To:
ITU Telecom World Young Innovators Competition Entrepreneurship Challenge
From: Teodor Panayotov, Co-Founder Embrioo Incubator
Re: Business plan, Embrioo Incubator
Executive Summary
Launch an Incubator (Pilot in Bulgaria) which upgrades the existing models, targets wider
group of young people and overcomes todays’ limitations faced by the local Startups.
Currently in Bulgaria: 2 seed accelerators & 2 grown stage VCs both funded by the EIF.
We asked ourselves few questions: Why sometime pitches are won by ‘Best-presented
idea’ not by ‘Best idea’? Why great ideas which have been incubated and funded by the
existing accelerators are later advancing very slow? Why most of the ideas already
supported look quite similar to each other and/or are copy/paste models from other
countries?
Existing status:
Standard target group fund existing startup
teams coming with an
idea, concept or
prototype
Our USP =>
Our idea is to …
The need?
Fund other target group –
talents with entrepreneurial
aspirations but lack the
idea, the team or both
Euro Barometer 2012
Entrepreneurs Report shows
that 49% of youths want to
be entrepreneurs but part of
them (20%) are lacking the
idea or the team, or both.
Target Incremental 10% of all. Access unique ones.
Incubation - 3-6 months
Then the startup team
goes alone (except for
minor ad-hoc further
help)
Incubation – customized
incubation period upon
each project specific
Go-to-market – small
network opportunities
afterwards and little or
no focus by the funding
companies to “the old
teams”
Go-to-market – each team
stays “forever in the club”.
Build structured “Next
steps” program using the
huge network anyway in
existence today
Our USP =>
Embrioo Incubator core-team
today has a network of over
40,000 Corporations,
Investors, Institutions,
potential b2b partners all
around the world.
“The club” can reach anyone
in the world to further help
the teams in their growing.
A business model between
“The club” parties to be set.
The first Strategic vs Financial Partner/Incubator.
Our idea is to …
The need?
Pitching skills – teams
lack Charisma, Live
Presentation and Stage
behavior skills. 90% of
them lack the ability to
connect with audience,
present ideas in clear
and enthusiastic way.
Improve pitching skills.
Increase chances to
success – professional
trainings and workshops,
as well as create a pool of
people-to-pitch “on rent”.
Outsource the pitching!
67% of projects fail to either
Same size funding –
little flexibility in funding
size within both seed
and grown stage funds.
‘Your size’ concept – apply
customized approach in
both overall funding size &
funding phases per project.
Flexibility in this context
Very big gap – funding
opportunities for either
very small (seed - 25K
€) or very big (grown 1M €). Lack of mid-size
projects funding
opportunities.
Cover the mid-size niche
Connect with 50-600K €
angels to support midsized projects and/or
longer incubation period.
Innovative, world scalable
ideas most frequently
require mid-size funding
since its very beginning!
Existing status:
Our USP =>
find investors, win Contests,
or recruit clients solely due to
lack of presentation skills of
the teams.
attracts disruptive ideas and
innovations. We’ll access
‘The different’ ideas!
Team with prototypes done
directly need bigger amount
of funding to scale.
We are flexible - Market driven, not rules driven.
In Summary:
Launch an Incubator targeting mid-sized innovative projects. With maximum flexibility
of the equity investment size and the incubation period. Widen the horizon of
recruiting ideas and co-founders (team members) - target those 10% with strong
entrepreneurial insight but lacking the idea, the team, or both - Source the ideas and
the team-mates from embrioo.com – access great ideas not yet known to other funds.
Assure successful post-incubation step via professional trainings in Live presentation
and Stage behavior skills. Let all teams stay “forever in the club” using our team’s
wide resources to connect potential clients and partners (Corporations, Institutions,
Governments, b2b partners) all around the world. Fund size: 0.8m € (OPEX for 2
years). Fund timeframe: 2 Years, after – self-sustainable. ROI: Y3 (1.002). Launch:
Sep 2015. The team: Ready to launch it.
The Initiative
Pilot in Bulgaria (scalable worldwide) - its social purpose:
a.
Overall potential impact is 490,000 Bulgarian young adults between the ages
18 and 30 (49% of all), who have expressed an interest in starting their own
business; research by 2012 Euro Barometer Entrepreneurship Report.
b.
Specifically may impact 480,000 young people who want to start their own
business but lack the idea, the team or both, or have skills-related limitations
(98% of all those 49%); approximately just 10,000 people (2,000 teams) have
applied for all accelerators grants for the past two years.
Selected A-team to ensure world class execution:
Who’s in?
