Land of opportunities for industrial startup companies

Bilbao Bizkaia Startup

Strengths and drivers of Bilbao Bizkaia for industrial startups

Macroeconomic Situation

Strengths

Entrepeneur driven public institutions

Drivers

Strategical Position Friendly towards investment

Market Strength Land and infrastructures, available

R&D&i Investment, introducing your best partners

Industrial Incubators, space for entrepreneurs

Human Capital Access to the most talented human capital

Infrastructures and Connectivity

International events related to industrial sector economy

Working and Living in Biscay

Productivity

Public advisory, all you need is us

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Strengths of Bilbao Bizkaia for industrial startups

Agriculture, forestry and fishing

1% Construction6%

Industry and Energy24% Services

69%

0 500000000 1000000000 1500000000 2000000000 2500000000 3000000000 3500000000 4000000000

Basic metals and produced metal products

Electrical energy, gas and steam

Machinery and equipment

Transport equipment

Other manufacturing

Plastics, rubber and other nonmetallic

Food manufacturing, drinks and tobacco industries

Electrical and optical equipment

Wood, paper and graphic arts

Extractive industries

3.921.386.000 €

1.710.004.000 €

1.534.143.000 €

1.490.750.000 €

1.418.012.000 €

1.293.236.000 €

854.015.000 €

791.722.000 €

673.587.000 €

35.722.000 €

Industry represents

25% of GDPIn Europe industry

represents

19.1% of GDP

1. Macroeconomic Situation

1. Macroeconomic Situation

Population

Foreign population

GDP per capita

Industry entrerprises

Employment in industrial sector

Average employees per industry enterprise

Producer price index (PPI)Measures the average change in selling prices received by domestic producers of goods and services over time

New jobs in other economic sectors, per job generated in industry

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

7%

29.460 €121% EU average

12.571(8% of total)

174.461(23% of total employement)

13.88(21% over CAPV average)

113.7105% EU average

2-5

Bilbao - Bizkaia stands on the crossroads of the main north-south European transport route and the emergent east-west route

The region is gearing up to take advantage of this excellent location to become a true “hinge point” in Europe.

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

4. Productivity

Automotive Industry and Component Cluster

Automotive Industry and Component Cluster

Aeronautics, aerospace Port of Bilbao, mobility, and logistics Clusters

Engineering & Consultancy Firms Cluster

75,000 employees

€13,071 M turnover

7,300 employees€780 M turnover

13,950 employees€2,420 M turnover

15,121 employees

€10,941 M turnover

3. Market Strength

Specific clusters in each sector exert itself to stay a dynamic and open association that reflects the goals of its members

4. Productivity

Luxe

mbourg

Ireland

Basque Country

BelgiumFra

nce

Austria

Sweden

DenmarkSp

ainIta

ly

Finland

Netherla

nds

Germany

Europe

United Kingdom

Malta

Cypru

s

Greece

Slova

kia

Croatia

Portugal

Lithuania

Czech

Republic

Poland

Hungary

Estonia

Latvi

a

Romania

Bulgaria

160

180

140

120

100

80

60

40

20

0

HighLabour

productivity(GDP per person employed)

28%Higher labour

productivity than the EU average

3rdRanked among countries in the

EU (about labour productivity)

The Basque Country, a highly productive country

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: Industrial S

ector

34

28

14

64

19

9

7

5. R&D&i

Technology Park of Bizkaia

Settled companies 219

Workforce 7,647

R&D employees 27%

Global income € 2,455 mill.

Distance from Bilbao Centre

10 minutes

Specialised Technology and Research Centres: key factor in industrial competitiveness

Research areas:• Aeroespace• Automotive• Capital goods• Electric domestic appliances• Manufacturing• Maritime / Shipbuilding

Research areas:• Sustainable Building• Energy and enviroment• Innovation• Information and Communications Technologies• Manufacture and Transportation• Technological Services

335Patents /

year

105M€ turnover

1,310 Staff

Members

145Patents /

year

123M€ turnover

1,831Staff

Members

1,280 researches

Manufacture specialised offer: Research and development to create or improve products and services

Process Optimization

Patent development

5. R&D&i

6. 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

Young people with university degree

Bizkaia 43%Europe 24%

Deusto

MONDRAGONUNIBERTSITATEA

6. Human Capital

62%16%

10%

7%5%

Deusto MONDRAGONUNIBERTSITATEA

Distribution of grade and master volume per industry area:

