CONTENTSForeword

Preface

Acknowledgments

ChapterOne:Introduction

TheExampleofBoulder

HowthisBookWorks

ChapterTwo:TheBoulderStartupCommunity

BoulderasaLaboratory

BeforetheInternet(1970–1994)

Pre-InternetBubble(1995–2000)

TheCollapseoftheInternetBubble(2001–2002)

TheBeginningoftheNextWave(2003–2011)

AnOutsider’sViewofBoulder

ChapterThree:PrinciplesofaVibrantStartupCommunity

HistoricalFrameworks

TheBoulderThesis

LedbyEntrepreneurs

Long-TermCommitment

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FosteraPhilosophyofInclusiveness

EngagetheEntireEntrepreneurialStack

ChapterFour:ParticipantsinaStartupCommunity

Entrepreneurs

Government

Universities

Investors

Mentors

ServiceProviders

LargeCompanies

TheImportanceofBothLeadersandFeeders

ChapterFive:AttributesofLeadershipinaStartupCommunity

BeInclusive

PlayaNon-Zero-SumGame

BeMentorshipDriven

HavePorousBoundaries

GivePeopleAssignments

ExperimentandFailFast

ChapterSix:ClassicalProblems

ThePatriarchProblem

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ComplainingAboutCapital

BeingTooReliantonGovernment

MakingShort-TermCommitments

HavingaBiasAgainstNewcomers

AttemptbyaFeedertoControltheCommunity

CreatingArtificialGeographicBoundaries

PlayingaZero-SumGame

HavingaCultureofRiskAversion

AvoidingPeopleBecauseofPastFailures

ChapterSeven:ActivitiesandEvents

YoungEntrepreneursOrganization

OfficeHours

BoulderDenverNewTechMeetup

BoulderOpenCoffeeClub

StartupWeekend

IgniteBoulder

BoulderBeta

BoulderStartupdigest

CuNewVentureChallenge

BoulderStartupWeek

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EntrepreneursFoundationofColorado

ChapterEight:ThePowerofAccelerators

TheSpreadofTechstarstoBostonandSeattle

TechstarsExpandstoNewYork

AcceleratorsareDifferentthanIncubators

UniversityAccelerators

ChapterNine:UniversityInvolvement

SiliconFlatirons

SomeComponentsofCUBoulder

ChallengestoEntrepreneurshipProgramsatUniversities

WhytheyDon’tWorkinIsolation

TheRealValue—FreshBloodintotheSystem

ThePowerofAlumni

ChapterTen:ContrastsbetweenEntrepreneursandGovernment

Self-AwareVersusNotSelf-Aware

BottomUpVersusTopDown

MicroVersusMacro

ActionVersusPolicy

ImpactVersusControl

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ChapterEleven:ThePoweroftheCommunity

GiveBeforeYouGet

EveryoneisaMentor

EmbraceWeirdness

BeOpentoAnyIdea

BeHonest

GoforaWalk

TheImportanceoftheAfter-Party

ChapterTwelve:BroadeningaSuccessfulStartupCommunity

ParallelUniverses

IntegrationWiththeRestofColorado

LackofDiversity

Space

ChapterThirteen:MythsaboutStartupCommunities

WeNeedtoBeLikeSiliconValley

WeNeedMoreLocalVentureCapital

AngelInvestorsMustBeOrganized

ChapterFourteen:GettingStarted

GettingStartupIcelandStarted

BigOmaha

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StartupAmericaPartnership

DoorDoNot,ThereisNoTry

AbouttheAuthor

Index

ExcerptfromStartupLife

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Coverillustrations:Silhouetedfigure:©Leontura/istockphoto;Silhouetedwomenandman:©edge69/istockphoto;CityBackground:C.Wallace

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Copyright©2012byBradFeld.Allrightsreserved.

PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.

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LibraryofCongressCataloging-in-PublicationData:

Feld,Brad.

Startupcommunities:buildinganentrepreneurialecosysteminyourcity/BradFeld.

pagescm

Includesindex.

ISBN978-1-118-44154-1(cloth);978-1-118-48333-6(ebk);978-1-118-48330-5(ebk);

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1.Entrepreneurship.2.Newbusinessenterprises—Environmentalaspects.3.Communities—Socialaspects.I.Title.

HB615.F452012

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2012028586

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ToLenFassler,whohastaughtmemoreaboutentrepreneurshipthananyoneelseonthisplanet.

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FOREWORDDuring the past three decades, startups in the United States have creatednearly40millionAmericanjobs,allthenetjobcreationinthecountryoverthat period. As we recover from a deep recession, our ability to innovate,build iconiccompanies,putpeoplebacktowork,andinspire theworldwillonceagainbedeterminedbywhetherentrepreneurscontinuetakingchancesonadreamtostartabusiness.Afterall,thestoryofAmericahasalwaysbeenthe story of entrepreneurs going against the grain to imagine a bettertomorrow.

On January 31, 2010, President Obama announced the creation of theStartup America initiative, telling the American people, “EntrepreneursembodythepromiseofAmerica:theideathatifyouhaveagoodideaandarewillingtoworkhardandseeitthrough,youcansucceedinthiscountry.Andinfulfillingthispromise,entrepreneursalsoplayacriticalroleinexpandingoureconomyandcreatingjobs.”

On that same day we launched the Startup America Partnership, theprivately funded component of the Startup America initiative, based on asimplepremise:theleadingsourceofjobcreationinthiscountrycomesfromyoung companies starting up, growing, and innovating. One of our goalsthrough the Startup America Partnership is to support regional startupecosystems throughout the country where entrepreneurs, investors, localleaders,universities,andotherpartnersfosteranenvironmentripeforstartupactivity.

BradFeldhasbeenapioneerindevelopingregionalecosystems,firstwithTechStars, andmore recently asoneof the leaderson theStartupColoradoregionalinitiative.Hehastakenwhathehaslearnedandcreatedthisbooktohelp shape the thinking about best practices for developing startupcommunities.

At America Online (AOL), Zipcar, and LivingSocial, I’ve experiencedfirsthand thesignificantcontribution thatastrongentrepreneurialecosystemhastoabusiness.WhileSiliconValleyis theiconicexample,weareseeingsuccessandpotentialinotherplacesaswell,likeWashington,D.C.;Chicago;Denver;Boston;Seattle;Portland;Austin;Raleigh;andNashville.

But the startup revolution isn’t limited to these cities—any locality in theUnitedStatescanbuildavibrantstartupcommunityif itstrategicallybringstogether the key partnerswho support growth. In fact, the barriers to entry

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haveneverbeenlowerformanysectorsacrosstheeconomy.That’swhywelaunchedtheStartupAmerica initiative,and that’swhythisbookissuchanimportant contribution: Brad does a great job using theBoulder, Colorado,regional ecosystem as a blueprint for creating and developing a sustainablestartupcommunity in anycity. Ifyouwant toknowhow tousher in anewwave of job creation, innovation, and growth in your city, I recommendreadingthisbook.

As we emerge from a difficult period in our economic history, we onceagain turn to entrepreneurs to lead the way to a brighter tomorrow. Thesestartups,thebravemenandwomenbehindthem,andthemanymentorswhocomplementtheireffortsformthebackboneofthestartupecosystem.Brad’sbookwillhelpyouunderstandhowthatprocessworks,andwillprovideyouwiththetoolsyouneedtoachieveresultsanywhereintheUnitedStates.

Comejoinusonthisstartuprevolution.

SteveCase

Chairman,StartupAmericaPartnership

ChairmanandCEO,RevolutionLLC

August2012

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PREFACEIn the fall of 2008 the world financial markets were rocked in anunprecedentedway. The global financial crisis that ensued createdmassiveuncertainty across our society and resulted in extraordinary actions bygovernmentsandcompaniesthroughouttheworld.

In a parallel universe, something else was happening. EntrepreneurialcompaniessuchasFacebook,Twitter,LinkedIn,andZyngaweregrowingatanequallyunprecedentedrate.Whilethesecompanies,andmanyothers,wereemergingfromSiliconValley,communitiesacrossthecountrywerebrimmingwith startup activity. My hometown of Boulder had become knownthroughouttheworldasagreatstartupcommunity,butcitieslikeNewYork,Boston,Seattle,Portland,Chicago,andAustinwerealsoseenasnexusesofstartupactivity.

As themacroeconomic impact of the financial crisis was felt throughout2009and2010andsocietytriedtoreadjusttotheneweconomicrealityandconstraintsgeneratedbythecollapseofmanytraditionalandwell-establishedinstitutions,thestartupskeptbeingborn,growing,andaddingjobs.

Inearly2011theworldstartedtonotice.OnJanuary31,PresidentObamaacknowledged the importance of entrepreneurship to our global economythroughthelaunchofStartupAmerica.Hestated:

EntrepreneursembodythepromiseofAmerica:theideathatifyouhaveagoodideaandarewillingtoworkhardandseeitthrough,youcansucceedinthiscountry.Andinfulfillingthispromise,entrepreneursalsoplayacriticalroleinexpandingoureconomyandcreatingjobs.

—PresidentBarackObama,@BarackObama

Suddenly entrepreneurship was at the forefront of the discussion. Whileentrepreneurscontinuedtotoilawaybuildingtheircompaniesfromscratch,itbecame clear that entrepreneurshipwas a global theme—one that impactedevery geography, industry, market, and demographic throughout the world.Overnight everyone started talking about entrepreneurship as the way torevitalizeourglobaleconomy.

Nolongerwasentrepreneurshiplimitedtoasmallsetofrisktakerslocatedin a few specific cities. State and local government became interested.Universitiesdustedofftheirentrepreneurshipinitiatives.Angelgroupsvisibly

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reemerged, VCs became popular again, and large companies created newstartupprograms.

Allthisactivityhascreatedanenormousamountofnoisethatrunstheriskofdrowningoutthepowerfulsignalthatisentrepreneurship.Itwon’tmatterinthelongrun,asentrepreneursaregoingtodowhattheydo,whichiscreatenewthings(products,companies, jobs,and industries)outofnothing,but itoccurredtomethattherewerepowerfullessonsthatwecouldlearnfromtheexperienceI’vehadinBoulderoverthepast16years.

From this came the Boulder Thesis, a new framework for creating andbuildingastartupcommunityinyourcity.Ihaveadeeplyheldbeliefthatyoucancreatealong-term,vibrant,sustainablestartupcommunityinanycityinthe world, but it’s hard and takes the right kind of philosophy, approach,leadership, and dedication over a long period of time. Hence, this book,whosegoalistohelpyouunderstandhowtodothisandgiveyouthetoolstocreateanamazingstartupcommunityinyourcity.

AUDIENCEThisbookisaimedatanyonewhowantstobeinvolvedincreating,building,andsustainingastartupcommunityintheircity.Becauseentrepreneursareattheheartofeverystartupandeverystartupcommunity,thisbookisforeveryentrepreneur.

Startup communities consist of many more participants than justentrepreneurs. Government, universities, investors, mentors, serviceproviders,andlargecompaniesplaykeyrolesinthedevelopmentofastartupcommunity. This book is for anyone in those organizations interested inentrepreneursandstartupcommunities.

Startups have employees who are critical participants in the startupcommunity.Someoftheseemployeeswillgoontobeentrepreneursandstarttheir own companies; others will work for a range of startups over theircareers.They,too,canbenefitfrommanyoftheideasinthisbook.

Therearemanypeoplestudyingentrepreneurship,economicdevelopment,andinnovation,bothingovernmentanduniversitysettings.Whetheryouaredoingresearch,creatingpolicy,orjusttryingtounderstandwhatisgoingon,thisbookisforyou.

Recently, the media has once again become infatuated withentrepreneurship.Unlikethelate1990swhentherewasrelativelylittlecritical

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thinkinginthemix,thistimearoundmanyjournalistsandwritersaretryingtoreallyunderstandwhatisgoingonbelowthepretty,glossysurfaceofrich,famous,andsuccessfulentrepreneurs.Ihopethisbookwillhelp.

I’vebeen talkingabout the ideasofa startupcommunity foranumberofyears and have lived them as an entrepreneur, one of the leaders of theBoulder startup community, and a participant in many other startupcommunities.Bycodifyingmythoughtsandideasinthisbook,itforcedmetothinkdeeplyaboutthem.Ihopeyoubenefitfromthiseffortasyouexploreyourownstartupcommunity.

OVERVIEWOFTHECONTENTSAfterabriefintroduction,I’llspendsometimeexploringtheBoulderstartupcommunity. I’ll go through a brief history, dating back to the 1970s, andincludeseveralperspectivesbesidesmyown.

I’ll thengodeep into theprinciplesofavibrantstartupcommunity. Iwillexplore several historical frameworks, describe the Boulder Thesis, andexplainthevariouscomponentsofit.

I’llthenexplorethedifferentparticipantsinastartupcommunity.Iseparatetheparticipantsintotwocategories—leadersandfeeders—andI’lldescribeindepthboththecharacteristicsofeachaswellaswhattheycandotohelp,aswellashinder,thestartupcommunity.

Given an understanding of the participants, I’ll discuss the attributes ofleadershipinastartupcommunity.I’llfollowthiswithathoroughexplorationofasetofclassicalproblemsthatstartupcommunitiesencounter.

I’ll then give a bunch of examples of activities and events that drive thestartupcommunity.ManyoftheseexampleswillcomefromthepeopleintheBoulder startup community who actually created the activities in the firstplace.Myhopeisthattheseexampleswillhelpcreateabetterunderstandingoftheleadershipdynamicsaroundstartupcommunities.I’llwrapthisupwithadetailedlookatthepowerofacceleratorstoastartupcommunity,usingourexperiencewithTechStarsasanexample.

I’ll shift gears and explore the involvement of the university in a startupcommunity.Again I’ll use a set of examples fromBoulder to help create abetter understanding of what’s actually going on and how a university canparticipate effectively.We’ll then spend some timeon the contrast betweenentrepreneurs and government and how this often plays out in the

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developmentofastartupcommunity.

Near the end of the book, I’ll describe a set of clear approaches thatgeneraterealpowerthroughoutthestartupcommunityoveralongperiodoftime. I’ll use some of Boulder’s weaknesses to explore how a successfulstartupcommunitycancontinuetoimproveandgrow.Finally,withthehelpof Paul Kedrosky of the Kauffman Foundation, I’ll explore some commonmythsaboutstartupcommunities.

I’llfinishwithafewexamplesofhowtogetstarted,fromIceland,Omaha,andtheStartupAmericaPartnership,leavingyouwiththebeliefthatyoucancreateavibrantstartupcommunityanywhereintheworld.

ADDITIONALMATERIALSStartupCommunities is the first of several books in the StartupRevolutionseries. The Startup Revolution website (http://startuprev.com) has links tonumerous additional resources, including the Startup Communities website(http://communities.startuprev.com). This site includes a blog that weregularlyupdatewithstoriesaboutstartupcommunitiesaround theworld,adiscussionboard for those interested instartupcommunities,events that I’llbe participating in around startup communities, and resources for anyoneinterestedincreatingastartupcommunity.

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ACKNOWLEDGMENTSBecausethisismyfourthbook,ItheoreticallyknewwhatIwasgettingintowhen I started writing it. However, as with each ofmy other books, therecamea timeduring theprocesswhenIwasoverwhelmedby theamountofworkIhadinfrontofme.Eachtime,myamazingwife,AmyBatchelor,hasbeentheretohelpout,keepmecompany,whispersweetnothingsinmyear,andbeacalmingandsupportinginfluence.

Many people have helped me develop the Boulder Thesis, both throughaction and long discussions about what is needed andwhat is going on inBoulder.Mypartners at FoundryGroup, JasonMendelson,RyanMcIntyre,and Seth Levine top the list, along with David Cohen, the co-founder andCEOofTechStars.I’velearnedanamazingamountfromworkingalongsideyouguys.

As I startedworking on this book, I got early and regular feedback fromJasonMendelson,AmyBatchelor,DavidCohen,BradBernthal,PhilWeiser,PaulKedrosky,andYoavLurie.Youwillseeyourfingerprintsthroughoutthebook.

AspecialnoteofthanksgoestoBradBernthal.WhenIwasfirstsketchingouttheideaforthebook,wehadalongconversationaboutwhatturnedintotheBoulderThesis.IaskedhimtowriteaforewordforthebookwellbeforeIhadwrittenmuch.AsIgotdeepintowriting,IrealizedthathisforewordwasanexcellentdraftforChapter3:PrinciplesofaVibrantStartupCommunity.Bradgraciouslypermittedmetorepurposehisforewordforthischapter.

There are a number of contributions throughout this book from otherleaders of startup communities, many, but not all, from Boulder. Eachresponded quickly, when asked, to a request for 500–1,000 words on aspecific topic I assigned them. I’ve incorporated their contributions in thebookandthankthemintheorderinwhichtheyappear:KyleLefkoff,MarkSolon, David Cohen, Tim Enwall, Robert Reich, Jason Mendelson, MarcNager, Ef Rodriguez, Tim Falls, TomMarkiewicz, Brad Bernthal, AndrewHyde,RyanMartens,DavidTisch,BillAulet,PhilWeiser,BenLimmer,BartLorang,ChristianRenaud, SethLevine,BruceWyman,LucySanders, PaulKedrosky, John Ives, Bala Kamallakharan, Jeff Slobotski, Scott Case, andDonnaHarris.

Myassistant,KellyCollins,continuestobeaninvaluablepartofmyworklife.Whenever I tell her “I’m vanishing for a while—keep everyone away

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fromme”shemerelysmiles,knowingI’llstillbeavailableall the time,butnevertheless magically makes the volume of external stimuli decrease.Thanksforthatandforeverythingelseyoudoforme.

OurdirectorofIT,RossCarlson,helpedputtogethertheStartupRevolutionwebsite (http://startuprev.com) and continues tomake sure all the tech runssmoothly.

TheKauffmanFoundation,whichIfirstencounteredthroughmyworkwithJanaMatthewsinthemid-1990s,hasbeenasuperbresourceforme,aswellas many other entrepreneurs throughout the United States. I’m especiallygrateful to PaulKedrosky andLesaMitchell for all of the time they spendwithme.

TheteamthatIworkwithatWiley,especiallyBillFalloon,MegFreeborn,andTiffanyCharbonier,havebeenawesome.

Finally,therearethousandsofentrepreneursIhaveworkedwithandmanymorepeoplewhoIhaveencounteredalongthewayasIspreadthemessageofentrepreneurshipandstartupcommunitieswherever Igo.Y’all aredoingtherealwork.Thanksfor theopportunity toknowyou,workwithyou,andlearnfromyou.

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CHAPTERONE

INTRODUCTION

Startupsareatthecoreofeverythingwedo.Anindividual’slifeisastartupthat begins at birth. Every citywas once a startup, aswas every company,everyinstitution,andeveryproject.Ashumans,wearewiredtostartthings.

Today,weareinthemidstofamassiveshiftfromthehierarchicalsocietythat has dominated the industrial era to a networked society that has beenemergent throughout the information era. The Internet is ushering in apostinformationera,oneinwhichthemachineshavealreadytakenoverandarewaitingpatientlyforustocatchupwiththem.Thispostinformationeraisoneinwhichmanandmachineareinterwoven.

In thisworld, the network dominates in both the online and the physicalworld.Throughoutthenetworkarenodes,eachofwhichbeganasastartup.Nodes are continually emerging, and a rigid, top-down hierarchy no longerdominates.Theenergy,activity, and innovation in society isdiffusedacrossthe network and concentrated in unexpected places that often didn’t existbefore.

Inthephysicalworld,muchofthisenergy,activity,andinnovationoccurinsmallgeographicregions,whichIcall“startupcommunities.”Academicscallthem“clusters,”andthereareseveral theoriesabouthowtheywerecreated,whatcausedthemtogrowandevolve,andwhathappenedastheymatured.

These startup communities are appearing everywhere.They areno longerlimited to historically well-known entrepreneurial regions and large citiessuchasSiliconValley,Boston,NewYork,andSeattle.StartupcommunitiesincitiesaroundtheUnitedStates,bothlargeandsmall,suchasBoulder;LosAngeles; Chicago; Washington, DC; Portland; and Austin are seeingincredibleactivityandgrowth.Althoughmanyofthesecitieshaveahistoryofentrepreneurialactivity,theirgrowth,development,andimportanceinthiseconomiccycleisunique.

The way startup communities are created and evolve has changedprofoundly as a result of our networked society. It is critically important tounderstandthisshiftasitrelatestoeconomicsandinnovationbecauseit’snot

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slowingdownanytimesoon.

Inthisbook,I’lldiscussanewapproachtobuildingastartupcommunity,which Icall theBoulderThesis. I stronglybelieve that startupcommunitiescanbebuilt in anycityand the futureeconomicprogressof cities, regions,countries, and society at large is dependent on creating, building, andsustaining startup communities over a long period of time. This book willshowyouhow,bothintheoryandinpractice.

THEEXAMPLEOFBOULDERThroughthisbook,IusetheBoulderstartupcommunityasanexample.SinceI’veonly livedhere since1995, this is not intended tobe a comprehensivehistoryoftheBoulderstartupcommunity.Idon’tmeananydisrespecttoallof the other peoplewho have helpedmake theBoulder startup communityamazing, or whowere involved before Imoved to town. However, by nottryingtocreateahistory,Icancoverenoughgroundtogiveyouafeelingforhowthingsevolved,whileI focuson theunderlyingprinciples thatyoucanapplytobuildingyourstartupcommunity.

As I’ll discuss in a later chapter, Boulder actually has five startupcommunities:tech(software/Internet),biotech,cleantech,naturalfoods,andlifestyles of health and sustainability (LOHAS). These five startupcommunities exist in parallel universes. My time and expertise have beenfocusedonthetechsegment.Iperiodicallyhaveintersectionpointswiththeotherstartupcommunitiesthroughfriends,events,andanoccasionalpersonalinvestmentinacompanyoutsideoftech,butmyunderstanding,experience,andengagementwiththeseothersegmentsarelimited.

ThroughoutthisbookI’veaskedotherstogivetheirperspectiveonthekeyeventsandactivitiesaroundthestartupcommunity.Itwillbeclearwhenevertheexampleisinsomeoneelse’svoice.I’vealsobroughtinseveralexamplesfrom other startup communities when there were activities in Boulder thattouchedtheminameaningfulway,suchasTechStars.

My hope is that you do not view the use of Boulder here as “Bouldertooting itsownhorn.” IuseBoulderasanexampleofa lastingandvibrantstartupcommunitybecauseIknowitextremelywell (at leastonesegment).This approach is called synecdoche, where the part stands for the whole.TherearemanythingstheBoulderstartupcommunitycandobetterandmanymore for it to discover aswe continue on our journey;my hope is that by

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exploring it in depth it helps you with your journey in your startupcommunity.

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HOWTHISBOOKWORKSI’ll start with some storytelling, and then I’ll get to the principles of asustainable startup community. I’ll break it down into small pieces and I’llgiveyouafullsetoftoolstoworkwith.I’lltrytokeepitlightalongthewaywith plenty of examples.Although this book is not a textbook, nor is it anacademictreatiseladenwithfootnotesandreferences,itisaseriousbook.Mygoal is to give you a framework and tools to create and enhance a startupcommunityinyourcity.

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CHAPTERTWO

THEBOULDERSTARTUPCOMMUNITY

InNovember1995,IleftBostonandmovedtoBoulder.I’dgonetocollegeatMITandhadlivedinBostonfor12years.However,Bostonwasn’tmyhome;I’dgrownupinDallasandmywife,Amy,hadgrownupinAlaska.WhenIsoldmyfirstcompanyatage28,IpromisedAmythatwe’dleaveBostonbythe time I was 30. Twomonths before I turned 30, Amy toldme shewasmovingtoBoulderandIwaswelcometojoinherifIwantedto.

