1. Nov 9th 2015 ENHANCING INVESTMENT READINESS IN ORDER TO UNLEASH SMES' AND MID-CAPS' GROWTH POTENTIAL

2. Outline Growth potential? What is investment readiness about? What are the pitfalls? What can startups do? What can a startup incubator do?

3. Growth potential I – New paradigms

4. Bits and atoms are coming together New paradigms will lead to a reshuffling of assets and competencies within / between supply chains SMEs can have a significant role… if they «pivot» Changing tack in their core business Spinning off non-core innovations Absorbing external innovations Entering new supply chains

5. Growth potential II – The world is big

6. You have to think in global terms The markets out there are big Your competition is operating globally The exact assets you need might not be close to home … you need finance … bootstrapping? … debt from banks? … government grants?... or should it be equity?

7. Investment readiness

8. It’s up to you… do you want a small cookie or a slice of a potentially very large cake?

9. Pitfalls Different mindset or lack of knowledge? Not understanding investors’ objectives and business models (BA, VC, corporate, PE, stock market) rules of the game, jargon and etiquette Information asymmetries (both undesired and purposeful) Building the future, but still clinging on the past Sharing governance, management… and the ambiguous role of the family (shareholders? CEOs? operational managers?) Wrong innovation strategy Not having one at all Using a wrong strategy

10. Pitfalls No plan at all, or an excessively detailed plan Showing not enough growth, or an unbelievable growth Not knowing the market and the industry well enough Not enough «validations» for the funding stage Unclear «use of funds» Weaknesses in the team Inability to «pitch» and communicate Inability to engage with objections Messing up the negotiation … not understanding what «that» investor wants

11. What can startups do? Provide technology, solutions & competencies with an innovative, cheap & flexible approach (  suppliers and investment and/or acquisition targets) Create a (small) new market for you (  customers) Teach you a new (lean) approach to innovation strategy

12. What can a startup incubator do? Provide access to startups Host your spinoff Co-develop a corporate incubation program

13. What is I3P? A joint stock non-profit-making consortium A consultancy and advisory company serving Students, Researchers and Lecturers of Politecnico di Torino and of Public Research centers Anyone who wants to create a knowledge- based startup that can benefit from the services provided by I3P and from the Politecnico. Companies that want to create spinoffs to exploit non-core projects A publicly-owned firm, with an innovative business model, with a strong orientation to results and to the market Recipient of the «Best Science-based Incubator award» in 2004 Ranked 5th in Europe and 15th in the world by the 2014 UBI (University Business Incubator) Report

14. What does I3P do? Fundraising Equity fundraising with BAs, VCs, corporate investors Debt fundraising with partner banks Matchmaking between technology and business competencies Integration of the founding team Recruitment of personnel Consultancy Strategic consultancy (business modeling and business planning) Specialist consultancy through partner firms Scouting Within Politecnico di Torino (spinoffs) and outside (Italian and foreign startups, corporate spinoffs) Events, competitions, hackatons,.... and lots of one-on-one meetings Support to business development Trade fairs Tailor-made corporate events Development of sales networks Management of corporate incubation programs Support to investitors Advisory, board representation, part-time management

15. I3P in figures Out of business Founded Surviving (1 IPO) Currently incubated Acquired 182 99 11 31 42 An annual deal flow made up of 300 applications, 90 business plans / MVPs, 15-20 new startups Balanced across sectors (ICT/digital, cleantech, medtech, industrial) with strong synergies with Politecnico di Torino and the local industry Seed-level fundraising amounts to 2.5 M€ per annum on average More than 1,400 jobs created, each of which has required a one- off investment of 6 k€ in public funds Positive P&L, and financially sound