How Startup Energy Reykjavik can support sustainability and future innovation opportunities
One month ago we celebrated Startup Energy Reykjavik Investor Day for the third time since the start of the program in 2014.
For three months, seven carefully selected startups had been focusing on accelerating their energy related business ideas. These teams had been selected out of around 50 applications, received earlier this year, based on their estimated potential to grow and compete globally. Each of them received 5m ISK in seed funding from the founding members in return for a 10% share in their companies.
We have now seen 21 startups gone through the program, and combined they have raised over $8m, whereof approx. 60% is equity, mainly from local investors, and the remaining 40% comes from grants.
Built on the success of Startup Reykjavik, which has proven to be an extremely good foundation for startups — Startup Energy Reykjavik, a seed stage investment program, was founded in 2013 by Landsvirkjun, Arion bank, Geothermal Research Group and Innovation Center Iceland. Icelandic Startups facilitates the program in cooperation with Iceland Geothermal.
Icelandic Startups is a non-profit organization, and the largest private supporter of startups and entrepreneurs in Iceland. Our main role is to accelerate new businesses, by providing them support and access to industry experts, investors, and leading startup communities abroad.
In the mission of empowering the Icelandic entrepreneurial eco-system, one of the key elements of the program is the access the teams get to top-notch mentorship from industry experts, investors and experienced entrepreneurs. Since the start of the program there has been an increased interest from the industry to become involved, and help the teams succeed.
We had the honor of welcoming the minister for industry and commerce, Ragnheiður Elín Árnadóttir, at our offices on the second day of the program. She took private meetings with each and every team. Such an interest and support is obviously an extremely valuable momentum for both the participating companies, but also a strong evidence of the importance of such a program for our society. This year we organized around 110 mentor meetings during the first weeks of the program.
We are greatly thankful for all the people that met with the founders, gave their time and effort, and honest feedback and guidance.
Additionally, the teams received an extensive support — customized for their own challenges, outstanding working facilities, and multiple networking opportunities throughout the program.
Our challenge has been to create and develop an environment that actively supports sustainable spin offs and new ideas within the energy related industry, with the aim of creating value and growth.
We have to keep in mind that these kind of projects are of different nature, and usually take longer time developing than e.g. software solutions, online marketplaces etc.
We have accepted teams with extensive knowledge and extremely valuable solutions but who lack the plan and knowledge on how to bring it to market.
Programs such as Startup Energy Reykjavik have proved to be a door opener when translating researches to products and services. It provides incentives and the essential tools to take the next step.
We have seen teams go through the program, sharpen their vision and strategy, build a business model around their solution, get attention from industry experts, media and investors, and build a strong case and concept for a sustainable business.
There is no doubt that there is an increased need and interest for innovation within the energy related industries.
Iceland has become world known and an increasingly popular tourist destination for spectacular nature and outdoor experiences. But by unlocking the various opportunities presented with our clean energy and renewable resources we have the potential to build our global reputation and image on a greater scale.
This year the majority of the applications of the program were more focused towards B2C businesses and green tech than before. Iceland is in an optimal place for such businesses to prosper.
Recognizing the increased global awareness of fighting the climate change and growing consumer interest in sustainable products, sustainability is going mainstream. A recent global consumer study cited in the Harvard Business Review shows that consumers expect more transparency, honesty, and tangible global impact from companies.
Global enterprises have proactively made sustainability a core to their business strategy to drive innovation and create enthusiasm and loyalty from employees, customers, suppliers, communities and investors.
Our innovation opportunities can increase productivity and quality, reduce environmental impact and costs, and increase our global competitiveness.
It is our sincere believe that Startup Energy Reykjavik can support the mission of keeping Iceland in the forefront of environmental improvements going forward.
