House of Start-ups seeks €2bn
Nicolas Buck is leaving nyuko. But the departure of the FEDIL president is only a small part of the battle plan presented by the Luxembourger.
The House of Start-Ups was created under a legal form that allows it to sign a lease with the Chamber of Commerce for the rental of the 4,000 square metres on boulevard d'Avranches.
Its president will be Michel Wurth and the managing director, Karin Schintgen. After managing another incubator - Lux Future Lab - at BGL BNP Paribas, Schingten will now work with Martin Guerin.
Not only does the Frenchman remain at the head of nyuko but he will also become the director of the incubator in the capital. The 'Luxembourg City Incubator' is a joint venture between the Chamber of Commerce and the City of Luxembourg. Nuyko will have 120sq m of the new premises, the Luxembourg House of FinTech, which is still managed by Nasir Zubairi, will have 2,000sq m and the incubator will have the rest.
In total, "the investment is less than €1 million," according to Nicolas Buck. This should make it possible to accommodate about 60 start-ups, the dozen or so of the LHOFT, but it will not be able to accommodate other companies potentially competing in the areas of fintech or regtech nor companies from the industrial sector, to avoid competition with Paul Wurth's incubator.
"Paul Wurth's incubator will perhaps be used to find useful technological solutions for Paul Wurth, but it will also be the place where all the future solutions of the manufacturing industry will be created." For the future former boss of Nyuko, "Luxembourg has caught up with other countries in terms of incubation structures", where young entrepreneurs are trying to revolutionise entire sectors of the economy. "It will be a totem space for investors, especially foreign investors, in a public-private setting."
Only the essence remains the same: money. And if he starts by saying that the subject has progressed well since many actors took over, Nicolas Buck has an idea: creating teams of two or three people who will pursue their objectives to raise capital, in Luxembourg and in Europe. "They must have €400,000 to €600,000 at their disposal in the first year to raise between €80m and €100m." And according to him, it takes 20 teams of this type to be able to raise €2 billion which will be injected into start-ups.
The difficulty for these 20 trios will be to have no past other than their own business card. And, for now, there is no success to sell to family offices or wealthy private investors. This involves networks, processes of validation of start-ups and their projects of financial and legal skills. Without these 60 experts, the most beautiful of incubators will remain an amical meeting of geeks who dream of changing the world.
(By Thierry Labro, translated by Heledd Pritchard)