Land of opportunities for biosciences startup companies

Bilbao Bizkaia Startup

Strengths and drivers of Bilbao Bizkaia for biosciences startups

Macroeconomic Situation

Strengths

Entrepeneur driven public institutions

Drivers

Strategical Position Friendly towards invest-ment

Market Strength Biosciences Incubators, space for entrepreneurs

R&D&i Investment, introducing your best partners

Human Capital Access to the most talented human capital

Infrastructures and Connectivity

International events related to biosciences economy

Working and Living in Biscay Public advisory, all you need is us

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Strengths of Bilbao Bizkaia for Biosciences startups

1. Macroeconomic Situation

Population

Foreign population

GDP per capita

Biosciences companies

Employment in biosciences industry

Metropolitan Bilbao: 1,100,000

7%

€ 28,461 122% EU average

70 Basque companies

26,500

Thanks to its location in the European Union, Bilbao Bizkaia is a strategic hub for the establishment of your biosciences startup

Direct flights to European cities

2. Strategical Position

ParisLondonBrusselsBerlinFrankfurtMunichDusseldorfSttutgartMilanRomeOsloLisbonAmsterdamBarcelonaMadridIstanbulGenevaManchester

3. Market Strength

Spain´s 3rdstrongest region for

foreign direct investment, behind

Madrid and Catalonia Almost 700 foreign companies settled in the Basque Country

700

People Employed in FDI companies = 11% of working

population

61.000

2008

2009

2010

2011

2012

2013

500 M

1000 M

999 MBasque Gross Investment Flow

3. Market Strength

Almost

300 companies involved

1,632 employees

211M exports

31M investment R&D&i

268M turnover

Basque Biocluster exerts itself to stay a dynamic and open association that reflects the goals of its members

Health-related (human or animal) biotechnologies

Bio-solutions for agro/food chains and environmental safety

Advanced materials and engineering

Turn-key lab/plant construction and systems

BASQUEBIOCLUSTER

First region in Spain according to

GDP Invested in R&D&i2,19%

Above EU 2020 objectives

More than € 170 mill. per year allocated for Research, Development and Innovation in Bilbao Bizkaia

Basic & excelence research centresInnovation

Support Sub System

University and

Scientifici Sub-System

Technological Development Sub-System

Centres for cooperative research

Technological centres

Research & innovaction bussiness units

Laboratories & health r+d centres

Intermediate bodies

Supporting infraestructures

Universities

Rese

arch & Development & Innovation

Basque Ecosystem: Biosciences Sect

or

34

28

14

64

19

9

7

4. R&D&i

Technology Park of Bizkaia

Stablished companies 219

Workforce 7,647

R&D employees 27%

Global income € 2,455 mill.

Advanced science, technology and innovation system.

4. R&D&i

Specialised Technology and Research Centres: key factor in industrial competitiveness

Technology Centres Research Centres

Key research areas:

CIC bioGUNECIC biomaGUNECIC microGUNECIC nanoGUNEBIOEFBiocrucesOnkologikoa, cancerCITA, AlzheimerInbiomed, Regenerative Medicine

Personalised medicine and diagnostics.

Regenerative medicine.

Drug discovery. Medical and surgical devices.

CNS & different diseases

Biosensors and analytics.

Equipment and instrumenta-tion.

Agrochemical uses of Biotechnology.

123M€ turnover

1,831 Staff

Members

105M€ turnover

145 patents

1,310 Staff

Members

1,280 researchers

335 patents

5. Human Capital

The Basque University Education is referent within the European Higher Education Area.

3rd European Region with the

highestnumber of university graduates

67,551 University Students

8,769 biosciences sector related university studies

Young people with university degree

Bizkaia 43%Europe 24%

Deusto

MONDRAGONUNIBERTSITATEA

5. Human Capital

• Human Nutrition and Dietetics• Dentistry• Nursing• Pharmacy• Environmental Engineering• Chemical Engineering• Industrial Chemical Engineering• Manufacturing Ecotechnologies• Biomedical Engineering

• Theoretical chemistry and computational modelling

• Advanced materials engineering• Chemical engineering• Control engineering, automation and

robotics• Engineering physics• Environmental engineering• Renewable materials engineering• Research in environmental engineering• Photovoltaic devices and systems• Sustainable energy engineering

• Biology• Biochemistry and Molecular Biology• Biotechnology• Science and Food Technology• Environmental Sciences• Physics• Geology• Mathematics• Chemistry• Medicine

• Forensic analysis• Biomedical engineering• Biomedical research• Microbiology and health• Molecular biology and biomedicine• Neuroscience• Pharmacology, development, evaluation

and rational use of medicines• Food quality and safety• Nutrition and health• Applied chemistry and polymeric

materials• Nanoscience• New materials• Physics and materials technologies• Synthetic and industrial chemistry

Degree

Master

Deusto

MONDRAGONUNIBERTSITATEA

6. Infrastructures and connectivity

Metro and tram:

1.000 million users per year. Three minutes frequency. Complete coverage of metropolitan area.

