Organising your venture’s supporters

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Organising your venture’s supporters Priscila Bala of Octopus Venture Capital, (formerly Mentor Director at the Yale Entrepreneurial Institute) has emphasised the value of advisers, and suggested how to set up and make good use of them.

Savvy enterprise start-ups understand the power of relationships. When it comes to entering new markets, gaining the support and endorsement of well-connected or local industry players can make all the difference. Advisory board members can fill knowledge and network gaps within your company or your own background – to help with product development or sales strategy or to introduce them to valuable clients, suppliers and investors.

An advisory board can be a bounty when you find the people who are experts at solving a set of problems you have, engage them with clear expectations and rewards, and turn to them whenever you have issues related to that problem. To find the right people, you have to be clear on what problems you want them to help you solve.

For example, Steve Blank [of I-Corps] suggests (1) that there are five primary types of advisory board members:

  1. Technical advisor: for product development advice
  2. Business advisor: for business strategy and guidance
  3. Customer advisor: for value proposition and positioning advice
  4. Industry advisor: for domain expertise
  5. Sales advisor: for market tactics and demand creation

Beyond these, it’s important that you identify the crucial challenges in your scaling up roadmap, to determine what kinds of advisors will be strategic to you, and which will complement your team’s skillset.

Go for ‘stars’! Advisory member relationships can work particularly well if the candidates you are courting are well-connected leaders in their space

Clarifying your objectives will also enable you to have you targeted conversations. For example, if your goal is to grow a base of customers in a particular vertical, try the following:

  1. Ask your customers or prospect customers who they respect.
  2. Ask your Board of Directors and industry connections for referrals.
  3. Have a point-of-view related to the industry, and build a profile and relationships based on your expertise.

If you are a first-time entrepreneur or an early-stage entrepreneur, there are often many apparent candidates but who won’t be valuable advisors for your business. Ask for referrals within the industry and spend time getting to know the advisor. Before formalizing any advisor relationship, ask for their input on a few demonstrative issues — how would they approach them? Who might they reach out to? What strategies have they seen in the past? What were the outcomes? Which risks do they anticipate?

Compared with Board members, you can focus the work and input of those advisors much more narrowly to their expertise, there is more flexibility on the time and level of engagement the advisor can offer and you can successfully engage a larger group of advisors within this mandate.

Most companies don’t engage their advisory board in meetings as a group; instead they reach out to specific advisors as needed, and set different frequency for those interactions.

Strong advisors are busy people. Since you likely will only have a limited amount of their time each week or month, be rigorous about setting agendas for each meeting or call, be explicit about actionable items between conversations (your action items and theirs), and send follow-up summary emails after every meeting. Some entrepreneurs find it helpful to use a running Google Doc shared with the advisor to keep track of ongoing notes together.

Ongoing feedback is another helpful tactic to successful advisor relationships. Mention to the advisor up front that you will want to spend 15–20 minutes in your third or fourth meeting talking through how the relationship is going to-date, and how you can improve your collaboration. Advisors are professionals, and should be receptive to feedback. Some relationships will work better with a set schedule of interactions; others might require more flexibility and unfold in “bursts” of support. Work with the advisor to find the style and cadence that works best for your partnership.

Compensate your advisors. In addition to aligning incentives and recognizing that expert time is valuable, compensation will make you more disciplined about the calibre of advice and support you are seeking and getting. It formalizes the professional relationship you expect from advisors, as it does your commitment to receiving their open and honest expert feedback, rather than having them tell you what you want to hear.

Advisory boards can be a powerful asset, accelerating your access to people and solutions that are key to your company’s success. Advisors can make strategic introductions, help you secure contracts or fundraise, attend strategic meetings with you, help you secure press coverage for your company or serve as a reference for your product or your work, and help you recruit other members of the advisory board or your team.

(1) My work at IdeaLondon came up with exactly the same analysis.

See the full article at: https://medium/octopus Ventures/how-advisory-boards…

John Whatmore, September 2017

 

 

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France’s new Incubator

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France opens a giant new Incubator Aiming to attract in the next month a thousand young ventures to its halls, France’s vast new incubator (a refurbished train depot in Paris called Station F), has just been opened by President Macron (‘preaching to the choir’ as one correspondent called his speech’). It provides all sorts of spaces for young businesses that ‘have a business prototype and a path to growth’, together with other related organisations.

Station F is the brainchild of a French billionaire from the tech startup world and his project manager, a lady with a serious background in a variety of startups – who has focused on health, finance, education, and even fashion. It is supported by France’s increasing efforts to become second only to the UK in startups in Europe; and it is backed by Facebook and Amazon.

Its young ventures still face likely problems – in attracting talent, and around French attitudes to risk. Questions hang over the incubator itself and its sheer size, and the extent of the necessary eco-system in Paris. And later in their life they face France’s tough labour laws.

