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Enablers of Impact:
the Role of Incubators and Accelerators in
Bridging Investment and Solutions
–
EVPA, EBN and MAZE Webinar, 13th May 2020
MODERATORS AND SPEAKERS
ALESSIA GIANONCELLI
Head of Knowledge Centre
EVPA
GIANLUCA GAGGIOTTI
Research Associate
EVPA
INÊS CHARRO
Public Sector Analyst
MAZE – decoding impact
ANTÓNIO MIGUEL
Managing Partner
MUSTARD SEED MAZE
OMAR BENDJELLOUN-TOUIMI
Investment Officer
INCO’s Venture Capital
CHIARA DAVALLI
Senior Project Leader
EBN
GOTOWEBINAR | TIPS & TRICKS
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1. ENABLERS OF IMPACT – INTRODUCTION AND KEY TAKEAWAYS
Introduction to the report by Gianluca Gaggiotti and Alessia Gianoncelli
2. THE ROLE OF NETWORKS IN SUPPORTING INCUBATORS AND ACCELERATORS
Perspectives on the report from Chiara Davalli
3. ENGAGING WITH THE AUDIENCE
Live polls moderated by Inês Charro
4. IMPACT FUNDS – INVESTMENT CRITERIA AND CASES OF COLLABORATION
1) Mustard Seed Maze Fund presented by António Miguel
2) INCO Venture Capital Fund presented by Omar Bendjelloun-Touimi
5. QUESTIONS FROM THE AUDIENCE
Q&A moderated by Inês Charro
6. CONCLUSIONS
Concluding remarks by Alessia Gianoncelli
AGENDA
1. ENABLERS OF IMPACT –
KEY FINDINGS AND RECOMMENDATIONS
KEY OBJECTIVES AND ACTIVITIES
SECOND OBJECTIVE
Describing the role of
incubators and accelerators in
the European impact ecosystem
FIRST OBJECTIVE
Explaining the added value that
incubators and accelerators bring
to the social purpose
organisations supported
INCUBATORS AND ACCELERATORS | DEFINITION
We decided to use the umbrella term incubators and accelerators to represent a range of tools/programmes
INCUBATORS AND ACCELERATORS | AN OVERVIEW
INCUBATORS AND ACCELERATORS | MAIN CHALLENGES
KEY INSIGHTS AND RECOMMENDATIONS |
NEED FOR MORE COLLABORATION
Main barriers to the development for SPOs:
• Lack of specialist business development services
• Lack of access to markets
• Lack of access to capital
• Engage with all investors (e.g.
traditional philanthropic institutions,
investors for impact, investors with
impact, traditional investors)
• Foster collaboration with different
partners, such as universities and
governments
• Share more information and resources
with peer incubators and accelerators
• Engage with SPOs before, during
and after the support programmes
take place
• Co-create the support to offer SPOs
with partners
Key insight
Need for more collaboration:
• to help SPOs expand to new markets
• to increase the value proposition of I/A
programmes by developing new tools and
provide better support to entrepreneurs
• to improve access to new investors and
corporate partners
• to help match the needs of SPOs and the
requirements of investors
Recommendation
KEY INSIGHTS AND RECOMMENDATIONS |
NEED FOR AN INCREASE SUPPORT IN IMM
Social purpose organisations need to strengthen
impact measurement and management practices
Key insight Recommendation
Throughout their programmes, I/A should
strengthen their support to
social entrepreneurs in IMM to help them:
• define their impact goals
• co-design a roadmap to achieve these
goals
• combine their IMM system with their
business model
• communicate their impact in a clear and
transparent manner
KEY INSIGHTS AND RECOMMENDATIONS |
NEED FOR PROPERLY ASSESSING THE FOCUS
The are two opposite approaches when it comes to
choose a focus for I/A and there is a trade-off:
SPECIALISATION: target one or two specific thematic
areas
a better tailored support to SPOs targeting
specific thematic areas & relevance for specific
industries and funders
GENERALISATION: agnostic view regarding thematic
areas
open to a wider pool of SPOs & more scalability
of the programme and more successful cases
Key insight Recommendation
Two elements have to be considered:
(i) the endgame of the programme
(ii) how it affects the types of support provided
and the funding model
2. THE ROLE OF NETWORKS IN SUPPORTING
INCUBATORS AND ACCELERATORS
ABOUT EBN & THE EU|BICs
EBN, the European Business Innovation Centres Network is
• a network of 130 certified business and innovation centres (EU|BICs), 46
Associate Members in Europe and beyond
• a community of professionals
that support the development and growth of innovative entrepreneurs,
startups and SMEs in the most effective, efficient and sustainable way.
