Fewer than 5% of all U'S' businesses and all U'S' startups grow in employment at least 15% a year ov

1
The Key Entrepreneurial Growth Companies
(EGCs)
www.kauffmanfellows.org

• Fewer than 5 of all U.S. businesses and all U.S.
  start-ups grow in employment at least 15 a year
  over a five-year period
• 4.5 of start-ups grew to over 20 employees by
  the end of the 5-year period
• Fewer than 2 of U.S. start-ups grow to over 100
  employees

2
Why are EGCs the Key?
www.kauffmanfellows.org

• Jobs, yes. EGCs create at least 2/3 of all new
  jobs and more in economic downturns.
• Prosperity, yes. More than 2/3, or 0.7, is the
  correlation between economic growth and
  entrepreneurship in the G8.
• Innovation. EGCs account for at least 2/3 of all
  technological innovation.
• More importantly, EGC organism of innovation,
  agent of change

3
What Can Be Done for EGCs?
www.kauffmanfellows.org

• Access to quality workforce
• Especially technically trained graduates
• Access to new ideas, technology
• Technology transfer at local labs
• Access to equity capital
• Angel investors, seed funds, vc
• Access to markets
• Trade assistance, brokering, e.g.

4
Three Key Leverage Points
www.kauffmanfellows.org

• But these resources are never enough
• Three key leverage points for EGCs
• Increase number of explorers (i.e., entrepreneurs
  suppliers) in system
• Support networks of interaction
• Feedback loops in system should value
  entrepreneurial behaviors

5
Leaders Must Work the Three Leverage Points
www.kauffmanfellows.org

• Private sector, public sector, university sector,
  non-profit sector examples
• Fred Terman, David Packard, and Bill Hewlett in
  Silicon Valley
• George Kozmetsky, Mark White, and Pike Powers in
  Austin
• Mario Morino and others in Northern Virginia

6
Using the Model for the Venture Capital
Industry KFP
www.kauffmanfellows.org

• Rigorous Selection Process New Talent

7
Recent Classes
www.kauffmanfellows.org

• 10 years average experience 10 in technology,
  12 in healthcare/life sciences
• 15 have MBAs
• 7 have Ph.D.s 4 MDs 3 JDs
• 18 different start-up companies are represented
  in total
• 10 were founders or inventors
• 33 patents held 1 a UN Peace medal

8
Using the Model for the Venture Capital
Industry KFP
www.kauffmanfellows.org

• Rigorous Selection Process New Talent
• 24 Month, Full-Immersion Educational Experience
  Grounded in Values
• Incomparable Network Now Global

9
KFP Fellows Class 10 Firms

• EMBL Ventures, Germany
• Austin Ventures, Austin, TX
• Battery Ventures, San Mateo, CA
• 3i, London
• NEA, Baltimore, MD
• Creandum, Stockholm
• Seaflower Ventures, Waltham, MA
• SV Life Sciences, Foster City, CA
• TVM, Boston, MA
• Unilever Ventures, Santa Barbara, CA

• USVP, Menlo Park
• Research Corporation Technologies, Tucson, AZ
• Red Abbey, Baltimore, MD
• L Capital, New York, NY
• Sofinnova Ventures, San Francisco
• Intel Capital, Santa Clara, CA
• HSBC Private Equity, Hong Kong
• Kleiner Perkins Caufield Byers, Menlo Park, CA
• VantagePoint Ventures, San Bruno, CA

10
Using the Model for the Venture Capital
Industry KFP
www.kauffmanfellows.org

• Rigorous Selection Process New Talent
• 24 Month, Full-Immersion Educational Experience
  Grounded in Values
• Incomparable Network Now Global
• World Class Fellows, Firms, and Mentors
  Leadership for and Impact in the Industry

11
Accelerating entrepreneurship through job and
wealth creation
www.kauffmanfellows.org
Fellows Impact Study (4/04)
69 Fellows
417 Companies
43,000 jobs
10.8 billion in revenue
12
Proposal for Israels EGCs
www.kauffmanfellows.org

• Identify and support a core group of leaders
• To coordinate not manage all the key players
  in the Israeli economy
• So that the 3 leverage points and entrepreneurial
  resources become the priority of action

13
Proposal for Israels EGCs
www.kauffmanfellows.org

• Core Group of Leaders to
• Increase the entrepreneurial population
• Build entrepreneurial networks
• Create feedback loop that rewards entrepreneurial
  behaviors