Transform your business to help other companies in their digital transformation. Since 2015, this has been the new mission of H-Farm, founded in 2005 as a startup accelerator (it has churned out a total of 120, about fifteen of which have already been sold with 20 million in cashback) and today an all-round digital company, from technological solutions for businesses to digital marketing on social networks, from training in schools and universities to research and incubation activities which continue on the historic campus in the province of Treviso but in reality just a stone's throw from the Venice lagoon. “We started when the iPhone didn't even exist and we invested almost 30 million in startups, plus another 32 to equip ourselves with the structures of our Campus”, the founder Riccardo Donadon tells FIRSTonline. “At a certain point we understood that, not being a large fund, we couldn't live only on the sale of startups, which don't guarantee regular income. Thus, through the Innovation area, we have offered services to companies for their digital transformation: from e-commerce solutions, Artificial Intelligence, Internet of Thing, to strategy innovation culture, up to digital marketing to affirm the brand on the web".
Which companies do you work with and what do you offer them?
“Among our customers we have, for example, Generali Italia, which was inspired by our Campus to create the Innovation Park in the Mogliano Veneto headquarters. We have also suggested startups to digitize the services of the new Welion company, dedicated to corporate welfare, through IoT solutions, which are the ones we generally offer to mature companies to integrate their offer. On artificial intelligence, in partnership with Nuance, we are collaborating with Mercedes and BMW for communication software between car and driver. A sort of Siri of cars. We have collaborated with Deutsche Bank on the blockchain, with Candy on the IoT, with Cisco on the Industry 4.0 programme, i.e. to identify the best startups in the field of innovations related to Industry 4.0. Finally we work with Pfizer, Sanofi and other pharmaceutical companies. In short, after 10 years of looking for startups for ourselves, we started looking for startups for other clients”.
The Innovation area has therefore become your core business: how much is it making at the moment?
“In the first six months of 2018 it already had a turnover of 20 million out of the total 29,5 of H-Farm, and should double in the second half of the year. The new business has also had a strong impact on employment: today we have 630 employees, including 109 new hires in the first half of this year. In all, 130 people work in Innovation, distributed in our various offices in Italy”.
In addition to large companies, you also deal with the Internet branding of great personalities, especially from the world of sport. Can you give us some examples?
“Among the clients of Shado, which is our creative division, there is the Juventus footballer Leonardo Bonucci, whose website and all social channels we follow. We also work with MotoGP's Pramac Team, with Lega Calcio and with other players, as well as with Intesa Sanpaolo, Sky and Disney on specific projects. Other famous people are related to us through one of the most successful startups we have invested in and still own a small stake in, which is Depop, peer-to-peer mobile online commerce app. It is also well known abroad, it has more than 10 million users and among its users there are some bloggers, including Chiara Ferragni. One product is uploaded to Depop every second and 100.000 are sold a month.”
On training, on the other hand, what are your initiatives?
“First of all, I start by saying that in my opinion training is the strongest issue at the moment, even more than innovation itself. Even before innovating, companies must be ready to do so, a culture of innovation is needed: if companies are not completely ready, it is dangerous for the economy. For two and a half years we have dedicated ourselves intensely to training, through three main channels. The first is a network of four international schools (three in Veneto and one in Monza) in which we teach digital training to 880 children between the ages of 6 and 17. There isn't a specific course or subject, they are normal schools where, however, the kids are educated in new technologies. Then we organize a three-year degree in Digital Management, in collaboration with the Ca' Foscari University of Venice, where we have 160 students. Finally, we set up Big Rock, a postgraduate school for ultra-specialization in the digital field: after 6 months, 80% of graduates are hired".
Speaking of the culture of innovation and Industry 4.0, what impact did the provision of the last government have and what should the current government do?
“I was part of the task force that drafted the first draft of the reform, in 2012, and I can say that Industry 4.0 has been very positive, it has allowed a record development of the Italian digital ecosystem, which still remains behind compared to other countries , but narrowed the gap. There has been a notable recovery in investment volume. Today the Government should do three things: continue to exempt innovation and above all training from taxes; delegate and simplify; intervene on the financial markets, because the AIM, where we are listed together with other SMEs, including technological ones, does not work. Despite the PIR operation, little capital circulated and in fact even IPOs slowed down in 2018. The PIRs had created great expectations but had little impact on the growth of companies".
Let's close with the accounts: what kind of 2018 are you experiencing and how do you imagine the future?
“The first half was very good, with turnover close to 30 million and a growth of 33% on the first half of 2017. In 2017 as a whole we had turnover of 47 million, this year we estimate we can get closer to 60, confirming also in the second half of the year the growth rate of the first half year. Above all, we are very optimistic for 2019, which could be the first 'clean' year in which we really begin to reap what we have sown in these 13 years".
