Klaus Woltron © MINAS 2011 Innovation Start up Business angels

Klaus Woltron © MINAS 2011 Innovation Some highlights Traditional approach Creative approach Solution

© MINAS What is Innovation? A combination of known elements in a principle new manner A new solution for an old – or new- problem

© MINAS Evolution and innovation Nature gives many examples for innovation

© MINAS Driving forces of innovation Play instinct: Discovery by accident Emergencies and necessities: Pressure to survive Perfection of existing procedures: Pressure by competition Planned research and development: Systematic product development

© MINAS Basic innovations and business cycles 1. (1800 – 1850) Steam engine, Cotton 2. (1850 – 1900) Steel, Railway 3. (1900 – 1950) Electro, chemical, 4. (1950 – 1990) Oil, cars 5. (1990 – 20XX) IT, communication tech. 6. (20XX – 20YY) Personal needs, environment, resources (Kondratiew/ Nefiodov)Nefiodov

© MINAS Driving force sustainability

© MINAS Promising areas of innovation Smart energy and transportation Information technology Materials and nanotechnology Biotech and nutrition Cross sciences:  Environmental technologies,  Resource efficiency  Social sciences

© MINAS Innovation is one of the most important keys to success Innovativeness Rating: Based on America’s Most Admired Corporations, Fortune Magazine ranking of 578 U.S. companies based on executive peer ratings and investment analyst evaluations. Source: Arthur D.Little, 2005 Average Shareholder Return vs. Innovativeness Rating Average Annual Shareholder Return Innovativeness Rating -20% -10% 0% 10% 20% 30% 40% 50% 60% 3,004,005,006,007,008,009,00 "Top management's commitment to and focus on increasing its organization's innovative ability could lead to significant bottom line result over and above typical costcutting and re- engineering initiatives" Source: ADL innovation survey

Klaus Woltron © MINAS 2011 The biotope of start - ups

© MINAS 2011 The situation of young entrepreneurs  Young  Inspired and excited  Full of good ideas Inexperienced Specialized Poor financed Filled with the courage of ignorance 11

© MINAS 2011 The way to success: Evaluate your biotope Look into the market Look to the competition Analyze the financial demand Ask your partner Ask experienced people Look for a business angel Look for the best people Look for subsidies and financial partners Look into your mind: Are you strong enough? 12

© MINAS 2011 Function and advantages of a business angel Experience in founding and developing a company Large business network Assistance in funding and financing Assistance in search for partners Assistance in marketing and distribution Credibility respective banks and equity partners Assistance and help in critical situations 13

© MINAS 2011 The universal rule The Start – up period lasts three times longer and costs in minimum twice as much as planned before. 14

© MINAS 2011 How to fail certainly Start immediately after having „the great idea“ Take big debts and guarantees Contemn possible corresponding and competing ideas Contemn the ado of elaborating a business plan Rent a big office, employ two secretaries and buy a big corporate car front- end Feel as the one and only in the field Do everything alone Do not listen to experienced people 15

© MINAS 2011 How to succeed Follow the remarks given before Do not expect immediate success Expect hard competition Be tough when the whole thing seems to fail. Be careful regarding your family life, watch out not to have private additional trouble Believe in yourself. There are not only backlashes but, sometimes, also lucky incidents 16

© MINAS …… Thanks for your attention! THINK !