Why Startups? Innovation and Economic Impact Frank Rayal Algiers, June 27, 2018
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
11
Xona Partners
12
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: [email protected]
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Partners & Advisors: www.xonapartners.com/team
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