Land of opportunities for videogame and audiovisual startup companies

Bilbao Bizkaia Startup

Strengths and drivers of Bilbao Bizkaia for videogame and audiovisual startups

Macroeconomic Situation

Strengths

Entrepeneur driven public institutions

Drivers

Strategical Position Friendly towards invest-ment

Market Strength Digital 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 videogames and audiovisual economy

Working and Living in Bilbao-Bizkaia Public advisory, all you need

is us

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Strengths of Bilbao-Bizkaia for videogame and audiovisual startups

1. Macroeconomic Situation

Population

Foreign population

GDP per capita

Videogame and audiovisual companies

Employment in videogame and audiovisual

Metropolitan Bilbao: 1,000,000Bizkaia: 1,200,000

7%

€ 28.461 122% EU average

130 Basque companies

2,000

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

Direct flights to European cities

2. Strategical Position

ParisLondonBrusselsBerlinFrankfurtMunichDusseldorfSttutgartMilanRomeOsloLisbonAmsterdamBarcelonaMadridIstanbulGenevaManchester

3. Market Strength

Spain´s 3rd

strongest region for foreign direct

investment, behind Madrid and Catalonia Almost 700 foreign companies

stablished 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

INTERACTIVE

EIKEN: Audiovisual Cluster, the support you need for your startup

Basquegame: Basque videogames association, a partner for your startup.

3. Market Strength

Training:

A wide range of trainingpossibilities and promotionof the companies.

Institutional relations: Dialogue with public :institutions for the development of a favourable legal framework for associated companies.

Internalitation:

Activities and events to boost the internationalization and explore new markets.

Funding:

Apporach to the sources of capital (Public and private).

3. Market Strength

EiTB: The Basque radio and televisión broadcaster

€ 131.3 millons budget

78,840 broadcast hours

Internet channel (Basque, Spanish, English and French)

Spanish

Local International

International Spanish Basque Music

960 jobs

Since

1982

529,000 listeners & almost

700,000 citizens watch eitb

daily

• The idyllic beauty of ancient Biscay• Green landscape• Mountainous• Unspoilt beaches• Authentic culture• Accessible

• Municipal office for audiovisual promotion

• Assistance finding buildings, equipment, events and much more…

• Help in obtaining licenses to film in public places

• A striking blend of the old and the new• Competitive• Thriving• Connected• Professional• Passionate

The right place

The right ingredients

Fiscal autonomy • Coming soon for international producers• Cash rebates• No co-pro obligations• TV, cinema and commercials• Designed to meet your needs

Bilbao Bizkaia, the new film capital of Europe?

3. Market Strength

22.3% 97.1% 55.6% 99.7%

Strong videogame and audiovisual consumer market in Bilbao- Bizkaia

Percentage of Basque population having bought software and

videogames online

Investment in photographic and audiovisual equipment

Softwares or videogame products purchased in the Basque Country

by Internet Users

25,100 products purchases

€ 179 invested per household

4.8%

3. Market Strength

Household videogame and audiovisual equipment percentage:

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: Videogame & Audio

visu

als

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.

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

32% Technical Studies

7,784 videogame and audiovisual sector related university studies

Young people with university degree

Bizkaia 43%Europe 24%

Deusto

MONDRAGONUNIBERTSITATEA

1

2

3

45

6

7

1st school in the world to offer a bachelor’s degree

in game development

Students have won 27 awards at the annual Independent Games Festival (IGF)

