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1 Startup Ireland Survey 2015 Startup Ireland Survey An Amárach Research Briefing November 2015

Startup Ireland Report 2015

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1 Startup Ireland Survey 2015

Startup Ireland Survey An Amárach Research Briefing

November 2015

2 Startup Ireland Survey 2015

Background & Methodology

This is the second year of the Startup Ireland

survey, conducted in partnership with

Amárach.

Last year, 295 startups participated in the

survey, this year we’ve had a total of 417

participants: 92% of this year’s respondents

are owner/founders of their businesses.

The survey was completed online, via a link

sent to members of Startup Ireland, and via

partners in incubators and on social media.

This report summarises the main findings,

including comparisons with last year’s

survey, and identifies key trends shaping the

future of the startup sector in Ireland.

Startup Profile

4 Startup Ireland Survey 2015

Starting to Change

This year saw a significant

increase in the share of female

startups in the total sample

We have seen a sharp

increase in the share of

startups run by people aged

over 35

There has been no significant

change in the share of

startups run by non-Irish

nationals.

Gender 2014 2015

Male 79 69

Female 21 31

Age 2014 2015

Under 35 44 30

Over 35 56 70

Nationality 2014 2015

Irish 85 86

Other Nationality 15 14

5 Startup Ireland Survey 2015

Repeat Entrepreneurs

Most startups are headed by

people who are running a

startup for the first time, and

the share has increased

slightly this year

There has been an increase in

the share of startups in our

survey who have been in

operation for 1-3 years,

suggesting that more are

surviving and moving into the

next stage of operation.

Startup Stage 2014 2015

Ideation/pre-startup 31 31

Started less than 1

year ago 33 27

Started less than 3

years ago 36 42

First Timers 2014 2015

My first startup 54 57

Involved in startup

before 46 43

6 Startup Ireland Survey 2015

Sectoral Shift

The sectoral focus of Irish

startups remains concentrated

in consumer/internet and

business/enterprise products

and services, while there has

been an increase (from a small

base) in life science/biotech

focused startups.

The startup sector has become

slightly more polarised in terms

of its location profile: the share

of those working from home

has gone up as has the share

in rented offices.

Sectoral Focus 2014 2015

Consumer/internet 46 38

Mobile/app 25 21

Business/enterprise 45 43

Cleantech/energy 5 5

Life Science/biotech 4 10

Hardware 5 5

Location 2014 2015

At home 40 49

In incubation space 17 14

On incubation/

acceleration

programme

18 10

In rented offices 25 27

Startup Experiences

8 Startup Ireland Survey 2015

Inspiration

Most entrepreneurs are

inspired to start their business

because of their own direct

experience of a problem and

related work experience

Research and other sources of

inspiration tend to be less

relevant in identifying ideas for

potential startups.

Sources of Ideas* 2015

From direct experience of the

problem 48

From personal work experience

in the area 42

From a discussion with a friend 16

From my research/masters/PhD 9

From something I read 7

* Not asked in 2014; multiple response allowed

9 Startup Ireland Survey 2015

Pressure Points

There has been relatively little change in the order of pressures on startups, though

the % experiencing problems accessing scaling supports has risen significantly

45%

78%

69% 72%

36%

48%

60%

45%

79%

71%

81%

37%

52%

63%

Access to suitable co-working/incubation

space

Access to early stagefunding

Access to staffingtalent

Access to scalingsupports to grow my

startup

Access to businessmanagement skills

Engagement with stateenterprise supports

Securing of earlycustomer sales

2014 2015

% of Startups finding each experience extremely or fairly difficult*

* Excluding those to whom it is not applicable

10 Startup Ireland Survey 2015

Support Experience – I

Just over half of startups feel they

have adequate access to startup

support networks that are easily

accessible – a large minority do

not

Over 4 in 10 startups received

mentoring through state or

voluntary initiatives such as Office

Hours, though nearly half did not.

Moreover, 7 in 10 startup

owner/founders in our survey said

they would be willing to volunteer

time to help other entrepreneurs.

Adequate Access to

Support Networks* 2015

Yes 52

No 40

Not relevant 8

Received Mentoring

e.g.: ‘Office Hours’* 2015

Yes 41

No 48

Not relevant 11

* Not asked in 2014

11 Startup Ireland Survey 2015

Support Experience – II

Nearly 3 in 10 startups have

availed of R&D supports such

as innovation vouchers or

Innovation Partnerships in

building their startups

But only 1 in 10 has availed of

supports from large corporates

when building their startups.

Availed of R&D

Supports e.g.: Voucher 2015

Yes 29

No 58

Not relevant 13

Availed of Supports

from Large Corporates 2015

Yes 11

No 76

Not relevant 13

12 Startup Ireland Survey 2015

Intellectual Property

There has been a modest

though encouraging

improvement in the share of

startups who have developed

or acquired patents, trade

marks or other intellectual

property in the course of

starting up their business

Nevertheless, the fact remains

that a large majority of startups

have not developed any

significant IP in their business.

Type of IP* 2014 2015

Patents 16 18

Trade Marks 23 25

None 67 64

* Multiple response allowed

Startup Nation

14 Startup Ireland Survey 2015

78%

68%

53%

47%

21%

22%

32%

47%

53%

79%

Ireland becoming a global hub for startups by2020 will help your business

There is a strong network of formal and informalsupports available to your startup in your area

The startup sector is as well representednationally as other business sectors are by the

Chambers of Commerce, SFA & ISME

Sufficient action is being taken to make yourlocality a hub for startups

The Irish startup sector is operating at its fullpotential

Disagree Agree

The vast majority of Irish startups do not think that their sector is operating to its full

potential yet, and just as many think it will be good if Ireland becomes a global

startup hub*:

* Excluding don’t knows

State of the Startup Nation

15 Startup Ireland Survey 2015

Summary

The 2015 Startup Ireland survey of Irish startups points

to a number of very positive trends: including higher

participation for women and older adults

There are also signs of improvement in terms of

building intellectual capital in startups, and a sizeable

minority are benefiting from R&D grants

However, there is little room for complacency given the

growing frustration with funding for expansion (beyond

very early stage finance), and this will require urgent

attention if Ireland is achieve our ambitions for the

startup future.

e. [email protected]

w. www.amarach.com

b. www.amarach.com/blog

t. twitter.com/AmarachResearch