We’d both been toBoulder and lovedColorado.Neither of uswanted toliveintheBayArea,whichwasalogicalchoicegiventheworkIdo,butwewantedeitheroceanormountainswhereverwelived.Becausewewerebothattracted to thewesternUnitedStatesandtheRockyMountains,wefiguredwe’d give Boulder a try and if it didn’t work out, we’d just keep headingwest.

After six months, we loved Boulder and never looked back. When wemovedhere,weknewonlyoneperson, andheandhiswifemovedawayafewmonthslater.However,withinayearwehadalreadyfoundacommunityoffriendsandentrepreneursandwerequicklylearningourwayaroundtown.SixteenyearslaterIcan’timagineabetterplacetolive.

BOULDERASALABORATORYBoulderisasmallcity;asof2012,therearelessthan100,000actualresidentswith 250,000 people in the extended metro area, which includes theneighboringtownsofSuperior,Broomfield,Lafayette,Longmont,andLyons.Boulderissmallenoughthatyoucangetyourmindaroundthewholeplacebutbigenoughtobeinteresting.Asaresult,I’vecometothinkofBoulderasmylaboratoryforthinkingaboutstartupcommunities.

Boulderisasmartcity.TheUniversityofColoradoBoulderislocatedrightin the middle of town, and students, faculty, and staff comprise about 30

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percent of the population of Boulder. The presence of several nationalresearch labs, including the National Oceanic and AtmosphericAdministration (NOAA), the National Center for Atmospheric Research(NCAR),andtheNationalInstituteofStandardsandTechnology(NIST)addnicely to the number of PhDs around. Other alternative education centers,suchasNaropa,callBouldertheirhome.

Although I don’t have data to support it, Boulder may have the highestentrepreneurial density in the world. I define entrepreneurial density asfollows:

entrepreneurial density= (number of entrepreneurs+ number of peopleworkingforstartupsorhighgrowthcompanies)/adultpopulation.

Boulder’s entrepreneurial density, combined with the geographicconcentrationofentrepreneurialactivityaroundtheBoulderdowntowncore,makesdowntownBoulderahotbedofstartupactivity.

In 2011, Colorado ranked fourth in the country behind California,Massachusetts, and New York for seed/early-stage dollars invested intostartupcompanies in the state.Although therearenota lotof localventurecapital (VC) investors active in Colorado, there are plenty of VCs fromaround theUnited Stateswho view companies in Colorado as attractive toinvestin,withmanyofthesecompanieslocatedinBoulder.

Finally, Boulder is an incredibly inclusive community. Although there issomecompetitionbetweencompanies,especiallyovertalent,thecommunityisdefinedbyastrongsenseofcollaborationandphilosophyof“givingbeforeyouget.”Ifyoucontribute,youarerewarded,ofteninunexpectedways.Atthe same time, especially since it’s a small community, it’s particularlyintolerantofbadactors.Ifyouaren’tsincere,constructive,andcollaborative,thecommunitybehavesaccordingly.

Beforewedig into theprinciplesofasustainablestartupcommunity, let’sspenda little timeon thehistoryofBoulder sowecanunderstandhow thecommunityevolved.

BEFORETHEINTERNET(1970–1994)

ImovedtoBoulderin1995.This,however,wasnotthebeginningoftheriseofthestartupcommunityinBoulder;theseedswereplantedalongtimeago

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andtherewasasignificantamountofentrepreneurialsuccess inandaroundBoulderbetween1970and1994.I’veaskedKyleLefkoff,aBoulderresidentandventure capitalist since themid-1970s, todescribewhathe sawhappenduringthistimeframe.

ItwasnotbyaccidentthatauniversitytownnestledatthebaseoftheFlatironswouldemergeasthedensestclusteroftechnologystartupsintheworld—itwastheresultofagenerationofentrepreneursdrawntotheregionfirstbybusinessnecessity,whostayedbychoice.Wereitnotforthefoundationalsuccessstoriesindata-storage,pharmaceuticals,andnatural-foodsbrands,Boulder’sthrivingecosystemwouldnotexisttoday.Butthesuccessoftheseanchortenantspresagedthegrowthandsuccessoftoday’sBoulderstartupcommunity.

ThedatastoragelandscapewasshapedfirstbyIBM’sdecisiontolocateitstape-drivedivisioninBoulderinthe1960s,andthen,bythesuccessofitsfirstspinoff,StorageTek,in1975.Ledbyitsvisionaryfounders,JesseAweidaandJuanRodriguez,StorageTekwasBoulder’sfirstbigVC-backedhigh-techsuccessstory,anditspawnedastorageandnetworkingindustrythatgrewtodozensofcompaniesbytheearly1990s,includingbillion-dollarsuccessstoriessuchasMcData,Exabyte,andConnorPeripherals.

ThepharmaceuticalindustryhaditsrootsinthesciencelaboratoriesoftheUniversityofColorado’sBouldercampus,whereabiotechclusterwasbornfromthelabsofMarvCaruthers,whofoundedAmgenandAppliedBiosciences,andLarryGold,whofoundedSynergen.Together,thesesuccessfulcompaniesspawnedanindustryofhome-grownbiotechcompaniestocompetewithSyntex,whichbaseditsmanufacturinginBoulder,andCiba-Geigy,whichhadacquiredGenevaGenerics,alocalgenericpillmanufacturer.Basedontheworkoftheseentrepreneurs,additionalpharmasuccessesinthisperiodincludedHauserChemicalResearch,Somatagen,andNexstarPharmaceuticals.

Thenatural-foodsindustrybeganinBoulderwithCelestialSeasonings,anherbalteabrandthatsprangtonationalprominenceundertheleadershipofMoSiegelandBarneyFeinblum,whowouldeachgoontoplayanimportantroleinnearlyeveryothermajorbrandsuccessinthe1980sandearly1990swithBoulderroots,includingAlfalfa’s,WildOats,WholeFoods,Earth’sBestBabyFood,HorizonOrganicDairy,andSilk.

Asmallbutdevotedgroupofventurecapitalistsstoodbehindtheseearly

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entrepreneursandhelpedputBoulderonthenationalmapofstartups.JohnHill,aformerStorageTekinvestor,andCarlCarman,alongtimeIBMexecutive,teamedupinthe1980stoformHillCarmanventures,whichbackedmanyofthetechnologysuccessesintheregion.MercMercure,thefounderofBallAerospace,andBillColeman,whorantheSyntexfacilityinBoulder,togetherformedColoradoVentureManagement,thecity’sfirstseedfund.Finally,JimRoser,arenownedEastCoastinvestmentbanker,movedtoBoulderinthe1970sandprovidedacriticallinktocapitalforanumberoflocalcompanies.Together,thesefiveindividualspioneeredtheventurecapitalindustryinBoulder.

KyleLefkoff,BoulderVentures

PRE-INTERNETBUBBLE(1995–2000)

WhenIfirstarrivedinBoulder,Ihadnoworkexpectations.AtthetimeIwasinvestingmyownmoney,whichImadefromthesaleofmyfirstcompany,instartups around the country, and I was spending my time in Boston, NewYork, San Francisco, and Seattle. Because I was already crisscrossing thecountry,Ifiguredthathavingahomebaseinthemiddleofthecountrywouldmakemylifeeasier.AmyandIfoundBouldertobebeautiful,and,withinsixmonths of moving there from Boston, we bought a house just outside ofBoulderbehindEldoradoSpringsStatePark,wherewestilllivetoday.

AsIgot toknowBoulderbetter, I realizeditwasperfectlyconfiguredforthe entrepreneurial revolution that took place around the first wave of thecommercial Internet. It was a college town, full of smart, independentlyminded,andintellectuallycuriouspeople.AsIsatinabartalkingtotheonepersonIknewintown,waitingforAmytojoinusfordinner,theguysittingnext to me overheard our conversation and said, “I have a friend who isstarting an Internet company. Would you like to meet him?” I did! ThatpersonendedupbeingAndrewCurrie,alocalentrepreneurwhowasstartingabusinesswithBrianMakarethatbecameEmailPublishing,myfirstBoulderinvestment.Andrewintroducedmetoafewofhisentrepreneurialfriends,andbeforelongIwasgettingtoknowthelocalscene.

I discovered that there was a big divide in Boulder between theentrepreneursandtheinvestors.ManyoftheentrepreneursImetdidn’thavea

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lotofrespectforthelocalinvestors,andasaresult,therewerealargenumberofbootstrappedcompanies.ThelocalinvestoroptionsfortheseentrepreneurswerethinastherewereonlyafewsmallVCfirmsandtheseinvestorstendedtobehighlyselectiveaboutwhotheyworkedwith,oftenpreferringtoworkwithentrepreneursthey’dworkedwithpreviously.Thenewestgenerationofentrepreneurs who emerged in the mid-1990s had a fierce bias to just dothingsthemselves.

In 1996, I co-founded the Young Entrepreneurs Organization’s (YEO)Boulder chapter. I got introductions to a local lawyer,Mike Platt (Cooley),whoIstillworkwithtoday,andalocalaccountant.Iaskedeachtosendoutaletter with me to Boulder entrepreneurs they knew to invite them to aninaugural meeting of YEO Boulder. About a dozen people showed up,includingTerryGold (Gold Systems), PaulBerberian (LinkVTC), andTimEnwall (Solista). Suddenly I was part of a group of a dozen entrepreneurswhoweremeetingmonthly.

In 1997, I co-founded the Colorado Internet Keiretsu. By this point,entrepreneurshiparoundtheInternetwasgrowingrapidly,andIwasinvestingaggressively with my new partners at Softbank Technology Ventures inInternet companies across theUnited States. I put a stake in the ground toorganizetheBoulderInternetcompaniesandgatheredasmanyfoundersasIcouldfindatarestaurantinBouldertodiscussbuildingalooseconfederationofcompanies.WerepeatedthisinDenverandthenhadalargemeetingatmyhouse in Eldorado Canyon where everyone discussed a long-term view ofputtingtheregiononthemap.TothisdayI’mstillworkingwithmanyofthepeoplewhoshowedupatmyhousethatday.

By 1998 therewere several newVC funds in Boulder. Email Publishingwas acquiredby a public company andbecameMessageMedia,whichhasspawned several other companies over the years. Two of the LinkVTCfounders, Paul Berberian and Jim Lejeal, founded RaindanceCommunicationswithathirdfounder,ToddVernon,eachofwhomhasgoneontostartseveralothercompanies.NielRobertsonandRajatBhargava,bothBostontransplantswhoIhadworkedwithpreviouslyatNetGenesis,andTomHigley, who I had met through his previous company NetDelivery, startedServiceMetrics, and Exodus acquired it for $280million 18months later.Matchlogic,foundedbyPeteEsslerandBenAddomsandfundedbySequelVentures,wasacquiredbyExcite.JaredPoliscreatedBlueMountainArts.com,which he sold to Excite for $800million. Raindance went public. BEA (alargepublic softwarecompany)acquiredAvitek, a company startedbyTimMiller and Ryan Martens and operated out of the same office as Email

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Publishing.

Capitalwasflowing,companiesweregettingstartedatarapidpace,andtheenergy around startups in Boulder was off the charts. Five years earlier IarrivedinBoulderwithnoexpectationsaboutwork.Thoseexpectationshadchanged—I loved Boulder and the entrepreneurial energy. Even though Icontinued to invest around the country, I increasingly foundmyself helpingbuildcompaniesclosetohome.

THECOLLAPSEOFTHEINTERNETBUBBLE(2001–2002)

The Internetbubbleburst inBoulder, just like itdideverywhereelse in theworld.Suddenly,nothingworked,everycompanywashaving layoffs, stockprices of newly public companies were declining precipitously, and capitalwasnowheretobefound.

Because I invested all around the United States, 2001 was a particularlyintenseyearforme.IwasonplanesfromMondaytoThursdaytryingtohelpsalvagesomeofthecompaniesforwhichIwasontheboards.I’dgethomeThursday night and spend all day Friday running around Boulder workingwithmylocalcompanies.I’dcrashontheweekendsandrepeatthecyclethefollowingweek.Atthetime,Iwasonabout25boards,which,inhindsight,wasaninsaneamounttobetryingtohandle.IsawBoulderoccasionally,andwhenIdid,itwasalwaysthroughthetiredeyesofapersonsimplytryingtosurvive.

ManycompaniesthatIwasinvolvedinshuttheirdoorsin2001.Myfailurewas a very visible one as layoffs occurred everywhere in my world. Iremember working tirelessly to try to help companies get to a sustainableplace,butalthoughIwasoccasionallysuccessful, I failedmoreoften thanIsucceeded.

Typically,whenIhaveacrappyday,I’llgohome,chilloutwithAmyandmydogs,andresolvetohaveabetterdaythenextday.ByJuneIrealizedthateverydayhadbeenworsethanthepreviousday.SoIchangedmyperspectiveand decided to simply seewhat theworld had to throw atme. This didn’tmake things any easier, butmy attitudewas better, as I continued to grindthroughtheentrepreneurialmessIhadmadeformyself.

Iwas asleep in theBenjaminHotel inmidtownManhattan on 9/11/2001

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when the firstWorldTradeCenter building fell. I had taken a redeye fromCaliforniathenightbefore,whichwasprettytypicalatthattime.I’dgetupat4 a.m. onMonday; take the 6 a.m. flight fromDenver to SanFrancisco tostart the week, and then the redeye from San Francisco to New York onMondayorTuesdaynightfortherestoftheweek.Ididn’thaveanymeetingsuntil11a.m.soIsettheclockradioalarmfor9:15a.m.Iwokeuptoafranticdiscussion about a building falling; I thought it was one of the joke NYCdrive-time radio stations. As I shook off the cobwebs, I realized it wassomethingserious,turnedontheTV,andsawthesecondtowerfall.

My first instinctwas to findAmy. Shewas on herway to the airport inDenvertoflytoNewYorktomeetmeforafewdays,afterwhichweweregoingtogotoParisforaweekofvacationforherbirthday.IhadturnedoffmycellphonewhenIwassleepingsoIturneditonandtriedtocallherbutcouldn’tgetthrough.Idialeddirectlyfromthehotelphoneandsomehowweconnected—shewaspulledoveron thesideof theroadfrantically trying toreachme.HerbrainhadgonetothehorriblethoughtthatIwasononeoftheplanesthathadcrashedsincenoonereallyknewanythingyet.Afteratearfulfewminutes,weagreedsheshouldgohomeandstayputwhilewesortedoutwhatwasgoingon.

Even though I was 50 blocks away from theWorld Trade Center, I wasterrified. I took a shower and ate some food out of theminibar, but didn’treallyknowwhattodo.ItriedtocallAmyagainafterIgotoutoftheshower,butbynowthephonesweren’tworking.Irememberlookingoutthewindow,onabeautifulManhattanday,wonderingifIshouldgooutside.IdecidednottosoIfiredupmylaptopjusttoseeifIcouldgetonline.BynowtheTVwaslooped on the same information because no one really knew what washappening.Miraculously I got an Internet connection. TheWestCoastwasnow awake, so Yahoo! IM and AIM popped up with messages from mypartners,entrepreneurs,andfriendswhoknewIwasinNewYorkaskingifIwasokay.Mylaptopbecamecommandcentral formefor thedaysince thephones didn’t work, marking the first time I can remember the Internetdominatingmycommunicationfortheday.

Atsomepoint,allIwantedtodowasgethometoBoulder.Therewerenoflights,nocarstorent,andnoobviouswaytogetfromNewYorktoBoulder.EventuallyIconnectedwithPaulBerberian, theCEOofRaindance,andhisCFO,NickCuccaro,whoalsowereinNewYorkpitchinginvestorson9/11.Icalledmy friend Jenny Lawton,who lived inGreenwich, Connecticut, andasked ifwe could borrowher car.Wewalked downPark toGrandCentralStation,gotonanempty train,went toGreenwich,hadspaghetti at Jenny’s

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house,anddrovethenext28hoursstraightuntilwegothometoBoulder.

Ithencanceledallmytravelforthenextthreemonths.Imarkedthefallof2001astheendoftheInternetbubbleforme.Istillhadabunchofstufftocleanup,butImadeahugeemotionalshiftatthatpointandstartedlookingforwardinsteadoflookingback.Iwashappytobealiveandrealizedthatitwasunlikely,nomatterhowmessymyworldgot,thattheworkIwasdoingeverydaywouldkillme.

Thiswasanalogous to thestateof thestartupcommunity inBoulderpost9/11. Everyone took a giant step back and reevaluated how they werespending their time, what they were spending it on, and why they werespending it thatway. Financings came to a halt, alongwith the creation ofnew startups. Entrepreneurs and the startup community turned inward andpaused.

THEBEGINNINGOFTHENEXTWAVE(2003–2011)

By2003,theseedsofnewcompanieswerestartingtobeplantedinBoulder.Experienced entrepreneurs who hadmade somemoney pre-Internet bubbleweren’tdonewithstartups,somanyofthemstarted,orstartedtalkingabout,new businesses. New first-time entrepreneurs started emerging. Theseentrepreneurs searchedoutmanyof the experienced entrepreneurs from the1990s.

The revolution known asWeb 2.0 and the resurgence of the commercialInternetdidn’treallybecomevisibleuntil2005,buttherewereahealthysetofcompaniesbeingcreatedinBoulderduringthistime.AlthoughIwasstilltraveling a lot, I’dmadea conscious effort tobe inBouldermore so Iwasspending time with Boulder-based companies, such as Rally Software andReturn Path. There were plenty of others in which I wasn’t invested, like@Last (whichwasacquiredbyGoogle),Tendril, andWebroot thatwereallgrowingquickly.TheenergyinBoulderpickedupwhereitleftoff,butwithareal appreciation for the value of creating substantive companies this timearound.

In 2006,DavidCohen approachedme.Hewas a successful entrepreneurwho had bootstrapped a company called PinPoint Technologies with hispartner,DavidBrown.TheysoldittoapubliccompanycalledZollMedical.

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Likemany entrepreneurs inBoulder,David hadmade somemoney, but hewasn’t flashy,was still hungry to domore, andverydetermined to do it inBoulder.HepresentedmewithanideahecalledTechStarsthatresultedfromhisfrustrationasanascentangelinvestor.He’dinvestedinafewcompanies,writtenhis$25,000or$50,000check, and then feltverydisconnected fromthecompanyhehadjustinvestedin.He’dtrytohelptheentrepreneurs,andsometimeshewasableto,butoftentheentrepreneursdidn’twanthelp,didn’tknowhowtoaskforhelp,orwerejusttoobusytofocusonengagingDavid.

This wasn’t fulfilling to David, and he assumed there were lots of otherangel investors, especially entrepreneurs who had made somemoney, whoalsofoundthe“tosssomeangelmoneyinacompanyandseewhathappens”dynamicunsatisfying.SoDavidcameupwith theideaofhelpingstarta lotmore companies by investing a small amount ofmoney in 10 of them at atime, putting them through an intense 90-day program during which theyworkedcloselywithmentorsandotherangelinvestorstogettheirbusinessestothenextstage,atwhichpoint they’dbereadytoraiseafullangelround.ThiswasthecoreideaattheinceptionofTechStars.

I immediately loved it. I’d investedmuchmoremoney in lesscompellingideas and figured that the worst case was that wewould end up attractingabout 30 smart new entrepreneurs to Boulder. In the best case, some newstartupswould emerge. Eitherway,we’d have a chance to get a variety ofpeopleinthestartupcommunity,includingexperiencedentrepreneurs,angels,lawyers,accountants,VCs,andseniormembersofstartupteams,involvedinhelpingthesenewcompaniesgetstarted.

We ran the first TechStars program in 2007, about the time the BoulderNew TechMeetup got started. Between the two, the summer of 2007wasnonstop software and Internet entrepreneurship in downtown Boulder. Thecitywasalivewithstartups,and if therewasanyquestion thatBoulderhadenteredanewphase,thisconfirmedit.

Onanationalbasis,startupsaroundWeb2.0andsocialnetworksbegantobevisibleagain.TheearlysuccessofFacebook,Twitter,LinkedIn,andZyngagenerated a renewed interest in web entrepreneurship. Angel investorsstartinginvestingtheirownmoneyintostartups,andsoonafter,VCsstartedmakinginvestmentsagain.Boulderentrepreneursweretherecipientsofsomeofthis,andeventhoughtherewasstillarelativelysmallamountoflocalVCmoney in the system, the angels came out in force, especially aroundTechStarscompanies.Thisattractedinvestorsfromotherpartsofthecountry,which was helped by a steady stream of acquisitions of Boulder-based

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companiesin2008and2009, includingSocialThing(byAOL),Filtrbox(byJive),andRegOnline(byActive).

Today, the Boulder startup scene is one of the best in the United States,certainlyfor itsrelativelysmallsizeasacity.Inaddition,Boulderregularlytops many of the best-of lists for a wide variety of topics, including mostcreative, happiest, healthiest, smartest, and best quality of life(http://startuprev.com/g1).We’ll spend a lot of time in this book discussingwhat drives this, not just in terms of the raw material in the startupcommunity,buttheinteractionsbetweenalltheparticipants,the“givebeforeyou get” mentality that leads to strong collaboration, and the broaderdynamicsatplay.

ANOUTSIDER’SVIEWOFBOULDER

Although you’ve heard my story of how Boulder evolved as a startupcommunity, I thought it would be useful to have an outsider’s view of theBoulder startup community. I asked Mark Solon, a general partner atHighway12Ventures, aBoise, Idaho–basedVCfirm toweigh in.ManyofHighway 12 Ventures’ investments are in Boulder, and Mark has been anactivementorforTechStarssincethebeginning.Followingishisperspectiveofwhat’sgoingoninBouldertoday.

Since2000,mypartner,PhilReed,andIhavebeenfocusedoninvestinginthemostpromisingstartupcompaniesintheIntermountainWest.We’veinvestedinterrificcompaniesinSaltLakeCity,Tucson,Missoula,Boise,Portland,Seattle,Denver,Albuquerque,Phoenix,andBoise—andspenttimeinahandfulofothercitiesintheregiontryingtocapitalizeonthesupply-demandimbalanceofgoodideasversuscapitalinalloftheseterrificstartuptownsthatgetlargelyoverlookedbythevastmajorityofventurecapitalists.

Allofthesecommunitieshavebothadvantagesanddisadvantagesforstartupstothrive—andeachhavefosteredimportantandlastingcompaniesthatgrewfromtheirrespectivestartupecosystems.None,however,hascomeclosetoproducinganywherenearthevolumeofsuccessfulstartups,especiallyonaper-capitabasis,asBoulder.Forthelastdecade,Boulderhasproducedsuccessfulstartupsatanastonishing

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rate.Whyisthat?

ManywillpointtoTechStarsastheprimaryreason,butthat’stheeasyanswer.TechStarshasindeedbecomeaglobalphenomenon,andtheimpactonBoulderhasbeensignificant.However,westartedinvestinginBouldercompaniesbeforeanyonehadeverheardofDavidCohenorTechStars.

It’smybeliefthatBoulderisuniquebecausetheentrepreneursandotherparticipantsinBoulder’sstartupecosystemhaveagreatersenseofcommunitythananywhereelseinthecountry.TheethosofmentorshipandsupportbythepeoplewhocompriseBoulder’sstartupcommunitywerefirmlyinplacewhenTechStarsarrivedin2007.DavidCohen’sbrilliantideawasmerelythelightningrodthatsparkedoneofthegreatestjob-creationenginesourcountryhaseverseen.