Contribution …
Rennie Popcheva-Capri – Embrioo.com Founder
Embrioo.com provides: 1) Ideas, 2) Team-mates, 3) Online
platform for collaboration between all teams and among
members in each team
Teodor Panayotov
– Embrioo Incubator Co-Founder
Target Incremental 10% of all. Access unique ones.
Teodor will personally provide ICT training platform and Network
worldwide. He’ll be a major support to the team about Future
Trends, Disruptive Innovation Sales & KA Management
Gergana Passy – Digital Champion of Bulgaria
Networking with Institutions, Corporations, EU Commission,
NGO, Government; also PR and Media (Mass and Social
media)
Solomon Passy – The Atlantic Club of Bulgaria
Networking with Institutions, Corporations, EU Commission,
NGO, Government all around the world
Olga Nedyalkova – NLP & Charisma Coach
Live presentation & Stage behavior trainings, Incubator teammates assessment, profiling, HR topics, communication within
the teams, Sales & Negotiation skills
Our team – expertise & experience:
Rennie Popcheva-Capri – Marketing & Creative
Award winner at Creative Business Cup, Copenhagen, 2013
Award winner at Sheffield University Innovation Challenge,
2012; TEDx Speaker, 2012; Featured in Forbes 2014; EMBA
student at Sheffield University.
Teodor Panayotov – IT, ICT
Singularity University graduate, Exponential Organizations
Expert (ExO), Cisco certified business instructor, Founder @
IT-Instructor. Worked as Biz Development Manager in Fast
Lane Group in Berlin, London, Cary/NC, Ljubljana, Tokyo,
St. Petersburg, Singapore.
Gergana Passy – Social & Digital causes ambassador
Founder & President at Digital National Alliance, Bulgaria
under the umbrella of The Grand Coalition for Digital Jobs
launched by Nellie Crus in 2013, Former diplomat
Note: Potential Dutch Startup Community Joint efforts – Nellie Crus endorsement
Solomon Passy – Founder & President of the Atlantic Club of
Bulgaria (1990-present), Chairman-in-Office of the OSCE (2004),
Chairman of the UN Security Council (2002-2003), Bulgaria’s
nomination for Secretary General of NATO (2009), Computer
Scientist at Sofia University / Bulgarian Academy of Sciences
Olga Nedyalkova – Famous NLP, Charisma, Presentation and
Stage behavior trainer. 15+ years of experience in sales, pubic
speaking and fund raising. Inspires you to speak with power,
confidence and presence. Netherland’s Coach Certificate, Olde
Vechte Foundation. Competent Communicator and Competent
Leader from Toastmasters International. Psychodrama Trainer
from Hiron Institute.
External parties gathered (both local & worldwide):
•
•
•
•
•
•
Governments, NGOs and Institutions
Star Up, Pre-accelerators & Accelerators communities
Corporations, Trade associations, Trade Chambers
Investors (VC & Angel)
Universities & Colleges
Mass Media
Intellectual Property:
• While in the incubator - IP protection process already @embrioo.com – all known
measures have been taken to protect all parties via disclaimers, privacy policy,
restricted or diverse levels of access, e-signatures, logs and archive system etc.
• Post-incubator concepts/prototypes disclosure – upon standard NDA procedures
Supply Chain:
• Mainly on-line using embrioo.com platform and online Project management tools
• Off-line teams and clients/investors/partners meetings. Of-line own events to
promote the initiative, also use other’s events to gain fans and applicants
Marketing & Sales (Description & USP)
Become an Entrepreneur. Even if no idea is coming to your mind. Wonder what to
do? No worries: Our Idea becomes your own business. Have a talent? Join our pool
of co-founders and select the idea and the team.
We’ll stand by you! From A to Z:
• We’ll prepare you for the moment you’ve been waiting for. Pitching time!
Get professional training on How to pitch, How to build impactful
presentations and How to speak up without voice shaking
• We’ll be there when the time comes to call the buyer, meet and sell him
• Still shaking? We may recommend you the Sales person to come with you
and lead that sale by the time you can make it alone.
• Now you can quickly & easily contact next Buyers via Embrioo.com by
your own 
• Hard to reach the Institutions and Top Guys? We’ll do it for you.
Marketing Strategy (Research data & 4Ps)
Price: We need to research and still fine-tune the business model between all the
stakeholder which will participate in the process and support the teams. E.g. What
would be the benefit of an outside person who introduces certain product/service to
potential client and gets the deal? What about the “Sales person on-demand? Do
they get revenue share, or upfront fee and royalty?
Incubator Promotion:
• Social Media (Facebook, Twitter, LinkedIn, You tube, Pinterest etc.)