Student’s games have competed in the Professional category at the IGF

Specialised Certificates

• Advanced Certificate in Game Programming

• Advanced Certificate in Digital Art and Animation

Applied Learning

DigiPen graduates are top developers throught the games industry

Students from all over the world

Specialised Degree Programs

• Bachelor of Fine Arts in Digital Art Animation

• Bachelor of Science in Computer Science in Real-Time Interactive Simulation

Training Students

5. Human Capital

5. Human Capital

• Computer engineering

• Telecommunications engineering

• Telecommunication engineering

• Informatics engineering

• Format Telecommunication engineering

• Audio-visual Communication

• Technology and Telecommunications engineering

• Management informatics

and Informational System engineering

• Computer engineering

• High performance computing

• Telecommunication engineering

• Computational engineering

and intelligent systems

• Advanced computer systems

• Multimedia communication

• Contemporary technological and performance art

• Computer Engineering

• Telecommunications Systems Engineering

• Audiovisual Communication

• Digital marketing

• Bachelor of Science in Computer Science in Real-Time Interactive Simulation

• Bachelor of Fine Arts in Digital Art and Animation

Art CoursesAnimation CoursesFilm CoursesInternship CoursesMusic CoursesProjects CoursesComputer Science CoursesComputer Graphics CoursesGame Projects CoursesCommunications Courses

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 centre (12 Km).

Bilbao international airportRoad connectionsNetwork of railway linesMetro & city tram

• 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 Art Axis.

Culture Nature Gastronomy

Drivers for a videogame and audiovisual 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 videogame and audiovisual 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.

Investors in startups 60% deduction in investment related taxable income

Creation of employment 4,900€ per person

Economic Interest Grouping (EIG) 30% deduction

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

Research Development 30-50%

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

Environmentaly sustainable projection: reduction in taxation (10-30%)

General tax 28%

Reduced to 24% for SMEs

Tax Deductions

3. Digital Incubators, space for entrepreneurs

A wide space offer in Bilbao to incubate videogames & audiovisual startups.

Preincubation

Design Kabi.200m2 (€1/day) 20MB

Biscaytik. 1,200m2 20MB

Acceleration

KBI Digital. 1.100m2 (€85/month/person) 20MB

Located in Bilbao City CentreMentoring and training planAcceleration servicesPrivate investor networkCourses on digital business issuesAccess to leading companies

Growth

Kabi 612.5,600m2 (4.5€/m2/month) 20MB

Elkartegiak. (3-9€/m2/month) 20MB

4. Investment, introducing your best partners

Public institution’s strong commitment to creative industry

4,000,000 € invested to support startups in creative industries

31% audiovisual startups

17% videogame startups

11.2€ estimated turnover after support

110 estimated jobs generated after support

Bizkaia Creativa

Specific program to boost creative industry startups

4. Investment, introducing your best partners

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

250kNETs

110kproject concept

250kSeed Capital

Bizkaia

500kEkintzaile XXI

600kElkano XXI

1500kGauzatu

180kCorporate

constitution

100kBasque Fondo

25kMicro credits

95kIncorporation

80kBC

projects

80kInnovative

projects

50kEquipement

purchase

120kInternatio-nalisation

400kBasque Fondo II

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

* 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 subject 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 videogame and audiovisual company can take advantage of tax benefits from employment

Public Institutions promote Training on the job

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 emplo-ying 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.

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 internationalization

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

WHERE one-stop-shop):Residence authorisation: Strategic Collective Unit-Ministry (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 videogame and audiovisual economy

An event to reward the best video games, both fun and serious.

The most important European event based on videogames.

AWARDS:Known as the “Oscars in videogames” in the sector, rewarding the work of producers, directors, artists and developers.

CONGRESS:Directed towards professionals, speakers will be leading people on reference companies in the sector.

FUN ZONE:The playful side of the Festival (over 10.000 assistants)

Press Clipping

News 946

References 951

Audience 151,218,400

Valuation € 2.455.276

6. International events related to videogame and audiovisual economy

Videogames Audiovisuals

Facilities to host international events

Uztailaren 24tik 27ra -del 24 al 27 de Julio

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DEPARTAMENTO DE DESARROLLO

ECONÓMICO Y COMPETITIVIDAD

EKONOMIAREN GARAPEN

ETA LEHIAKORTASUN SAILA

International events in Bilbao-Bizkaia

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