InBoulder,peoplearewillingtoworkharderanddevoteagreateramountoftimetohelpstartupssucceedwithnoexpectationsforreward.NoticethatIdidn’tsaytheycaremorethanelsewhere,sincemostcitiestakeprideandcareaboutthesuccessoftheirstartups.However,I’veneverseenanothercommunityreachoutanddevoteasmuchtime,passion,andhardworkathelpingstartupsasinBoulder.

I’llneverforgetoneofmyearlyvisitstoBoulder.Afterafulldayofmeetingwithstartups,IwasaskedbytheentrepreneursIwaswithifI’dliketojointhemandsomepeersfora“specialdinner.”“Sure,”Ireplied.“What’sspecialaboutit?”“It’sawake,”theydeadpanned.ThatdinnershowedmethatthefabricofthissmallmountaintownwasdifferentthananywhereelseI’dbeen.Turnsoutthat,earlierthatweek,alocalstartuphaddecidedtoshutdownandthe“wake”wasthestartupcommunity’swayofshowingtheseyoung,fragileentrepreneursthatitwasokaytofail—thatthehonorwasintrying.Theymadethosefoundersfeelgoodaboutthemselvesinamomentthatwascriticalintheirdevelopmentasentrepreneurs.Asanaside,inthiscasethefoundersdidn’trunoutofmoney.Aftergivingittheirbesteffort,theyrealizedtheirbusinesswasn’tgoingtobethegreatsuccesstheyhadenvisioned,andtheydecidedtoreturntheirremainingcashtotheirinvestors.Theepilogueofthatdinneristhatthefoundershadrolesatotherlocalstartupswithinafewweeks.

ThebiggestobservationIcanofferfromhavingafrontrowseattoseeingBoulderbecomingoneofthehotteststartupmarketsintheUnitedStatesoverthelastdecadeisthattherewasnostrategicplan.Governmenthadlittletodowithitandthereweren’tcommitteeswadinginbureaucratic

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quicksandwastinghundredsofhoursofpeople’stimestrategizingabouthowtocreatemorestartups.Bouldercaughtfirebecauseafewdozenentrepreneursbelievedintheirheartsthatarisingtideliftsallboatsandtheyderivedgreatpleasurefromhelpingmakethathappen.

Thiscanhappeninanycommunityinthecountry.Allittakesisasmallgroupofcrediblepeopletoleadbyexample.PeoplelikePaulBerberian,ToddVernon,JimFranklin,AriNewman,TimEnwall,andHowardDiamond.Thesefolks,despitehavingfull-timejobsasfoundersofgrowingcompanies,regularlydevotelargechunksoftheirtimetoassistthenextwaveofstartups,whichhelpmakeBouldertheveryspecialplaceitis.

MarkSolon,Highway12Ventures,@mark_solon

As you can see, theBoulder startup community has evolved over a longperiod of time, with the seeds being planted in the 1970s. Numerousentrepreneurs have been involved in its creation, growth, and ongoingdevelopment.By2012,manyof theentrepreneurswhoareactiveas leaderstoday were involved in various phases of the Boulder startup communitydating back 20 years. These entrepreneurs are still involved, and you canexpect them to continue to lead for the foreseeable future. AsMark Solonasserts, themagic comes from a few dozen entrepreneurs deciding that thesuccess of the greater startup community isworth their investment of timeandenergy.

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CHAPTERTHREE

PRINCIPLESOFAVIBRANTSTARTUPCOMMUNITY

Nowthatyou’vehadanintroductiontoBoulderanditshistoryfrommypointof view, I’d like to describe the principles that drive the Boulder startupcommunity,whichI’llcalltheBoulderThesis.First,however,I’lldiscussthethreehistoricalframeworksthathavebeenusedtodescribewhysomecitiesbecomevibrantstartupcommunities.

HISTORICALFRAMEWORKSThe investigation into startup communities is among the most importantinquiries of our time.Why do some places flourish with innovation whileothers wither? What are the determinants that help a startup communityachievecriticalstartupmass?Onceunderway,howdoesastartupcommunitysustain and expand entrepreneurship?Why do startup communities persist,despiteoftenhavinghigher realestatecostsandwages thanotherareas?Atstakeisnothinglessthanthecontinuedeconomicvitality,andeventheveryexistenceoftowns,cities,andregions.

Studies show that the geography of innovation is neither democratic norflat.Thismaybesurprisingsinceyoumightthinkthatlocationshouldmatterlessthaneverintoday’ssociety.Informationcanbequicklysentandreceivedby anyone from almost anywhere. In theory, expanding access to resourcesand information from anywhere might decouple the relationship betweenplaceandinnovation.

Economic geographers, however, observe the opposite effect. Evidencesuggests that location, rather than being irrelevant, is more important thanever.Innovationtiltsheavilytowardcertainlocationsand,asscholarRichardFlorida (professor at Rotman School of Management, at the University ofTorontoandauthorofTheRiseoftheCreativeClass(2002))says,is“spiky”with great concentration of creative, innovative people in tightly clusteredgeographies.Locationclearlymatters.

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Three prominent frameworks explain why some locales are hotbeds ofentrepreneurship whereas others are the innovation equivalent of a twenty-first century economicmirage.Each explanationof regional entrepreneurialadvantage comes from a different discipline—one from economics, anotherfromsociology,anda third fromgeography.Theseexplanationsare, for themostpart,nonexclusiveandcomplementary.

The first explanation, external or agglomeration economies, comes fromeconomics. This line of analysis reaches back to the research of economistAlfredMarshall,and, inrecentdecades,MichaelPorter,PaulKrugman,andPaul Romer have deepened this account. External economies focus on thebenefits of startup concentration in an area. This explanation focuses oneconomic concepts as they apply to location. One is that companies co-located in an area benefit from “external economies of scale.” Emergingcompanies need certain common inputs—for example, infrastructure,specialized legal and accounting services, suppliers, labor pools with aspecializedknowledgebase—thatresideoutsidethecompany.Companiesinacommongeographicareasharethefixedcostsoftheseresourcesexternaltothe company.Asmore andmore startups in an area can share the costs ofspecialized inputs, the average cost per startup drops for the specializedinputs.Thisprovidesdirecteconomicbenefit tocompanies locatedwithinastartupcommunity.

Another economic concept, network effects, explains why geographicconcentration yields further advantage. Network effects operate in systemswhere the addition of a member to a network enhances value for existingusers. The Internet, Facebook, and Twitter are examples in which networkeffects operate powerfully. These services may have some value to you iftherearejust100otherusers.However,thesenetworksareimmenselymoreusefulifthereare100millionotherusersthatyoucanconnectwith.Startupcommunities similarly feature strong network effects. For example, an areawith 10 great programmers provides a valuable pool of labor talent for astartup.However,anadditional1,000amazingprogrammersinthesameareais vastly more valuable to startups, especially if programmers share bestpractices with other programmers, inspire one another, or start newcompanies. External economies of scale lower certain costs; meanwhile,networkeffectsmakeco-locationmorevaluable.

Thesecondexplanationofstartupcommunities,horizontalnetworks,comesfromsociology.InherPhDworkatMIT,AnnaLeeSaxenian(currentlyDeanof theUCBerkeleySchoolof Information)noticed thatexternaleconomiesdonotfullyexplainthedevelopmentandadaptationofstartupcommunities.

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In particular, in her seminal book Regional Advantage: Culture andCompetitioninSiliconValleyandRoute128(1994)Saxeniannotedthattwohotbeds for high-tech activity—Silicon Valley and Boston’s Route 128—looked very similar in the mid-1980s. Each area enjoyed agglomerationeconomies associated with the nation’s two high-tech regions. Yet just adecade later, Silicon Valley gained a dominant advantage over Route 128.External economies alone did not provide an answer. Saxenian set out toresolve the puzzle of why SiliconValley far outpaced Route 128 from themid-1980stomid-1990s.

Saxenian persuasively argues that a culture of openness and informationexchangefueledSiliconValley’sascentoverRoute128.Thisargumentistiedtonetworkeffects,whicharebetterleveragedbyacommunitywithacultureof information sharing across companies and industries. Saxenian observedthat the porous boundaries between SiliconValley companies, such as SunMicrosystemsandHP,stoodinstarkcontrasttotheclosed-loopandautarkiccompanies of Route 128, such as DEC and Apollo. More broadly, SiliconValley culture embraced a horizontal exchange of information across andbetween companies. Rapid technological disruption played perfectly toSiliconValley’scultureofopeninformationexchangeandlabormobility.Astechnology quickly changed, the Silicon Valley companies were betterpositioned to share information, adopt new trends, leverage innovation, andnimblyrespondtonewconditions.Meanwhile,verticalintegrationandclosedsystems disadvantaged many Route 128 companies during periods oftechnologicalupheaval.Saxenianhighlights theroleofadenselynetworkedculture in explaining Silicon Valley’s successful industrial adaptation ascomparedtoRoute128.

Finally, the third explanation of startup communities, the notion of thecreative class, comes from geography. Richard Florida describes the tiebetween innovation and creative-class individuals. The creative class iscomposed of individuals such as entrepreneurs, engineers, professors, andartists who create “meaningful new forms.” Creative-class individuals,Floridaargues,wanttoliveinniceplaces,enjoyaculturewithatolerancefornew ideas and weirdness, and—most of all—want to be around othercreative-class individuals. This is another example of network effects,becauseavirtuouscycleexistswhere theexistenceofacreativeclass inanareaattractsmorecreative-classindividualstothearea,whichinturnmakestheareaevenmorevaluableandattractive.Alocationthathitscriticalmassenjoysacompetitivegeographicadvantageoverplacesthathaveyettoattractasignificantnumberofcreative-classindividuals.

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Each of the three explanations just outlined provides a useful lens tounderstand why the entrepreneurial world has concentrations of startupcommunities in specific geographies. They are incomplete, however,concerninghow toput a startup community intomotion.There is a seriouschickenand eggproblem; although it is not difficult to seewhy innovationhavens have an advantage, it is more challenging to explain how to get astartupcommunityupandrunning.

THEBOULDERTHESISIsuggestafourthframeworkbasedonourexperienceinBoulder.Let’scallittheBoulderThesis.Thisframeworkhasfourkeycomponents:

1.Entrepreneursmustleadthestartupcommunity.

2.Theleadersmusthavealong-termcommitment.

3. The startup community must be inclusive of anyone who wants toparticipateinit.

4.Thestartupcommunitymusthavecontinualactivitiesthatengagetheentireentrepreneurialstack.

LEDBYENTREPRENEURSThemostcriticalprincipleofastartupcommunityisthatentrepreneursmustlead it. Lots of different people are involved in the startup community andmany nonentrepreneurs play key roles. Unless the entrepreneurs lead, thestartupcommunitywillnotbesustainableovertime.

Invirtuallyeverymajorcity,therearelonglistsofdifferenttypesofpeopleand organizations who are involved in the startup community includinggovernment, universities, investors, mentors, and service providers.Historically,manyof theseorganizations try toplaya leadership role in thedevelopmentoftheirlocalstartupcommunity.Althoughtheirinvolvementisimportant,theycan’tbetheleaders.Theentrepreneurshavetobeleaders.

I define an entrepreneur as someone who has co-founded a company. Idifferentiate between “high-growth entrepreneurial companies” and “smallbusinesses.”Bothareimportant,buttheyaredifferentthings.Entrepreneurialcompanies have the potential to be or are high-growth businesses whereassmallbusinesses tend tobe local,profitable,but slow-growthorganizations.

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Small-business people are often “pillars of their community” as theirbusinesses have a tight co-dependency with their community. By contrast,foundersofhigh-growthentrepreneurialcompaniesgenerallyareinvolvedinthe local community as employers and indirect contributors to smallbusinessesand the localeconomy,but they rarelyare involved in thebroadbusiness community because they are extraordinarily focused on theircompanies.

Becauseofthisintensefocus,it’sunrealistictothinkthatallentrepreneursin a community will be leaders. All that is needed is a critical mass ofentrepreneurs,oftenlessthanadozen,whowillprovideleadership.

LONG-TERMCOMMITMENTThese leaders have to make a long-term commitment to their startupcommunity. I like to say this has to be at least 20 years from today toreinforce the sense that this has to bemeaningful in length.Optimally, thecommitment resets daily; it should be a forward-looking 20-yearcommitment.

It’swellunderstood that economies run incycles.Economiesgrow,peak,decline, bottomout, grow again, peak again, decline again, and bottomoutagain.Someof thesecyclesaremodest.Someare severe.The lengthsvarydramatically.

Startup communities have to take a very long-term view.A great startupcommunity such as Silicon Valley (1950–today) has a long trajectory.Althoughtheyhavetheirboomsandbusts,theycontinuedtogrow,develop,andexpandthroughoutthisperiodoftime.

Most cities and their leaders get excited about entrepreneurship after amajor economic decline. They focus on it for a few years through a peak.Whenthesubsequentdeclineultimatelyhappens, theyfocusonother thingsduring the downturn.When things bottomout,most of the progress gainedduring theupswingwas lost. I’ve seen this several times—first in the early1990sandagainaroundtheInternetbubble.AllyouhavetodoisthinkbacktothenicknameofyourcityduringtheInternetbubble(SiliconAlley,SiliconSwamp,SiliconSlopes,SiliconPrairie,SiliconGulch,andSiliconMountain)torememberwhatitwaslikebeforeandafterthepeak.

Thisiswhytheleadershavetofirstbeentrepreneursandthenhavealong-termview.These leadersmustbecommitted to thecontinuousdevelopment

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oftheirstartupcommunity,regardlessoftheeconomiccycletheircity,state,orcountryisin.Greatentrepreneurialcompanies,suchasApple,Genentech,Microsoft,andIntel,werestartedduringdowneconomiccycles.Ittakessuchalongtimetocreatesomethingpowerfulthat,almostbydefinition,you’llgothroughseveraleconomiccyclesonthepathtoglory.

If you aspire to be a leader of your startup community, but you aren’twillingtolivewhereyouareforthenext20yearsandworkhardatleadingthe startup community for that period of time, ask yourself what your realmotivationforbeingaleaderis.Althoughyoucanhaveimpactforashorterperiodoftime,it’lltakeatleastthislevelofcommitmentfromsomeleaderstosustainavibrantstartupcommunity.

FOSTERAPHILOSOPHYOFINCLUSIVENESS

A startup community must be extremely inclusive. Anyone who wants toengageshouldbeableto,whethertheyarechangingcareers,movingtoyourcity, graduating from college, or just want to do something different. Thisapplies toentrepreneurs,peoplewhowant towork for startups,peoplewhowanttoworkwithstartups,orpeoplewhoaresimplyintellectuallyinterestedinstartups.

This philosophy of inclusiveness applies at all levels of the startupcommunity. The leaders have to be open to havingmore leaders involved,recognizingthatleadersneedtobeentrepreneurswhohavealong-termviewofbuildingtheirstartupcommunity.Entrepreneursinthecommunityneedtowelcomeotherentrepreneurs,viewingthegrowthofthestartupcommunityasa positive force for all, rather than a zero-sum game in which newentrepreneurscompetelocallyforresourcesandstatus.Employeesofstartupsneed to recruit their friends and open their homes and city to other peoplewhohavemovedintothecommunity.

Everyone in the startupcommunity shouldhaveaperspective thathavingmore people engaged in the startup community is good for the startupcommunity.Buildingastartupcommunity isnotazero-sumgame inwhichthere are winners and losers; if everyone engages, they and the entirecommunitycanallbewinners.

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ENGAGETHEENTIREENTREPRENEURIALSTACK

Startup communities must have regular activities that engage the entireentrepreneurial stack. This includes first-time entrepreneurs, experiencedentrepreneurs, aspiring entrepreneurs, investors, mentors, employees ofstartups, service providers to startups, and anyone else who wants to beinvolved.

Over the years, I’ve been tomany entrepreneurial award events, periodiccocktail parties, monthly networking events, panel discussions, and openhouses.Although these typesofactivitieshavea role, typically inshiningabright light on the people doing good thingswithin the startup community,theydon’treallyengageanyoneinanyrealentrepreneurialactivity.

Theemergenceofhackathons,newtechmeetups,opencoffeeclubs,startupweekends,andaccelerators likeTechStars standout in starkcontrast.Theseareactivitiesandevents,which Iwillcover indepth later in thisbook, thatlastfromafewhourstothreemonthsandprovideatangible,focused,setofactivities for themembersof thestartupcommunity toengage in.Bybeinginclusive of the startup community, these activities consistently engage theentireentrepreneurialstack.

Someoftheseactivitieswilllastfordecades;otherswillgostrongforafewyears and then fade away; others will fail to thrive and die quickly. Thisdynamic is analogous to startups—it’s okay to try things that fail, and thestartupcommunitymust recognizewhensomething isn’tworkingandmoveon. The leaders of the failed activity should try again to create things thatengage the entire entrepreneurial stack, and participants in failed activitiesshould keepon engaging in stuff, recognizing that they are playing a long-termgame.

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CHAPTERFOUR

PARTICIPANTSINASTARTUPCOMMUNITY

Leadersofstartupcommunitieshavetobeentrepreneurs.Everyoneelseisafeederintothestartupcommunity.Bothleadersandfeedersareimportant,buttheirrolesaredifferent.

Leaders of a startup community must have a long-term commitment,welcome everyone to the startup community, and help create things thatengage the entire entrepreneurial stack. Over 20 years, it’s likely that eachentrepreneurwill go through different phases in his company, have successand failure, start new companies, and work with many different people.Althoughmany things in the entrepreneurs’ liveswill change, they have tostayfocusedonprovidingleadershiptotheirstartupcommunityorelsetheyshouldn’tcommittothisleadershiproleinthefirstplace.

There are many different leadership roles within the startup community.Someleaderstakeonaspecificrole,likeTimEnwall,thefounderofTendril,as one of the leaders of Colorado Startup Summer. Others have broadinfluence through their actual business, as David Cohen does as CEO ofTechStars. And others, like Robert Reich, the co-founder of OpenSpace,engage a broad cross-section by creating and hosting the Boulder DenverNewTechMeetup.

Leaders set an example. They are tireless in their evangelism for theirstartup community, put their community andgeography aheadof their self-interest,andjustdostuff.Bytakingaction,theyprovideauthorityforotherstobecomeleaders.

There is no “leader of the leaders.” The best startup communities areloosely organized and consist of broad, evolving networks of people. Byhaving inclusive philosophies, it’s very easy for new leaders to emergeorganically. Furthermore, there are no votes, no hierarchy, no titles, and nospecificroles.Sincetheleadersareentrepreneurs,theyareusedtoambiguityaswellasarapidandcontinuousevolutionofthecommunity.

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Iliketothinkofastartupcommunityasanevolvingorganism,ratherthanawell-definedstructure.Oncetheorganismstartsevolving,aslongasitretainsitsinclusivegene,itwillcontinuetoevolveasnewleadersgetintothemix.

Feeders are everyone else in the startup community. This includesgovernment, universities, investors, mentors, service providers, and largecompanies.I’lldescribeeachofthese,andtheircorrespondingroles,inmoredetailshortly.

Historically,manyofthefeedersthoughtofthemselvesasleaders.Thishasbeenoneoftheprimaryinhibitorsofthelong-termgrowthandevolutionofmany startupcommunities.These feeders runondifferent timecycles (e.g.,thetwo-orfour-yearcycleofgovernment)orhavedifferentmotivations(i.e.,service providers grow by generating increasing revenue from clients) thantheentrepreneursinthestartupcommunity.Althoughthismisalignmentmayseemminor, it has a huge negative impact on the evolution of the startupcommunitywheninaleadershiprole.

It’simportanttorealizethatbeingafeederisnotabadthing.Rather,it’saclear description of the specific role. The startup community wouldn’t besuccessfuloverthelongtermwithoutbothleadersandfeeders.However,theabsence of entrepreneurs as leaders, or the overwhelming leadership byfeeders,willdoomastartupcommunity.

ENTREPRENEURSThe leaders of a startup community must be the entrepreneurs. Theseentrepreneursmusthavealong-termcommitmenttotheirstartupcommunity.They must be inclusive of anyone who wants to engage with the startupcommunity.Theymustbeactivelyinvolved—theyhavetoshowup,do,andleadbyexample.Finally,theyhavetoputthelong-termhealthofthestartupcommunityaheadoftheirself-interests.

Atthebeginningofitsarc,astartupcommunityneedsonlyafewleaders.InBoulder,Icanpointtohalfadozenpeoplethatignitedtheentrepreneurialrevolution the city has been enjoying. Over time, the number of leadersgrows,roleschange,andsomeleaderstakeabackseattootherleaders.Thisiscritical;withoutevolution,thestartupcommunitywillstagnate.

Entrepreneurs are extremely busy running their companies. Manyentrepreneurshave familiesandstrugglemightilywithbalancing theirworkand the rest of their life. “Leading their startup community” can sound like

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onemoreburdenon topof analreadyoverwhelming setof responsibilities.However,someentrepreneursfigureouthowtodoit.How?

Anyentrepreneurwhohasbeenaleaderofastartupcommunityknowstheincredible amount of energy to be gained from other entrepreneurs. Theseentrepreneurialleadersfollowa“givebeforeyouget”philosophy:Theyhavenoideawhattheyaregoingtogetoutofprovidingthisleadership,buttheyexpectitwillbemorethantheyinvest.Insomecases,theresultsaretangibleand immediate; inother cases the results arevagueand takea long time tomaterialize. Regardless, the short-term emotional satisfaction of helping tomobilize,grow,andevolveastartupcommunityissubstantial.

Entrepreneurialleadersarecharismatic.Peoplewanttobearoundthemandareinspiredbythem.Idon’tbelievethatpeoplemotivateotherpeople;rathertheycreateacontext inwhichothersaremotivated.Someentrepreneursarespectacular at creating this context, andwhen they lead by example,manyotherentrepreneursrisetotheoccasion.Thisphenomenonisself-reinforcing;I’ve seen ithappen inBoulder and it is incrediblypowerfulonce it reachescriticalmass.

Thestartupcommunityisalwaysevolving.Iftheentrepreneurialleaderstrytocontrol thisevolution, theywill failandundermine theirpreviousefforts.Instead,entrepreneurialleadersshouldembracethisevolution,encourageandsupportnewthings,people,andideas,andrecognizethatotherentrepreneurs’leadershipisadditivetothesystem.Ratherthanviewitasazero-sumgame,in which there’s a leader on top, they view it as a game with increasingreturns, inwhich the larger thenumberofentrepreneurs involved, themoregreatthingshappen.

GOVERNMENTWhenI’mtalkingtogroupsaboutstartupcommunities,oneofthequestionsIaskis,“Howmanyofyouareentrepreneurs?”Iflessthanhalftheaudienceconsists of entrepreneurs, there is a fundamental problem. I’ve been insituationsinwhich,afterI’veasked,“Howmanyofyouareentrepreneursorinvestors—angel or VC?” still less than half of the handswent up. In onecase, thiswasless thanaquarterof thehands.WhenIstartedgoingaroundtheroomandaskingtherestofthepeoplefortitles,theywerethingslikecityeconomic development director, state office of economic development,northweststateregionaldevelopmentdirector,andmayor’sofficeofbusinessdevelopment.Twenty-fivepeoplelater,Iaskedeachofthemtostopandthen

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turned to the entrepreneurs and said, “Please giveme specific examples ofhow these people have helped you with your business.” None wereforthcoming.

