Beyond being born and raised in Chicago and spending many years on campuses in the Midwest (BA, MBA), I worked in the tech community during the Internet Bubble and love the Midwest’s continued growth. That said, the optimistic story in TechCrunch by Jonathan Shieber, seems to be a throwback to 15 years ago with the added focus on Case’s idea of the ‘rise of the rest.’ (BTW, we were the Silicon Prairie back then — Divine Interventures, May Report, Halo – Starbelly, etc)
As the most populous city in the region, it’s no surprise that Chicago is the fastest growing hub in “Silicorn Alley” in the development of its investment ecosystem. In the first eight months of 2014 Chicago saw $6 billion in exits through public offerings and sales, including the recent sales of TrunkClub to Nordstrom, and Apartments.com to CoStar Group.But beyond the windy city, startups are cropping up across the Midwest’s silicon plains.
There is some interesting data in the article and mentions of institutions such as 1871 and Lightbank which have helped build strong infrastructure. The article does not mention the rise of the U of C Entrepreneurship infrastructure and the companies that have gone through the campus (the topic of my dissertation) and relies on quotes from power brokers such as the Pritzker clan and abstract ideas from Andreessen (a product of the University of Illinois) to strengthen the rise of the Midwest argument before returning to the Case Rise of the Rest pitch.
The article is worth reading on a number of levels, but it is worth remembering that Chicago and the Midwest were working on this long before the coasts acknowledged the ‘rise of the rest.’
Peter Thiel, one of the ‘great’ wizards of Silicon Valley has some mortal elements
Peter Thiel back in the days of PayPal
as he too has written a book and gone on a speaking and interview tour. Zero to One, by Thiel (with Blake Masters), has many interesting insights and thoughts and Steve Denning of Forbes does a nice job covering the book. From Denning:
In his book, Zero to One, serial entrepreneur Peter Thiel offers seven—sometimes surprising– tools for doing just that. They are what he calls, “the seven questions that every market-creating business must answer.”
The Engineering Question: Do you have a breakthrough technology?
The Timing Question: Is your timing right?
The Monopoly Question: Do you have something no-one else has?
The People Question: Do you have the right people?
The Distribution Question: Can you sell and market your stuff?
The Durability Question: Will you be still around in 10 years?
The Secret Question: Do you know something nobody else does?
Posted in Books, Entrepreneur Profiles, Tips & Tools
Tagged Blue Ocean Strategy, Clayton Christensen, Drucker, Forbes, Opportunity Identification, Peter Drucker, Peter Thiel, Radical Innovation, Steve Denning, Zero to One
Awesome to see coverage of young Mason entrepreneur Jade Garrett, founder of Positive Deviancy, a firm building assistive technology out of stuffed animals for children on the #Autism spectrum. I’ve been lucky enough to work with Jade and she is a dynamic student, leader, and a fine example of today’s super innovative, productive and entrepreneurial students that take advantage of their campus. From George Mason University:
Garrett, who is pursuing an applied information technology degree from the Volgenau School of Engineering, spent the summer working on a toy bear that is also a computer game controller. Designed for children with autism, the plush bear answers several needs across the autism spectrum. For instance, a plush animal is easier for some to hold for longer periods of time than a controller, and those with motor-control issues find the buttons easier to use than a track ball or keyboard.
The bear is named Computer Assisted Device Input Bear, CADI for short, and pronounced “Caddy.” It’s still in the prototype stage, but with the help of the School of Business’ Mason Innovation Lab and the Lab for IT Entrepreneurship, the bear is coming out of hibernation and making the rounds as Garrett meets those in the business of creating businesses for those with special needs.
David J. Miller:
Nice post that highlights the shift in thinking that #customer development / #lean startup demands. Also need Jason Force of EcowMowtech to read this story.
Originally posted on Steve Blank:
“You cannot teach a man anything, you can only help him find it within himself.”
One of the great things about teaching is that while some students pass by like mist in the night others remain connected forever. I get to watch them grow into their careers and cheer them on.
