Support that needs to be proactive

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Support that needs to be proactive Founders sometimes know little about the fields which they are aiming to enter – or about business. Those who manage any kind of co-working arena need to be able to link their young businesses with people whose experience and expertise meet their often fast-changing needs.

Brent Hoberman once described life in a startup as like throwing yourself off a cliff and learning how to build an airplane on the way down. ‘Every week a new issue about which you had never thought before’, said one founder. So how can young businesses be supported to help them identify and find solutions to problems they have never encountered before?

The Director of incubator Sussex Innovation Centre – an experienced expert in young businesses, makes himself available in the café every morning for an hour or so – for anyone to come and discuss a problem.

YCombinator, Watershed Bristol and Entrepreneur First all require their young businesses to meet weekly where a member of each team has to talk to other members of their cohort about their problems, their progress and their plans (notes are circulated afterwards at Watershed to the entire cohort).

The mentor manager of one recent cohort at Startupbootcamp’s Fintech accelerator made it his business to meet each team in the cohort once a week, and ask about progress and problems – each week with a different member of the team.

Wayra Lab, an accelerator (for scaleups) requires its young businesses to have regular monthly meetings with their shadow board, that includes two outside ‘directors’ – a schedule that is being adopted by most growth programmes – for their peer-to-peer meeting groups with advisers.

At BioHub, (last year’s Biotech Incubator of the Year) – home to 200 young businesses, the Incubator Manager aims to meet every team once a month; at the Tramperies, proximity to existing trade businesses makes access easy to experts on many topics. At Cockpit Arts’ incubator – home to 140 young businesses, many of them avail themselves of peer-to-peer ‘action learning’ meetings, regular discussions with the team of business coaches, and referral to specialist advisers. But I know of some incubators that do not have mentors with whom you might be put in touch.

The essence of informal meetings like these is that they are different to Board Meetings in that they are not so much about policies, organisation and management as about current obstacles and how to get over them (why is progress slow; what makes the product fail occasionally; who are the best customers for this product) issues that frequently occur in young businesses, and where appropriate experience and expertise can make a timely and vital contribution.

The problems for the accelarator or the incubator are how to stay abreast of each business’s current problems and how to bring the best help to bear onto each problem.

Paul Miller at Bethnal Green Ventures simply asks weekly of each startup in his accelerator programmes:

  • What have you achieved last week
  • What will you achieve next week
  • What is stopping you, and
  • What have you learned.

Thibaut Rouquette, Mentor Manager at Startupbootcamp could find someone with the necessary experience from among the large cohort of its mentors to whom he had close access; and if he could not find an appropriate expert, he would use Google to search recently held conferences in order to find the name of an expert, and then e-mail to ask him or her to have a conference call with the startup – from which other help might follow.

Priscila Bala of Octopus Ventures commends finding and nurturing relationships with individual advisory board members; but for startups and their ilk, it is someone in the accelerator or the incubator who has to provide the necessary nexus.

John Whatmore, July 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

 

 

 

 

 

 

 

Big bets on big ideas

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Big bets on big ideas – by philanthropists ‘Problem first, tool second’ is a maxim that is common among philanthropists, but far from common in the startup world.

We celebrate the fast growing entrepreneurial culture, but too many startups are ‘noddy projects’, built on exploiting little more than convenience or alacrity; often led by people with scant knowledge or experience of management or about the sector which they aim to enter and its customers.

Many fewer are the enterprises that start by identifying major needs or opportunities and building a business to fulfil them. Among these are the Young Foundation in the UK, which has long supported social enterprises, and Village Capital in New York, which has raised funds and then used them to bring experts to bear on major world problems.

But also there are individuals who have made millions and then sought to use their wealth to attack these problems, such as Bill Gates and Mark Zuckerberg. Do their approaches tell us anything about how we could address bigger issues and address them better?

What is common to most of them is that they aim to use the high level of their own expertise with which they have achieved their own success, and do so in wider, more beneficial fields where the returns are not necessarily financial.

Soon after Dustin Moskovitz, a Facebook co-founder, and his wife began their philanthropy five years go, they partnered with a charity research organisation called Give Well, that identifies projects that ‘provide outsize human benefits for the dollars invested’, through which they gave substantial sums, inter alia to a programme for distributing mosquito nets to reduce malaria, and to a programme that gives cash directly to poor people in Kenya and Uganda. More recently they have chosen to fund projects that mitigate potential global catastrophes, like an epidemic of a deadly disease, biological warfare and the dangers posed by artificial intelligence.

‘Tech people tend to be more interested in early-stage startups’, said one expert, ‘they typically support disruptive new ideas, get more involved in their giving and show a willingness to move quickly to another approach when one fails.’

Zuckerberg and his wife (who is a doctor) chose to invest funds in efforts to build basic tools to help the whole scientific community to make breakthroughs in research. A substantial sum went to create a new research institute in San Francisco – the ‘Biohub’, whose first project was to map all the cells in the body and set up a rapid strike force to tackle outbreaks of infectious diseases like Ebola and Zika viruses.

And they aim to advocate for more private money for this purpose, and will ‘likely take ownership stakes in for-profit companies doing promising work.’ Their multipronged approach – gifts, VC investments in businesses with social missions, and policy advocacy is described as ‘giving them maximum flexibility’.

Pierre Omidyar , founder of the eBay online auction and retail site, was an early pioneer of this concept. His philanthropic organisation focused on efforts to bring financial services to underserved populations. It financed a non-profit that makes microloans in Africa, Asia and Haiti; and it has invested in a peer-to-peer lender and in a company that provides insurance to low-income people in emerging markets. He participates in an advocacy group that partners with governments and others to encourage the distribution of money digitally instead of through cash handouts. ‘We have a motto here: problem first, tool second’, said the managing partner of his Foundation – an approach ‘widely adopted by the region’s philanthropists’.

The Omidyar Foundation which focuses on early-stage projects, also takes board seats and provides networking opportunities and training to the organisations it finances. ‘Half of the organisations report that our non-monetary assistance is as valuable as our monetary assistance’, says the managing partner.

Measuring success ‘is a bit of a fool’s errand’, he has said; but proactive, they are. At all events, principles like that of focusing on underfunded yet highly effective charities seem to remain paramount. So far we have rarely seen comparable individuals or organisations in the for-profit field.

Source: New York Times, 8.11.2016

John Whatmore, January, 2017