In general, state and local governments, at least in theUnited States, arewell intentioned. So, when you think of government as a feeder into yourstartupcommunity, takeanoptimisticandconstructiveview.Recognize thatthereareanumberofbarriersthatpeopleingovernmenthavetoovercometobeeffectiveinastartupcommunity.

For starters, the cadence of government is out of sync with a long-termview.Government runs in short timecycles, usually less than fouryears. Itoften feels likeweare in an endless campaign cycle and, in somecases, atleast half of the activity of government leaders feels like it is around theprocess of getting reelected.After an election, there is often a three-monthlame-duckperiodwherenothinghappens,followedbyasix-monthperiodasthenewadministrationgearsup,putsnewleaders inplace,makes itsplans,doesitsstudies,writesitsreports,andthenlaunchesitsnewinitiatives.That’sninemonths of a four-year cyclewasted. Startup communities can’twait—theyaregrowingandchangingeveryday.

It is well known that government can inhibit business activity. The easythingstopinongovernmentareoverwhelmingregulatoryactivity,misguidedtax policy that stalls investment in entrepreneurial companies, shortsightedtax policy that drives entrepreneurial companies to neighboring cities orstates,andconstrictivezoningrules,especiallyindowntowncores,thatdriverents up and lower inventory of office and living space. At the minimum,these types of behavior make state and local government look stupid toentrepreneursanddirectlycontradicttheentrepreneurs-are-importantmessagethatgovernmentoftenistryingtogetoutthere.

Other state laws, like those around noncompete agreements, stifleentrepreneurialactivity.Historically,noncompeteagreementswereviewedasnecessary to protect employers and companies. However, noncompeteagreementshavelongbeenunenforceableinCaliforniaandareoftencitedasone of the drivers of the health of the Silicon Valley entrepreneurialecosystem.

Many government employees don’t understand entrepreneurship.When Ifirst started trying to understand government’s role in entrepreneurship, Iagreed to co-chair theColoradoGovernor’s InnovationCouncilunder then-GovernorBillRitter.ThefirstthingIrealizedisthatfewpeopleIencounteredin local or state government understood the difference between small

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businessesandhigh-growthentrepreneurialbusinesses.WhenIexploredthisat a federal level, it was just as bad; the Small BusinessAdministration isresponsible for both, and it’s telling that its name is the Small BusinessAdministrationratherthantheHigh-GrowthBusinessAdministration.

Governmentexiststosupport,yetmanylocalandstategovernmentsbelievethey can create. This is true in good economic times when government isinvesting ingrowthand inbadeconomic timeswhengovernment iscuttingback,yetinvestinginrecovery.Governmentisgreatatshiningabrightlighton thingsandusing itsbullypulpit tostimulateagendas,but it is terribleatinvestinginandcreatingnewentrepreneurialactivity.Thisistrueatboththestate levelandthelocal level.However, ifyouworkforcitygovernmentorfor themayor’s office, and your title is EconomicDevelopment Liaison orSmallBusinessDevelopmentDirector,bydefinitionyoubelieveyour job istohelpcompaniesgrow.

Of course, there are things government can do to help the startupcommunitygrow,but fromasupport role rather thana leadership role. I’vefoundthesetovarydramaticallybystartupcommunity.Asaresult,Ialwaysencouragegovernmentpeopletoasktheentrepreneurswhattheyneed.Onceyou’veasked,youhaveachoice.Youcansay,“Wearen’tabletodothat”or“excellentidea—wearegoingtogodothatnow.”Theworstthingyoucandoistobeinthemiddlewithentrepreneurs.

Finally, if you work for the government and are excited aboutentrepreneurship, don’t be afraid to engage deeply as a participant in thestartup community. This will be after hours and on weekends, just likeeveryoneelse.Butyou’llbewelcomed.Andwhoknows,youmightdecidetobeanentrepreneur.

UNIVERSITIESThere is a strong conventional belief that for a startup community to besuccessful,ithastobelocatedclosetoamajoruniversity.Thetworegularlycitedexamplesof thisareMIT’sproximity toCambridge/Boston/Route128andStanford’sproximitytoSiliconValley.Althoughauniversitypresenceisvaluable to a startup community, I reject the premise that the startupcommunity is dependent on the university. It’s from this perspective that Icategorizeuniversitiesasfeederstothestartupcommunity.

Universities have five resources relevant to entrepreneurship: students,

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professors,researchlabs,entrepreneurshipprograms,andtechnologytransferoffices.Thefirst tworesources,whicharepeople,aremuchmoreimportantthan the last three, which are institutions. The idea that people are alwaysmore important thaninstitutions is fundamental tocreatingahealthystartupcommunity.

Students are by far the most important contribution of a university to astartup community. Every year, a new crop of eager freshmen arrive oncampus.Someofthesefreshmenaredestinedtobecomeentrepreneurs;otherswillworkforstartups.Regardlessofwhat theyendupdoing, theyallbringnew ideas and freshperspectives to the community.Additionally, eachyearbringsnewgraduatestudents to thecommunity.Thesegraduatestudentsarealmost always a net positive contribution to the intellectual capacity of thecommunity. Some will engage in entrepreneurship, either through startingcompanies around the work they are doing or joining startups that areinterestingtothem.Ineachcase,newbloodinthesystemispowerful.

Professors comenext in importance. Inuniversities thathavea cultureofentrepreneurship, many professors themselves are entrepreneurs. In somesituationsthisentrepreneurialactivityisaroundtheirownresearch;inothersthey are simply captivated by ideas from their students and join in on theentrepreneurialjourneyasco-founders,advisors,andmentors.Sometimesthefundamental innovation comes from professors, but often the professorsmerelycreateacontextforanindependentthinkertocomeupwithsomethingnewandamazing.

Research labsarealsoapartof this.Auniversity likeMIT is specificallyorientedarounddepartments(e.g.,Course6–ComputerScienceandElectricalEngineering) and labs (e.g., Computer Science and Artificial IntelligenceLaboratory [CSAIL] and the Media Lab). Professors from multipledepartmentsparticipate in the labs—somespendmore time teaching;othersspendmoretimeonresearch—buttheintersectionoftheacademicprogramswith the research labs creates a powerful petri dish for entrepreneurialactivities.

Many universities have entrepreneurship programs. These programs areoften located in the business school, which is exactly the wrong place forthem. This dynamic emerged from the notion that you could teachentrepreneurship, an idea that is heavily debated both inside and outsideacademia.Havingaformalentrepreneurshipprogramispowerful,especiallyinthecontextof linkingtheuniversitytothestartupcommunity,butfortheprogram to be effective it should be juxtaposed with the students and

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professorscreatingnewinnovations.Inmostcases,thisinnovationisoutsidethe business school—in engineering, computer science, life sciencedepartments, and the labs. By putting the entrepreneurship center in thebusinessschool,auniversitycreatesadynamicbywhichthebusinesspeoplewaitfortheinnovatorstocometothem,whiletheinnovatorsareheadsdownin their labs, in front of their computers andwith their colleagues, hard atwork at all hours of the day and night. To change this, I encourage thebusiness school students interested in entrepreneurship to go out across thecampusandfindtheinventors,rather thanwaitfor the inventors tocometothem.Forward-lookinguniversities realize this andput the entrepreneurshipcenterontheothersideofcampusfromthebusinessschool.

TheBayh-DoleActof1980sparkedthecreationofthetechnologytransferofficeatuniversities,andfulfilledthevisionofVannevarBushdatingbackto1945.Today,technologytransferoffices(TTOs)areubiquitousatvirtuallyalluniversitiesthathaveanykindofresearchactivities.Inmanycases,TTOsarehelpful in the process of licensing university research to new startups.However,inmanysituationstheyaretoxicbecauseofabsurdlicensingterms;excessive requests forequityor royalties;difficult licensingandcontractingpractices;andoverreaching,restrictiveIPprotectionthatinhibitsinnovation.Insomecases,theTTOistightlyintegratedintothefabricoftheuniversity;inothersitisaseparateorganizationwithaclearmissiontogenerateasmuchrevenueaspossible through the capture and licensingof IP. I encourage alluniversitiestolookwesttowardtheleadershipofStanfordasanexample,andthecorrespondingimpactontheSiliconValleystartupcommunity.

I’m often asked how universities can better engage with the startupcommunity. As a feeder, the university can be a great convener ofentrepreneurial activities. Universities have great spaces to work, largeconference and auditorium facilities, and lots of students and facultyinterestedinentrepreneurship.We’veseenthisplayoutbrilliantlyinBoulderthrough the leadership of CU Law and the Silicon Flatirons program.Although the law school is an unlikely place to envision the coreentrepreneurial activity in the university, several of the leaders atCULaw,including thenowDeanPhilWeiser andBradBernthal, have taken it uponthemselves toprovide leadershipacross theuniversity.CULawandSiliconFlatirons host a steady stream of entrepreneurial activities and groups,including the Boulder Denver New Tech Meetup, regular nationalconferences on entrepreneurship, and the entrepreneurial law clinic, whichprovides free legal support from law school students to the Boulder-basedstartup companies. In addition, the CU New Venture Challenge, a cross-

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campusnewbusinesscompetition, startedatCULawand results ina focalpoint for cross-campus entrepreneurial activity. There are many things CUBoulder could do better around entrepreneurship, but the role of CU as aconvener for entrepreneurial activity is demonstrated extremelywell by theroleofCULawandSiliconFlatirons.

Finally,thecultureoftheuniversityplaysacriticallyimportantroleinhowitengageswiththestartupcommunity.Again,MITandStanfordareexcellentexamples of this.As youwalk down the halls, you see professorswho arefoundersofmultibillion-dollarcompanies,insomecasesmultipletimes.Theyworkoutofmodestoffices likeeveryoneelse,engagedeeplywithstudents,and are incredibly passionate about the work they do academically andentrepreneurially. Their institutions respect and support these outsideactivities,andtheyprovidestrongentrepreneurialrolemodelsfortheirpeersand students. Finally, some of the wealth created often cycles back to theuniversity, either through licensing via the TTO, or more notably, throughmajorgiftstheseprofessorsandtheirco-foundersgivebacktotheuniversityaftertheircompaniessucceed.

Remember, universities are a source of fresh blood, new thinking, andadditional potential leaders to your startup community. If you look at thestartupcommunitiesaroundMITandStanford,youseeanever-evolvingcastof entrepreneurs who came from these schools providing intellectual,emotional, and functional leadership for the startup community over a longperiod of time. Embrace and include the university, but don’t rely on it tolead.

INVESTORSAlthough investors are a key part of a startup community, they are ofteninappropriately blamed for the failure of a startup community to thrive, orexcessivelypraised for a startup community’s success.Thephrase “there isnotenoughcapitalhereforstartups”isheardallovertheworld,andit isasmuchofaclichéas“moneywillgotowherethegooddealsare.”Attheearlystage, raisingmoney ishard, figuringoutwhichdealsaregood ishard,andeverythingelseassociatedwithgettingacompanyupandrunningishard,sowhat’sthebigdeal?Ratherthanstrugglewiththis,investorsshouldrecognizethattheyarefeedersintothestartupcommunity,playalong-termgame,andworkhardtohelpsupportthedevelopmentoftheirstartupcommunities.

One of the classic problems is that some investors view themselves as

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gatekeeperstoastartupcommunity.Thisisespeciallytrueattheearlystageswhere investors, especially localVC firms, position themselves as the firstsourceofsmartcapital.WhenImovedtoBoulderinthemid-1990s,IoftenheardfromotherlocalVCsthingslike“weinvestinthebestlocaldealsandthenimportout-of-stateinvestorsforthenextrounds.”Althoughtrueinsomecases,thedependencyisanunhealthyone,especiallywhenthereareveryfewlocalVCsortheinvestorstheyimportfromoutofstateendupwithcrummyfinancialresultsovertime.

Investorarroganceistightlycoupledtothis.Manyinvestorsforgetthattheentrepreneurs are doing all the really hard work.Whenever investors starttalkingabout“myentrepreneurs”or“mycompanies,”youknowyouhaveaproblem.Inthecontextofthelong-termdevelopmentofastartupcommunity,this investor arrogance can be destructive if it polarizes an already fragilerelationshipbetweentheentrepreneurandinvestor.

WhenIrefertoinvestors,I’mlumpingangelsandVCstogetherinthesamecategory. In some cases, their roles overlap, but there can be fundamentaldifferences inhowtheyoperate.Forexample,VCsare inbusiness to investmoney in equity and generate economic returns for themselves and theirinvestors. That’s it. Although angels have the same goal, their individualmotivations, especially on a deal-by-deal basis, may be more nuanced.Furthermore,VCs are not all the same; there aremanydifferent behavioralarchetypes.Thesedifferencesare important in thecontextof thehealthofastartupcommunity.Goalalignmentoverthelongtermisimportant,anditisyet another reason why investors fall into the category of feeders becausethesegoalsaredrivenbytheentrepreneursandsupportedbytheinvestors.

Thereareexceptions.Whenyoulookarounddifferentstartupcommunities,youseeVCsplayinganeffectiveleadershiprole.InNewYork,FredWilsonatUnionSquareVentures immediatelycomestomind.InLosAngeles, it isMark Suster at GRP. However, the examples are few and far between.Fundamentally, a VC can’t declare him- or herself a leader of a startupcommunity;heorshemustearnthisoveralongperiodoftimethroughdeepcommitment,effort,andinvolvementinthestartupcommunity.

MENTORSMentors are experienced entrepreneurs or investorswho actively contributetime, energy, and wisdom to startups and can be a key part of a startupcommunity.

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Often the terms advisor and mentor are conflated. An advisor has aneconomicrelationshipwiththecompanyheisadvising.Incontrast,amentordoesn’t.Thementorishelpingstartupswithoutaclearsetofoutcomegoalsor economic rewards. I refer to this as a “give before you get” approach.Mentors are counting on their contribution of good karma coming backaroundatsomepoint,insomeway,withoutapredefinedexpectation.

Foramentortobesuccessful,thereareanumberofthingstoconsider.AtTechStars, we’ve created a mentor manifesto, which follows and explainsmanyofthekeybehaviorsofamentor(http://startuprev.com/g2).

BeSocratic.Expectnothinginreturn(you’llbedelightedwithwhatyoudogetback).Beauthentic/practicewhatyoupreach.Bedirect.Tellthetruth,howeverhard.Listen,too.Thebestmentorrelationshipseventuallybecometwo-wayrelationships.Beresponsive.Adoptatleastonecompanyeverysingleyear.Experiencecounts.Clearlyseparateopinionfromfact.Holdinformationinconfidence.Clearlycommittomentorordonot.Eitherisfine.Knowwhatyoudon’tknow.Say,“Idon’tknow”whenyoudon’tknow.“Idon’tknow”ispreferabletobravado.Guide,don’tcontrol.Teamsmustmaketheirowndecisions.Guidebutnevertellthemwhattodo.Understandthatit’stheircompany,notyours.Acceptandcommunicatewithothermentorsthatgetinvolved.Beoptimistic.Providespecificactionableadvice;don’tbevague.Bechallenging/robustbutneverdestructive.Haveempathy.Rememberthatstartupsarehard.

The most powerful mentor/mentee relationships are those in which thementor and the mentee ultimately become peers. In many situations, thementor often learnsmore from thementee.At somemoment in time, theybecomementorstoeachother.

SERVICEPROVIDERSEvery startup community has service providers. These are the lawyers,accountants, recruiters,marketing consultants, and contractCFOswho help

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startups in many different ways. Some of these service providers aresignificantcompanies;othersareindividualconsultants.

The best service providers invest their time and energy for no charge inearly-stagecompanies.Asthesecompaniesdevelop,theserviceprovidersarerewardedwithlong-termbusinessrelationshipswithfast-growingcompanies.In some cases, smart service providers will invest in early rounds, andoccasionallythereturnsfromtheseequityinvestmentscandwarfthefeespaidtothefirmovertime.

Inaddition to focusingenergyon thestartups,great serviceproviderscanhelpwiththegrowthofthestartupcommunity.Manyofthemoreestablishedfirmshavemarketingbudgetsthatcanunderwriteentrepreneurshipeventsortheyhavephysicalinfrastructure,suchasalargeoffice,whichcanbeusedtohost startup events.Somepartners at lawor accounting firms loveworkingwithstartupsattheveryearlystagesandoftenhavebroadnetworksthatcanbebrought tothetable.Inallcases, if theserviceprovider is takingalong-termviewandlookingpastthenextmonthlyfee,itcanhaveaverypositiveimpactonthedevelopmentofthecommunity.

Someserviceprovidersandconsultantsareinit justforthemoney.Thesefirmsdon’tunderstandthe“givebeforeyouget”philosophyandtendnottobehelpful.Insomecasestheynegativelyimpactthestartupcommunityandover time are alienated by the startup community. If they are individualconsultants,theyoftendisappearfromthesceneandtakeajobsomewhere.Iftheyarefirms,they’lloftencontinuetohavebusinessinthecommunity,butrarelydotheybecomethego-tofirmforstartups.

LARGECOMPANIESLarge companies can play an important role in any startup community.However, there is often much confusion, from both entrepreneurs and theemployeesofthelargecompanies,aboutwhataneffectivesetofactivitiesis.

The two most powerful things large companies can do for the startupcommunityare(1)provideaconveningspaceandresourcesforlocalstartups,and (2) create programs to encourage startups to build companies thatenhancethelargecompany’secosystem.

InBoulder,Googledoesanawesomejobofprovidingitsspaceforstartups.It has a fun office in an oldCircuitCity building and has created an eventspace that comfortably holds 250 people. This space is free to any local

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gatheringofentrepreneursaslongastheyarrangeitinadvancewiththefolksatGoogle.It’sagenerousoffer,anditallowsBoulderGoogleemployees toeasilyengagewithstartupactivityinBoulderthattheyareinterestedin,whilecreatinggoodwillforGooglewithintheBoulderstartupcommunity.

Onaninternationalbasis,MicrosofthascreatedaprogramcalledBizspark,whichbeganfiveyearsagobyprovidingfreeMicrosoftsoftwaretostartups.Ithasexpandedgreatlysincethen,nowincludinganacceleratorprogram(runby TechStars), international publicity for “Bizspark startups,” free hostinginfrastructureviaAzure,anddeepaccesstokeyMicrosoftproductgroupsforstartupsthatarebuildingtechnologiesthatenhancetheMicrosoftecosystem.

Many large companies are standoffish to the startup community. Theyworry that if they engage, the startups they interact with will recruit theiremployees.Althoughthiscanhappen,havingtheopportunitytointeractwithstartupsenhancesthequalityoftheemployee’sjob.Thisoftenincreasesjobsatisfactionandlong-termemployeeretention.

THEIMPORTANCEOFBOTHLEADERSANDFEEDERS

Startupcommunitiesneedbothleadersandfeeders.Theproblemcomeswhenthefeederstrytoleadorwhenthereisanabsenceofleaders.

If the startup community has a culture of inclusiveness, itwill constantlyhave entrepreneurs step up into leadership positions. The existing leadersneedtobewelcomingofthesenewleadersorelsethestartupcommunitywillhave the “patriarch problem,”which I’ll describe later. The entrepreneurialleadersalsoneedtobeinclusiveofanyfeederswhowanttoparticipate.

It’s hard to separate interest from action. Because building a startupcommunityisalong-termcommitment,leaderscaneasilyengagenewleadersandfeedersbygivingthemassignments.Theseassignmentscanbesimpleatfirst,butbygivingpeopletangiblethingstodo,youquicklyseparatepeoplewhoarewillingtoengagefromthosewhomerelyarelookingtonetworkorsimply get something from the startup community. Always remember themindsetof“givebeforeyouget,”andchallengeanyonewhowantstoengageinthestartupcommunitytodemonstratethiswiththeiractions.

Finally, every startup community needs cheerleaders. These cheerleadersare both the leaders and the feeders, because everyone in the community

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shouldbeproudofwhattheyaredoingandshoutitfromtherooftops.Thischeerleading can be via a community web site, such as what exists inWashington, DC (http://startuprev.com/b0), Chicago(http://startuprev.com/j0), and nationally (http://startuprev.com/n0), or it canbetheregular,steadyblogging,writing,andtalkingthatwehaveinBoulderby the individual leadersandfeeders.Regardless,beproudofwhatyouaredoinginyourcommunity,andmakenoiseaboutittotheworld.

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CHAPTERFIVE

ATTRIBUTESOFLEADERSHIPINASTARTUPCOMMUNITY

Therearefourkeyattributestoleadershipinastartupcommunity.Theleadersmustbeinclusive.Theymustrealize theyarenotplayingazero-sumgame.Theyneed to bementorship driven and recognize the continual power of amentor-mentee relationship. Finally, theymust embrace porous boundaries.I’llexploretheseinmoredetailinthischapter.

BEINCLUSIVEFor the leaders of a startup community to be effective, they need to beinclusive.Anyone,regardlessofexperience,background,education,ethnicity,orperspectiveshouldbewelcomedintothestartupcommunityiftheywanttoengagewithit.

Leadershaveaspecialroleinthisprocess.Peoplewhowanttogetinvolvedina startupcommunityapproach themfirst.Thesepeoplemightbemovingfromanothercity,workingfora largecompany,graduatingfromcollege,orsimplybeinterestedingettingmoreinvolvedinwhat’sgoingoninthestartupcommunity.The leadersare thegatekeepersandshouldmakesure thegatesarealwaysopen.

When someone new shows up at the gates of a startup community, theleadersshoulddoafewthings.First,theyshouldmakesurethepersonknowswhatactivitiesexisttoquicklygettheminvolved.InBoulder,IpointpeopletoawebpostIwrotewithseveralof thehigh-impact,easy-to-accessevents(http://startuprev.com/l0).

Ifsomeoneisvisitingfromoutoftown,theleadershouldquicklyintroducethepersontoabout10peopleshethinksarerelevantsothevisitorcanquicklyget a bunch of meetings set up to explore the local startup community.Although a leader can occasionally chaperone a person around, it’s morepowerful to get the community to work by building a culture in which

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everyone in the community is willing to spend timewith someone new intown.

Leaders need to be inclusive of othermembers of the startup communitywho want to be leaders. Becoming a leader in a startup community is afunction of what you do rather than being voted into office or selected bysomesecretcommitteeinadark,smoke-filledroom.Leadersshouldquicklyparcelout assignments to anyentrepreneurwhoexpresses interest in takingon a leadership role. The best startup community leaders are constantlynurturingnewleaders,handingoffexistingactivitiestothem,andthentakingonnewresponsibilitiesandstartingupnewsetsofactivities.

There will be situations in which someone is fundamentally a bad actor.Thispersonmightbeacausticpersonality,dishonest,emotionallyunstable,orsimplyabadperson.Startupcommunitiesbehave likeanorganism thathasbeen invadedwhen it comes incontactwithpeople like this, and itquicklyrejects them.The risk of an occasional organ rejection isworth the risk ofbeingcompletely inclusive,especiallyas thescaleof thestartupcommunitygrows.

PLAYANON-ZERO-SUMGAMEManypeopleapproachbusinessasazero-sumgame:Therearewinnersandlosers. This is stupid and counterproductive in the context of a startupcommunity.Startupcommunitiesareoftenatinyfractionofwhattheycouldultimately become. As a result, there is a huge amount of untappedopportunity.Approachingitasanon-zero-sumgameismuchmorepowerful.