In 2014 the French government started a sprawling programme to support tech, in which 13 cities were designated hi-tech hubs; and it supports the growth of French startups in dozens of foreign cities. The French government has created numerous investment vehicles and offers loans and grants to fund startups and accelerators on easy terms. France has created a special tax status for innovative new companies; and Macron has pledged to do more about exemption form wealth tax and liability to capital gains taxes. ‘While more venture capital is flowing into France, the levels still lag Britain, Germany and Israel’; but France’s angel network is only a quarter the size of the UK’s, reports the New York Times.

The rationale for housing startups in incubators is that they have great opportunities to learn from their fellow travelers, and increasingly so from those in the same field as themselves. Claimed to be the largest incubator in Europe (and more than four times the size of Imperial’s new incubator at its White City campus – just completed, which is likely to take months to fill; see link below), making Station F into an effective growth community will itself be an innovative task for those who run it (like ENTIQ – see below.)

What makes Silicon Valleys’ eco-system so effective is perhaps the intimacy of interactions between early stage ventures and those with related expertise and experience. In Accelerators (and in some UK incubators), mentor cohorts are large and their management is proactive. But they take time to set up and are difficult to manage effectively (see link below – BioHub).

Facebook set up an artificial intelligence hub in Paris several years ago to recruit talented engineers at France’s elite universities; and is now anchoring a programme in Station F called Startup Garage, which will mentor every six months 12 budding tech entrepreneurs in health, education and other fields. In exchange for coaching, Facebook will observe how the startups approach issues like privacy, and identify cutting-edge tech trends.

Despite the gross hype around the grand Station F, one French citizen is reported as commenting: ‘France can definitely become a startup nation: the potential is there’.

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See on my website: johnwhatmore.com:

 Imperial White City to house vastly more space for young businesses With four times more startups and scaleups than on its South Kensington site and on ten floors, managing collaboration among a wide spectrum of parties and across big spaces will be a new and hugely challenging task. May, 2017. (http://wp.me/p3beJt-k0)

Making science deliver: BioHub – an outstanding new Incubator BioHub has been assiduously building programmes of support and development for research based businesses.  June, 2017 (http://wp.me/p3beJt-k4)

 New support for startups and scaleups in East London ENTIQ’s new innovation centre in the old Olympic Park will be a great new signpost but the peloton needs more than that: a new network is needed to spur incubators and co-working spaces to develop support services like this one – for the growing number of young businesses. Sept, 2016. (http://wp.me/p3beJt-gu)

John Whatmore, July 2017

 

 

 

 

 

 

 

Getting instant help from fellow startups

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Getting instant help from fellow startups The School for Social Entrepreneurs recently brought together a couple of cohorts of startups, each for half-a-day, to reflect together on the health of their business and on its future – with the help of a simple ‘game’.

 

I have just come across an intriguing approach to opening up discussions about startups’ problems and opportunities – with a touch of magic that gets beyond defences and is revelatory.

The test version of this process looked like a board game, but it simply provided hooks that encouraged the leaders of these startups to elaborate and then discuss the current state of their startup, and their thoughts about its future needs – in a reflective and highly supportive atmosphere. It met with rave feed-back (1).

In turn each participant was first asked to consider the current state of their business. They were invited to place a number of white counters on which were inscribed different but very common aspects of businesses (such as ‘Objectives’, ‘Talent management’, ‘Team spirit’) onto a board in one of seven interlocking spaces (a Venn diagram – of Customers, Employees and Strategy), and then to attach words to their actions and talk briefly about their reasons for so doing.

Each cohort was of around half-a-dozen startups; and the others round the room, who were on the same journey but with both similar and different backgrounds and experience, were then asked to help elucidate those issues and their future plans.

Next, the first exercise was repeated but placing the counters so as to illustrate where they would like their business to be in the future, then explain their reasons and elicit comments from other members of the group, as before.

Then they were asked to place red or green counters on top of key white counters (the green to indicate existing strengths for achieving one’s goal; and red to highlight those problems or weaknesses that must be resolved to achieve that goal); and finally each person identified the actions they would take to deal with the key issue confronting them; and was encouraged to state when they would do so.

In this particular event, most of the white counters tended to be placed in the ‘Customers’ section of the board, and most of the discussion was about finding customers and about customer wants and needs, but different circumstances elicit very different variations to these discussions.

Touching a counter seems somehow to turn its story magically into subjective reality; and the whole process enabled participants to get valuable input from fellow travelers in quick time.

Many are the recent support programmes that have been based on peer-to-peer group meetings: RBS’s Growth Builder, the Judge Institute Scaleup programme, the US-originated Vistage programme, the Belgian Plato programme and the very concept of the Accelerator.

