where will the next amazon or microsoft come from?
TRANSCRIPT
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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 [email protected]://www.founderscoop.com(206) 801-1080
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Chris DeVore
Previously an entrepreneur, product and business guy at…Chris DeVore
@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!