For starters, fully embrace the notion of increasing returns. The goal ofeveryone in the startup community should be to create something that isdurable for a very long time. Although ups and downs with individualcompanieswillalwayshappen,viewthestartupcommunityasawholeentity.Ifthereismorestartupactivity,thiswillgeneratemoreattentiontothestartupcommunity,whichwillgenerateevenmoreactivity.

View the percentage of your local economy that the startup communitycontributesasitsmarketshare.Ifthemacroenvironmentgetsbetter,sowillthe overall dynamic of the startup community. The macro cycles areunpredictable,buttheseup-and-downswingswilllikelyonlyhaveimpactontheoverallmacro.Duringdownturns,thereareactuallyopportunitiesforthestartupcommunitytogainmarketshareofthelocaleconomy.

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We’ve seen this aggressivelyplayout in themost recent economic cycle.Althoughtheglobalfinancialdownturnthatstartedin2008hascontinuedtocast a dark cloudoverworld economies, startup communities in theUnitedStatesandthroughout theworldhavebeengrowingsignificantlyduringthisperiod. In the past two years, much attention has turned to the power ofentrepreneurship to revive the global economy. Against the backdrop of aweakglobaleconomy,weregularlyseeastronglocaleconomyincitiessuchasBoulderthathaveahighentrepreneurialdensity.

Thebestoftheselocalstartupcommunitiesaren’tplayingzero-sumgames.Theleadersareembracingeveryonewhowantstoengageinstartupsandarebuilding long-term foundations for continued growth.When a startup fails(which is inevitable for many) the local community quickly absorbs thepeople involved into other companies because there is almost always asupply/demandimbalancebetweenavailableemployeesandavailablejobsinrapidlygrowingstartupcommunities.Theentrepreneursaren’tshamedwhentheyfail;it’squitetheoppositereaction.Theyimmediatelyarewelcomedasadvisors for other companies, entrepreneurs in residence forVC firms, andmentorsorexecutives inresidenceforaccelerators likeTechStars.Althoughmanytakeashortbreaktocatchtheirbreath,theyoftengetbackinthegamequickly.That’swhatentrepreneursdo.

BEMENTORSHIPDRIVENMentorship, when done correctly, is magical. A great mentor has noexpectationsofwhatsheisgoingtogetoutofthementor-menteerelationshipwhensheembarksonit.Rather,thementorisfocusedona“givebeforeyouget”dynamic,withawillingness to let therelationshipgowherever it takesher.

The best leaders can be incredible mentors. They recognize that being amentor is a key part of the role of a leader and allocate their energyaccordingly. Occasionally I’ll hear people who declare themselves to beleaderssaynonsensicalthingslike“Idon’thavetimetobeamentor.”Theyfundamentallymissthepointofwhataleaderdoes.

Leadersshouldbefocusedonmentorshipatseverallevels.Theyshouldbementoringotherleaders,workingwithanyonewhowantstobealeaderinthestartupcommunitytohelpthembecomealeader.Theyshouldbementoringotherentrepreneurs,especiallythoseearlyintheircareerswhoaresearchingfornewmentors.Andtheyshouldbementoringeachother,becausethebest

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mentor-mentee relationships come when the relationship turns into a peerrelationship.

Althoughthereisn’taclearamountoftimesomeoneshouldplayamentorrole, I loveGoogle’s conceptof20percent time,bywhicheveryemployeegetstospend20percentoftheirworktimeonwhateverprojecttheywant.Asa leader, I try to spend20percent ofmy timementoring entrepreneurs andotherleaders—roughlysplit50–50betweenthetwocategories.It’snotexact,andI’msuretherearestretchesduringwhichIendupspendingeithermoreor less depending on other things that I’ve got going on, but over a longperiodoftimeIexpectmytimeaveragesoutthisway.

Itrytokeepmymentoringactivityunstructuredandnonspecific.Instead,IamflexibleandresponsivetothepeopleI’mmentoring.Somewantaspecificamountoftimeeachmonth.Otherswanttoreachoutwhenevertheyhaveaneed.Eithermethodworksforme.

Mostimportantisthe“leadbyexample”role.Inmycase,Icontinuallytellpeoplewhyit’simportanttobeamentor,butIalsoshowitbybeingamentor.Others see my behavior and can learn from it. Part of the power of it,especially in the context of leadership of a startup community, is to showother leaders how to do it, and share the benefits across thewhole startupcommunity.

There’snobetterwaytoexplain thisother thanfromthepointofviewofone amazing mentor (David Cohen) talking about the behavior of anothermentor (Mark Solon) in a real situation they were in. Following is thedescription,inDavid’swords.

OneofthemostsuccessfulcompaniesI’veeverinvestedinalmostdisappearedwithinitsfirstyear.Asaresultofthehelpofoneamazingmentoritisnowalarge,rapidlygrowing,andextremelyvaluablecompany.

ThatcompanyisSendGrid,aTechStarscompanyfrom2009.SendGridisnowpartoftheinfrastructureoftheInternet,havingalreadyhelpedcompaniessuccessfullydelivertensofbillionsoftransactionale-mails.MarkSolonandIwereseedinvestorsinthecompanyandservedontheboardofdirectorstogether.Likemanycompaniesthataresuccessfulandgrowrapidlyearlyintheirlife,SendGridhadearlyinterestfrompotentialacquirers.Thefoundersofthecompanyplannedtobuildabigbusinessfromtheverybeginning.However,whenrealmoneyistossedonthetableinfrontofyou,it’seasytobetempted.Atonepoint,thefounders

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decidedthatitmightmakesensetosellthecompany.MarkandIthoughtthatifthecompanywasacquiredatthisearlypoint,we’dbedoingahugedisservicetoourselvesandtheinvestorsinourfunds.Butmoreimportantly,wethoughtwe’dbedoingahugedisservicetothefounders.

Ofcourse,wehadnocrystalball.ThiscouldhavebeenthebestofferthatSendGridwouldeverget.Itwasalife-changingfinancialofferforthefoundersfromagreatacquirer.Thesethingsmakeithardtosayno.ThisiswhereMarkSolonjumpedintoactionandreallyshinedasamentortothefounders.

Markmadeitclearrightawaythatifthefoundersdecidedtheywantedtosell,hewouldnotstandintheirway.Hewouldsupportthemcompletely.However,healsomadeitclearthathe’dbeverydisappointed.IvividlyrememberMarktellingthefoundersthat“companieslikeSendGriddon’tcomealongeveryday.”MarktookaverySocraticapproachtoexplorewhatthefoundersreallywanted.WhatdidtheywantSendGridtobecome?Howdidtheydefinesuccess?DidtheyfeelthatSendGridwouldultimatelybeworthmuchmorethanthisoffer?Didtheythinkthatfuturefinancingwouldbeavailabletothem?Didtheythinkthattheycouldbethebestintheworldatthisonething?Didtheythinktheacquirercouldcomeoutwithacompetitiveproductinareasonabletimeperiod?Markalsoexpressedhisopinionthatotheracquirerswouldcomeknockingonthedoorsoonenough.Mark’sapproachclearlyputthefoundersfirstandbecauseofthatthefounderscorrectlyviewedMarkaslookingoutfortheirbestinterestsandnotjusthisownasaventurecapitalist.

Thefoundersdecidednottotaketheearlyexit.Ican’tgiveyouthedetails,butit’snowextremelyclearthatthiswasagooddecisionforthefoundersregardlessofwhathappensnext.Aswithallgoodmentorship,thekeyisthatthefoundersultimatelymadethisdecision.Markactedasamentorandafriendfirst,admittedthathecouldbetotallywrong,andletthefoundersdecide.

DavidCohen,TechStars,@davidcohen

InadditiontoDavidandMarkbeingawesomementors,thisexampleshowsanotherpowerfuldynamicaboutmentorship—thatofmentors learningfromeach other. Severalmonths after the SendGrid situation resolved, I recall aconversationwithDavidwhereheexplainedtomewhatMarkhaddone,howhehaddoneit,andwhatDavidlearned.I’vesincebeeninsituationsinwhichI’veseenDavidemploysimilarapproachesthatheclearlylearnedfromMark.

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Mentorsneverstopteaching,andlearning,regardlessofthesituation.

HAVEPOROUSBOUNDARIESThe best startup communities have porous boundaries. It’s acceptable forpeopletoflowfromonecompanytoanother.Leaderstalktoeachotherandshare strategies, relationships, ideas, and resources. When someone leavesone company for another, they aren’t shunned. When someone moves totown,theyarewelcomed.Whensomeoneleavestown,theyaremissed,andcelebratedeverytimetheycomethroughforavisit.

Althoughsomecommunitieshavefactions,overtimetheshort-termbenefitofthefactionsareoftenoutweighedbyporousboundaries.IfyoustudyplaceslikeSiliconValley,youseeacontinualshiftofpeoplefromonesubsetofthecommunity toanother,and, forsomereason, thesesubsetshavecome tobecalled“mafias.”AtmomentsintimeyoumighthaveaYahoo!mafia,PayPalmafia,aGooglemafia,oraFacebookmafia.Althoughthemembersofeachmafia share a common set of experiences, they also co-mingle as newcompanies are created and subsequently acquired by other companies.Although the personal relationships may have short-term complexities, theparticipantswho take a longer view,who embrace their specificmafia, butalso encourage and participate in porous boundaries between thesemafias,endupplayingthebestlong-termgame.

I’veseenthisinactionmanytimes.OneofmyfavoriteexperienceswasinthefirstyearofTechStarsin2007.Twoofthementorshadbeenfoundersofcompetingcompanies.Althougheachcompanyhadlongsincebeenacquired,the animosity between these two founderswas strong, bordering on hatred.Furthermore,thesetwoentrepreneursdidn’treallyhaveadirectrelationship;rather, their relationshipwas through their co-founders, who truly despisedeach other as a result of a lot of direct conflict when the companies werecompetingwitheachother.Giventheirinterests,thesetwofoundersendedupmentoringthesamecompany.Withinafewweekstheystartedspendingtimetogetherandrealizedtheybothlikedandrespectedeachother.BytheendofTechStars, they were good friends and were working on several thingstogether.

GIVEPEOPLEASSIGNMENTS

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PeopleapproachmeonadailybasisandaskhowtheycangetinvolvedintheBoulderstartupcommunity.Theserequestscomeinmanydifferentformsandwithvarious levels andamountsofbackground information. It’s impossibleformetospendtherequiredtimefilteringoutwhoisseriousandwhoisn’t,soI’vecomeupwithasimpleapproachthatIusebothindealingwiththeseofferstogetinvolvedandwithanyoneelsewhowantstoengagewithmeinsomething I’m involved with. My approach is to give the person anassignment.

Theassignmentsarestraightforward.Itrytoquicklythinkofsomethingtheperson could do that would immediately be helpful. Often the actualassignmentistrivial,butitdoesrequirethatthepersondosomething.Theseare always assignments that can be completed within an hour, and oftenwithinafewminutes,withminimalspecificknowledge.

One of three things happens.Half the time I never hear from the personagain. Iviewthisasablessing—thepersonwasn’tseriousabouthelpingorengagingandhasself-selectedout.Occasionally I’llhear fromthesepeopleagain,butusually Ineverdo.When Idohear from themagain, I ask themabout the assignment, especially if they once again ask to engage in someway.Sometimestheydoit,butmostofthetimetheygoawayagain.

Aquarterofthetimethepersondoestheassignmentandreportsback.Thisisuseful,because Icannowfilter thisperson into thecategoryof“adoer.”Every startup community needs people to do things; there are an infinitenumberofspecifictasksthatareneededonanongoingbasis.Findingpeoplewhoaregoodatjustgettingstuffdoneishard.OnceI’vefoundsomeonelikethis, I keep giving themmore assignments that increase in complexity andambitiononagradualbasis.Thegreatdoersjustkeepondoing.

Theremainingsituationsaremagical.Peopledon’tjustdotheassignments,they take them to thenext level.They figureoutwhere they can take theirassignments, how the assignments fit into a broader context, andmake theassignments their own. They do the specific assignments, but they use theassignmentsasstartingpointsforgoingalotfurtheronwhateverpathIwassendingthem.Thesepeopleare leaders,andtheyquickly takeownershipofaspectsofthestartupcommunitythatareinterestingtothem.

Givingpeopleassignmentsworksasa tool forfiguringoutwhoaredoersandwhoareleaders.Iusethisapproachinmanydifferentareasofmylifeinwhich I initiate projects and provide leadership. This approach is inclusivebecauseIamgivingpeoplewhowanttoengageanopportunity,buttheyhavetodosomethingtoactuallyengage.Ofcourse,whentheydoengagethereisa

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muchmoresignificantlevelofinvolvement.

EXPERIMENTANDFAILFASTThephrasefailfastisusedthroughoutthestartupecosystemandhascometoencapsulatethenotionofcontinuallytryingnewthings,measuringtheresults,and either modifying the approach or doubling down, depending on theoutcome. Eric Ries in his book The Lean Startup and the correspondingactivityaroundtheleanstartupmethodologyhasrecentlypopularizedthis.

This approach is a key attribute of vibrant startup communities.Think ofyour startup community as a lean startup—one that needs to try lots ofexperiments,measure theresults,andpivotwhen thingsaren’tworking. It’snotthatyoushouldfailfastacrosstheentirestartupcommunity;insteadyoushould fail fast on specific initiatives that don’t go anywhere, attract littleinterest,orgeneratenoimpact.

Withinastartupcommunity,thereareoftengrandplansthataredefinedattheoutsetofanewsetofinitiatives.Thisespeciallyhappenswhenoneofthefeeders tries toplaya leadershiprole,abroadnewprogramsuchasStartupColoradoemerges,orweenteranelectioncycleandthenewadministration(federal, state, or local) starts a new innovation-related program. Althoughsomeoftheseprogramsareadditive,theyoftenhavealonglistofobjectivesto accomplish without any real thought to the weighting or impact of thespecificinitiatives.

Manyoftheseinitiativesdon’tworkorshouldn’twork.However,becausethey’ve beendefined as part of the overall objectives of the initiative, timeandenergygetspentonthem.Monthspassandthere isverylittleprogress.Attheendofayear,thereisalwayssomeversionofareviewofthepastyear.Intellectually honest organizations call outwhich initiatives had little or noprogress;greatorganizationskilltheinitiativesthatwerefailingandputtheirenergybehindtheonesthatareworking.

One easy filter iswhether leaders for the individual initiatives emergeontheir own. If the leaders of the overall organization have to assign theinitiatives, then these initiatives likely are of lower value. However, ifparticipantsintheorganizationorthebroaderstartupcommunitystepupandtake on the specific initiatives, their chance of succeeding is much higher.More importantly, the fact that individuals are drawn to lead specificinitiativesemphasizestherelativeimportanceoftheinitiatives.

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Havingspecificinitiativesfailmustbeanacceptedpartofthecultureofastartup community. As in entrepreneurship, failure is simply part of theprocessofcreatingsomethinggreat,ratherthananendpoint.Iffailureisnotacceptable,bad ideaswillperpetuateandpeoplewhoultimatelydecide theyaren’tgoingtospendmoretimeonsomethingdestinedtofailwillwithdrawfromthecommunity.Tobesuccessful,embracefailureaspartoftheprocess.

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CHAPTERSIX

CLASSICALPROBLEMS

As I travel around talking toentrepreneursabout their startupcommunities,I’veheardaconsistentsetofcomplaintsandhaverunintosimilarproblemsoverandoveragain.Someoftheseproblemsaredeeprootedanddifficulttoaddress in the short term; others require a simple behavior change. In thischapter, I’ll discuss a number of these classical problems along withsuggestionsaboutwhatyoucandoaboutthem.

THEPATRIARCHPROBLEMThefirstoftheclassicalproblemsthatstallprogressinastartupcommunityisthepatriarchproblem.Inmomentsoffrustration,Icallthistheold-white-guyproblem. At its core, it’s one of the key challenges of a hierarchicalorganizationalmodel,oneinwhichthemostpowerfulpeoplearetheonesatthetopofthehierarchy.Inmanycities,especiallyintheUnitedStates,thesepatriarchsaretheoldwhiteguyswhomadetheirmoneymanyyearsagobutstillruntheshow.

Ifyouobserverobuststartupcommunitiesoveralongperiodoftime,theydon’texhibit thisproblem.SiliconValleyisashiningexampleof this.Witheach new generation there is a new wave of leaders. Although there areconstant debates about whether Silicon Valley is a meritocracy or biasedagainst women and minorities, there is no question that the leaders ofyesterdayencourageandembracetheleadersoftomorrow,mentorthem,andcomfortablymakeroomforthemintheecosystem.

I startedmy first company inBostonwhen Iwas 19. I clearly rememberfeeling like theyoungest guy in the room. Inmyearly20s,wehad severalcustomerswhoembracedusforouryouth,whereasotherswereskepticalofourability tobeseriousbusinesspeople. Inonecase,wealmost losta largecustomerwhentheyfoundoutmyagebecausetheycouldn’tbelieveaCEOofacompanycouldbe21.AsIgotolder,Istillfeltliketheyoungestpersonintheroom(andoftenwas),butIbecamemoreawareof thestructuresand

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constraints of the Boston startup community because of my age. I wastypecast as a young, Jewish,MIT software guy. Although that might havebeentrue,IhatedthatIgotalabel.

When I moved to Boulder, I realized that none of this existed. Thecommunitywasmuch smaller, the hierarchy didn’tmattermuch, andwhensomeone tried to put someone else in a box, they were often rejected orignoredby the system.Sure, therewere somewho said limiting things like“whenIwasyoungitworkedthiswayandyou’llhavetoworkyourwayupas well,” but, in general, the community was much flatter, and hierarchiesdidn’texist.

Interestingly, I did notice the patriarch problemwhen I engagedwith theDenverstartupcommunity.Itwassomethingthatstoodoutearlyon;Boulderoperated as a network and Denver operated as a hierarchy. In Denver, itmatteredwhoyouwere,whereyouwent toschool,whereyouhadworked,andwhoyouknew.Incontrast, theonlythingthatmatteredinBoulderwaswhat you did.When I reflect on the last 16 years that I’ve lived here, thisdefinesthedifferencebetweentheBoulderandDenverstartupcommunities,anditisapowerfulwaytodeterminewhetherthereisapatriarchprobleminyourstartupcommunity.

When people ask me the solution to the patriarch problem, I offer twoanswers.First, I suggest thatyou justhave towait forabunchofpeople todie.Althoughthisisharsh,it’softenhardtochangethebehavioraldynamicsofpeoplewhoarestuckinahierarchicalmodel,andasaresultyoujusthavetowaitthemout.

Next, the leaders of the startup community should simply ignore thepatriarchs.Go do your thingwithout getting the approval of the patriarchs.Lead,and let themcometoyou if theywant.Somewill,andwhen theydothey’lllovewhattheysee.

COMPLAININGABOUTCAPITAL

I’vebeenanentrepreneurand investor for thepast27years. I’ve livedandinvested inDallas,Boston, andBoulder andhave invested in companies inmany other cities throughout the United States including Seattle; SanFrancisco; Los Angeles; San Diego; Chicago; Austin; Portland; Denver;

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Washington, DC; Atlanta; New York; New Jersey; and some I can’tremember.OverandoverIhearonethingfromentrepreneurs:“Thereisnotenoughcapitalhere.”

Mymessageisthesameforentrepreneurs—letitgo.Therewillalwaysbean imbalancebetween supplyof capital anddemand for capital.Thewholeidea of “enough capital” is nonsensical, and complaining about it doesn’tactuallyimpactit.

Manystartupcommunitieshavespecificinitiativestoattractmorecapitaltotheirarea.Someofthesearegovernmentled,suchasstatefunds-of-fundstoinvest inVCfunds thatcommit tomaking investments ina specific region.Others are university-sponsored VC funds or university startup grantprograms.Althoughsomeoftheseprogramsareeffectiveandhaveimpactonfunding new companies, they don’t actually solve the fundamentalsupply/demandimbalance.

Boulder is a case in point of this.When Imoved toBoulder in themid-1990s,manyentrepreneurscomplainedthattherewasn’tenoughcapitalhereandthatwasoneofthereasonstheyhaddifficultygettingfunding.Inthelate1990s, therewere a large number of startups competing for the capital thatmagicallyscaleduptomeetthismuchlargernumberofcompanies,muchtothe delight of the local newspapers that regularly ran articles about theincreased amount of VC investment in Colorado. At the peak in the early2000s, anumberofnewVCfirmswerecreatedwith focused regional fundstrategiestoinvestinColorado-basedcompanies.

By 2010, many of these VC firms were out of business. Although theymademany investments locallyover their lifetime, theirperformancesweresubpar,andmanyoftheirinvestors(thelimitedpartnercommunity)believedthataregionalstrategywasineffective.Granted,manyofthesefirmsplantedthe seeds of their own demise, either by making too many marginalinvestments or by proclaiming that they were the leaders in the Coloradoregion, seeing all the great deals, but not realizing that all their peersweresaying exactly the same thing, thereby discrediting everyone. Regardless,theirfundsdidn’tperformwellenoughfortheirinvestorstocontinuetoinvestinthem.

Onceagain, someentrepreneursaresaying that there’snotenoughcapitalhere.However, thenumberofnewstartups,especially inBoulder, ishigherthaneverbefore.Moreimportantly,thenumberofbreakawaycompaniesthatare growing rapidly and attracting significant amounts of capital fromVCsaroundthecountryishigherthanI’veeverseenit.Thesearerealbusinesses

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with entrepreneurs who aren’t worried about the amount of local capital.Instead, they are focused on creating businesses around a problem they areobsessedabout.Theybelievetheycanraisethecapitaltheyneedtoscaletheirbusiness regardless of the local supply of capital. By concentrating onsomethingtheycancontrol,theybuildrealcompanieswhilehavingastrongimpactonthedevelopmentofthestartupcommunity.

BEINGTOORELIANTONGOVERNMENT

Althoughgovernmentcanplayaconstructiverole instartupcommunities,arelianceongovernmenttoeitherleadorprovidekeyresourcesfortheeffortof building a startup community over a long period of time is amisguidedview.

Earlier, I talked about government’s role as a feeder. When a startupcommunity starts relying on government to be a leader, bad things happen.First,governmentoftenhaslessmoneytoapplytothingsthanpeoplethinkitdoes. As a result, there’s often a big mismatch between expectation andrealitywhenitcomestimetoactuallyfundsomething.Next,veryfewpeoplein government have a background as entrepreneurs, and, as a result, theydon’treallyunderstandstartupsinanydepth.Consequentlythelanguage,theactivities,andtheinteractionsareawkwardandoftenineffective.Governmentalso moves at a much slower pace than entrepreneurs and, when it’s in aleadership role, it stifles the individual leadership that emerges. Finally,governmentrunsonaverydifferenttimecycle—typicallytwotofouryears—thanentrepreneursdo.

Think back to the difference between a hierarchy and a network.Governmentoperatesasahierarchy:Thereareclearroles,chainofcommand,approvalandresourceallocationprocesses,andbureaucracy.Incontrast, thebeststartupcommunitiesoperateasnetworks:abroad,looselyaffiliatedsetofleadersandorganizationsthatareworkinginparallelonavarietyofdifferentinitiatives. There is rarely a leader of a network, just nodes that areinterconnected.

Entrepreneursliveinnetworks.Governmentlivesinahierarchy.Althoughmixing the two isn’t fatal, having a network depend on a hierarchy is, asOliver Williamson (professor at University of California, Berkeley andrecipient of the Nobel Prize in Economics) explains in his classic book,

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MarketsandHierarchies.