Its been three and a half years since I first designed and taught the Lean LaunchPad class and lots of water has gone under the bridge since then. I’ve taught hundreds of teams, the National Science Foundation Innovation Corps has taught close to 400 teams led by our nations top scientists, and the class is being taught around the world.
But I still remember a team from the first class, one which wanted to build a robotic lawnmower. It’s now been over 3 years since the team has left my classroom and I thought I’d share with you…
View original 594 more words
Been awhile lots of research and busy with new opportunities at George Mason Universities. The Campus is indeed the frontier. Three items from the frontier…
University of Chicago Booth School high growth startup GrubHub has filed for an IPO. From winning the Edward L. Kaplan New Venture Challenge to raising millions in venture capital, Matt Maloney‘s startup has been on the move.
Big celebrations in Chicago and at 1871 as a student startup from Illinois State, Packback Books, appeared on Shark Tank last week. They closed a deal with Mark Cuban. The company, founded Kasey Gandham, Mike Shannon and Nick Currier offers short term, pay per use digital textbook rentals. Kind of like renting a movie from itunes etc. Big changes in #highered #textbook market!
My dissertation, The Campus as Frontier for Entrepreneurship: High Growth Student Startups at U.S. Universities, will be completed in April 2014. The dissertation will include a case study, a database of high growth student entrepreneurs, their firms, and universities. Additionally, the work will propose 5 archetypes of high growth student entrepreneurs and will suggest a frontier framework for evaluating U.S. higher education and its value. I look forward to sharing this work as I complete by PhD from GMU’s SPP.
Posted in American Exceptionalism, Campus Eco-System, Disruption in Higher Education, Frederick Jackson Turner, Frontier Thesis, Research
Tagged entrepreneurship, GrubHub, IPO, Packback Books, Shark Tank, startups
I’ve long wondered why so many schools support a business plan/VC model through contests and course work when most of their students will never be in the running for venture capital. Over the past few years through Startup Mason and other activities, we’ve moved to a more experiential model/process for entrepreneurship education. We’ve supported action, iteration and experimentation in lieu of planning. (Though many contests demand plans and/or executive summaries).
Dileep Rao at Forbes.com has an interesting piece arguing against teaching business plans and competitions and for a more hands on approach to learning entrepreneurship. There is much good in this piece for those who care about entrepreneurship education. From Rao,
As I am constantly repeating, the capital intensive VC model has worked in Silicon Valley, but seldom outside. While 88 percent of Silicon Valley’s billion-dollar entrepreneurs used venture capital, 91 percent outside Silicon Valley did not.
This means that universities may want to consider the following:
Teach students how to build businesses using capital efficiency, not just capital intensity. Most areas do not have successful VC funds. Even if they did, most VC funds do not build home runs. The top four percent of VC funds earn about 65% of industry IPO profits. Getting money from the other 96 percent may not do much to build a great company or to make you wealthy. With capital efficiency, students learn to grow without wasting both time and their opportunity in order to seek VC, only to be rejected by VCs. VCs reject about 98-99 percent of entrepreneurs who seek funds from them
Encourage students to build their business with smarts, not money. Less than five percent of VC funding goes to startups. This means that students need to learn how to build their business, and actually get some traction, before anyone will take them seriously. Universities should teach them how to do this.
Teach sales. Selling is the oxygen of a new business. To sell is to succeed. Unfortunately, many business schools believe that teaching sales has no academic value. Without sales, there is no business.
Encourage business startups rather than business plans. Universities organize business plan competitions with the hope that wise judges can pick winners. VCs, who are the foremost ‘wise judges’ in the business, fail to reach their target 80 percent of the time. If the VCs, who are full-time professionals, fail 80 percent of the time, why do universities think that their own ‘wise’ judges can do better?
Teach all students, rather than just entrepreneurship students or business-school students, how to build a business. I have found that many business-school students do not have a new-business opportunity to pursue. I would suggest casting a wider net in the hope that students in other schools have ideas for a new business that they want to develop and grow.
If you are involved in entrepreneurship education or considering studying entrepreneurship, read this entire article by Rao as it will give you many things to consider as your approach university entrepreneurship offerings.