EU|BICs were set up 35 years ago by various private stakeholders and by the
European Commission, with the aim to provide high quality support to the
innovative entrepreneurs in their areas of operation through a customised
delivery of professional support and incubation services.
In 2018, EU|BICs supported 23,400 companies and created 22,600 jobs
ABOUT EBN & THE EU|BICs*
Different shapes, different business models for each EU|BIC.
What remains at the core of their DNA is the focus on
fostering the creation of innovative enterprises and/or
developing innovation within existing ones, with the ultimate
goal of contributing to local/regional economic
development and growth. *DATA 2018
THE MARKET MISMATCH
Incubators and accelerators
should strengthen their
relationships with capital
providers. In this way, they
help SPOs to overcome the
barriers they face to access
capital and markets, better
matching their needs with the
investors’ requirements and
narrowing the mismatch
between supply and demand
in the impact investment
sector.
EBN-EVPA MOU
OBJECTIVE: to catalyse Business Innovation Support, Impact Incubation and Venture
Philanthropy/Social Investment (VP/SI) to benefit people and the planet.
Our partnership focus on building the impact ecosystem across Europe by strengthening the
cooperation between the two networks and their members, improving the knowledge base on
VP/SI and on EU|BICs’ services and support measures throughout the two networks.
THE NEED FOR
BETTER COLLABORATION
Incubators and accelerators
should strengthen other types of
collaboration as well. They
should share more information
and resources between
themselves creating synergies,
and fostering partnerships with
stakeholders, such as
universities and governments.
“A network of networks”
EU|BICs rely on a network of strategic alliances to implement their objectives
IMPACT MEASUREMENT &
MANAGEMENT PRACTICES
Incubators and accelerators
should provide social purpose
organisations with support in
impact measurement and
management practices. In
order to attract investors it is
essential for SPOs to prove the
impact they generate and/or
aim to, thus incubators and
accelerators should deliver
support to define their impact
goals, co-design a roadmap to
achieve them, and
communicate results.
EBN Social Impact SIG
was started at the end of
2015 to provide the
EU|BICs with a platform for
sharing experiences in
incubating and accelerating
social innovations in
different sectors and
promoting opportunities
for both incubators and
their companies.
Today it counts 28
Members in 14 countries
SPECIALISATION VS
GENERALISATION
Incubators and
accelerators should
accurately evaluate which
approach to choose,
whether specialised –
having better opportunities
to tailor their offer resulting
in more effective support of
fewer SPOs; or generalist –
being able to attract more
SPOs increasing their own
impact potential.
EU|BICs have a generalist approach..
..even if EU|BICs tend to follow market trends when selecting which companies to support
(ICT and comms; services for businesses, industry and citizens; materials and electronics; health
and pharmaceuticals)
FACT! 56% of the total companies supported had a tech component
ACT (Agri-Food & CleanTech) Smart Innovation
aims at strengthening business advancement,
economic growth and job creation in the Agri-food
and Cleantech sectors in Lebanon.
Berytech is taking a sector-wide approach for
economic growth by stimulating innovators and
entrepreneurs to put their creativity and energy at
the service of Agri-food and Cleantech sectors and
encouraging them to develop local solutions to the
environmental and food security challenges faced
by the Lebanese and refugee communities.
Coventry University Social Enterprise is a social
enterprise set up by a university to promote social
entrepreneurship and innovation. Their remit is to
maximise Coventry University's role as an anchor
institution by finding ways of benefitting the local
community and achieving true social value.