MAKINGSHORT-TERMCOMMITMENTS

WhenItalktogroupsofpeopleaboutstartupcommunities,Ibeginbyaskingwhich of the people in the audience are entrepreneurs. I give a shortexplanationofhowthepeoplewiththeirhandsuparetheoneswhohavethepotentialtobetheleadersforthestartupcommunity.Ithenaskthemtokeeptheirhandsupiftheyplantobehere20yearsfromnow.Fortheoneswhosehandsarestillup,Iassertthattheyaretheoneswhoreallycanbetheleaders.

As I’ve said earlier, one of the key principles of building a startupcommunity is that it takes a long time. Although I toss around a 20-yearnumber,thisisreallytheminimum.Optimally,it’s20yearsfromtoday,andthatnumberresetstoanother20yearseveryday.Afteryou’vebeenatitforadecade,itstillrequiresa20-yearcommitment.

The20-yeartimeframesignifiesagenerationtome.Ittakesagenerationofeffort toget a startup communityupand running in a sustainableway.Thefirst few years of renewal, which many startup communities are goingthrough right now, are exciting, and progress is easy tomeasure.However,after a fewyears, the rateof changeoften slows,macroeconomicdynamicsovershadowwhateverisgoingonlocally,thepoliticalinfrastructurechangesorsimplyislessfreshandexciting.Thisiswhentherealworkhappens—dayafter day, week after week, month after month. Entrepreneurs continue tobuildtheircompanies,andtheoneswhohavetakenontheadditionaleffortofleadingthestartupcommunityjuststayafterit.

Although there’s nothingwrongwith not being committed to a particulargeographyforthenext20years,itmakesithardtobealeader.Youcanhaveshort-term impact, but recognize that, for it to be sustained, you’ll need tohand itoff tosomeoneelse.That’softenchallenging,especially if the thingyouareworkingonisamultiyearproject.

HAVINGABIASAGAINSTNEWCOMERS

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A key principle of startup communities that I discussed earlier is theimportanceofwelcominganyonenewwhoshowsupinthecommunity,eithertemporarily or permanently.Historically,many cities ran as hierarchies andnewcomers had to earn theirway into the hierarchy.This is dumb, and theexactoppositeofwhatyouwanttodowithastartupcommunity.

InBoulder,whensomeonenewshowsupintown,theentrepreneursswarmthem. It doesn’tmatter if it’s someone looking for a job, someonewhohaspreviously started a great company, or someone who is well knownthroughout theentrepreneurialworld.Ourgoal, asacommunity, is tomakethe person feelwelcome and immediately get integrated into anything theywanttobeinvolvedin.

Ifsomeonesendsmeane-mailsayingtheyarecomingtoBouldertovisit,Iimmediately introduce them to a bunch of entrepreneurs. I tune theseintroductionsbasedonthepersonandtheirbackground,lookingtointroducethem to people who I think they will be most interested in. I’ve heardregularly that,within an hour, their schedule for the trip is completely full,showingtheresponsivenessoftheBoulderentrepreneurstoanyonecomingtovisit.

ATTEMPTBYAFEEDERTOCONTROLTHECOMMUNITY

Inmanycommunitiesthefeedersmasqueradeasleadersandinsomecasestryto controlwhat’s going on in the startup community. This is a syndrome Irefertoasfeedercontrol,anditstiflesshort-termgrowthandlong-termhealthofthestartupcommunity.

VCsare someof theworstoffendersof this.As Imentionedearlier,VCsareimportantfeeders,butit’sveryhardforthemtobeleaders.Althoughthereareexceptions,manyVCs,especiallyinsmallercitiesorregionsthatarenotaswell known for entrepreneurship, position themselves as gatekeepers forpeople outside the startup community. Phrases similar to “we know all theinteresting things going on” or “we see all the best deals” reinforce thispositionyetarealmostalways false.This isaclassicalhierarchicalviewoftheworldandsimplydoesn’tworkinawidelynetworkedstartupcommunity.

Manyof thebest entrepreneurs are turnedoffby this typeof attitudeandconsciouslyavoidengagingwiththeseVCs.Moreimportantly,manyVCssit

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back andwait for the entrepreneurs to come to them, rather than engagingdeeplyinwhateverisgoingonaroundthem,regardlessofwhethertheyhavean investment in a particular company. Either way, this kind of behaviorrarelyacceleratesthegrowthofastartupcommunity.

Government isanother instigatorof feedercontrol.Although thishappensat a federal, state, and local level, it’smost obvious at a state level.Anewgovernoriselected.Afterthetypicalsix-monthsettling-inprocess,heandtherecentlyappointedheadofeconomicdevelopmentdeclarethatinnovationisakeydriverofeconomicgrowthforthestateandtheyconvenean“innovationcouncil.”Thisinnovationcounciltakesanothersixmonthstogetgoingwhileitrecruitstheappropriatehigh-profilemembers.Itthencreatesasetofhigh-profile public events to spread innovation across the state. Everything isabstract, filledwith pomp and circumstance, and usually disconnectedwithwhatever is actually going on in the startup community. Many peopleinvolveduse itasaway togeneratemorevisibility for theircompany, theircause, or their agenda and very little work actually gets done. Before youknow it, it’s time for another electioncycle and the initiatives fade into thebackgroundasthegovernorfocusesongettingelectedagain.

Anotherexampleistheuniversitythattriestopositionitselfinthemiddleof all the startup activity in a community. Although universities are greatfeeders,theirbiggestvaluetoastartupcommunityisoftenasteadystreamofnew young, smart people with a secondary value of lots of space forconvening events. In a few cases, like MIT and Stanford, there is atremendouscultureofentrepreneurshipamongprofessorsandstudents,whichoften generates lots of new startups, but this is the exception. Whenuniversities try to emulate MIT and Stanford, they often try to positionthemselvesatthecenterofalltheentrepreneurialactivity,viewingtheirrolethrough the lens of technology transfer (we must generate lots of newstartups) or control over the innovation (all the IP belongs to us—we willshare it ifwegetapieceof it).Neitherof theseapproachesareparticularlyeffective.

Although each of these types of feeders, and others, are important,whentheytrytocontrolwhat’sgoingoninthestartupcommunity,theyoftenretardthe actual growth of the startup community.You’ll notice that some of thefeeders, such as governments and universities, run on a strong hierarchymodel. When a hierarchy instead of a network drives an entity, it almostalwaysclassifiesitasafeeder.Anaturalforcewithinhierarchiesistop-downcontroloverallactivities;usethisasawarningsignthatfeedercontrolisinthemix.

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CREATINGARTIFICIALGEOGRAPHICBOUNDARIES

Entrepreneurship doesn’t follow geographic boundaries. It’s one of the keyreasonsentrepreneurship is sopowerful in theUnitedStates—cityandstateboundaries aredefined forpolitical convenienceandgenerallydon’t impacttheflowofpeopleorcompaniesacrosslocalgeographies.

Let’susetheBostonstartupcommunityasanexample.Whatiscommonlyknownas theBoston startup community consists of several cities includingBoston, Cambridge, Waltham (Rte. 128), and Hopkinton (Rte. 495).Historically when people talked about Boston, they talked about Rte. 128,which even has a sign on it that says “America’s Technology Highway.”Today, however, much of the startup activity is in Cambridge and neardowntown Boston. Even within Cambridge, however, you have differentneighborhoods(KendallSquare,CentralSquare,HarvardSquare)andwithinBoston you have different neighborhoods (Innovation District, LeatherDistrict,SouthEnd).Althoughtheseneighborhoodsareawalkorashorttrainride apart, they have distinct superlocal characteristics that all contribute tothelocalcharacteristicsofBoston.

However, what prevents a Boston-based company from expanding toanother city or picking up and moving to the Bay Area, like the famousexamplesofFacebookandDropbox?Nothing!Andthat’sthebeautyofit—this permeability of boundaries requires each community to continue toimproveifitwantstokeepthebestcompanieslocal.

This applies to movement within cities. One of Boulder’s weaknesses,whichI’lldiscusslater,islackofofficespace.Onceacompanyreachesabout100people,itbecomesveryhardforittostayindowntownBoulder.Manyofthesecompaniesmove to theoutskirtsofBoulder,butonce theyhit severalhundredpeople, theyonceagainrunoutofspaceandoftenmove tooneoftheneighboringcitieslikeBroomfield.Althoughthestartupcommunitiesareconnected,thesestartupneighborhoodsproliferate.

Asaresult,high-growthstartupsaren’tconstrainedbycityorstateborders.When they hit a national border and expand into another country, lots ofissuessuddenlyappear.Immigration,businesslaw,employmentlaw,andtaxrules are obvious ones, but there are many more subtle ones, includingculture, societal view of entrepreneurship, and views about success andfailure.Soatacountry level,geographicbordersmattera lot,butata state

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andcitylevel,theydon’tmattermuchatall.

PLAYINGAZERO-SUMGAMEOncemembersof thestartupcommunityrealizethatgeographicbordersareartificial,theyoftenfallintothetrapofplayingazero-sumgame,wheretheywinattheexpenseoftheneighboringstartupcommunity.“Ourcommunityisbetterthanyours”startspoppingup.Governmentinitiativestorecruitstartupsfromotherstatesappear.Majorbrandinginitiativesarounddemonstratingthat“wearethebeststartupcommunity”emerge.Resistanceappearswhenthereisanopportunitytocollaborateacrossgeographies.

Thisisdumb.Asasociety,wearefarfromthesaturationpointintermsofentrepreneurship.Although there isnot an infinite capacity for it, playingazero-sumgame,especiallywithinneighboringgeographies,simplystiflesthegrowth of the startup ecosystem. Instead, take a network approach andconnectyourstartupcommunitywithneighboringones.

ThisistheapproachwehavetakenwithStartupColorado.Thenorth-southhighwayconnecting thestate is I-25.Therearefourmajorcitieswithin twohours of each other—from north to south we have Fort Collins, Boulder,Denver, andColoradoSprings.AlthoughBoulder is the smallest, it has themost robust startup community. Yet each of the other three cities hasincredible inherent resources for entrepreneurship, many of which aredifferent from but complementary to those in Boulder. In the first year ofStartupColorado,oneofourinitiativeswastoexportsomeoftheactivitiesinBoulder to the surrounding cities. These started with regularly repeatingevents such as the Boulder Denver New Tech Meetup (the second largestmonthly meetup in the United States, now topping 500 people at eachmonthlyevent)aswellasbiweeklyOpenCoffeeClubs(amovementthatwasstartedinLondonbySaulKleinandhasspreadthroughouttheworld),OfficeHours(whereexperiencedentrepreneurswillmeetwithanyone),andStartupWeekends(a54-hoursimulationofentrepreneurship).

Although theseactivitiesmay seemstraightforward, that’sbydesign.Thegoal is toget the leaders in theother cities to take anetworked, bottom-upapproach to getting people actively engaged in the startup community. Theleaders in theBoulder startup community didn’t view things as a zero-sumgame, and instead of telling entrepreneurs throughout the state to move toBoulder,theyexportedthingsthatwereworkingforthemtotheneighboringcommunities.

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HAVINGACULTUREOFRISKAVERSION

A local culture of risk aversion is another classical inhibitor of startupcommunities.AsI travelaroundtheUnitedStates,Ioftenhearfrompeoplethattheyareafraidofinvestingtimeintheirstartupcommunitybecausetheyareafraidtherewon’tbeapayoff.Thisgenerallycomesintwoforms:(1)aconcernaboutinvestingyourtimeinsomethingthatdoesn’thaveimpact,and(2)fearofrejectionbyotherleadersinthestartupcommunity.

In the first case, I encourage people to takemore chances but give theirefforttimeboundaries.Greatentrepreneurstrylotsofthingsthatdon’tendupworking. Ifyouhavean ideaor initiative that is interesting toyou, justgetstarted.If,afterafewmonths,itisn’tgoinganywhere,you’velostinterestinit,oryou’rehavingtroublegettingotherstoengage,takethatasasignalthatthe initiative isn’tworking in its current form.You then have two choices:changeitorkillit.Ineithercase,youaremovingontothenextiterationofthe idea. Rather than being concerned aboutwasting your time,make sureyoulearnsomethingfromwhatdidn’twork.

Inthecaseoffearofrejectionbyotherleadersinthestartupcommunity,letitgo.Themorepeopleinthestartupcommunitywhostepupandtrythings,themorethestartupcommunitywillbeopentopeople tryingthings.Ifyouhave a patriarch problem in your community, just ignore the existinghierarchy.Ifyourinitiativedoesn’twork,tryanotherone.Buildareputationfor trying stuff, collecting data, pivoting, and improving. Over time, that’smuchmoreattractiveandimpactfulthanareputationofbeingafraidtogiveitashot.Andit’smuchbetterforthelong-termhealthofthestartupcommunity.

AVOIDINGPEOPLEBECAUSEOFPASTFAILURES

IwasrecentlyinIcelandfortheinauguralStartupIcelandevent.AlthoughIhadnospecificreasontogo,mywife,Amy,andIhadneverbeentoIcelandandwe figured itwould be fun to go hang out, seeReykjavik, andmeet abunchofentrepreneurs.Wehadanawesometime,sawafascinatingcountry,andmetacommunityofpeopleenergizedaroundentrepreneurship,partiallyas a result of the spectacular economic collapse that Iceland recently had,

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whichcausedmanypeopletohitresetandstartover.

I remember one of the entrepreneurs distinctly.Hewas sharp, smart, andhadclearlybeenthroughalot.Iheardabouthisprevioussuccessandfailure,but spent most of my time talking with him about what he was currentlyworkingon.HewassomewhatcynicalabouttheStartupIcelandactivity,buthewasengagedbecause,athiscore,hewasanentrepreneurandattractedtootherentrepreneurs.However,Isensedsomethingwasoff.

I asked one of the Startup Iceland leaders what the story was with theentrepreneur in question. The response was simple, but enlightening: “Heburnedalotofbridgeswhenhislaststartupfailed—alotofpeopledon’twanttoworkwithhim.”Iaskedifhehaddoneanythingillegalorjustfailed.“Hejust failed andmade amess, but hewasn’t graceful about it.” I pressed onwhatgracefulmeantanddidn’treallygetagoodanswer,butitwasclearthatour failed entrepreneur had tarnished his reputation andwas being avoidedbecauseofhisfailure.

I encouraged my new friend to let this go and embrace the failedentrepreneur. I asserted that he’d learned an enormous amount from hisfailure. More importantly I suggested that by embracing the failedentrepreneur, it would encouragemore entrepreneurs to takemore risks. Itwouldshifttheculturearoundfailureinapositiveway.

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CHAPTERSEVEN

ACTIVITIESANDEVENTS

UptothispointI’vebeengivingyouaframeworkandtalkinginabstractionsabout how to create a great startup community. In this chapter,we shift tosome specific examples of things various leaders in Boulder took on, gotgoing, and turned into fundamental components of our startup community.The impactofeachonevaries, and individuallyyoumightnotviewanyofthemasaparticularlyhugeendeavor,butcollectivelytheyprovideapowerfulbasethatourstartupcommunityisbuilton.

Ineachsection,I’llprovideabriefintroduction,andthenyoucanread,inthe leader’swords, about how the initiative came about. The initiatives areroughlyintheordertheywerecreated,togiveyouasenseofhowtheybuildoneachotherwhilebeingindividuallycreatedandled.

YOUNGENTREPRENEURSORGANIZATION

When I firstmoved toBoulder in1995, theonlyperson I knewwasVerneHarnish. Verne was the founder of the Young Entrepreneurs Organization(YEO)(http://startuprev.com/d0),whichhe’dstarted in the late1980s.YEOwasamembership-basedorganizationforentrepreneursofcompaniesundertheageof40(now50)whohadfoundedcompanieswithover$1millioninannualrevenue.

I joined YEO in 1990 after attending the first Birthing of Giants event,whichwas sponsored byYEO, Inc. magazine, andMIT Enterprise Forum.Thatfirstclassincludedanumberofamazingpeople,includingTedLeonsis,whosecompanywasacquiredbyAOLafterwhichTedwentontobecomethevice chairman of AOL, and Alan Trefler, whose company Pegasystems(NASDAQ:PEGA)wentpublicafewyearslater.Iwasoneoftheyoungestparticipants, and my company, Feld Technologies, barely crested the $1millionmark.

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Shortly after this firstBirthingofGiants event, I started theBostonYEOchapter. I’m still friendly with many of the entrepreneurs who formed theinitialcoregroupofYEOBoston,alongwithmanyoftheentrepreneursImetatYEOInternationalconferences.ThroughYEO,Ihadfoundmypeergroupandrealizedhowcriticallyimportantitwas,atanearlypointinmycareer,tospendtimewithone’speers.

ShortlyafterImovedtoBoulder, Istarted lookingforotherentrepreneurslike me. Boulder didn’t have a YEO chapter, so I asked a lawyer and anaccountantwhoIhadmettoreachouttoalltheentrepreneurstheyknewwhomight fit the criteria for YEO. The first meeting, held at The BoulderadoHotel, includedTimEnwall. Following, inTim’swords, is the story of theformation of YEO Boulder, which has expanded to become EO Colorado(http://startuprev.com/j1),anditisstillgoingstrongtoday.

WhiletheearliestdaysoftheBoulderstartupcommunitywerehighlightedbytheextraordinarysuccessofJesseAweidaandJuanRodriguezatStorageTekandsubsequentstorage-relatedstartupsfundedbythemandHill,Carmen,andWashing,thebeginningsofamorecommunaleffortamongstartupexecsbeganinthemid-90swhentheYoungEntrepreneur’sOrganization(YEO)chapterwasfoundedinColoradoandthefirst“forum”(agroupof10orsofounder/CEOswhosupportedeachother)wasinstantiatedinBoulder.

CriteriatojoinYEOweresimple:membershadtobefoundersofacompanywithmorethan$1millioninannualrevenueandbeundertheageof40.ThepurposeofYEOistoprovidetangiblepeersupporttofoundersbuildinghigh-growth,successfulcompaniesboththrougheducationonrelevanttopicsandthroughsmallpeer-supportgroups(“forums”)consistingofuptoadozenpeople.Eachforummembergetstoknowhisotherforummembersintimatelybecauseoftherulesrelatedtoparticipationandcontribution,aswellasthecandidnatureofthedialogue.Membersaretaughtthatthemorehonesttheyarewiththeirchallengesandopportunities,themoretheywillgetoutoftheexperience.Membersofforumsoften—asistrueofForum1inBoulder—stayconnectedtoeachotherfortherestoftheirlives.TheearlyspiritoffoundersharingcandidlyandgenerouslywasborninForum1.

Thissharingspiritquicklyspreadfromwithintheforummemberstooutsidetheforum.New,younghigh-growthfounderswerequicklywelcomedintothecommunitythroughtheinformalnetwork—coffees,breakfasts,YEOevents,andothereventstypicallyhostedbylocalservice

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providerslikelegalandaccountingfirms.Oneknewthat,ifonehadachallenge,anewexperience,anopportunitytopotentiallypursue,thenhelp,andoftenmultiplehelpinghands,wascloseathand.Becausethenetworkwastightandwithineasycoffeeorbreakfastdistance,itflourished.Becausemembersreceivedasoftenastheygave,averynaturalsharingcommunityevolved.

Eventoday,membersofthisnetworkbringnewmemberstothenetwork,providingencouragementandsupport.ManyofthemarementorsintheTechStarsprogramandarequicktooffertheircontributionsorservicestootherentrepreneurialactivitiesinthecommunity.Eachfrequentlyprovidessupporttotheotherwiththeirnextstartuporadifficultproblem.Thisethosofsharingandsupportthatbeganwithinthe10-memberForum1hasextendedintofairlyfar-flungeffortsincludingcrossparticipationinphilanthropiceffortsimportanttoeachofthem.

Ultimately,itisthisethosofunequivocalsharing—desiringabsolutelynothinginreturnforone’scontribution,one’sexperiences—thathascreatedthenucleusaroundwhichotherscan’thelpbutcontributeinthesamefashion.Itisnowsimplyexpected.

—TimEnwall,Tendril

TheseearlyBoulderYEOmembers, includingTim,PaulBerberian, JaredPolis,RyanMartens,andJimLejealshowupregularlytodayasleadersoftheBoulderstartupcommunity.In1996,Ionceagainfoundmypeergroup,and16 years later these entrepreneurs are still providing leadership for thecommunitythatI’mpartof.

YEO,nowcalledEntrepreneursOrganization(EO)canbefoundinvirtuallyeverycity around theworld. It’s a corepartof theentrepreneurial substrateandaninspirationformanyoftheideasaroundstartupcommunitythathavedevelopedovertheyears.

OFFICEHOURSIn the late 1990s I became overwhelmed with the number of people whowantedtomeetwithme.I’dbecomevisibleintheBouldercommunity,bothasanentrepreneurandVC investor.Althoughmanypeoplewanted tomeetpurely for networking purposes, others had specific agendas for gettingtogether.

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At somepoint I realized I had a choice: I could either spendallmy timemeetingwithrandompeoplewhowantedtogettogetherwithmeorIcouldbecomemuch less accessible.Neitherof theseappealed tome, so I createdtheconceptofrandomdays.

One day a month, I’d declare a random day. On this day, I’d spend 15minuteswithanyone.As the steadystreamof requests toget together foracoffeeoramealalongwiththeendlessreferralsfrompeopleIknewto“meetwiththeirfriend”camein,I’dsimplyinvitethemtoa15-minutemeetingonrandomday.Whenrandomdaycamealong, I sat inaconference roomandhadup to20shortmeetings like thisbefore Iworeout,called itaday,andwentandhadabeer.

I’vemademanygreatconnectionsonmyrandomdays.NumerouspeopleImetnowworkforcompaniesinwhichI’maninvestor.I’vemadelong-lastingfriendshipswithpeopleinlargecompaniestowhichIdidn’texpectI’dhaveaccess.Startups,suchasTechStars,cameoutofarandomdaymeeting,andI’velearnedaboutanumberofcurious,unexpectedthings.

Overtime,someonerealizedthisnotionofrandomdayswassimilartotheacademic construct of office hours duringwhich a professormakeshimselfavailableforafewhoursonceaweektoanystudentwhowantstomeetwithhim.Istartedreferringtorandomdaysasofficehours,andothermembersofthe startup community, including my partners at Foundry Group, DavidCohen,VCs likeKirkHolland andMarkSolon, and lawyers such asMikePlattandJasonHaislmaierstartedhavingofficehoursonaregularbasis.

Other entrepreneurs, such as Niel Robertson, took the concept of officehoursandmadethemtheirown.InNiel’scase,youcanoftenfindhimhavingbreakfastatJill’sRestaurantfrom8to9a.m.whenhe’sintown.Sometimeshedinesalone;othertimesheeatswithsomeonewhohasreachedouttohimtogettogether.Eitherway,alongwiththeotherpractitionersofofficehours,he makes himself easily accessible to other members of the startupcommunity.

BOULDERDENVERNEWTECHMEETUP

Overthepastfiveyears,theBoulderDenverNewTechMeetuphasbecomealocal institution. Conceived and led by Robert Reich, it has grown from a

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modest start to regular events of 500 people, making it the second largestknown TechMeetup in the United States, behind New York. The Boulderevent is held at theCULawCourtroom, one of the largest auditoriums oncampus, and it is anexampleofhowCULawsupports theBoulder startupcommunity.Following,inRobert’swords,isthestoryoftheBoulderDenverNewTechMeetup.

