This document summarizes Niek Huizenga's observations about ICT startups in Silicon Valley compared to the Netherlands based on interviews and research. The main findings are: 1) Entrepreneurs in Silicon Valley see startups as an obvious career path, while in the Netherlands it is more accidental. 2) Acquiring resources is essential for survival in Silicon Valley's fast-paced ecosystem, while the slower pace in the Netherlands makes resources less critical. 3) Investors, employees and partners in Silicon Valley are willing to share risks with expectations of sharing success, while this culture is less established in the Netherlands.

1. ICT startups
Comparing Silicon Valley and the Netherlands
Presentation @ MinELI
12 April 2012
Niek Huizenga
http://www.about.me/niekhuizenga

2. 2005
2006
2008
2010
2011
2012
www.about.me/niekhuizenga

3. My observations since 2005
Netherlands
• Entrepreneurship is increasing in popularity,
but:
• Few have the ambition to grow
• Few develop (scalable) products or
services
Silicon Valley (visits in 2009, 2010, 2011)
• Entrepreneurship is a way of life
• The environment is designed for the startup

4. Data from the Netherlands
• Highest score on Total Early-stage
Entrepreneurial Activity (GEM, 2011)
•70% of new businesses is categorized as ZZP
(KVK, 2011)
• Below average score in innovation and
business growth (GEM 2011; CBS 2012)

5. Academic studies
• “Growing companies are the real
contributors to innovation, jobs and economic
development” (Acs 2011; Henrekson, 2009)
• “Encouraging more people to become
entrepreneurs is bad policy” (Shane, 2009)
• “The more business owners the merrier?”
(Van Praag, 2010)

6. Study outline
Problem statement
In NL there is no need for more entrepreneurs but
more entrepreneurs that develop innovative
products and have the ambition to grow.
Research question
What do these type of entrepreneurs need to grow
their business? An analyses between ICT startups
from Silicon Valley and the Netherlands

7. An explorative study
Open interview and two samples:
• Sample 1: 12 startup entrepreneurs and 4 experts
based in Silicon Valley
• Sample 2: 12 startup entrepreneurs and 4 experts
based in the Netherlands
Criteria of the subjects
• It is a startup “An entity designed to deliver a
scalable product or service under uncertain
conditions (Ries, 2011)”
• Active in software or Internet industry
•< 3 years old
•< 50 employees

8. Study limitations
The findings are indications
• The samples were small
•Findings can not be generalized
Only main findings are presented
• Open interviews provided a lot of other
information
The findings are not an indication of good/bad
• Similarities and differences are measured,
not the performance in SV and NL

9. Findings: entrepreneurial motivation
The will to create something
• The main reason to become an entrepreneur
is the will to create something.
Difference in incentive
• In SV entrepreneurs seem to start because it
is something they always wanted to do
whereas in NL entrepreneurship accidentally
crossed their path.

10. Findings:A battle for resources
Resources to survive
•Velocity is necessary to outperform
competition
Competitive advantage
•Reputation, track record or network of the
entrepreneur
Dynamic network environment
• The network is a dynamic market place for
resources

11. Findings:expectations
• The principle: Paying it forward
•The bigger the network the more
opportunities
• Employees and partners share the risk, but
also success

12. Summary: My lessons learned
• In SV starting a startup is an obvious career path. Most Dutch entrepreneurs
the startup accidentally crossed their path.
• Acquiring resources is essential for survival in a high speed ecosystem like
SV. In NL the pace is much slower, making the race for resources less
necessary.
• Investors, employees and partners work on expectations. They are willing to
share the risk, but you have to make them part of you startup.

13. Implementation
Opening of Launch Café – April 16th 2012
Launch Café
“The epicenter for startups in Groningen”
#LaunchCaféprovides:
#Facilities: Workspace and more
#Finance: Pre seed, loan, subsidy
#Knowledge: Support services, etc.
#Network: Introductions, events, parties
#LaunchCaféprinciples:
#FocusOnStartups #HaveExamples
#AccessResources
#PayingForward #SharedRevenues

14. Implementation
Co-entrepreneur in Tvilight BV
Spin out TU Delft
“Intelligent streetlights, reducing energy consumption”
#LaunchCaféprovides:
#Facilities: 3 desks & other facilities
#Finance: Preparing the 1st VC round
#Knowledge: Strategy, finance, operations
#Network: Introductions, events, parties
#LaunchCafégets:
#Fixed fee for use of facilities.
#ShareSuccess for invested time, knowledge
and network

15. Thanks! Questions?
Niek Huizenga
http://www.about.me/niekhuizenga

16. Point for discussion
• Does the Netherlands have an entrepreneurial ecosystem or are there only
local bubbles? (Bianca)
• Is the pay it forward culture in Silicon Valley suitable in the Netherlands?
(Beth)
• How can we stimulate and support “better” entrepreneurship instead of
“more” entrepreneurship? (Niek)