representaIves, 3rd
sector people /
organisaIons,
industry
representaIves or
interest groups
Example 1 Example 2 Example 3 Example 4
• Local Authority delivery head has to • Industry representaIve has knowledge • Local Authority department has a social • Higher EducaIon researcher working in
reduce costs by 30% within 2 years, content and business processes that inclusion / wellbeing programme that partnership with private sector
shares the problem with the parIcipants need to be automated and placed online, needs automated processes, online technology businesses, shares the work
and encourages proposals to be made shares the opportunity and encourages community and specific technology they are doing in a specific area
post event proposal to be made post event. developments to support its success. adverIsing its availability to people that
me be able to make use of it.
29. What are Start‐up Boot‐camps?
Sustenance funding Access to appropriate
Accessed through a Intense incubaIon and provided during business development
compeIIon mentor programme
programme funding
• Best ideas / business • 3 month process based • Cost of living contribuIon • Quasi public / private
plans / projects are on pre‐idenIfied best of £5k per individual sector funding
selected pracIce procedure parIcipant • Venture capital
• SelecIon process is • CollaboraIon between • Minimum of 3 people per • Angel investment
transparent and is heavily incubatees and also with team
influenced by advisory wider community is • ExpectaIon is that all
board panel input encouraged waking hours are put into
• Founder locaIon • Managed, delivered and the project net of social /
irrelevant, but incubaIon supported by the “CDI family breaks
programme is carried out team”.
within LEP region
Cost of the programme to the
incubatees? Follow‐up is tracked Business acceleraIon programmes
• Founders give up upwards of 10% • All captured digitally and tracked • Run on the same basis with higher
of equity in the project / business online quality inputs and an enhanced
which is held as an asset by the • Flow into future events process
incubaIon business vehicle
• No fees
30. Who interacts?
Seasoned
Professor Uni. Student School student
entrepreneur
• Engaging in a • Part of a startup • Immersed in the • Mentoring
bluesky research in the bootcamp technology businesses and
project in the • ContribuIng to • Primary students entrepreneurs in
Digital Hub community ‐ Learning incubaIon centre
• ContribuIng IP to project in Digital through guided • Leading a
startup in Hub play community
incubaIon zone • Fostering school • Secondary project in the
• Running an parIcipaIon students – Digital Hub
informal event in • ParIcipaIng in Working on app • ParIcipaIng in
the town square events in town development events in town
• Drinking coffee! square projects with Uni square
• Drinking coffee! Students • Drinking decaf
delivering the coffee!
content
30
31. Who interacts? cont.
Public Sector change
SME Tier 1 Techs Professional Services
managers
• Accessing free • Accessing free • Having plaForm • Pipeline
innovaIon innovaIon capabiliIes adopted • M&A opportuniIes
• Accessing University • Accessing University • Guiding and • Fee opportuniIes
assets properly assets properly influencing from mature
• Building roadmaps • Building roadmaps innovaIon companies and larger
due to greater due to greater • Engaging in events in projects
visibility of market visibility of market town square • Having coffee!
and corporate and corporate • Sponsoring and
roadmaps roadmaps mentoring
• Low risk go to market • Low risk go to market • Popping in for a cup
through partnerships through partnerships of coffee!
• ParIcipate in • ParIcipate in
collaboraIve supply collaboraIve supply
chain and access chain and access
larger project larger project
procurement procurement
• Drinking lots of • Drinking decaf
coffee! coffee!
31
32. Who interacts? cont.
First Ime
Corporate ICT worker Investor
entrepreneur
• Part of a business • Engaging in a bluesky • Funding startup in
acceleraIon process R&D project in the the incubaIon
in the incubaIon collaboraIon centre centre
centre • ContribuIng IP to a • Sponsoring a
• ParIcipaIng in spinout in incubaIon research project in
events in town zone the Digital Hub
square • Running/sponsoring • Funding acceleraIon
• Drinking lots of an informal event in of an established
coffee! the town square SME
• Drinking decaf • Engaging in events in
coffee! town square
• Popping in for a cup
of coffee!
32
34. InnovaIon – Everyone is “co‐invesIng”
SImulaIng
Stage 3 Producing
Engagement entrepreneurial
start ups
development
• RelaIonship • SImulaIng Public/ • CompeIIon based
building (public, HE/Private sector • Bootcamp
HE, Private sectors) parIcipants to development
• Discussing themes/ collaboraIon and process
challenges adopt open culture • Mentor led with
• Developing • Idea / concept / access to finance
soluIons strategy • Based on Techstars
development model
Framework developed between CDI team and professional services partners
35. Commercial CollaboraIon –
ParIcipants are “trading”
Commercial
Engagement Contracts
Framework
• Developing • Establishing means • Governance
soluIons to of contracIng and • IP protecIon
idenIfied need partnering • JVs
• Discussing themes/ • ProtecIng • SPVs
challenges commercial
• Frameworks
• Developing long sensiIviIes
• Tendering
term strategies • ProtecIng complex
inter company / • Procurement
organisaIon
relaIonships
Framework developed between CDI team and professional services partners
36. Major Procurement Projects –
developed Supply chain meets large scale demand
Public sector and large
Why? Future
enterprise
• No off the shelf • Problem understanding • Approach can be
soluIons • SoluIon development replicated and exported
• Can’t put out tender • Customised to other regions and
requests without design requirements response other public sector
• Can’t issue a soluIons and design areas
requirement without • Tailored procurement
diligence and design and tendering
• Cloud compuIng model
forces an innovaIon
process
• Relevant skills not
inside public sector
supply chain currently
Framework supported by professional services partners
39. IncubaIon 1.0
Build it and they will come…………
• Lots of money raised
• Paid for buildings
• Paid for lawyers and accountants
PASSIVE MODE: wai2ng for business and pipeline to generate
DIDN’T HAPPEN – invested in 10, 8 failed, 1 broke even, 1 succeeded…………….
40. IncubaIon 1.0 failed – why?
It was about knowledge
It was NEVER about
transfer
• buildings • Entrepreneurs with track
• lawyers and accountants record ensuring tested ideas
and properly developed
plans were backed
• Mentoring through the early
risk phase for a start‐up
44. Techstars KPIs
Status Number of Companies Percentage
AcIve 27 69.24%
Acquired > $2M 5 12.82%
Acquired <= $2M 1 2.56%
Failed 5 12.82%
Other 1 2.56%
Techstars results web page
45. Difference Engine KPIs
Status Number of Companies Percentage
AcIve 17 69.24%
Failed 2 12.82%
• Difference Engine has
not been in operaIon
long enough for exits
to have occurred yet,
but this is due to start
in its third year of
operaIon, thus raising
equity capital for the
programme.
46. Ycombinator KPIs
Status Number of Companies Percentage
AcIve 150 71.1%
Acquired 21 10%
Merged 1 0.5%
Deadpooled 26 12.3%
Unknown 13 6.2%
AcIve
Acquired
Merged
Deadpooled
47. Seedcamp KPIs
Status Number of Companies Percentage
AcIve 40 87.5%
Acquired > $2M 3 7.5%
Failed 2 5%
AcIve
Acquired > $2M
Failed