where will the next amazon or microsoft come from?

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Why Startups MatterHow you can help make the Pacific Northwest a global innovation hub

Bellevue Rotary

September 13, 2011

Chris DeVore, General Partner, Founders Co-opchris@founderscoop.comhttp://www.founderscoop.com(206) 801-1080

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Chris DeVore

Previously an entrepreneur, product and business guy at…Chris DeVore

chrisd@gmail.com

@crashdev

General Partner @

A Seattle native with East Coast + Bay Area perspective…

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Topics

• Why startups matter• How we’re doing• What it takes• What you can do

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Why startups matter

In 2008, US venture-backed companies…

– Employed 12.1MM people – Generated $2.9T in Revenue– Represented 21% of US GDP

Source: National Venture Capital Association (NVCA)

Most new job creation happens in early-growth stage companies

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Why startups matter here

“The key to economic growth lies not just in

the ability to attract the creative class, but to

translate that underlying advantage into… new high-tech

businesses and regional growth. ”

Richard Florida, The Rise of the Creative Class, 2001

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A global war for talent

Between1995-2005…

• 52% of Silicon Valley startups were founded by immigrants

• Most came as students• 74% held graduate or

post- graduate degrees

• 75% were in sciences, engineering or mathematicsIn a recent survey less than 20% of foreign students said they want to stay

permanently

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How are we doing?

“From bad to worse: State slips to 10th in venture

capital investment”John Cook, GeekWire, July 20, 2011

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That bad? Really?

Rank State Deals $ Invested (MM)

1 California 417 $3,763

2 Massachusetts 104 1,075

3 New York 88 590

4 Texas 40 252

5 Virginia 19 205

6 Colorado 21 204

7 Illinois 22 155

8 Arizona 5 157

9 Pennsylvania 35 128

10 Washington 27 126

Source: PriceWaterhouse Cooopers MoneyTree Report, 2Q 2011

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How are we doing?

“Seattle should be the envy of any non-Silicon-Valley tech community in the

country... yet somehow all of the neurons don’t yet seem to be firing as powerfully

as they need to be.”

Mark Suster, “A Few Key People Really Can Make a Huge Difference”, TechCrunch, May 5 2011

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What does it take?

1. Talent2. Leadership3. Anchors 4. Heroes 5. Attention 6. Recycling7. Capital 8. Time

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Talent

Attract the most talented + passionate engineers in the world

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Leadership

Cultivate + support leaders who build community

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Anchors

Strong + diverse “platform” companies + industries

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Heroes

Bigger-than-life local heroes to show it can be done

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Attention

Local media that get it + stories worthy of national attention

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Recycling

Engagement by prior generations of successful entrepreneurs

“When I think about the history of Silicon Valley and startup ecosystems in general, this is the pattern I see.

Entrepreneurs, angel investors, and VCs take the profits from one deal and turn

around and invest in more deals”

Fred Wilson, “Recycling Capital”, April 17, 2011

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Capital

Local and out-of-town VCs

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Time

“Get ready for a 20-year journey. Most entrepreneurial communities ramp up over a three- to five-year period and then stall

or collapse… It takes a core group of leaders — at least half a dozen — to

commit to provide leadership over at least 20 years.”

Brad Feld, “How To Create a Sustainable Entrepreneurial Community”,

October 31, 2010

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How much time?

1910

1960 1970 1980

2000

1990

Silicon Valley wasn’t built in a day:6+ generations of technology innovation, market success and redeployment of talent + capital

Microwaves/Defense

PersonalComputers

IntegratedCircuits

Internet

1930

1940 1950

1920

TestEquipment

VacuumTubes

Venture Capital

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What can you do?

1. Start2. Mentor3. Invest4. Advocate

Get involved!

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Thank you!

Chris DeVorechris@founderscoop.comTwitter: @crashdev(206) 801-1080