Why Startups?frankrayal.com/wp-content/uploads/2018/06/Frank... · 70% of tech startups fail 20 months after first raising financing Source: CBInsights. Scale-Up or Fail Fast 8 Source:

Why Startups?Innovation and Economic Impact

Frank Rayal

Algiers, June 27, 2018

No Shortage of Cash

2

$140 Billion(2017)

$2.3 Trillion(2015-2017)

VC Investments Value Creation*

+25% over 2014-2016

Source: Global Startup Ecosystem Report 2018

Startups Are About Value Creation

3

Startups Are About Changing the Status Quo

4

2010’s

2000’s

2000’s

1990’s

Startups Are About New Business ModelsNewspaper advertising revenue in the United States

5

$12.4 B

$66 B

Startups Are About JobsJob Creation by Startups vs Existing Firms

6

Source: Tim Kane, based on Business Dynamics Statistics, U.S. Census Dept.

The Startup Challenge: Scale-up

Scale-ups have a disproportionate impact on:

› Job creation

› Quality of jobs

› Economic growth

› Productivity gains

7

70% of tech startups

fail 20 months after

first raising financingSource: CBInsights

Scale-Up or Fail Fast

8Source: “The Scale-up Report”, Sept. 2014

Startup Success: Ecosystems

Success

Market

Business Models

TeamCapital

Product

9

Ecosystems

• Size

• Clustering

• Specialization

• Global connectedness

• Talent

Startup Trends: The Rise of ChinaUnicorns by Country 2013 - 2017

10

Source: CBInsights

Gap remains, but US dominance shrinking

Startup Trends: Deep Tech

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Xona Partners

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Boutique Advisory Firm Specialized in Developing New Growth Strategies

Private Equity & Venture Funds

• M&A due diligence; competitive analysis & positioning

Technology Corporations

• Develop new business ventures from concept validation to implementation

Governments, Regulatory & Policy Makers

• Market & technology assessment for policy decisions

InternetTelecom

AI IoT

Cloud & Data

CentersBig Data

Contact: advisors@xonapartners.com

Web: www.xonapartners.com

Partners & Advisors: www.xonapartners.com/team

XONA PartnersI n n o v a t e . E n a b l e .