International Incubator
This document shall be seen as a proposition for how an
international incubator shall be set up. The international
incubator will capture the potential of international
competencies living in Sweden and support them to develop
and grow new enterprises with international focus and thereby
contribute to the development of an international environment
for new businesses.
The document is based on the outcome of the prestudy
managed by Lunds NyföretagarCentrum during 2014 and the
report “Förstudie i-LIFT”.
1
Lunds NyföretagarCentrum December 2014
Innehåll
DEFINITIONS ....................................................................................................................... 3
VISION ................................................................................................................................. 3
PURPOSE ............................................................................................................................ 3
GOALS ................................................................................................................................. 3
FLOW of new ideas ........................................................................................................... 3
GROWTH .......................................................................................................................... 3
DRIVE INTERNATIONALIZATION .................................................................................... 4
TARGET GROUPS ............................................................................................................... 4
INCUBATOR STRUCTURE .................................................................................................. 4
Physical space .................................................................................................................. 4
Time schedule ................................................................................................................... 4
Organisation ...................................................................................................................... 4
Governance ....................................................................................................................... 5
RECRUITEMENT /ADMISSION PROCESS ......................................................................... 5
ACCEPTENCE CRITERIA .................................................................................................... 5
SERVICES OFFERED BY THE INTERNATIONAL INCUBATOR ......................................... 5
Basic infrastructure ............................................................................................................ 6
Business advice ................................................................................................................ 6
International entrepreneur networks .................................................................................. 7
International business education program ......................................................................... 7
International business service ........................................................................................... 8
The meeting place for international entrepreneurs ............................................................. 8
Immigration matters ........................................................................................................... 8
INCUBATOR ORGANIZATION ............................................................................................. 8
ECONOMY ........................................................................................................................... 9
Cost of establishing and running the International Incubator.............................................. 9
Possible sources for Financing of the International Incubator. ........................................... 9
2
Lunds NyföretagarCentrum December 2014
DEFINITIONS
The international incubator or the incubator is an organisation managing several different
services to contribute to the growth of new companies.
An incubator company is a start-up company (or team of persons with a common business
idea) that get access to the services provided by the international incubator.
VISION
The international incubator shall be the leading business incubator for the international
community and shall offer the best environment for commercial development of international
start-ups in the service sector.
PURPOSE
The purpose of the international incubator is to:






Satisfy the clearly stated requirements from European, Swedish and Regional
authorities to increase the internationalisation of start-up businesses in the region.
Capture and build successful companies on the potential of international
competencies residing in Sweden.
Develop an international environment for new businesses.
Facilitate a portfolio of services for international entrepreneurs to support them to
develop their ideas in an international environment, giving them the same conditions
as if they were native Swedes.
Capture business ideas with international focus and connect them with international
experience and competencies.
Create and develop a natural meeting place for international competencies,
entrepreneurs and ideas.
GOALS
FLOW of new ideas

Screen more than 50 international business propositions each year.
GROWTH


50 % of the incubator companies shall grow their turnover with more than 50% each
year.
Release more than 15 viable companies that are able to survive and grow
independently, every 18 months.
3
Lunds NyföretagarCentrum December 2014

Create more than 100 new job positions in the incubator companies, every 36
months
DRIVE INTERNATIONALIZATION


More than 50% of the incubator companies turnover shall derive from international
business one year after the first commercial launch.
The international Incubator shall be the preferred meeting place for international
competencies and entrepreneurs in the Swedish innovation system and thereby the
natural meeting place for international start ups in the service sector.
TARGET GROUPS
The international incubator shall primarily focus on individuals who has an international
background, with specific competencies and experiences that are not being recognised and
utilized, at a satisfying level, by the Swedish business society.
In order to focus activities, the incubator will concentrate on groups with high competence
level and a temporary assignment in Sweden




International students and scientists (Academic world)
Accompanying spouses. (Business Society)
Returning expats/repats. (Business Society)
Highly educated and/or experienced immigrants (Unemployment society)
For clarity, this does not mean that we recommend to exclude native Swedes as members of
the teams and incubator companies. A sound mix of experiences and knowledge is most
often beneficial to manage the needs to build a successful team.
INCUBATOR STRUCTURE
Physical space



