Startup Communities: Building an Entrepreneurial Ecosystem in Your City

by Brad Feld

we need to do more to include women

RisingStars

SPACE

Every rapidly growing startup struggles with space.

MYTHS ABOUT STARTUP COMMUNITIES

Paul Kedrosky, a Senior Fellow at the Kauffman Foundation,

favorite myths: “We Need to Be Like Silicon Valley.

how can we create our own Silicon Valley?

You can

The superficial trappings of Silicon Valley are obvious. They include: bountiful VC; research universities; lovely weather; a host of young technology startups; and a few large, successful

companies. Further, weather aside, these trapping are surprisingly easily copied.

Much of what makes Silicon Valley or any startup community work has to do with things that happen below the surface.

Trying to create the next Silicon Valley is a fool’s errand. If that’s really your goal, save yourself a lot of heartache and simply move to Silicon Valley.

there is always an imbalance between supply and demand of capital at any time in any market,

capital and startup communities as if they are the same or, worse yet, that the former causes the latter.

While businesses need capital, it is not the capital that creates the business.

Communities should spend more time showing investors what they’ve missed, and less time complaining that investors won’t buy into promises of future gains.

Less than one in five of the fastest-growing companies in the United States take any venture capital at any point in their history.

Paul Kedrosky, Kauffman Foundation, @pkedrosky

startup communities feel like they aren’t complete until they have at least one angel investor group,

like so much in a startup community, they are neither necessary nor sufficient.

Many angel investors are former entrepreneurs, with all that that implies.

early-stage investing is intuitive, not empirical,

best startup communities embrace investing diversity.

critical goal of any angel organization should be to build a network of trusted co-investors.

Although formalized angel groups can work, it is best to just get started developing strong interpersonal relationships based on trust,

You can create a vibrant long-term startup community anywhere in the world.

Bala Kamallakharan.

These kids were not worried about the ISK or the government or the global financial crisis or anything. They were building something and wanted to sell it to create value. I was impressed.

needed was not just money but also mentoring and a bridge to a larger market.

Startup Reykjavik (http://startuprev.com/g4), an accelerator established in April 2012 that is part of the Global Accelerator Network.

one can connect online, but to really build relationships one has to break bread, shake hands, and look each other in the eyes. Conferences provide a fantastic platform for that.

community in Omaha, Nebraska.

initiative from the White House called Startup America,

Startup America Partnership

The key to every successful startup community is startups.

If you do nothing else, make sure all the founders and founding teams are visible and connected to each other.

nine attributes of a successful start...

Leadership: Strong group of entrepreneurs who are visible, accessible and committed to the region being a great place to start and grow a company. Intermediaries: Many well-respected mentors and advisors giving back across all stages, sectors, demographics, and geographies as well as a solid presence of effective, visible, well-integrated accelerators and incubators.

Network Density: Deep, well-connected community

Everyone must be willing to give back to his community.

Government: Strong government support for and understanding of significance of startups to economic growth. Additionally supportive policies should be in place

Talent: Broad, deep talent pool for all level of employees in all sectors ...

Support Services: Professional services (legal, accounting, real estate, insurance, consulting) are integrated, accessible, effective, and appropriately priced.

Engagement: Large numbers of events for entrepreneurs and community to connect, with highly visible and authentic participants.

Companies: Large companies that are the anchor of a city should create specific departments and programs to encourage cooperation with high-growth startups.

Capital: Strong, dense, and supportive

—Scott Case, Donna Harris, Startup America Partnership, @tscottcase, @dharrisindc

startups is that they don’t require anyone’s permission. Great entrepreneurs just start doing things.