javier hernandez - hazitek - incide - stanford - feb 1 2010

Hazitek: Accelerator for Growth Aurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010- Javier Hernández de Miguel – jhernandez@bidetec.com

Javier HernándezINCIDE, S.A.

Stanford School of EngineeringEuropean Entrepreneurship and Innovation Series

February 1st 2010

PresentationAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

- Electrical Engineering at University of

Navarre (Spain)

- Ph.D. in Electrical Engineering from the

University of Navarre (Spain)

- Executive MBA at IESE Business

School (Spain)

donewtech solutions

jhernandez@bidetec.com

Startups co-founded:

Individuals

Failures of Today’s Basque EcosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Public, Semipublic and Private Investment Process

100kEur 1MEur 5MEur

Project

And more…

And more…

Companies

And more…

individuales

Failures of Today’s Basque Ecosystem

100kEur 1MEur 5MEur

Proyecto

Y más...

Y más...Y más...

Empresas

Aurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Public, Semipublic and Private Investment Process

Analysis of Today’s Ecosystem

RolandBerger Strategy Consultants and IESE Business School developed a

study on “How Europe can successfully stimulate knowledge-intensive start-

ups learning from world-class European ecosystems” :

FOR ENTREPRENEURS, BY ENTREPRENEURS(6 insights)

Aurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Analysis of Today’s EcosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Insight 1: Start-up success depends on business knowledge and personal

competencies.

Technical knowledge:

Networking, people knowledge:

“Contacting and Contracting Clients is the

most important hurdle in setting up a company”

“Acquiring resources (raising sufficient funding) is key”

Market

consultantVenture

Consultant

hazitekcapitalhazitekmarket

Analysis of Today’s EcosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Insight 2: Ecosystems allow entrepreneurs to better and more quickly

develop their initial ideas into viable businesses

Iterative Process requiring fast and quality feedback

“30% changed target customer/market”

“40% changed product specs”

“15% changed the position in the value chain”

Advisory Board Manager/s

hazitekestrategy

Analysis of Today’s EcosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Insight 3: Corporations can provide vital business know-how and

experience to start-ups but can also significantly benefit from the product,

service and process ideas

Exchange programs between corporations and start-ups are key

Collaborative programs between local

companies, funding up to 50% of the

R&D investment in new products

development

(public company managing industrial policies)

Analysis of Today’s EcosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Insight 4: Start-ups can make an essential contribution by sharing their

experiences in their ecosystems

Ecosystems create entrepreneurs by inspiring and motivating entrepreneurs

Mentors

hazitekestrategy(members acting as mentors for other members)

Professionalization Process

Basically...

Encourage the migration

from know-how to know-who

Aurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Support for high-growth companiesAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Company to

be accelerated

Venture

Consultant

Manager/s

Advisory Board

MentorsMarket

consultant

hazitekestrategy

hazitekmarket

hazitekcapital

Support for high-growth companiesAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Venture

Consultant

Manager/s

Advisory Board

MentorsMarket

consultant

Company to

be accelerated

Loan Guarantee Association

Financial Institutions

Basque Gvmnt

Financing approaches:

- Co-funding (equity)

-Secured loans (support for hiring

professionals)

INCIDE, S.A. – Partner for your ASICAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Prototyping & test capabilities in house

Engineering Services

IP Development and supply

Design consultancy

Specific technical engineering

Custom integrated circuits

Development of mixed-signal ICs

Production management in fabless model

Wafer manufacturing & packaging

& series test outsourced

Business Case: INCIDE, S.A.

Founded in 2000

18 designers

VC backed from 2008

Service to product migration strategy

Historical key accounts: Infineon, Hitachi, Siemens,…

INCIDE, S.A. – Partner for your ASICAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Wide expertise on full custom RFID design for special applications

Example: RFID tag for livestock identification

Building INCIDE’s ecosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2009 - Javier Hernández de Miguel – jhernandez@bidetec.com

Market

consultant

Insight 1: Start-up success depends on business knowledge and

personal competencies

- Tech knowledge: Previous expertise at Fraunhofer Institut (DE)

- First customer: Siemens / Infineon

- Development of an ecosystem of sales partners

Building INCIDE’s ecosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2009 - Javier Hernández de Miguel – jhernandez@bidetec.com

Manager/s

Advisory Board

Insight 2: Ecosystems allow entrepreneurs to better and more quickly

develop their initial ideas into viable businesses

- Development of an advisory board based on local experts

and R&D centres

- Reorganization of sales unit based on experienced managers

(new VP of Mktg & Sales hired)

Building INCIDE’s ecosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2009 - Javier Hernández de Miguel – jhernandez@bidetec.com

Insight 3: Corporations can provide vital business know-how and

experience to start-up but can also significantly benefit from the product,

service and process ideas

- Collaboration with partners (monthly contacts with a list of

potential customers for INCIDE, who are Innobasque

members)

- Joint development of up to 15 R&D projects in cooperation

with local companies (about 2M$ in 10 years of public

support)

Building INCIDE’s ecosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2009 - Javier Hernández de Miguel – jhernandez@bidetec.com

Insight 4: Start-ups can make an essential contribution by sharing their

experiences in their ecosystems

- Participation in different networks for entrepreneurship (mentoring)

- Analysis and/or creation of other startups: analysis of 2-3 business

plans/month for new startups

- Collaboration with Innobasque for running projects/programs:

participation in two different groups of analysis

Building INCIDE’s ecosystemAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2009 - Javier Hernández de Miguel – jhernandez@bidetec.com

Venture

Consultant

Insight 1: Securing investment is key

- First round based on friends, family and…mainly fools… (< 1M$)

- Hiring a venture consultant to prepare a new round of about 3M$

- Evaluation, six months later, between two offerings:

- Best valuation by “financial ROI focused” funds

- Lower valuation by “social ROI focused” funds

- Contract negotiation during 4 months

- Deal closing

Results achievedAurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2010 - Javier Hernández de Miguel – jhernandez@bidetec.com

Result: How accelerator structure helped INCIDE to grow

- New round of 3M$

- New advisory board formed

- New VP of Mktg & Sales hired

- Additional sales channel with 3 new reps in Europe

- Additional business model discussed in collaboration

with ecosystem (mentors)

- New ASIC products developed (co-funded by SPRI)

Thanks !Aurkezpen honen informazioa isilpekoa da eta indarrean dagoen legediak babesten du. La información de esta presentación es confidencial y está protegida por la legislación vigente. This presentation

contains confidential information protected by law © 2009 - Javier Hernández de Miguel – jhernandez@bidetec.com

jhernandez@incide-semi.com

INCIDE, S.A.

Zuatzu Business Park – Urgull Building

20018 Donostia (Spain)

www.incide-semi.com