ThefirstBoulderDenverNewTech(BDNT)washeldonAugust8,2006.ItwasheldattheMe.diumoffices(acompanyIhadco-founded)and39peopleattended.Wepromotedtheeventthroughwordofmouth.Today,almostsixyearslater,thegrouphas8,000membersandisgrowingfasterthanwhenitfirstlaunched.

Thebasicformathasnotchangedsincetheoriginalevent.FivepresentersgetfiveminutestopitchtheirnewtechnologyfollowedbyfiveminutesofQ&A.TheoriginalformatwascreatedattheNewYorkTechMeetup,butwerefineditforBoulderandmadeitourown.

Ourguidingprinciplesfortheeventaretokeepitrealandkeepitmoving.Thismeansifapresenterisnotgettingtothepoint,theyarenudgedalongorevencutoff.Iftheyaretalkingattheaudience,sellingtoohard,orpresentingsomethingthatseemsunrealistic,itwillbequestionedpublicly.Ontheflipside,iftheyaredeliveringsomethingtheaudienceisreallyengagedinunderstanding,theywillgetalittleextratime.

Thefirstyearwasfocusedaroundrecruitingpresenters,spreadingthewordaboutwhatwasgoingonintown,andprovidingaplacetobreakbreadandhaveabeerwithfriends.Overtime,thisevolved,butbyfocusingonthesethreethings,webuiltastrongfoundationinthefirst12Meetups.

Bytheendof2007,BDNThadoutgrowntheMe.diumoffices.IlookedaroundBoulderandcouldnotlocateafacilitythatwasaffordableandthatwouldsupport200people.Coffeeshopsorofficesareawesomewhenyou’reunder100people,butassoonasyougrowbeyondthisamount,thelogistics,cost,andcrowddynamicschange.Boulderfortunatelyhasauniversityahalf-milefromdowntown,soImetwithdifferentgroupstoseeifIcouldfindanewhomeforBDNT.ItalkedtoanumberoffolksbutimmediatelyconnectedwithBradBernthalandPhilWeiserfromSiliconFlatirons,agroupthatwaswithintheLawSchoolattheCUBoulderthatincludedsupportingentrepreneurshipinitscharter.

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AgreatconnectionwasmadeearlyoninBDNT’slife,andhelpingCUBoulderbecomeaworld-classinstitutionforentrepreneursbecamepartofBDNT’smission.

Duringthesametimeperiod,TechStarswasseeingitsownsuccess,andtheBoulderstartupscenewasgrowingandattractingmoreentrepreneurs.BDNTbecamepartofthefabricofthisgrowingstartupcommunityandwascommonlyreferencedasthegreatentrepreneurshipeventthathappensonthefirstTuesdayofeachmonth.

BDNTwaslookingforawaytohelpthecommunitycollaborateandembracedTwitterearlyon.Wecobbledtogetherasolutionthatallowedustorefreshthe#BDNThashtagagainsttheTwittersearchengine.Thiscreatedareal-timecommentingsystemthatwasdisplayedontwolargemonitorsduringtheentireevent.Inthebeginning,itwasnovel,anditgavetheaudienceavoice.Eventuallyitbecamedisruptive.Weresistedchangingit,becausewedidnotwanttosquashthevaluableconversationthatwasoccurring.DuringthisperiodweweremakingtheTwittertrendingtermslistduringeachevent,whichhelpedspreadtheword.Ultimatelywetookthelivefeeddownduringthepresentertalks,increasedtherefreshrate,andonlydisplayedtheTwitterfeedduringtheQ&A.Thisworked,andwelearnedanimportantlesson:asmallamountofstructurecouldbeusedtohelpguidetheevent’sflowwithoutdisruptingtheculture.WetriedfancyTwitterwallsandotherservices,butintheend,thesimplicityofourhackedsolutionworkedandisstillusedtoday.

Towardtheendofyeartwo,thecommunitywasgrowingatasteadypaceandwasaskingformorespecificeventslikeaRubyonRailsMeetuporaJavaScriptMeetup.Insteadoftryingtocreateandmanageaneventsbusiness,weaddedanannouncementsectiontothebeginningoftheevent.Anyonecouldpromoteanytech-relatedevent.

Wewerealsogettingregularrequestsfornametags.Surprisingly,theeventstillfeltintimate,eventhoughitwas40percentnewandaveraged250peoplepermonth.Weoptedtotrysomethingdifferentandwentforchaosoverformality.AtthebeginningofBDNT,theseatedaudiencewasaskedtotakeoneminutetomeetsomeonenew.Theroomeruptedintoaroaranditoftentookfiveminutestoquieteveryonedownandstarttheshow.Todayeacheventbeginsusingthisicebreakertechnique.

Notallthingsthatwe’vetriedhavebeensuccessful.Inthepeakoftherecession,wedecideditwouldbegreattohelppeoplegetjobs.Wegave

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anyonelookingforajobtheopportunitytostandupandannouncewhattheywerelookingforandtheirskills.Waytoomanypeoplestoodup,anditwasthemostdepressingeventeverhosted.Weneverdiditagain,butwehavearesumetableandalwaysrequestpeoplepostjobopportunitiesonthefreemessageboard.Wealsotriedtofacilitateafter-meetingsessions,butitnevertookoff.Nonetheless,experimentationandcreativityhavealwaysbeenattheheartofBDNTandwearewillingtofailfastifsomethingisn’tworking.

BDNTwasatcapacityeverymonthforoverthreeyearsandsomethinghadtobedonetomanagethegrowth.Oneoftheearlygoalswastokeeptheeventfree,andone-thirdoftheattendeeswerenowcomingfromtheDenverarea.Also,theBoulderstartupscenebegantocreatemorejobsthanitcouldfilleachmonth.Denverwasamuchlargercityonly30minutesaway,sowedecidedtocreateasecondevent.WehopedtoreplicateapartnershipliketheonewithSiliconFlatirons,butthatprovedhardertofind,andwequicklylearnedthatDenverwasaverydifferentanimalthanBoulder.

TheDenvercommunitywasmorereserved,moregeographicallyspreadoutthanBoulder,andtheaudiencefluctuatedbetween125and500people.WetalkedtodifferentschoolsandultimatelycreatedapartnershipwithMetroState.Theyweregreathosts,butwewereneverabletoengagethestudentsorthefacultyandthefacilitieswerefarfromintimate.Wetrieddifferenttypesofpresentationstoengagethecommunityand,whilemostdidokay,theonethatmadeabigdifferenceandturnedtheDenvereventaroundwasanonprofitnight.

Thecommunitywasinvitedtohelpdifferentlocalnonprofitssolvetechnicalandbusinessproblemsthatonlygeeksknowhowtosolve.TheeventwasanamazingsuccessandremainsoneofthebesteventshostedeachyearinBoulderandDenver.

Knowingwecouldattractthepeopleandgetthemengagedinspiredustofindasolution.Wetriedadifferentfacilityoncampus,butultimatelytherulesandregulationswerejusttoomuchtodealwith.Wedecidedtofindanewspace,onethatwasmoreintimateandhadnoissueswithalcohol.TheDenverBDNThasbeenatcapacityeverymonthsincewemovedtotheMapQuestoffices.Thepeople,thespace,andfreedrinksarethekeybuildingblockstogettingatecheventofftheground.

WhenBDNTreached5,000members,thecommunitystartedtochange.Manyoftheentrepreneurswhoregularlyshowedupintheearlydays

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werenowtravelingonaregularbasisastheygrewtheirbusinessesandonlyshowedupintermittently.Thisfreedupspaceforpeopleinterestedintechorentrepreneurshiptojointhegroup.Thenewpeoplewerealsointerestedinbeinginspiredandentertained.Gettingpresentersbecamechallenging,andmanyofthemwerefirst-timeentrepreneurswhohadneverpresentedinfrontofalargeaudience.Thecommunitystartedgettingfrustratedatthequalityofthepresentations,soseveralofussatdownoverlunchanddiscussedamentoringprogramthatwouldbeagreatwaytobuildlastingtiesinthecommunityandincreasetheoverallqualityofthepresentationsandtheevent.Itworked.

Wecreatedamentorshipprogramforthenewpresenters.Wegavethementorsvetorightsonwhetherornotacompanywasreadytopresent.Monthaftermonthexperiencedpresenterswerehelpinglessexperiencedones,andthequalityofthepresentationswentwayup.Wecontinuedtotunethemodelandnowholdagroupmentoringsessiononeweekbeforethemonthlyevent.

Toentertainthecrowd,BDNThasusedDJsandappcessorieslikeRockBand,hadfiresidechatswithtechcelebrities,hostedofficeminuteswithVCs,andevencreatedfictitiouspresentationsforAprilFool’sDay.Afewofmyfavoritepresentationalternativesweusedwhenwecouldnotgetenoughpresentersincluded:NewTechGadgets,wherewefocusedoncoolhardware;UndertheMicroscope,whichlaunchedacompanyatBDNTandforthreeconsecutivemonthsturnedthefive-minutepresentationintoapublicboardmeeting;andMicroFailures,wheresuccessfulentrepreneursinthecommunitydiscussedimportantlessonslearned.

EachyearwehelpthecommunitymeetthedifferentcompaniesgoingthroughTechStars,FoundersInstitute,theUnreasonableInstitute,theStartupClassatBoulderDigitalWorks,andtheCUNewVentureChallenge.WetrytovideoasmanyofthepresentationsaspossibleandpostthemonourFacebookpage.Occasionallyweevenlivestreamtheevents.

BDNThassucceededforthesamereasonsmoststartupssucceed:astubbornfounderwithavision,anabilitytocreativelyadapttomarketdemand,andfreebeer.

—RobertReich,@menro

WhenBDNT started, I tried to go every time Iwas in town. I still go to

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BDNT a few times a year and continue to be amazed by the energy andenthusiasm in the room, along with the significant number of first-timeattendees at each meeting.Whenever someone new comes to Boulder andasks how to plug into the startup community, I suggest they go to BDNTeverymonth, for sixmonths in a row. By the sixthmonth, they’ll becomeregulars.AsfarasIknow,thishasworkedeverytime.

BOULDEROPENCOFFEECLUBWhen Jason Mendelson, one of my partners at Foundry Group, moved toBoulder in2006,heaskedmeif therewasanythingobvioushecoulddo tomorequicklygetpluggedintothelocalstartupscene.IsuggestedhestartanOpenCoffeeClub.I’dheardaboutOpenCoffeeClubsafewmonthsearlierfromSaulKleinof IndexPartnerswhohad started the firstone inLondon.Jason did a little research on how Saul was doing it, and the result wassomething pretty awesome. Following is Jason’s story of how the BoulderOpenCoffeeClubcameabout.

Oneactivitythathelpsfosterastartupcommunityisaregularlyoccurringeventbythecommunityforcommunity.Thisistheoppositeoflargeeventsorspecialawardceremonies;it’sasmallgatheringthatisn’tspecialbuthappensonaregularbasiswheremembersofthecommunityinteractdeeplywithoneanotherinaninformalsetting.BoulderOpenCoffeeClubisanexampleofthistypeofeventthatwe’vehadgreatsuccesswith.

WedidnotinventtheideaoftheOpenCoffeeClub;rather,wegottheideafromSaulKlein,whostartedthefirstOpenCoffeeClubinLondon(http://startuprev.com/b1).Weheardaboutitanddecidedthatwe’dtryanexperimentinBouldertoseeifwecouldgenerateinterestinfolksgettingaroundatableandhangingout.

Westartedverysimply.Wedecidedthattheclubneededtobebeforework(8a.m.to9ish),onaregularschedule(everyotherTuesday)andatalocalcoffeeshop.

Wedidn’taskforpermission.Wepostedflyers(thiswaspriortoTwitter’sbecomingubiquitous)andbloggedabouttheconcept.Wepositioneditasan“un-meeting”whereentrepreneursandotherswhowereinterestedinstartupscouldcome,hangout,network,andsharesomestories.Wealsomadeitclearthatthiswasgoingtobearegular

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event,sothatpeoplewhocouldn’tmakeitwouldstillkeepitontheirradar.

Thefirsteventhadninepeopleshowup:sevenentrepreneurs,oneventurecapitalist(me),andamarketingconsultant.IdominatedthefirstmeetingasIwasinsellmodefortheconceptandhadanagendathatincludedcurrenteventsaffectingstartups,somenewproductsthathadrecentlycomeonthemarket,andseveralupdatesonlocalfundraisings.Themostimportantpart,however,wasaskingtheattendeeswhattheywantedtogetoutofthefuturemeetings.

Theanswersrangedfromwantingtotradewarstoriesinasafeenvironment,tonetworking,torecruiting,tofiguringouthowtofundraise,tojusthangingout.Lookingback,oneofthecriticalrolesthatIplayedwasputtingtheenergybehindeachBoulderOpenCoffeeClubmeetingtomakeitaninformativeandentertainingeventfromthestart,eventhoughIdidn’tknowwhereitwouldlead.Mostimportantly,Iknewlongtermthatcommunityneededtoownthisevent,notme.

Afewmonthslater,9peopleturnedinto20,whichquicklyturnedinto40andnecessitatedalargercoffeeshop.Everyonewhoshowedupataneventwasengaged,andregularsstartedtoprovideleadershipforthenewcomers.Atypicalformatevolvedandlookedsomethinglikethefollowing:

8a.m.:Helloandgreetings8:05:CurrentEvents—thingsinthenewsthatwerenoteworthy.Thiscouldbeanythingfromnewproductlaunchestonewlawsandpoliciesthataffectstartups,tonewdevelopertoolkitreleases,toideasonbestpracticesforX,whereXcouldbealmostanything.Thiswasusuallyledbywhoeverwasleadingthegroup.8:30:OpenFloor.Thiswaswherepeoplecouldpresentoraskquestionsofthegroup.Thisincludedeverythingfromquestionsaboutone’sparticularstartupstogeneralquestions.Sometimespeoplewouldpitchthegroupwithslidestogetfeedbackbeforegoingtopresenttoinvestors.Manytimespeoplewouldbelookingtohiresomeoneandsomeoneacrosstheroomwasabletohelp.ThiswasalsothepartwhereIstayedoutofthefrayasmuchaspossibleandletthecommunityruntheagenda.Asthegroupmatured,notallthequestionsrevolvedaroundstartupsortechnology,asthegroupbegantotrusteachotherforallsortsofrecommendations.Funandunexpectedconnectionsgotmade,likemyfindingakeyboardplayerformybandatoneoftheBoulder

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OpenCoffeeClubmeetings.9:00:Networking.InBouldertheparkingmetersstartchargingat9a.m.,sowefiguredthatpeoplewouldwanttogetonwiththeirday,butthisiswhenmanypeoplestayedaroundandnetworkedandfollowedupwitheachotherfrompastmeetings.

Bytheendofthefirstyear,Iwasstillgoingtoeveryevent,butseveralentrepreneursstartedtakingmoreofaleadershiproleandcomingupwithtopics.ThiswaswhereIknewtheinflectionpointhadoccurredandthecommunitytookovertheownershipoftheBoulderOpenCoffeeClub.

Today,theBoulderOpenCoffeeClubisoneofthemostvibrantorganizationsinBoulder.Althoughthemeetingsstartat8a.m.,mostpeoplearriveat7:30a.m.togetaseat,andeverymeetingispackedwith70people,whichisthemaximumourlargestlocalcoffeeshopcanhold.Althoughwe’vethoughtaboutmovingtoalargerlocation,wedecidedtheintimacyofthespace,plustheideathatithappenseverytwoweeksandthatevenifyoumissone,youcanmakethenext,wasthecorrectapproach.Themeetingisnow100percentrunbythecommunity,withseveralleaderseagertoactasmoderator—arolethatisorganicallyspreadaroundovertime.

Theimpacttothecommunityhasbeenlarge.Anyonewhomovestotheareaknowshowtogetpluggedinimmediately—it’sthemostfrequentandopendiscussiongroupinthearea.ThinkoftheBoulderOpenCoffeeClubasBoulder’sentrepreneurialEllisIsland.ManycompanieshavebeenformedandmanypeoplehiredbystartupsfrompeoplemeetingattheBoulderOpenCoffeeClub.Finally,theknowledgetransferthathasoccurredwithinthecommunityhasbeenincredibleandacceleratedmanycompanieswhilehelpingthemavoidcommonmistakes.

Asabonus,it’sablasttogettogethereveryotherweekwithgoodfriendswholovestartupsoverthebestcoffeeintown,whichofcourseisAtlasPurveyors,shouldyoubeinBoulder.

—JasonMendelson,FoundryGroup,@jasonmendelson

The Boulder Open Coffee Club (http://startuprev.com/n1) is still goingstrong,andadynamitegroupofentrepreneurscanbefounddiscussingawiderange of topics at Atlas Purveyors (http://startuprev.com/d1) every otherTuesday. If you are ever in Boulder on a Tuesday morning when BoulderOpenCoffeeClubismeeting,stopbyandpayusavisit.

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STARTUPWEEKENDStartupWeekend was born in Boulder in July 2007. At the time, AndrewHydewashangingaroundandhelpingoutTechStars.HewasinspiredbytheactivityaroundthefirstTechStarsBoulderprogramanddecidedtogetagangtogethertoseewhatitwouldbeliketocreateastartupinaweekend.

Over70peoplegatheredonFridaynighttomeeteachotherandbrainstormideas. There were about 40 different projects, which quickly got narroweddownto5thatwerevotedon.ThemostpopularwasVoSnap,asimplemobilepollingappthatbecamethebasisforalltheworkoverthenext48hours.

Seth Levine, another of my Foundry Group partners, and I provided thefood, which included pizza, beer, soda, pretzels, bagels, and a bunch ofchocolatestuff.AlthoughIdidn’tstaytheentireweekend,Imetanumberofnewentrepreneurial friends,manywhomwereworking forotherstartupsatthetime.WeallfoundStartupWeekendtobeagreatwaytoexperiencetheprocessofastartupwhilemeetingabunchofpeers.

Andrew ran about 80 StartupWeekends around the world before sellingStartupWeekendtoMarcNagerandClintNelsenin2009,whowerequicklyjoinedbya thirdpartner,FranckNouyrigat.Marc,Clint, andFranck turnedStartupWeekend into a 501c(3); got a bunch of smart people involved asadvisors, such as David Cohen; expanded rapidly; got a grant from theKauffmanFoundation; and are doing hundreds of StartupWeekends a yeararoundtheworld.

Following is a current description of how a Startup Weekend works, inMarc’swords:

Asweallknow,thereisnobetterwaytolearnhowtodosomethingthanactuallydoingit;furthermore,thereisnobetterwaytoimproveatsomethingthanbypracticing.Whenitcomestostartingacompany,StartupWeekendisoneofthebestwaystoexperienceandsimulateactuallystartingacompanyandbeinganentrepreneur.

StartupWeekendsgenerallybeginonaFridayeveningwitharound100developers,designers,businesspeople,governmentofficials,investors,educators,inventors,lawyers,localveterans,students,etc.Theaverageageisaround32yearsold,with9.5years’workexperience,andtypicallyontheirthirdself-proclaimedstartupproject.Aftersomefunicebreakers,networking,drinks,andlikelyanoff-the-wallorinspirationalspeaker,themicrophoneopenstoeveryoneintheroom.Eachpersonhastheir60-

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secondopportunitytoidentifywhatproblemtheyarepassionateaboutsolvingandtheirpossiblesolution.Onaverage,aboutathirdoftheroomwillactuallypitchanidea.

Followingthepitches,everyoneisgivenaboutanhourtodiveindeeper,evaluate,andrefinetheirfavoriteideaspresented.UtilizingahighlysophisticatedvotingmethodofPost-itnotes,thetop15orsoideasbubbletothetopandtherestareeliminated.Thebalanceofthefirsteveningisthenspentonteamformation,whichisthemostcrucialpartoftheentireweekend.

Thetopideasserveasavehicleforamuchmoreimportantelement—connectingpeoplewithsimilarinterestsandpassionswhowanttosolvethesameproblem.Learninghowtobuildeffectiveteamsisperhapsthemostimportantfactorintheultimatesuccessorfailureofastartup.

WithteamsformedFridaynight,everyoneembarksonajourneytofurtherdefinetheproblemtheyareaddressingandvalidatethepossiblesolutionstheyhavethoughtof.Throughouttherestoftheweekend,accomplishedandexperiencedentrepreneursarebroughtintoactascoachestohelpguideteams,teachmethodologies,troubleshootproducts,askprobingquestions,andchallengeassumptions.Gallonsofcoffeeandtastymealsareprovidedtokeepteamsfocusedandworkinghard.

OnSundayevening,teamswrapupwhatthey’velearnedandpresentthisandtheirprototypestotherestoftheroom.Thereisajudgingpaneloflocalsuccessfulentrepreneurswhochoosethewinnersinseveraldifferentcategories.WewrapupStartupWeekendwithanafter-partywhereeveryonedecompresses,shareswarstories,dreamsoffuturesuccess,andcelebratestheiraccomplishmentswiththeirnewfoundfriends.

—MarcNager,StartupWeekend,@MarcNager

In2011whenMarcandteamcreatedaformalboardofdirectorsforStartupWeekend(http://startuprev.com/d2) Ihappilyagreed tobepartof it.StartupWeekend continues to be an amazing way for someone to experience thedynamicsofstartingacompanywithanumberofother like-mindedpeopleovera54-hourperiod.

IGNITEBOULDER

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There is nothing particularly interesting or remarkable about delivering aPowerPoint presentation. It’s a fundamental business skill that mostprofessionals develop during their careers, alongside plugging data into aspreadsheet,sendingathank-younote,andbuyingdonutsfortheteam.

However,whatifyoufreedthepresentationfromitsofficeshacklesandletit watch zombiemovies, indulge its pop-culture vices, and transform itselfintoafast-pacedjoltofpurehumanexpression?TheIgniteseriesofevents,founded inSeattle in2006, took thestaidPowerPointslideshowformatandaffixedarockettoit.

TheIgniteformatofpublicspeakingissimple.Eachspeakergets20slidesto get their point across, and those slides automatically advance every 15seconds. The result is an evening of five-minute blasts of perspective,imagination,creativity,hilarity,andpuregenius.

AndrewHyde,EfRodriguez,andafewothersbroughtIgnitetoBoulderin2008.Following,inEf’swords,ishowitcameabout.

ThefirstIgniteBoulderwasheldinaclassroomontheUniversityofColoradoatBouldercampusinOctober2008,hostedbyentrepreneurandauthor,AndrewHyde.Overthecourseofthenextfouryearsandalmost20events,IgniteBouldergrewintoastapleofthestartupcommunity,emblematicofBoulder’screative,innovativepopulation.

IgniteBoulderisheldtogetherbyasmallbandofvolunteerorganizers,nearlyallofwhomhavespokenattheevent.Iwasluckyenoughtospeakatoneoftheearliesteditions,comingonboardasanorganizershortlyafterwardandguidingtheeventasitsbenevolentdictatoruntilrecently.

Iwanttostressthatthisisn’tmyjob.NooneinvolvedwithIgniteBouldermakesanymoneyfromit.Wetaketimeoutsideofworktoshapetheeventforfreeandgivetheproceedsfromticketsalestolocalworthycauses.Thecommunityisbiggerthananyvenuecanhold,sowehelpoutothersectorsasoftenaswecan.

Overtime,we’veaddedasubgroupofvolunteerstohelpusonthenightofeachevent.Thecommunity’sardentsupportofIgniteBouldermadeitobviousthatthereweredozensofpeoplewhowantedtobepartofit,ifonlytoworkthecheck-intablesorhelpdistributeposters.I’veneverseensomanysmiles.