The international incubator shall reside in a dynamic, modern, flexible and open
environment easy to access for entrepreneurs and visitors.
The incubator shall have room for 15-20 start-ups in separate rooms.
Areas for meetings and networking shall be available in close connection to the
offices.
Time schedule


Total time for the international incubator project should be planned for minimum of 3
years.
The client companies should plan for a maximum of 18 months in the incubator
Organisation

All staff working with the Incubator must as a minimum have personal international
business experience. Non Swedish background and/or living several years in a
foreign country/culture is regarded as an important strength.
4
Lunds NyföretagarCentrum December 2014



The manager for the incubator should spend 100% of working time in the incubator.
Specialist competencies will be delivered on a consultancy basis, when need is
identified.
A strong network, in foreign countries and in the international communities in Sweden
is of vital importance.
Governance
A “Governance board” shall be established, consisting of representatives from stakeholders
like “financing parties”, trade and industry, the municipality, the university and the business
region.
RECRUITEMENT /ADMISSION PROCESS
A structured documented process for selection of the ideas and clients who are judged to be
able to contribute to the goals of the incubator is the basis for good results. Screening of
candidates will involve relevant knowledge and competence from the specific country/ region
and will follow certain acceptance criteria.
There shall be a focus in business ideas that can be commercialized within 3-12 months.
ACCEPTENCE CRITERIA
A list of criteria that has to be fulfilled by the candidates, who apply for the incubator, is the
basis for selection. The list should include components like;








Does the candidate belong to any of the identified target groups.
Has the business idea an international potential.
Has the business idea a general potential of business growth.
Potential to include international competencies.
Entrepreneurial characteristics and readiness to take on and manage the challenges
Is there an openness to take business advice
Openness for provided Advisory Board
Overall contribution to the goals of the Incubator
The screening process shall follow a specific documented process that will steer and secure
high and consistent quality of business ideas and entrepreneurs.
SERVICES OFFERED BY THE INTERNATIONAL INCUBATOR
The international incubator shall deliver services that enables the international clients, from
the targets groups, to establish and grow their businesses with the same precondition and
possibilities as a native swedes.
The offer from the international incubator shall be focused on the following areas;


Basic infrastructure
Business advice
5
Lunds NyföretagarCentrum December 2014





International entrepreneur networks
Training/education
International business support
Meeting place for international entrepreneurs
Immigration matters
Basic infrastructure



Office Rooms in a flexible dynamic environment with room for 15-20 international
entrepreneurial teams.
General office services like Internet, printer/copyer, etc..
Meeting rooms and open spaces.
Business advice
The goal is to be able to provide business advices at no cost for the incubator companies. At
some level costs will though arise and will then be handled directly between the incubator
companies and the provider of the service.
International business coaches
A number of internationally experienced business coaches, who have;





Experience from international business and can demonstrate good results.
Education on University level, preferably an international degree.
Foreign background or Swedish.
Open for innovative challenges in an international environment.
Understand Swedish Innovation system including the administrative language.
The business coach should have good experience of speaking and writing in English.
Coaches should be specialists in areas closely related to acting on the international scene,
like international marketing, specialist on a specific continent or country, international
Intellectual property, etc, etc.
Coaches should be working as consultants to provide advice on an hourly basis.
The Incubator shall build a network of competent International business coaches that can
provide advice in the most frequently addressed areas.
International advisory boards
Each incubator companies shall have an “Advisory board” as a sounding board and
discussion partner in relevant matters.
The advisory board shall consist of 3-5 internationally experienced competencies and will
meet 6-12 times /year as well as being available for the incubator companies on a ”when
needed basis”.
Members of the advisory board will be recruited from the international business network
supporting the incubator.
6
Lunds NyföretagarCentrum December 2014
Mentorship program
As being a part of the international incubator the incubator companies shall have access to a
mentor program. In this program the incubator companies are matched together with a
carefully selected mentor, which they will meet monthly and work together with during their
time in the business incubator.
Financing and fund raising
The international incubator shall be able to give advice in matters related to finding funding
solutions for the incubator companies.
Specific knowledge about finding and writing applications for funding and scholarships shall
be available for the incubator companies.
The Incubator shall create a specific “Funding Network”, by building knowledge about and
establishing cooperation with different funding organisations and groups of potential
investors.
International entrepreneur networks
Existing international networks for entrepreneurs will be important channels to create links to
entrepreneurs, knowledge, experience and resources in other countries. The incubator shall
develop cooperation with for example;