They herald a great opportunity for sessions like this in co-working spaces and incubators, where they can provide not only valuable help from fellow travelers, but also links that will encourage them to meet again and continue to exchange valuable experience.

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(1) SSB the authors of this programme can be contacted through me. SSB would be interested to run a trial in an incubator – if you are interested please contact me at john.whatmore@btinternet.com

See also: Support programmes for young ventures in incubators New support programmes for scaleups are of a design that could easily be replicated in incubators and their ilk, and could help generate big steps in growth. Oct 2016 http://wp.me/p3beJts-gB

 John Whatmore, June 2017

Imperial’s new Maker facility

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Imperial’s brand new Maker facility – at White City

On Imperial’s new White City site (about which I wrote last), in addition to the Innovation-Hub, there is to be a new £5M prototyping and innovation facility: the Invention Rooms – open to college members, industry, SMEs and local community and dedicated to supporting the next generation of investors, entrepreneurs and tech leaders.

 There is already a network of six prototyping spaces, centred around the South Kensington Campus which support the activities of the Imperial College Advanced Hackspace (‘ICAH’). They provide access to metal work, wood work, additive manufacturing and 3-D printing, electronics and robotics amongst others. Its mission is to deliver skills, resources and people to support its users in the development of new ideas and their transition to other commercialisation networks within the university.

Already with nearly 2,000 members, it is growing at a rate of 100 new members every month, drawing members from all Faculties within Imperial College i.e. Engineering, Natural Sciences, Medicine and the Business School.

This growth, coupled with increased engagement with commercial organisations – from micro companies and SMEs to OEMs – and the local community, prompted the vision for the Invention Rooms on the new campus at White Cilty. They consist of four large areas:

  • a new hackspace that will extend the capabilities of the ICAH network,
  • a makerspace for local community engagement,
  • an expo-centre and
  • a co-working space on the floor above.

The new hackspace facility at the Invention Rooms (right next to White City Tube) will lead to co-location of the full prototyping ecosystem of the college: metal work to bio-hacking to microfab to 3D printing to electronics – a  place where engineers, medics, life scientists,  mathematicians, physical scientists – people with common  interests from inside and outside the university (like  Ford’s Techshop Detroit) in device prototyping, computers,  machining, science, synthetic biology, digital art,  robotics, automation or diagnostics can meet, socialise and  collaborate.

As prototyping technologies become de-skilled these will also feed into ICAH giving its stakeholders a competitive advantage in their enterprises. The goal is to become a hub for providing such partly-deskilled tools; speeding up the rate at which researchers cross boundaries.

The Invention Rooms is a distinctive venture, both in terms of scale and ambition, within a university environment: as large is its socialising and public events area; and as large again its ideation and prototyping space and its outreach community makerspace – co-delivering impact in the local area.

These are all complemented by a hot-house facility on the floor above. By providing touch-down desking, meeting rooms and mentorship, these will further drive co-location of college members with the public, entrepreneurs, SMES and industry partners.

A new prototyping space focussing on molecular hacking that will open in the nearby Molecular Sciences Research Hub in early 2018 will make an added contribution.

As these new spaces go live, the ICAH support team will continue to grow, from ICAH fellows, to Hackers in Residence, Advanced ICAH Fellows, ICAH technicians and ICAH management – ensuring that the ICAH community will benefit from an extensive team of experts as they develop their ideas.

John Whatmore, May 2017

 

Growth Builder’s first cohort

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‘Growth Builder’ builds and grows Forty high-growth business leaders have spent the past 12 months working together on their businesses, gaining vital knowledge to help them scale.

Upcoming: I focus next on two radical new incubators: BioHub at Alderley Edge, a recent winner of Incubator of the Year; and the new Incubator and Maker facilities at Imperial’s new campus at White City in London.

Growth Builder’s claim is that it is a programme designed by entrepreneurs for entrepreneurs with the aim of helping established British businesses to take on the next stage of growth.

A collaboation between a number of interested parties, it offers an educational programme to a curated peer network of ambitious business leaders, along with access to introductions and networks through its cross-sector partners. It claims to be the first of its kind to work with Government, universities, entrepreneurs, risk capital and leading UK corporates (as is REAP, MIT’s Regional Acceleration programme – one of its sources).

This first cohort included businesses from the tech, manufacturing and retail sectors. Meeting monthly over twelve months for half a day at a time, the focus of meetings alternates between learnings; and then alternate months in smaller selected groups, discussion about how to apply the learnings – supported by accredited consultants/coaches.

Ben Fletcher, its chair (Professor of Occupation and Health Psychology at the University of Hertfordshire), commented that poorly defined objectives were a common focus – reducing their range, an important outcome; as was understanding the triggers of change; and that it takes time to effect changes back in the business. It was important to be able to assure participants of the quality of coaches and their reliability. Participants reported gaining valuable insights from the programme.

