In partnership with Produced by and Table of contents 6 Foreword 8 About 10 Executive summary and key insights 12 Chapter 1: About this report 16 Chapter 2: A helicopter overview 24 Chapter 3: TOP 15 Slovak Scale-ups 34 Chapter 4: Conclusions 36 Chapter 5: Company profiles 46 References Author: Jaroslav Leitmann Co-authors: Michal Laco, Petra Lipnická, Peter Kolesár, Adela Zábražná Graphic design: Studio 436 4 5 Much of what Neulogy does is about connections, the creation of meaningful links between the right people. From bridging Slovak diaspora with communities back home to fostering cooperation between academics and entrepreneurs, our team has a rich portfolio of connections and partnerships formed. As of September this year, we have extended our net- work and joined forces with EIT Digital. After a decade at the epicenter of innovation activities in Slovakia, this partnership marks a significant milestone for Neulogy, as well as the ecosystem that has evolved dramati- cally over the years. One of the most indicative proofs of these transformations are the annual Startup Awards that we have been organizing since 2011. The number and quality of appli- cants increase every year, as does the audience of innovation scouts and supporters. Similarly, this study in itself demonstrates that there is no shortage of world-class innovative companies from Slovakia. As success usually generates more success, we have to take Foreword advantage of these favorable circumstances and assist Slovak innovators to scale their businesses even faster. EIT Digital, being the most extensive European network of investors, can help accelerate the growth of many of these emerging compa- nies. I invite you to read this report and find out more about those fifteen amazing companies. We call them Slovak Challengers. Peter Kolesár CEO at Neulogy 6 Foreword 7 Neulogy is one of the leading companies that specialize in knowledge and technolo- About gy transfer in the Central European region. The company’s strong Cooperation with the top CEE EIT Digital is a leading European digital track record includes setting up experts in startup advisory, long- the first Slovakia-based man- term experience in technology innovation and entrepreneurial educa- agement company to run a fully commercialization, and innova- tion organization driving Europe’s digital regulated seed and venture capi- tion policy consulting, enables tal fund (Neulogy Ventures). Fur- Neulogy to maintain its promi- transformation. thermore, Neulogy is designing nent position in Slovakia and the collaborative research centers, surrounding region. This also The organization as in Budapest and Madrid. The which sought to accelerate establishing and organizing means that the company can delivers breakthrough digital organization also operates its their growth and expand their the largest startup and innova- tap into the pipeline of the most innovations to the market and hub in Silicon Valley. business to foreign markets. tion event in the country called promising startups, maintain a breeds entrepreneurial talent for The startups which benefited Startup Awards, and leading strong foothold in academia and economic growth and improved EIT Digital invests in strategic from the acceleration program international projects to support R&D sectors, as well as cultivate quality of life in Europe. It does areas to accelerate the mar- raised more than 80 million € in the global expansion of startups access to high-level stakehold- this by mobilizing a pan-Eu- ket uptake of research-based follow-up investments. and business-academia collab- ers and broader audience. ropean ecosystem of over 130 digital technologies focusing oration. top European corporations, on Europe’s strategic, societal Slovakia joined the network SMEs, startups, universities and challenges: Digital Industry, Dig- through a newly formed partner- research institutes. ital Cities, Digital Wellbeing and ship between Neulogy and EIT Founded in 2014, The helping companies go global. Digital Infrastructure. EIT Digital Digital that came into working Slovak Alliance for Innovation The alliance also actively advo- As a Knowledge and Innovation breeds T-shaped entrepreneurial in September 2017. The coop- Economy is the largest innova- cate for innovation-friendly policy Community of the European digital talent focused on innova- eration takes place under the tive alliance in Slovakia, rep- in Slovakia and on the EU level. Institute of Innovation and Tech- tion through a blended Edu- umbrella of the ARISE Europe The largest resenting over 60 innovative nology, EIT Digital is focused on cation Strategy that includes a program, a program of EIT innovative alliance companies. SAPIE is a leading SAPIE is committed to building entrepreneurship and is at the Master School, Doctoral School, Digital designed to stimulate forum for debate on innovation collaborative networks of private forefront of integrating edu- and Professional School. regional growth in EU countries in Slovakia and digital economy in Slovakia. and public actors, creating na- cation, research, and