2. Agenda
• What is a Thriving Community?
• Baseline Market Factors
• Trends
• In Early Stage Investing
• In Markets
• Q&A
3. About Dave
• Serial Entrepreneur - Five Startups, 2 sold, 1 closed, 2 Active.
• Board Member - Mid Market Companies, six exits
• FormerVC - $250M Intl Fund
• VP Programs & People at UP Global
• Husband & Dad @DaveParkerSEA
www.UP.co
4. About UP Global
• Founded Merger of Startup Weekend and Startup America
• Non Profit team of 50 people in Sao Paulo, Mexico City,
Delhi, London and HQ in Seattle
• Committed to the right programming at the right time to
increase your odds of success and speed your process
7. What is a Thriving Community?
• Startup Density & Community Driven
• <1Year Old Companies
• 1-5Year Old
• Tech and Information and Communications Technology (ICT)
• Community Metrics will predict Macro Economic Metrics -
but over time
8. Thriving = Startup Density
• For cities over 1MM population (greater metropolitan area),
good “thriving” startup density is ~225 startups (1-49
employees) per 100,000 people.
• For cities btw 500k - 1MM, ~175 startups (1-49 employees)
per 100,000
• For cities btw 250k - 500k, ~150 startups per 100,000
Prior to 2013 there was no widespread data on startups, all publications are within the last year. US City
data only as provided by Kauffman & Konscal
9. LinkingYoung Firms & Job Creation
• Young High Tech and ICT businesses, as opposed to small
business play an outsized roll in job creation
• Differentiating growth oriented startups from other young
and/or small business is critical
• High tech start lean - but grow so rapidly that it offsets job
losses from early stage business failures
• Majority of growth is <1 year and 1-5 year old companies
10. WatchingYour Numbers
• Census Data for Self Employment ≠ Entrepreneurship
• # of Incorporations vs. High Growth
• Employment #s
• Investment/Exits
• Tax Rev
11. • Startups are mobile - they will find a way, even if it means
moving, once they move, they aren’t likely to return
• Policies may be Causation or Correlation
• Factors in our control
• Factors out of our control
Challenges to Thriving Communities
12. How Corporations Help
• Engage with new companies - yes there is a risk, but they
could provide innovation
• Pay <15 days
• Be a subject matter expert
• Be a connector
15. Timeframe to Thriving Community?
• Average time fromVenture Investment to Exit is 4.7-7Years
(Venture Source)
• Angel Investment to Exit is 7Years (Angel Capital
Association)
• All MajorVenture funds have a 10Year LLP agreement
Regardless of the data - it’s going to take a while
16. Is the Investment Worth It?
• Top 10 Metro (MSA) US Areas in 1990 were still in the top
20 in 2010
• Once you built it, you should be able to keep it
• Successful entrepreneurs re-invest in the market
• “Paypal Mafia”
17. Factors in Our Control
• Creating Startup Density
• Encouraging programming lead by the community, e.g.
Meetup, Startup Weekend, Startup Weekend NEXT,
• Accelerators - 165 worldwide, massive growth
• Angel investments
• Standard term sheets, open source legal documents
18. Factors Out of Our Control
• Culture - need to embrace failure as part of success
• Ex: not viewing failure as an outcast - UK
• Legal - Incorporation laws that don’t punish risk takers
• Ex:“piercing the corporate veil” - Singapore
• Tax - that encourage investor to get of the sidelines
• Ex: Convertible Debt - Hungary
20. CommonY Axis Factors
1. Leadership
2. Engagement & Diversity
3. Talent
4. Network Density
5. Entrepreneur Culture
6. Mentors & Coaches
7. Capital
8. Corporate Engagement
9. Support Services
10. Government Support
21. Trends in Early Stage Investment
• Growth of Accelerators - vs. Incubators
• 165+ WW that provide investment
• Women Entrepreneurs
• Early Investment
• Crowd Funding
• Simple Term Sheets/docs
22. Trends in Markets
• Knock offs - with large markets - Easy Taxi
• Consumerization of IT - DropBox
• Break up of Marketplaces - Craigslist to Gazelle
• Open Source - Github
• Wearables - Fitbit
• Over the Horizon - Big data (for Startups), Internet of things
23. Note to Startups!
• Office Hours tomorrow!
• Please read, http://dkparker.com/2013/02/19/buy-you-coffee/
• Come prepared
• Know what your next biggest challenge is before tomorrow
30. Sources
• Brad Feld, Startup Communities
• THE MOST ENTREPRENEURIAL METROPOLITAN AREA? Jared Konczal,Senior Analyst, Kauffman Foundation
• PATH-DEPENDENT STARTUP HUBS - Dane Stangler, Ewing Marion Kauffman Foundation
• Tech Starts: High-Technology Business Formation and Job Creation in the United States - Ian Hathaway, Kauffman
Foundation
• What makes city entrepreneurial - HBS
!