Growth Builder is now looking to recruit a second cohort in London during 2nd quarter 2017 and hopes to launch elsewhere in the UK later in the year, with the North East and South West of England among the potential locations.

See also: Progressive support programmes for SMEs – a must! In the course of their work the authors of the just published Barclays Report – on the scaling up of SMEs – participated in a new programme at the Judge Institute for CEOs of hi-growth SMEs, to which they give a nod of approval in their report. Innovate UK should promote this kind of programme – of which there are several similar. May 2016 http://wp.me/p3beJt-fn.

 

John Whatmore, May 2017

Re-shaping support for SMEs

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Making the most out of young businesses Lessons are arriving from all sides about early-stage businesses (Village Capital, Nesta, Scaleup Institute, Growth Builder, IDEO). What do they tell us? Shouldn’t Innovate UK be taking a bigger role in the support of innovation practice?

 Most striking is the extent to which Accelerators – a fast growing phenomenon – have become the province of corporates. They force new businesses to focus not just on good ideas but on important (commercial) issues; they know their own field – its problems and opportunities; they provide invaluable support; and they are willing and capable investors (Wayra Lab, Cisco, John Lewis, and many others.)

However, this does leave great swathes of the population and of the economy untouched by support for innovation eg the public sector, several industries, large parts of the country and the everyday lives of most people. The Nesta report identifies some; and Geoff Mulgan, its Chief Executive, has focused on others, not least in the public sector.

The main sources of funding for Accelerators are now Corporates, the Public sector and Philanthropics. Venture Capital is a source for only 8% of Accelerators (and 2% of Incubators). The Nesta Report reveals that in the UK both Incubators and Accelerators rely heavily on public funds – from a variety of sources (in many areas and sectors for a substantial proportion of funding and in some, completely.)

It is now well recognised that the greatest opportunity for the development of entrepreneurial eco-systems is in ‘sectors that have a deep and local focus’; and the Scaleup Institute is busily working with LEPs to help them to do so.

However, innovation strategy and practice are evolving; and there is still little experienced management of proactive support.

Recent research by IDEO revealed something surprising: neither a more traditional approach to product development – coming up with three good options, analyzing them, and choosing one to move forward with, nor the lean startup approach – taking a best guess, piloting it, and then pivoting based on what works – is the most effective way to launch a new product. Instead, when teams iterate on five or more different solutions, they are 50% more likely to launch a product successfully.

‘Entrepreneurial support organisations are critical infrastructure for cities, communities and for corporates; and they too need clearly articulated support’ says Village Capital, a major US philanthropic business. The most common form of support is mentoring, but the promotion and management of mentoring (and of support in general) is a role that is extremely rare, but much needed, and rarer in Incubators than in Accelerators. Moreover a different format of support programme is also emerging – in the form of regular monthly meetings – especially of hi-growth businesses – based round collaborative learning.

There is at present no body that adequately encompasses Incubators and Accelerators – to help steer policy, identify best practice, and foster training and development in innovationeering. Innovate UK should take urgent steps to create an appropriate KTN.

John Whatmore, May 2017

Raising the Mentoring Game

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Raising the mentoring game

Stops and starts have marked the very slow progress of mentoring in the UK. As the ultimate beneficiaries of mentoring, funders of new businesses should be leading the way.

The big question is (and was) why hasn’t mentoring taken off in the UK. Its best known successes include Richard Branson (said to have four mentors). the Princes Trust, and in Accelerators. Two levers were touted at the recent Annual Conference of the Association of Business Mentors (‘ABM’), both winners of the ABM’s Award for Commitment to Mentoring, but both embryonic.

Two initiatives

National Mentors Day’s third incarnation, masterminded by the redoubtable Chelsey Baker, will take place in October 2017, as a seriously bigger, more widespread, much more inclusive and hopefully more impactful day. And Janette Pallas, now at the University of Warwick Science Park, received this year’s award for her pioneering work in creating ecosystems of support in incubators and their ilk – a way forward being strongly encouraged in two recent regional meetings by the Scaleup Institute.

Non-progress

It is now several years (2011 to be precise) since the government made a commitment to put 10,000 mentors in place; and mentoring was a key part of the government’s Growth Builder programme, started in   2012, but alas for some strange reason withdrawn in 2016. Mentoring is an integral element of recent scaleup programmes, such as the Judge Institute’s and the RBS/UCL programme, but the mentoring scene is necessarily local and its institutions fragmented.

                                                   Funders should take the lead

It would be good to see funders take the initiative (eg VCs and Angel Funds) and along with innovation centres and development programmes (where mentoring is usually mandated) work in partnership with sources of mentors like the ABM (eg running joint workshops). The likes of the ABM could encourage mentoring by appointing ambassadors, and running more awards schemes or prizes. What is needed is a campaign of the extent of the Public Understanding of Science.

John Whatmore, March 2017