• Mass Media (Press-conference, PR articles, TV)
• Via Universities
• Investors’ recruit via personal introduction
• Own branded events
• Direct e-mailing
• Also using all partners’ networking capacity
• WOM & recommendations
Social purpose & Impact
Who’ll benefit: People who want to have own business but lack the idea, the team,
or both; Idea generators who doesn’t start own venture for whatsoever reason; The
talents with entrepreneurial aspirations.
Social Impact (Quantitative criteria) – Comparison vs Plan and vs other local
and foreign accelerators best practices. Internal measurement tools/stats:
• Number of ideas posted for the Incubator
• Number of team-mates who have applied to join a setup team
• Number of teams gathered
• Achieved vs Planned sales results per team (N clients, revenue, profit)
• Number of new jobs openings thanks to our Incubator
• Number of Success stories (Funding raised, funding size, selfsustainability, valuation etc.)
• The increase/decrease (the dynamics) of ‘next-series’ of entries
Growth Potential & How do we measure it?
Embrioo Incubator concept – scalable worldwide:
• Potentially – in each country, University and diverse communities such as
AIESEC, JA etc.
• We plan to use TED penetration approach – via partners all around the world
who decide to open Embrioo Incubator by own initiative, then follows the
same fundamentals and use all of the resources of ‘The mother Incubator”
as well as of all other ‘Franchised Incubators’ already established.
Growth KPIs:
• Number of ‘Franchised Units’ opened
• Same KPIs per Unit as it applies for ‘The mother Incubator’ such as number
of teams, financials, number of new jobs openings etc.
Finance – PL:
Optimistic scenario
in Euro (VAT excl.)
2015
2016
2017
2018
2019
Revenue Total
0
0
6,880,000
23,980,000
50,570,000
399,676
399,676
479,611
671,456
1,208,620
2,417,240
1,278,963
-
-
1,600,097
5,827,136
12,340,345
34,010,690
53,778,268
25%
25%
25%
25%
25%
25%
ROI
-
-
1.002
-
-
-
Incubator revenue (self-sustainable Y3+)
0
0
2,180,000
7,780,000
49,450,000
239,120,000
Incubator revenue (Revenue share of all
projects)
10%
10%
10%
10%
10%
10%
Number of teams (unique)
4
82
132
171
600
2,000
Teams cumulative (stay in the club)
4
86
218
389
989
2,989
Gross Revenue per team / per year
(average)
0
0
100,000
200,000
500,000
800,000
20%
20%
20%
20%
20%
20%
0
0
80,000
110,000
130,000
140,000
Ops costs
Investor income
Investor share
Revenue share (Incubator + Intro Partner)
Net Revenue per team / per year
(weighted average)
2020
Total
138,460,000 219,890,000
59,410,000
2,989
Implementation Plan – Ops Expenditures / pa:
Months/
Units
in Euro (VAT excl.)
Mo/Unit
costs
Grand Total (Ops / year)
Cost total
399,676
Incubator Management
128,976
Incubator Head (Biz dev)
12
2,500
30,000
Finance, Legal and Ops head
12
2,000
24,000
Admin assistant
12
700
8,400
Social media (2 people)
24
700
16,800
Web development
12
2,000
24,000
Other incl. social taxes (18%), travel
12
2,148
25,776
Incubator equipment
93,700
Video production
20
1,200
24,000
Life streaming
1
2,000
2,000
Office (300 sq.m.)
12
900
10,800
Office furniture
1
26,000
26,000
Screens
9
1,000
9,000
Laptops
3
2,100
6,300
Designers software
3
4,000
12,000
Presentation Hall (Ad-hoc)
12
300
3,600
Incubator communication
66,000
PR, Events, POSM
12
3,000
36,000
Marketing, PPC
12
2,500
30,000
Ideas& Mates
(Embrioo.com)
Subscription to e-pool of ideas, co-founders
& Corporations & Investors worldwide
12
2,000
24,000
Networking
(DNA)
Fixed monthly administrative for PR, linking
and meeting with Institutions, Universities,
Corporations in Bulgaria
12
2,000
24,000
Networking
(ACB)
Fixed monthly administrative for PR, linking
and meeting with Institutions, Universities,
Corporations Worldwide
12
2,000
24,000
Pitching
(Skills)
Pitching skills trainings (12 teams x 2 people
to present)
12
2,000
24,000
Pitching
(On-rent)
Outsourced pitching person (no fix fee,
assumed travel, accomodation for live
meetings with clients)
5
3,000
15,000
Implementation Plan
The core team skills, education and roles: Previously described
Additional staff needed:
• Finance, Legal and Ops Head since IP, organization, deals, contracts are
key elements for success
• 1 Administrative assistant
• 1 Web development for web Incubator module upgrades within Embrioo.com
• 2 social media experts
Key milestones/timelines:
Thank you for your attention
Embrioo Incubator Team
May 7, 2015