Manufacture and industrial engineering

• Chemical engineering• Industrial engineering• Technologies and innovation• Systems engineering

Electronic and automation

• Electronics• Electricity• Automation

Industrial design

• Industrial design• Design and architecture

Others

• Mines and Materials• Maritime Sciences• Energy and Sustainability• Transport

Sciences

GeologyChemistry PhysicsMathematics

Wide and accredited centres of excellence in terms of Professional Training

Main specialty areas

• Automotive, Machine Tools• Environment, renewable energy• Building and civil engineering• Electricity-Electronic• Energy and water• Mechanical manufacturing• Wood, furniture and cork• Maritime and fishing• Chemistry• Transport and vehicle maintenance• Glass and Ceramics

6. Human Capital

23,000Students in

Occupational Trainig

17European projects in

2014

More than 50Highly Specialised Centres both public and private

50Startups/year created

in the Ocupational Trainning Ecosystem

7. 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.

Ports:

There are 15 ports in the Basque Contry.447 employeesFreight traffic: 32,862,700 Tn.

Aparcabisa

Total area: 312,560 m2

537 employeesFreight traffic: 228,500 Tn.

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 connections

Network of railway linesMetro & city tram

7. 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

8. 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

8. 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 an industrial 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 economy politics and strategic budget to ensure an stable economical 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 industrial startups in Bilbao Bizkaia.

Advisory to obtain licenses and permits

Obtaining visaConnectivityTrademarkPatenting

Funding & subsidiesConstitution (PAE)LocationAdvisoryHiring

Expedited incorporation: 2-3 days. Cheap constitution: 100 € Accompanying notary signatureAdministrative documentationAdvisory for legal forms

A consultant beside you 24/7

Centralized Point to help entrepreneurs

2. Friendly towards investment

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

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. Land and infraestructures, available

Industrial land

Land

Industrial parksIndustry areasPavillions

Industrial infraestructures

OfficesRooms Auditoriums

Bussiness spaces

Management of diverse infraestructures and land

Public support to help you find land and infrastructures

Management of Industrialdeak (participated industrial areas).

Ekartegiak Business Centre offers offices and industrial premises

363,086 m2 of industrial land

700,000 m2 of industrial land

4. Industrial Incubators, space for entrepreneurs

Corporative IntelligenceFuture scenaries analysis in automotive industry

Value generation for the automotive sector in terms of competitiveness, market, knowledge and technology.

Development of new competitivity areas to face the challenges of the forthcoming years

ResearchResearch on prioritary issues for the sector and the companies

Industrial DevelopmentDevelopment of new industrial initiatives

New BusinessesIncubation and development of new businesses related to the automotive industry

TrainingAutomotive industry professionals training on different cualifications

AIC-Automotive Intelligence Center: a specialised global competence centre

Over 400 professionals

4. Industrial Incubators, space for entrepreneurs

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

Specialitation

Installations

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

Services

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

An advanced business incubator specialised in value added sectors

6,000 m2 (4,5€ m2 month)

20MB

5. 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 founding tool. Some of them would be subject to the European minimis rule.

5. Investment, introducing your best partners

Private funding agents in Bilbao Bizkaia are extremely proactive 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 founds operating in Bilbao Bizkaia:

START DMCPerseo (Iberdrola)Repsol Energy VenturesGamesa Venture CapitalAbra Invest S.L. Crecer +Entrecanales OnetoOne Corporate Finance Samsung Venture investment Talde EkarpenCaixa Capital RiskArgi Industrial Partners / UPLIFT S.L. Emprendiza

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

Finance Advice Training Prizes

Micro credits and other instruments

BBVA Innovation Center

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

5. Investment, introducing your best partners

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

6. 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

6. 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

7. International events related to industrial sector

International events in Bilbao

Facilities to host international events

7. International events related to industrial sector

170.000m2 site for all kind of events and users

6 columnless exhibition halls that offer 150.000 m2 of exhibition space

A versatile hall that seats 26.000 people

30 break out rooms for smaller wor-king sessions, meetings

Restaurants, cafeteria, parkings and an atrium

Bilbao Exhibition Centre, a versatile, innovative and multifunctional space

1 M visitors/year

160 events/year

Exhibitions halls

Bizkaia Arena

Congress Centre

Common areas

8. 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

leading company of the

Department of Economic

Promotion of Biscay´s

Country Council, to 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) 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