Their role as social innovators extends to supporting
students, alumni, staff and the community at various
stages of their entreprenurial journey.
SELECTION BIAS
Incubators and accelerators
should go beyond their
preferred type of SPO: for-
profit entities with a social
mission that are at least a
year old. They could
strengthen their support to
SPOs at incubation or
maturity stage by
customising their offer to
the different needs linked to
the diverse stages of
development.
EU|BICs are perfectly positioned to
support inclusive impact driven
economic development.
By harnessing the power of
entrepreneurship, whereby individuals
are given the tools and support to turn
ideas into ventures, incubators must
adjust the way they source and
deliver support to become more
appealing to under-represented
groups and SPOs.
There is no need to set up new
organisations/initiatives to accomplish
this, instead business intermediaries
can modify some of their practices to
stimulate all groups in society to
become entrepreneurs.
Businesses sources
MORE INFO
IN CONCLUSION
Responsible
Inclusive
Social
INNOVATION
Impact driven innovation is a driver for economic growth in
a social, inclusive, ethical, sustainable way
As Winston Churchill said, “gentlemen, we have run out of money, now we have to think”. Now we are not running out of money, we are running out of
a clean planet. Therefore, we cannot afford foolishness, it is too expensive. Responsibility requires complex thinking, wide angle analysis
and forecasting of consequences.
BioGas+ by AppNPs
And we add
EU|BICs can help European entrepreneurs, startups and SMEs in their decision making taking into account a long-
term vision, an inclusive attitude and a societally oriented approach EBN
GET IN TOUCH
www.ebn.eu
@EUBIC | @EBNimpact
3. ENGAGING WITH THE AUDIENCE –
LIVE POLLS
4. IMPACT FUNDS –
INVESTMENT CRITERIA AND COLLABORATION
CASES
Fund Overview
Key Terms Values (€ / %)
Structure Impact Venture Capital Fund: “Fundo de Empreendedorismo Social”, approved by the national regulator
CMVM
Asset Exposure Pre-Seed to Series A/B Equity
Fund Size €35m
Geographic Exposure Europe (ex-UK)
Investment Life 10 Years (5 Investment Period / 5 Management Period)
Portfolio Composition
35 Individual Companies with investments ratcheting across:
Pre-Seed: 20 (€25-60k)
Seed / Pre-Series A: 25 (€150k – €500k)
Series A / Series B: 10 (€1.5m - €3m)
27
Investment thesis: economic opportunity of impact
MSM targets a broad impact framework aligned with the UN SDGs, especially interested in the following:
28
#1 Global Problems
Equal Global Opportunity
The 17 UN SDGs can be estimated
to cost the global economy
in excess of $10T
#2 Improved
Employee Quality
74% of Millennials want a job where they
feel their work matters
#4 Reduced
Cost of Capital
Millennials will inherit $31T by 2020 with
84% including ESG factors in investment
decisions
#3 Increased
Customer Engagement
66% of consumers will pay more for
products from sustainable brands
Venture screening framework
Scalable: Is the revenue model scalable?
Innovative: Is there a strong technology element? Disruptive: Is the
business model disruptive to competitors and/or creating new
customer groups?
Traction: Have there been compelling traction points?
Relationship: Can Mustard Seed help deliver commercial
outcomes?
Character Reference: Does the team have compelling track
records?
Expertise: Have the team previously worked in the sector?
Balanced: Does the team have a balanced set of skills,
responsibilities and personalities?
Dynamic: Is the team receptive to feedback?
Competition: Are there established competitors? Growing: Is the
industry expanding or contracting?
Size: Is the addressable market big enough
Systemic Disruption: Is systemic disruption occurring in the market?
Lock-Step: Impact and profit are mutually reinforcing
Intentional: Impact must be intentional
Measurability: Impact generated must be measurable
Lock-Step Lock-Step
Lock-Step Lock-Step Lock-Step
Lock-Step: Impact and profit are mutually reinforcing
Intentional: Impact must be intentional
Measurability: Impact generated must be measurable
Market
Competition: Are there established competitors? Growing: Is the
industry expanding or contracting?