High Speed Train,

will start operating in 2018: Madrid in 2 hours, Paris 5 hours.

Road Connections:

Excellent transport links, which connects all municipalities in less than 40 minutes by road or public transport.

Airport:

more than 4 million passengers per year. 10 minutes from Bilbao city center (12 Km).

Bilbao international airportRoad connectionsNetwork of railway linesMetro & city tram

6. Infrastructures and connectivity

Animal facilities and animal models

Cell Reprogramming and Differentiation core facility

Structural Biology Platform (NMR, protein crystallisation, X-ray, electron microscopy)

Pharma and biomanufacturing

Basque Biobank, O+ehun (brains, tumours, peripheral blood - DNA, RNA, etc. - and other fluids)

Metabolomics platform, mass spectrometry based

Inbiobank (adult stem cells and primary cells), node of the National Bank of Cell Lines

Genome analysis and gene silencing platforms

Proteomics core facilities

Molecular Imaging Facility (radiochemistry, MRI, SPECT, PET, CT, optical tomography)

Dedicated biomedical Effectiveness Demonstration Unit and other clinical resources

Innovative infrastructures at the service of talent

6. Infrastructures and connectivity

€ 72 mill. public budget allocated for the digital agenda.

Cloud Computing boosted from the public institutions

Broad Band access 95% of the population

Secure and trustable network

88% of the population access NGAs and 3G /4G technologies.

Cutting edge TIC infrastructures that cover all Bilbao-Bizkaia.

• Human Development Index Bizkaia• Above UE average rate, 0,738.

• High quality health care• Longest life expectancy in the EU.• Free and universal health system,

reference as a quality service.

78,2 85,1

7. Working and Living in Bilbao-Bizkaia

1st

LivCom Prize in the category of Enhancement of the Natural and Built Landscapes

1st

Lee Kuan Yew World City Prize 2010 (Nobel Prize of

Cities)

1st

Best Urban Practices Award

(Expo 2010)

1st

Città d´Acqua, Biennale

di Venezia Architecture

7. Working and Living in Bilbao-Bizkaia

1 M annual visitors at Guggenheim Museum

Cultural Assets declared World Heritage by UNESCO

Beach 10 minutes away from city centre

53% of its surface covered with trees.

Natural Assets declared as Biosphere Reserve by UNESCO

Bilbao is the 3rd most sustainable City in Spain

28 Michelin Stars in 2014

Bilbao is a reference in the European Art Network, and it complements the Bilbao-Bordeaux-Madrid Ant Axis.

Culture Nature Gastronomy

Drivers for a biosciences startup in Bilbao Bizkaia

1st

City with the best e-Administration in Spain according to the Internet Users Association (2010)

1st

Most transparent city in Spain in 2008, 2009, 2011 and 2012 according to Transparency International

1st

Rigorous economic policies and strategic budget to ensure a stable economic network (zero debt, paid in 30 days)

4th

Southern European city in the overall and FDI strategy categories in the FDI European Cities and regional of the future ranking (2014)

1. Entrepreneur driven public institutions

Openness

Transparency

Security

Investment

Winner of the EPSA-European Public Service Award (2011)

1. Entrepreneur driven public institutions

Three public companies committed to digital contents startups in Bilbao Bizkaia.

Advice in obtaining licenses and permits

Obtaining visaConnectivityTrademarkPatenting

Funding & subsidiesConstitution (PAE)LocationAdvisoryHiring

Expedited incorporation: 2-3 days. Cheap incorporation: 100 € Accompanying notary signatureAdministrative documentationAdvice on legal forms

A consultant beside you 24/7

Centralised Point to help entrepreneurs

2. Friendly towards investment

Bizkaia legislates on direct taxes and establishes tax incentives and deductions for its businesses.

Research Development 30-50%

New Non-Current Assets 10% (5% in asset improvement)

Projects involving sustainable taxation 10-30%

Patent Box 30-60% (acquired or developed)

Creation of employment 4,900€ per person

Incentives related to funding (all companies)

Technological Innovation 15-20% (with Technological Centres)

Tax Incentives for companies investing in startups:• Reduction in the tax base (60% of the invested amount)• Purchase of shares: maximum 100.000€ per investment

General tax 28%

Reduced to 24% for SMEs

Tax Deductions

3. Biosciences Incubators, space for entrepreneurs

An advanced business incubator specialised in value added sectors

Kabi 612.5.600m2 (4.5€/m2/month) 20MB

Elkartegiak. (3-9€/m2/month) 20MB

High Value added sectors and technologies: Bio-micro-nano technologies, Clean technologies and Advanced manufacturing

Specialitation

Fully equiped with workrooms and laboratories for the development of the industrial and research activities.

Installations

Focused on the growth and the continuity of the companies: Acceleration, access to experts, training, investment rounds.

Services

4. Investment, introducing your best partners

Specific public funding for every stage of the company life cycle.

