LisbonChallengeTourismDay-15-JoseEpifanioFranca-PortugalVentures

Entrepreneurship and InnovationAn opportunity for a Global Tourism Industry

Lisbon Challenge Tourism Day | 4 July 2014

José Epifânio da Franca

Economic relevance of Tourism

IT industry: an opportunity for globalization

The role of VC investment fostering innovation and entrepreneurship

Challenges (!) / Opportunities (?) for the Tourism industry

Agenda

2Lisbon Challenge Tourism Day | 4 July 2014





Agenda


Despite the expansion in recent years, exports are “just” 19.5% above

their pre-Lehman value, or about 1.8% CAGR since 2008

Export trends may suggest structural resistance of the economy to undertake a major

globalization revolution.

Tourism plays a major role in exports.

4

AICEP: Comércio Internacional Português, Fev 2013


Export of goods have declined 0.5% year-on-year, whereas export of

services have grown by 0.5%.

A strong knowledge-based economy should be able to foster the

development of a fast growing outbound flow of tradable services…

Exports dominated by goods with a significant content of “traditional”

industrial sectors. In services, Tourism prevails!

5

AICEP: Comércio Internacional Português


Exports still largely dominated by near-shore markets.

EU exports have declined 0.4% from 2012, while extra-EU exports have grown 0.4% from 2012.

Exercise: Growing extra-EU exports 15% a year over the next 5 years, and assuming EU exports

stay flat, Portugal exports would grow just about 30% from today value; this would be just below

50% of GDP value

Exports beyond near-shore markets are growing, but the starting point

is very low

6

AICEP: Comércio Internacional Português


Afterall, we just need to go back to the markets we called ours 5

centuries ago

5 centuries of entrepreneurship, innovation and leadership.Today, Portugal is still one of the most entrepreneurial countries in Europe.

The (big) challenge is to significantly increase its technology content.

$11.6

trillion

$5.7

trillion

$16.7

trillion

$17.6

trillion

$2.3

trillion




The role of the VC investment fostering innovation and entrepreneurship


Agenda


Overcoming the paradox of the numbers:

What creates value does not export and what exports does

not create value…






Agenda


Investment in high-potential, high-risk,

growth start-up companies based on solid

knowledge foundations.

Investment in novel technologies or

business models in global industries.

Venture Capital invests in start-up companies to create value for all the

stakeholders and the economy


Source: National Venture Capital Association – Venture Impact - The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy

Courtesy of ES Ventures

Courtesy ES Ventures

FEUP – Oporto 2nd June 2010 11

Successful Venture-backed companies show

evidence of superior economic importance...

Venture-backed companies creating value in the US economy

Source: National Venture Capital Association – Venture Impact - The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy


Venture Capital backed entrepreneurship is known to be a source of

major economic impact, creating both wealth and jobs

Drive the change of the national industry paradigm.

Drive an export-oriented economy.

Combat the unacceptable mismatch between knowledge andhuman capital produced in the national scientific system andthe economy.

Retain talent and prevent outbound flow of human capital.

Why should it matter even more in Portugal?


Open the national knowledge-based ecosystem to the World

Capital & Talent

“Inbound”

Internationalization

“Outbound”

Inbound and outbound flows in a global economy can create a significant market opportunity for

the tourism industry, especially if proactivity, new processes and practices and creative solutions

leverage both business and leisure.


Accelerate, as a matter of national urgency, the emergence

of a critical mass of technology entrepreneurship and

facilitate the creation of start-up companies to sell goods

and services in global markets

For this to happen, technology entrepreneurship should be a national

endeavour


A healthy investment pyramid requires a strong foundation built with

ingredients to attract private capital, both national and international

Seed

Early-stage

Scale-up

40 per year

20 per year

10 per year

Number of Cos Capital

0.5 M€ per Co

20 M€/year100 M€ in 5 years

(100% public)

2.5 M€ per Co


(50% public)

10 M€ per Co


(20% public)

Public: National private: International private:In 5 years: 850 M€ 325 M€ 375 M€ 150 M€

16XV PAPS Forum, Washington DC | 30-31 May 2014

Ignition Program

Ignition Partners

Network

42 Partners

Call for

Entrepreneurship

20M€/year

Acceleration &

Innovation

Hubs in the World

SF, Boston

Ignition Capital

Network

15 Partners

Stimulate deal

flow and achieve

critical mass

Streamline

process for capital

supply

Catalyst for

outbound

globalization

Attract private

capital

participation

17XV PAPS Forum, Washington DC | 30-31 May 2014

The Ignition Program has been designed to address the perceived

structural weakness at the basis of the pyramid

100 new technology-based companies for global markets: communications?electronics? biotech? health care? tourism? energy?information technology?

10,000 highly qualified “minds & souls”...

Total turnover of € 2 billion...

Entrepreneurs, innovators and capital to match

Portugal circa 2025






Agenda


Challenges (!) / Opportunities (?) for the tourism industry

The same old booking process with a still significant human participation: back

and forth emails with information about flights, hotels, transportation, prices, …

Is it possible to change?

Personalization and empowerment of global companies and world citizens,

capturing the travel profiles of both companies and people


Market still driven by the offer, rather than by demand


By nature, Tourism is an industry of Big Data but it still relies on a myriad of

spaces of small data.



Obrigado!

Q&A

LisbonChallengeTourismDay-15-JoseEpifanioFranca-PortugalVentures

Small Business & Entrepreneurship

tourism industry agenda

economic relevance of

big challenge

portugal exports

global economy

entrepreneurship challenges

national industry paradigm

gdp value exports