YBI - Youth Business International - a global network active in more than 60
countries and has an established cooperation with NyföretagarCentrum.
EBN - European Business and Innovation Centre Network, 250 members in Europe.
NBIA – National Business Incubation Association, with 2000 members in 60
countries.
Business Sweden – Offices with reps in 57 countries globally
Invest in Skåne – Support international business in Skåne
SISP - Swedish Incubators and Science Parks and other incubators active in
Sweden.
The Incubator shall also develop cooperation with the local Academic world like Sten K
Johnson Centre for Entrepeneurship, FENA, VentureLabs and LU Open.
International business education program
A series of lectures on relevant subjects shall be delivered to the incubator companies on a
regular basis. Subjects identified as important are;








Business Law & Rules in Sweden
“SFI for Business”. Formal authority language & business terms
Marketing in specific continents & countries
Sales in international perspective
Cultural differences and business culture in different countries
Business administration in general
Negotiation behaviour in different countries
Presentation techniques
7
Lunds NyföretagarCentrum December 2014
Teachers shall be recruited from the incubator network and should be specialists in specific
areas or business coaches with specific experiences.
International business service
The International Incubator shall be able to deliver knowledge and advice in business areas
focussing on mandatory rules and regulations that could differ between countries. The aim
for these services is to be able to give a first initial advices and guidance.
Accounting advice
Through an established cooperation between the Incubator and some of the globally active
consultancy firms in this field (the big four), advice can be given both in Sweden and in most
of the countries where the incubator companies plan to be active.
Legal advice
Cooperation with international Law Firms and Attorneys with business focus shall guide the
incubators with advice in legal matters, disputes or similar.
Translation assistance
Through cooperation with translators, the incubator shall be able to offer business related
translation services in the most common languages.
The meeting place for international entrepreneurs
The incubator shall have the ambition to create both a physical and a virtual environment
that will be the natural and preferred meeting place for the international incubator
community. A place where you can share and discuss business ideas and experiences. The
place to visit when you want to update yourself on the latest news and activities within the
international incubator society both in Sweden and in in the international incubator network.
Immigration matters
Immigration matters is one important component that hinders international entrepreneurs to
start businesses. The Incubator can NOT be involved in finding solutions in these matters.
However, the incubator should have basic knowledge about the immigration system in
Sweden and possibly assist entrepreneurs in navigating through the system.
INCUBATOR ORGANIZATION
To run the International Incubator three major areas has to be managed.



Incubator Manager; Responsible to achieve the set goals
Administration; Coordination of activities, managing office services, etc.
Economy; Accounting and economical reporting.
Depending on the size of the Incubator, there is a need for 1-2 persons to do the tasks at
hand. Recommended at starting point.


Manager, 1 person min 75% FTE
Admin / Economy, 1 person min 50% FTE
8
Lunds NyföretagarCentrum December 2014
Specialist consultants will be contracted for the incubator to manage and provide the specific
tasks and services as described in the sections above.
ECONOMY
Cost of establishing and running the International Incubator
A separate Project Plan will describe “International Incubator” as a project and specify;
Scope, Time and Cost.
Possible sources for Financing of the International Incubator.
Organisations that will benefit from the output of the International Incubator should
participate in the funding.
Funding from the private sector would be valuable in order to bring real business demands
to the table early in the process.
The incubator companies shall pay a monthly fee for the basic infrastructure and the
services provided.
9
Lunds NyföretagarCentrum December 2014