Technology start-ups need support and the industry must meet that need, says Adrian Buckley, area director Northern Europe for Mentor Graphics.
Although 2011 has been a strong year for Mentor Graphics it has been a tough time for microelectronics startups. This matters because they fuel innovation. But with so little venture capital available these days how does a semiconductor startup even get as far as prototyping?
There are as many possible models as there are startups but we are backing one particular approach.
The European Microelectronics Academy (EMA) opened its doors in April 2011.
EMA is a collaborative venturing network for the microelectronics sector. Within this crucible firms with new ideas for electronic systems can find partners, IP and expertise, productise the combined assets and identify customers far earlier than would be the case with a traditional startup model. This reduces the risk for venture funds who are thus readier to invest.
Mentor Graphics thinks long term and has experience in this area. In 2005 we put our weight behind Cre8Ventures which provided a networking, advice and cross-pollination forum and nurtured over 35 startups. This was not an altruistic act – as these startups grew they bought Mentor Graphics EDA tools.
Today the industry needs something broader.
The EMA facilitates connections and alliances, and EMA staff listen out for gaps and requirements and actively seek sources who can fill them. Support from industry members can be in the form of direct funding for the EMA or contributions in kind to particular projects eg EDA software, IP, services, access to shared shuttle runs in semiconductor fabs, seconded staff etc.
Around twenty projects are currently in development within the EMA with three already moving towards prototyping.
EMA has an independent board of highly experienced industry people from venture capitalists to successful serial entrepreneurs. It has backing from the National Endowment for Science, Technology and the Arts (NESTA).
It is a natural step for corporations throughout the electronics industry value chain to join and support EMA because it opens the door into a large pool of ideas, IP and expertise through a single network with easy, discreet access to a broad roster of startups. I would encourage potential industry partners to have a look at www.emanetworks.com, and get involved.
The UK has ideas, expertise and IP but the capability to create innovative electronics must be nourished so it’s in a fit state to exploit the next market upturn. Every electronics business wants our industry vibrant and we all need to work together to nurture growth.