Size: Is the addressable market big enough?
Systemic Disruption: Is systemic disruption occurring in the
market?
Business
Scalable: Is the revenue model scalable?
Innovative: Is there a strong technology element? Disruptive: Is
the business model disruptive to competitors and/or creating new
customer groups?
Traction: Have there been compelling traction points?
Relationship: Can MSM help deliver commercial outcomes?
Team
Character Reference: Does the team have a compelling track
record?
Expertise: Have the team previously worked in the sector?
Balanced: Does the team have a balanced set of skills,
responsibilities and personalities?
Dynamic: Is the team receptive to feedback?
29
Scouting: leverage accelerator for top European talent
Pre-seed ventures use accelerator programmes to test MVP, product-market fit and corporate pilots.
MSM Fund gets a first look into pre-seed talent, can anticipate due diligence over the 3-months of the programme.
30
43
2000
45
Mapped ventures
Countries
Shortlisted
Outreach Partners Venture perks
€7.500
3-month impact accelerator for
Europe’s Top 10 impact startups
Membership
+20 Mentors
9 months Cowork space
Equity-free
1 2 3
MSM has extensive experience in running impact acceleration programmes in Portugal (Lisbon and Porto). Accelerators support impact ventures towards impact
and investment readiness. MAZE-X represents a competitive advantage for MSM due to its ability to scout and attract deal flow, enabling the MSM team to run
due diligence on the most promising start-ups of each cohort.
20 Participants
www.mustardseedmaze.vc
Bridging the gap
for new impact
ventures
13/05/2020
INCO GROUP
Source: INCO 33
Four main activities to create system change:
training, acceleration, investment and
sustainability consulting.
Acceleration : a global network of incubators
and accelerators
10+ countries 500 start-ups
Investment : 3 impact funds mainly focused
on French targets :
80+ investees 200M€ assets
Sustainability consulting
INCO&CO
3 Training : a training program to foster
entrepreneurship and emerging impact
industries
5 countries 2000 trainees
34
Investments ranging 300K€ - 5M€.
In seed, series A and growth rounds
INCO VENTURES
In all organization types : companies, non-profits, cooperatives, and foundations
Working with LPs who prioritize impact when working with us:
Source: INCO
TEAM: Intrinsically impact-driven founders / managers
INVESTMENT TARGETS
STAGE: post-revenue (>100K€), with a clear roadmap to profitability
IMPACT DOMAINS: social and environmental
BUSINESS MODEL: economic growth must be compatible with stronger impact
Source: INCO
PORTFOLIO COMPANIES
Health & Accessibility
Education, Employment and Development
82 INVESTEES ACROSS
NUMEROUS
SECTORS
Energy & Ecology
Circular Economy
Source: INCO
WORKING WITH OUR INCUBATORS
INCO VENTURES INCO INCUBATORS
• Investment Management company
certified by the French regulator (AMF)
• Separate team and processes
• Currently focused on France
• French non-profit (Association de loi
1901)
• Controlled by an independent board
• Programs around the world
SUPPORT
DEAL FLOW
Source: INCO
WORKING WITH OUR INCUBATORS
SELECTION: the investment team participates in every selection jury and process
COLLECTIVE SESSIONS: fundraising and investment readiness training by invest. team
MARKET INTELLIGENCE: shared knowledge & insights btw invest. and incubation teams
INDIVIDUAL COACHING: bespoke support and priority in the funds’ deal flow
Source: INCO
Thank you
5. QUESTIONS FROM THE AUDIENCE
6. CONCLUSIONS
DOWNLOAD OUR REPORT!
https://evpa.eu.com/knowledge-centre/publications/enablers-of-impact
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This activity has received financial support from the European Union
Programme for Employment and Social Innovation “EaSI” (2014–2020).
For further information please consult: http://ec.europa.eu/social/easi
