Startup Sauna story - what we do, how we came to be and what kind of things we track for results. Held at the Aalto REE conference on 6th of September 2012.

1. Building a world class Accelerator Program
in A(alto) University context

2. Question
Think of 3 most important factors that form
a startup ecosystem

3. Answers
Students Talent University
Entrepreneurs Know-how Companies
University Internationality Government
Investors
Startups
Culture

4. 1. Who are we today
2. How & Why it came to be
3. A grain of research

5. 1. Who are we today

6. The seed accelerator for the most promising startups from
Northern Europe, Baltics and Russia

7. Meetups
To get the word out and have everyone involved.
Warmups
1 day coaching events to help as many startups as possible.
Accelerator
6 week program brings together the 20 most promising
startups from Northern Europe, Baltics, Russia twice a year

8. 5 batches of Startup Sauna
16 million USD raised to date
31 Warmups organized
74 startups gone through Sauna
As of 2012 Spring
380 startups coached

9. 1. Accelerator
2. Internship
In the future...
3. Co-working

10. Question
How does your university support
entrepreneurship - 3 things?

11. Answers
Education
Incubation
Tech Transfer
Student societies
Working space
Networks
Conferences
Funding

12. 2. How & Why it came to be

13. First, everything was founded because of the cultural issue.

14. “Entrepreneurship is next to unemployment.”
“When are you going to get a real job?.”
“You made it big, and have to show it small”
“Yet again a company sold abroad”
“I’d rather work for a big company”
“I’m a normal human, how could I create the next Apple?”
“It’s too tough and uncertain to run a company”

16. Founded 2009
Group of students with an ambition
No examples, no money, no space
A perfect opportunity to bring together Aalto students
before Aalto was formed

17. Founded 2009
Mission was to find serial entrepreneurs
Invite them to share their story and inspire
Start DOING, not reporting

18. Founded 2009
over 10 similar entrepreneurship societies born
over 300 events (keynotes, workshops, programs etc.)
over 500 students involved hands-on
over 7000 students online
over 1 million € of funding raised

19. Co-working space in Aalto A 2 month summer program An internship program for
University campus for students and Aalto University students
researchers, from Aalto to go work in startups
An old industrial hall bringing University Helsinki / Silicon Valley.
together the students,
entrepreneurs and startup All you need is an idea and a Creates a stream of new
communities team. talent. Latest, a YC funded
startup Kippt.

20. The vision grew bigger.

21. Let’s make our region the next technology hub.
Let’s give everyone a reason to come out here.

24. Budapest Riga
Helsinki St.Petersburg
Kaunas Tallinn
Kazan Tampere
Krasnodar Turku
Malmö Shanghai
Moscow Stockholm
Novosibirsk Yekaterinburg
Oslo Vilnius
Oulu Warsaw

25. Growth entrepreneurship is not about
money, office space, civil servant advice or lecturing.

26. Growth entrepreneurship is all about
attitudes, knowhow, coaching, sharing, risk-taking, skills &
learning through failing.

27. Growth entrepreneurship is all about
learning from the best
that big hairy audacious vision,
making a dent into the universe,
changing what is and creating what will be.

28. Growth entrepreneurship is tough.

29. 2009 2010 2011

30. 3. A grain of research

31. Open For Acceleration:
The Case of Startup Sauna in Finland
DHRUV BHATLI, IRG, Université Paris Est, France
PAOLO BORELLA, Boro Oy, Espoo, Finland
JUKKA KARIMAA, Aalto School of Economics, Finland

32. PAOLO BORELLA - Coach at Startup Sauna
Director at Appcampus
Founder at Boro Oy
Vice President at Fox Mobile Distribution GmbH
Director at Nokia, Portfolio Mgmt. for Service and
Software GTM
AppCampus.fi
paolo@appcampus.fi

33. Incubators can be broadly categorized as:
University based Incubators (UIS)
Independent / Private “for profit” Accelerators (PAS)

34. University based Incubators (UIS)
Benefits: Extended support for long development ventures, e.g. Life
sciences, tech. based startups
Provides cost free resources: Infrastructure, organizational services etc.
Disadvantage: Bureaucratic, No intensive Mentoring, No access to
commercial networks

35. Independent / Private “for profit” Accelerators (PAS)
Benefits: Intensive coaching to help short development cycle
ventures, e.g. Web, ICT, Gaming
More dynamic with easy access to markets, funds and commercial networks
Disadvantage: Takes equity or revenue share from the ventures, Accepts
narrow venture types

36. Open For Acceleration:
The Case of Startup Sauna in Finland
1. What is the business model of SUS “non profit” accelerator?
2. How is the incubation process managed at SUS?
3. What is the value provided by SUS to participating NV's (acceleratee's)?
4. What are the adjustments made by SUS, as a regional accelerator to
attract deal flow and succesfully sustain in the competitive
entrepreneurial landscape?

37. STUDY FRAMEWORK

38. STUDY RESULTS
STARTUP SAUNA NOT A REGULAR PAS
1. Accepts all venture types, SDC/ MDC/ LDC, diverse range of ventures
2. 40% ventures (non service based)
3. Provides cost free resources: Infrastructure, organizational services etc.
4. Intensive coaching to help participating startups
5. Takes No equity or revenue share from the ventures

39. STUDY RESULTS
PAS UIS

40. HYBRID POSITIONING

41. BENEFITS FOR ACCELERATEES
1. Connections to a growth network (including future investments)
2.Validation of “graduated startup” for external actors (reduced contingency,
Vetted Idea)
3. Part of a support community (Peer to Peer Network)
4. Time bound progress and growth objectives through intensive mentoring
(Necessary push)
5. Improved team dynamics and performance
6.Visibility, access to media and generate genuine interest

42. RESULTS IN NUMBERS
844 applications since start of operations in Spring ‘10
380 startups coached in Warmups and batches
63 (7%) graduates from 5 batches
83% increase in Startups headcount post Sauna
73% Alumni have raised early stage funds
16 Million USD raised from first 3 batches (38 Alumni)

43. Discussion
What are the key entrepreneurial issues in your university
and how to empower students to improve them?

44. Lessons

45. 1. Serendipity

46. 2. Empower the students

47. 3. Darwinian evolution

48. Antti Ylimutka
Captain of Startup Sauna
@startupsauna / @andynosebone
antti@startupsauna.com

49. One more thing...