business where EIT Digital is not present tional and regional partnerships by bringing together students, In addition to an extensive with one of its nodes. Its ob- SAPIE is committed to building and advocating for innovation. researchers, engineers, business network of more than 130 jective is to connect local and collaborative networks of private Three key pillars include support- developers, and entrepreneurs. companies and investors, the regional Innovation Centers to and public actors, creating na- ing entrepreneurial education, All of this happens through organization also runs EIT Digital EIT Digital's innovation and edu- tional and regional partnerships fostering startup ecosystem and a pan-European network of Accelerator. Since 2012, the cation ecosystem. and advocating for innovation. helping companies go global. co-location centers in Berlin, EIT Digital Accelerator program Three key pillars include support- The alliance also actively advo- Eindhoven, Helsinki, London, has provided services to more ing entrepreneurial education, cate for innovation-friendly policy Paris, Stockholm, Trento, as well than 230 European startups fostering startup ecosystem and in Slovakia and on the EU level. 8 About us 9 Executive Key insights Extraordinary value to the local Ambitions and growth know no Where there is will, there is economy boundaries funding The Top 15 Slovak Scale- Every company in the Two-thirds of the com- Summary ups generated revenues of more Top 15 serves customers in for- panies included in this report than 23 million EUR in Slovakia eign markets. While one-third raised more than 500,000 EUR during 2016. With high annual of the scale-ups already selling each. Four of those companies Over the past decade, the Slovak innovation ecosystem has growth rates exceeding 20%, globally, the American, British hit a home run and raised more grown by leaps and bounds into an extensive and active network the added value of the scale-up and Czech markets are the most than 5 million EUR to date. of stakeholders. companies to the economy is popular destinations. All but Venture capital funds and angel likely to increase in the years to one of the scale-ups run a part investors are the leading sources As shown by the rising number of incu- (1) the value created by these scale-ups, (2) their come significantly. Cumulatively, of their operations abroad. This of investment. bators, investors, co-working spaces and newly scale-up mechanisms, (3) funding processes and they are employing over 850 includes anything from physical emerging startups, innovation and new technologies (4) internal R&D activities. Examining these varia- people, most of which are Slo- offices to sales teams. have shifted from being the preoccupation of only bles through the lens of Slovakia’s most promising vak nationals (a little over 85%). a few to a sector of the economy attracting many scale-ups reveals the barriers and opportunities professionals from various backgrounds. Even more these companies face. The report’s findings may, importantly, success stories of Slovak companies therefore, provide some useful insights for readers scaling their business internationally and gener- interested in improving the standing of the Slovak’s ating extraordinary growth rates are no longer an innovation ecosystem. Both domestic and foreign R&D as an investment growth Partnering with researchers is obscurity. This makes us optimistic about the pros- investment matter welcome pects of Slovakia being a country where innovators The first part of the report presents the definitions, are not only born but also a place where internation- methodology and selection criteria used for the The Top 15 Slovak Scale- All except one of the An overwhelming ma- ally successful companies are founded. study. The second part evaluates how the Slovak ups are very good at attracting companies in this report con- jority of the companies included innovation ecosystem evolved over the past dec- foreign investment. Over two- tinuously conduct some R&D in this report recognize the val- The following pages attempt to shed light on a ade. The following chapter introduces the Top 15 thirds of the scale-ups included activities. On average, they ue of collaborations with other handful of such companies that scaled up inter- Slovak Scale-ups and an analysis of the collected in this report raised a part of commit a little over one-third research entities. While 60% nationally and on the explanatory factors behind data. Conclusions and recommendations are noted their funding from international (37%) of their costs to research of the scale-ups have previously their growth. The report identified the Top 15 in the final section. An annex of company profiles is investors. Nevertheless, all but and development, and one-third collaborated on their research Slovak Scale-ups that have outgrown the stage included at the end of the report. one of the companies benefit- of the companies obtained pat- with other entities and found of “emerging startups” and entered a phase where ed from Slovak investors.