110kproject concept

250kSeed Capital

Bizkaia

2,000kEzten

500kEkintzaile XXI

500kLanpar

500kElkano XXI

5,000-4,0000kEkarpen

1500kGauzatu

180kCorporate

constitution100kBasque Fondo

25kMicro credits

400kBasque Fondo II

95kIncorporation

250kElkartzen

250kGaitek

120kInternatio-nalisation

1,000kEtorgai

1,000kBideratu

Grant

Loan

Capital

REV

ENU

E

TIME

Angels, FFF

Seed Capital

Early Stage

Valley of Death

VCs Acquisitions/Mergers& Strategic Alliances

Pre-Seed Capital

Later Stage

50kInnovative

projects

70kEquipment Purchase

* Maximum amounts for each funding tool. Some of them would be subject to the European minimis rule.

4. Investment, introducing your best partners

Private funding agents in Bilbao Bizkaia are extremely proactive in searching startups to invest in.

200kBusiness Angels

Network

150kSeed Funds

300kENISA

Entrepeneurs

>150kCDTI

Innovation

50kFinancial Entities

25kSocial

Entities

Endorsament

Loan

Capital

REV

ENU

E

TIME

Angels, FFF

Seed Capital

Early Stage

Valley of Death

VCs Acquisitions/Mergers& Strategic Alliances

Later Stage

250kSpecialised

funds

1,500kMutual Guaran-

tee Societies

Private investment funds operating in Bilbao Bizkaia:

START DMCArgi Industrial Partners / UPLIFT S.L.MicroWave VenturesEmprendizaSamsung Venture InvestmentKereon partnersAbra Invest S.L.Crecer +Bulka Business AngelsInceptionOnzaVitamina kEntrecanales Sitka CapitalFaraday Ventures PartnersOnetoOne Corporate FinanceDUMA AsociadosTaldeEkarpenCaixa Capital Risk

* Maximum amounts for each funding tool. Some of them would be subjet to the European minimis rule.

Finance Advice Training Prizes

Micro credits and other instruments

BBVA Innovation Centre

Yo soy empleo BBVA Open Talent

Micro credits and other instruments

Startup advice BBK Fundazioa BBK Ideas competition

Diverse financial products

Entrepreneur advice Gaztelanbidean New business ideas competition

Caixa Capital RiskMicroBanck

Advice for different entrepreneur profiles

Entrepreneurship programmes

XXI Entrepreneur awards

Financial instruments Specialized advice Trainning Courses Bstart up

4. Investment, introducing your best partners

Financial institutions in Bilbao-Bizkaia offer much more than just funds.

5. Access to the most talented human capital

A digital contents company can take advantage of tax benefits from employement.

Public Institutions promote Training on the job

Subsidies for training and development of human capital

1M€ aids/year.120 professionals/year.

30% of the gross salary (Up to € 9,000 per person).Up to 90.000€ subsidy per company when employing staff.

Enterprises paying Social Security generate a credit in order to invest in training for employees.

Public Institutions also offer subsidised training programmes for Basque employees, including specific programmes in R&D&i.

Up to € 20,000 on Human capital training and specialitationUp to € 30,000 /person for hiring senior R&D&I employeesUp to € 20,000 /person for hiring junior R&D&I employees

Through our subsidiary Bizkaia Talent, we attract foreign qualified personnel.

Benefits of hiring talent

* In addition to all thisbonus in Social Security Tax for researchers: 40% of the company¨s contribution for common contingenices

5. Access to the most talented human capital

No work permit needed

Work permit + Visa

Foreign Employees

Job Offer Company Registration

Residence and Work Permit Residence and Work Permit

Visa Visa

Foreign Entrepreneurs

UENon UE

14/2013 Law for Entrepreneurs support and their interntionalization

WHO:InvestorsEntrepreneursHighly qualified professionalsR&D&I developmentIn company transfer

WHERE (one-stop-shop):Residence authorisation: Strategic Collective Unit-Ministery (resolution in 20 days)Visa: Spanish consulate country of origin (resolution in 10 days)

HOW:Passport or identity document (applicants must be over 18)Medical insurance accreditation documentCriminal record certificateEconomic means accreditation

6. International events related to biosciences economy

International events in Bilbao

Facilities to host international events

7. Public Advisory, all you need is us

For further information contact: foreignstartups@beaz.net

SPRI S.A. is the Business

Development agency of the

Autonomous Region of the

Basque Country, to promote

the country as an attractive

place to invest in, and the

promotion of business

dealings between foreign

and Basque companies.

Beaz S.A.U. is the company

of the Department of

Economic Promotion of

Biscay´s Provincial Council,

responsible for the

development of innovative

business projects and the

fostering of high growth

startups, both local and

foreign.

Bilbao Ekintza is a

Local Business Public

Entity (EPEL) created to

generate economic and

social wealth in the city,

enhancing its capabilities

as a destination for

investment, business

creation and growth,

attracting visitors and

talent.

European Union

European RegionalDevelopment Fund