IgniteBoulderdistinguisheditselffromothercities’iterationsbybeingexponentiallymorecreative.Webelievethatifaneventisanchoredby

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qualitycontent,it’sallowedtobeaspectacle.Tothatend,myteamhasemployedallsortsofnonsensetomaketheeventasspectacularaspossible—thingslikecardboarddinosaurcutouts,inflatablepenguins,andcheapbowlingtrophiesgiventoaudiencemembersatrandom.AlloftheseshenanigansaredesignedtomakeIgniteBouldermorethanjustanightofPowerPointslides.

Weagonizeoverspeakerselection,endeavoringtodeliveraneveningofsocialvalueandoriginalityforanaudienceofmorethan1,400people.Werejectapplicantswhoonlywanttospamtheaudiencewithadisguisedsalespitch.Earlyon,eachorganizerlearnshowtounmaskacommunityleechandejectthemfromconsideration.Overtime,wegotfewerandfewerofthoseastheevent’sself-expressionagendahasbecomeclear.

TheearlyIgniteBouldereventsplayedtoourstrengths—generalgeekeryandstartupchutzpah.Astheeventmaturedandwebegantofillthelargestvenuesintown,thesubjectmatterbroadenedtoincludeawidevarietyoftopics,attractingspeakerswithveryspecializedinterestswhoonlywantedtosharethemwithanopen-mindedaudience.

Alibrarian.Afirefighter.Askydiver.Awomanwhodislikespandasimmensely.Eachpresentationwasasurprise.Theaudienceneverknewwhatwascomingnext,andifsomeonewasn’tinterestedinaparticularspeaker,wewerequicklyontothenextonewithinfiveminutes.

Fromitsinception,theIgniteconceptservedasameansforcommunitymemberstospeakalittlelouder,alittlefaster,infrontofafewmorepeople,aboutsomethingtheycaredalotabout.EventuallyIgniteBoulder’sorganizersstartedtopondertheroleofIgniteinthebroadercontextofBoulder’sstartupcommunity.Doweallowtrulypassionatespeakersthataren’tnecessarilyinterestedintechnology,ordoweapplyaneditorialfiltertothecontentthatwouldpreserveitsnerdyorigins?

Weconcludedthatbroadeningthecontentwasmuchmoreinteresting.AsIgnitegrewbigger,wemovedtolargervenues.Asthespeakersbecamemorevaried,weeggedthemonwithfoamfingers.Asthecommunityexpandedandchanged,sodidIgniteBoulder.

Asaresultofourearnestappreciationofnewperspectives,theeventdrewevenmorepeopleintothecommunityand,ineffect,strengthenedthebondsthatholdittogether.Althoughtheeventisstillrootedintechandstartupculture,weeagerlyrollouttheredcarpettoallofBoulder

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andcontinuetoevolveIgniteBoulderwitheveryevent.—EfRodriguez,@pug

InMay2012,the18thIgniteBoulder(http://startuprev.com/l2)washeld.ItwasEf’slast,ashe’smovedtoAmsterdam,buthe’llbeback,atleastinspirit,forIgnite19.

BOULDERBETAGreat startup communities are inclusive—anyone can take initiative andcreatesomethingnew.TimFallsexemplifiesthis,asyou’llseefromhisstoryaboutthecreationofBoulderBeta(http://startuprev.com/d3).

WhenImovedfromBloomington,Indiana,toBoulderfouryearsago,IquicklyrealizedIdidn’tneedgofarorwaitlongtofindagatheringofstartupenthusiasts.Theoptionswereendless:walkdownPearlStreetMallanygivenday,attendoneofthefocusedMeetupsheldweekly,getcaffeinatedwithfellowtechiesatBoulderOpenCoffeeClubeveryotherTuesdaymorning,checkoutthefresheststartupsattheBoulderDenverNewTechMeetuponCU’scampuseachmonth,enjoyageekychuckleatIgniteBouldereachquarter,meetthenewestbatchofTechStarsduringthesummer,orhangouteachspringforaweekforthestartupfestivalknownasBoulderStartupWeek.

Uponabitofself-reflection,IrealizedhowmuchmypeershaddoneformesincewelcomingmetoBoulderfouryearsearlier.Iwentfromknowingnoonetoknowingeveryone,inamatterofmonths.IcouldcallonthepillarsoftheBouldertechcommunitytohelpmewithanyrequest;andbelieveme,Irequested.Ifeltaneedtogiveback.IwantedtoplayasignificantroleinsustainingBoulder’sawesomenessandtakingourcommunitytothenextlevel.

So,Iaskedmyself,“WhatdoestheBoulderstartupcommunityneedthatitdoesn’tcurrentlyhave?”IrecentlydiscoveredaneventcalledSFBeta(http://startuprev.com/o0)—agatheringofthecoolestyoungcompaniesandsmartestcommunitymembersofSiliconValley.Theeventcreatedafun,socialenvironmentthatfostersrichinteractionamongentrepreneurs,investors,students,andcuriousminds,inaninformal,socialenvironment.NothinglikethisexistedinBoulderatthetime.MaybeBoulderneededitsownBeta?

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Inordertoanswerthesequestions,Ibegancallingonmysupportnetworkforadviceandinput.IexplainedtheconceptofSFBetaandsolicitedtheiropiniononhowthatmodelmightfitwithinourexistingecosystem.Althoughmanypointedoutthechallengesofintroducingyetanotherevent,theyalsoacknowledgedthatourcommunitywasn’tperfectandthatthere’salwaysroomformoregreatthings.

IarrangedameetingovercoffeewithaselectnumberofthesmartestBoulderitesIknewtogetfeedbackandshamelesslyaskforsponsorshipmoney.Tomydelight,IsecuredfundingimmediatelythankstoaGooglernamedAlex,whoworkedattheirlocaloffice.IthenreachedouttothefounderandorganizerofSFBeta,acompletestranger,andIsoldhimontheopportunityofexpandinghismodeltoouruniquecommunity.Withinafewmonthsofhustling,BoulderBetawasborn.

InFebruary2011,welaunchedwithourfirstevent.Wefeatured10localstartupsatabardowntown.Fourhundredpeopleregisteredandover300walkedthroughthedoortomeetthecompaniesandminglewiththeirfellowcommunitymembers.

AsofJune2012,we’veproducedseveneventsandareonaquarterlyschedule.Eacheventhasattractedaround300attendeesandtodatewe’veshowcasedover60startups.Morethan15communitymembershavevolunteeredtheirtimetomaketheeventsoperateflawlessly.I’vebroughtonanofficialpartnerasco-producer,whoranthemostrecenteventinmyabsence,whileIattendedthelaunchofSaoPauloBeta,foundedbyPedroSorrentino,whobecamefamiliarwiththeeventasoneofourselflessvolunteers.

IattributeallofthissuccesstotheoverwhelmingsupportfromthemembersoftheBoulderstartupcommunity.Withtheirinitialhelp,Ibuilttheevent.Withtheircontinuedhelp,itlivesonandwillcontinuetodosoindefinitely.Thisisjustoneexampleofwhatpassionate,active,andcollaborativepeoplecanachieve,whenthey’reallinthesamegameforthesamereasons.

—TimFalls,SendGrid,@timfalls

AfterspendingasummerasanassociateatTechStars,TimtravelstheworldforSendGridas“thecommunityguy”andspreadsalittlebitoftheBouldermagicwhereverhegoes.

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BOULDERSTARTUPDIGESTTomMarkiewicz is another example of a newcomer to Boulder who wasquickly welcomed into the community. Tom co-founded a company calledStatsMixandwentthroughTechStarsBoulderin2008.Followingishisstoryof Boulder StartupDigest (http://startuprev.com/b2) along with somesuggestionsabouthowtohaveagreatstartupevent.

IcametoBoulderfouryearsagotobepartoftheTechStarsBoulder2010class.Iknewthebestwaytomeetotherentrepreneurswastoattendlocalevents,butfindingthebestoneswasachallenge.Asanentrepreneur,timeismymostpreciousresource.

DespitethefactthatmanyeventswerepromotedbyorheldatTechStars,itwasdifficulttofindthemwithoutacentralreferencesource.Notallorganizerspostedeventsonthesamewebsites,somewereonvariousmailinglists,andothersjustrandomlypostedtoTwitter.

Luckily,IstumbledontheStartupDigest,afreeweeklye-mailinover80citiesworldwidethathighlightsthebeststartupeventsfortheupcomingweek.Sitesthataggregatelistingsareanicestart,butmakeitdifficulttodeterminewhicheventsarethemostuseful.InthecaseofStartupDigest,eachcity’se-mailiscuratedbyalocalentrepreneur,whichensuressomeonewithsimilarprioritiesscoursalltheevents.

InBoulder,AndrewHydeinitiallycuratedourStartupDigest.WhenInoticedtheweeklye-mailstoppedashemovedontootherprojects,Ireachedoutandvolunteeredtostartwritingthedigest.SinceIwasalreadyspendingalotoftimedoingthisworkanyway,Ifiguredmyeffortswouldbehelpfultotherestofthecommunity.

Now,afteralmosttwoyearsofwritingtheweeklye-mail,I’vemadesomeobservationsandlearnedafewlessonsaboutstartupevents.

Haveatopic.Nothingislessinterestingorengagingthananeventwithnoagenda.Wouldyouscheduleameetingwithnoplan?Ofcoursenot!Don’tfallintothetrapofcreatingaMeetuparoundatopic,butneverspecifyingwhatisactuallygoingtobediscussed.Goodcontentmatters.Haveaspecifictheme,speakerswithinterestingtopics,productdemos,orapanelofindustryleaders.Shouldthecontentfocusonprogramming,business,marketing,management,orcustomersupporttopics?Inanutshell,yes,alloftheaboveworkquitewell.Butthekeyconsiderationiswhatwouldsomeoneworkingina

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startupneedorwanttoknowabout?Willattendingthiseventenrichtheirstartuplifeandhelpthemmoveforward?Ifnot,itprobablydoesn’tconstituteagoodstartupevent.Thisdoesn’tmeantheothersaren’tuseful,butfocusisimportant.Andconcentratingontherighteventscandefinitelychangeastartup’strajectory.Avoidthefillercontent.Whatconstituteslessusefulcontent?Ifwedefinethisasanythingthatdoesn’tgivetheentrepreneurthemostbenefitforthetimecommitment,thenwehaveawholehostofcriteria.Theseincludehappyhours,generalMeetupswithouttopics,self-promotionalsessionsfromvendors,andexpensivecoursesmasqueradingascommunityevents.Varytheevent’sdateandtime.Forsomereason,everyonewantstoholdaneventonTuesdayorWednesdayat6P.M.Thismustbewrittenintheunofficialeventplannermanualsomewhere.Eacheventistypicallycompetingforthesameattendees,andpeople,obviously,can’tbeintwoplacessimultaneously.Furthermore,attendingmultipleeventsweeklyintheearlyeveningdoesn’thelpwithfriendsorfamilytime,exercise,oranyotherextracurricularactivities.Scheduledaytimeevents.Thelackofstartupeventsduringthedayissurprising.Lunchtimeisagreatalternative,especiallyifyouhaveafewgoodplacestoeatnearby.AnexampleinBoulderisamonthlystartupCEOluncheon.Eachweekthere’samoderatedgroupdiscussionfocusingonasingletopic,oftenaccompaniedbyasponsoredlunchfromalocallawfirm.It’sanactiveandwell-attendedevent.Lookbeyondthelocalarea.Contrarytopopularbelief,localswilltravelabitfurthertointerestingevents.Oncethere’smomentumandsomesuccess,localeventscangobeyondtheirimmediateboundaries,astheremaybenewvenuesorinterestinggroupsofpeopletoreach.Whatworkswellforthelocalareawilloftenbesuccessfulifexpanded.

EachweekIspendhoursgoingthroughmyresources,scanningalltheavailableevents,andcommunicatingwithorganizers(whoallthinktheireventistheweek’smostimportant!)todiscernthespecificfocusandscopeofeachevent.

Despitetheeffort,theprocessprovidesitsownrewardsasitbuildsrelationshipsandopportunitiesthatwouldnotbepossibleotherwise.Notonlydoesitpromoteavibrantqualitytothecommunity,butthedigesthasalsobecomeafocalpointfornewentrepreneurstotheBoulderarea.

Itssuccessisevidentinourcommunity.ReadershipoftheBoulder

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StartupDigesthasincreasedover500percentinthepasttwoyears,allofthiswithoutanyoutsidepromotionalefforts,showingtheserviceprovidesavaluableresourcewithitspointedrecommendationsandinformation.

—TomMarkiewicz,StatsMix,@tmarkiewicz

Thereisanimportantnuanceinthisstoryworthhighlighting.Onceagain,ourfriendAndrewHydeappearsinthecreationofanotherpowerfulresourcefortheBoulderstartupcommunity.Andrewisplayinganon-zero-sumgameat its finest:Rather than trying tohangon toeachnew thinghecreates,hehappilyhandsthemofftootherstorunwiththem.

CUNEWVENTURECHALLENGE

Manyuniversitieshavesomesortofbusinessplancompetition.InChapter9,I’ll give you a deeper perspective on a different kind of universityinvolvementinastartupcommunity.Fornow,I’llgiveyouatasteoftheCUBoulderequivalentofabusinessplancompetition.BradBernthal,aprofessorat CU Law, and one of the creators of the CU New Venture Challenge(http://startuprev.com/d4),describesitbelow.

Ifyoucrossabeautypageantwithadebate,plopitintoacontrivedstartupcompetitionformat,andsurrounditwitharevivalistatmospherefilledwithentrepreneurialgospel,thenyougetthegloriousmessknownasthecampusbusiness-plancompetition.

Suchcompetitionsareinevitablyflawed.Timeframesareartificial.Companiesareatvariousstagesofdevelopment.Hardemphasisonplanningisatoddswithleanstartuppractices.AndonlyinthebizarreenvironsofacampuscompetitiondoesanonprofitseekingasustainablewaytofundanorphanageinAfricacompetewithacarbon-capturetechnologythatwouldstoregreenhousegasesintheocean.

Hereisanevenmorecuriousthing.Itsomehowworks.

CUBoulderlauncheditsNewVentureChallengein2008.Wewerenot—andtothisdayarenot—thefirst,best,orbiggestcompetition.Onthelargeside,RiceUniversityisthegoldstandardofthecampusbusinesspageantworld.Rice’scompetitionisreallyaneconomicdevelopment

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eventforHoustonanditssurroundingregion.In2012,theRicecompetitionfeatured$1.55millioninprizesandattractedentrepreneursandinvestorsfromallovertheworld.Othercompetitionsaremorecampusfocused.TheMIT$100K,forexample,requireseachteamtohaveatleastoneteammembercurrentlyregisteredatMIT.Business-plancompetitionshaveproliferatedacrosscollegecampusesand,inalllikelihood,yourlocaluniversityhasone,too.

ThestoryoftheCUNewVentureChallengeisespeciallyinterestingbecausewe’vestoodupaviable,high-impactinstitutionwithoutalargegiftorsupportfromthemaincampus.Itoriginatedwithaninformalgroupofrepresentativesfromvariouscenters—thebusinessschool,engineering,law,mediaandarts,themusicschool—involvedinCUcampusentrepreneurship.PaulJerdeofCU’sDemingCenterlabeledusthe“co-conspirators”andfromtheoutsetwewereintentionalaboutthegoalsforthecompetition.Theco-conspiratorsdecidedthatBoulderandtheFrontRangeregionofColorado—includingDenver,FortCollins,andColoradoSprings—didnotneedaRice-styledeconomicdevelopmentevent.Insteadwesoughttoaddressstudentengagementinentrepreneurship.

Accordingly,theCUNewVentureChallengeidentifiedthreeobjectives:(1)collapsethecampus:convenecross-disciplinarycongregationsandstimulateinteractionacrossdepartments;(2)createanentrepreneuriallaunchpad:provideacampusplatformthatanswersthequestion,“WheredoIstartifIwanttodoastartup?”;and(3)provideapipelinetothecommunity:TheCUNewVentureChallengeshouldbeapointofentryforCUstudentsandfacultytogetmeaningfullyinvolvedintheregion’sstartupscene.ThesethreeobjectivesdrovethearchitectureoftheCUNewVentureChallenge.

First,inordertocollapsethecampus,theCUNewVentureChallengestartseachyearwithkick-offeventsthatareenergetic,informative,andinvolvefewbarrierstoentry.Thegoalistohaveattendeesfromallpartsofcampustogettheminterestedinentrepreneurship.Forcontent,eventsincludedaleadingareaentrepreneur’stalkabouthowtopickabusinessideaworthpursuing,andapitchnighttofacilitateteamformation.Todriveturnout,weassembledanexecutivecommitteeofstudentambassadors,withseveralstudentsfromeachdepartmentoncampuswhoservedasevangeliststogetthewordoutinclassroomsandtorelevantstudentgroups.

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Inordertoachievethesecondobjective—createanentrepreneuriallaunchpadtoanswerthequestion,“WheredoIstart?,”wecreatedaseriesofcoursesandmodules.Creditgoestoabusiness-schoollecturer,FrankMoyes,whoonaprobonobasiscreatedacurriculumandtaughtaseriesofclassesopentothepubliconabiweeklybasis.ParticipantsintheCUNewVentureChallengedidn’thavetoattendthesediscussions,butthisprovidedaplatformforthosewhoneededhelp.Theclasseswerehighimpactformanystudentsaswellasforentrepreneursinthecommunitywhoattendedtheselectures.Inrecentyears,wefurthertailoredthecoursestothesubjectmatterofthecompaniesandhaveintroducedseparatetracksforinformationtechnology,cleantech,music,andsocialentrepreneurship.

Finally,theCUNewVentureChallengecreatedacommunitypipelinethroughamentorshipprogram.Eachparticipatingteamisofferedamentorwithrelevantbackgroundintheteam’sarea.Mentorsagreetotakeatleasttwomeetingswiththeirassignedteam.Thisallowsgreatrelationshipstogoforwardbychoice,butgivesunproductiverelationshipsastopdate.Theprogramworksbecausementorshipismorepowerfulinthecontextofarealproblemasthementoradvisesontheteam’sliveissues.Todate,thementorshipprogramhasbeenahugewinasteamsdirectlybenefitfromthementor’sadviceandinsightsabouttheircompany.Morebroadly,thementorinteractionsetsmanyparticipantsonthepathtofullparticipationintheBoulderstartupcommunity.

Aclosefriendfrequentlycautionsnottoletperfectionbetheenemyofthegood.Thegloriousmessofthecampusbusinessplancompetition,includingtheCUNewVentureChallenge,illustratesthispoint.Thereisnowaytogetitrightandsatisfyeverybody.Yetanofferingthatisexperiential,hands-on,andcatalyticforstudentinvolvementinstartupsismorethanworththecostofitsimperfections.

—BradBernthal,CULaw,@BradBernthal

The CU New Venture Challenge will continue to evolve. However, onethingwillstayconstant:itsinclusivenessacrosstheCUBouldercampusandthebroaderstartupcommunity.

BOULDERSTARTUPWEEK

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Every startup community benefits from an events junkie. Andrew Hydeplayed this role for a number of years in Boulder and you can see hisfingerprintsonIgniteBoulder,StartupWeekend,andBoulderStartupDigest.Following is how Boulder StartupWeek (http://startuprev.com/g3), anothereventAndrewco-founded,cameintoexistence.

“YoumeetmorepeoplefromBoulderatSXSWthanyoudoinBoulder.”Itseemedlikethethirdyearinarowthatwewerehavingthisdiscussion.ThetechcommunityofBoulderwasdoublinginsizeeveryyearandIwassomehowsmackinthemiddleofit.“Weneedabigconference”wasthesentimenteveryoneseemedtoagreeon.PuttingonaweeklongconferencewasacostlyendeavorandneitherInoranyoneelseseemedtowanttoleavewhattheyweredoingtoputtheirfull-timeeffortintosuchanevent.Underlyingthiswasfearthat,evenifsomeoneputtheeffortintoputtingthistogether,noonewouldshowup.

Thebeststuffatconferenceshappensinhallwaysandtheafter-parties,soIthoughtaboutsimplystructuringaneventasagianthallway.Wecouldjustcreateafree,decentralizedevent—nobadges,nospecificvenue,andnocheckingin.TheentireeventwouldbeonebighallwaythroughtheBoulderstartupcommunity.

ItalkedtoafewfriendsandwithinanhourwehadchosenthenameBoulderStartupWeek,purchasedadomain,tossedupasimplewebpage,andsetupafewfreetoolsforRSVPing.Ie-mailed20friendsaroundthecommunitytoaskthemtoleadtalksoractivitiesintheirofficesoratapubliccoffeehouse.Withintwoweeks,wehad55eventsplannedoverafive-dayperiod.

LookingbackonthefirstBoulderStartupWeekI’mamazeditdidn’tfailhorribly.ThemarketingplanwasonlyforpeopletolisttheirRSVPsthroughTwitterandFacebook.Therewasnomoney,nostructure,andnoorganizedleadership.Therewasnowaytobuyaticketorcontactanyonerunningtheeventwithaquestion.Westartedplanningjustfiveweeksfromtheeventdate.

Allwehadwasastartupcommunityinterestedininteractingandsharingwhattheyknew.Thebuzzbuiltquickly.Thecommunitywassaying,“Yes!Weneedthis!,”andalmosteveryeventwassoldoutweeksinadvance.Wekeptaddingadditionaleventsonawiderangeofsubjectsandpeoplestartedcomingoutofthewoodworktosupporttheweek,leadevents,andoffertosponsoractivities.

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Ididn’thaveafinancialgoalwithBoulderStartupWeek;Iwasdoingittohelpthoselookingtogetinvolvedinthecommunitytomeetothersinthecommunity.WeraisedenoughsponsorshipthatwedecidetoflypeopleinfromoutoftowntobepartofareverserecruitingeventwithBoulderstartupcompanies.ThishadanextrabenefitofgettingthewordoutaboutthespecialthingsgoingoninBoulder,asmanyofthepeoplefromoutoftownbloggedabouttheawesomenessofBoulder.

Theweekstartedwithabang—therewere11eventsondayone.Wehad11othereventseachdayforthefullweek.Eacheventwaspacked,andmanyofthepublicvenueswehadbookedshutdowntheirotherbusinessactivitiestoaccommodatetheevents.Wehadblogger,programmer,designer,marketer,andeventorganizerMeetups.Theyogasessionwasahit.TheRubyonRailsMeetupresultedinfourjoboffersinoneafternoon.Thelargesteventwas1,350peopleatIgniteBoulder;thesmallestwas11peoplewhodidtheEasyBikeTourofBoulder.

Ofthe55events,40hadafocusontechnology.Theweekflewbyandwewatchedthecommunitydoubleashundredsofnewpeople,manylivinginBoulder,discoveredanamazingsetofpeopletospendtimewith.

ImovedawayfromBouldertwoyearslatertofollowmydreamoftravelingaroundtheworld.Thecommunitypickeduptheslackandplannedasecond,thenathird,BoulderStartupWeek.Eachyear,theeventsgetmoreinterestingandtheactivityintheweekgrows;yetBoulderStartupWeekcontinuestobeadecentralized,chaoticvolunteereventthatpullstogethertheBoulderstartupcommunityforoneweekeachyear.

—AndrewHyde,@andrewhyde

Boulder StartupWeek just finished year three, and it was awesome. It’suniquelyBoulderandagreatopportunityforeveryoneinandinterestedintheBoulderstartupcommunitytoengagedeeplywitheachotherforoneweekayear.

ENTREPRENEURSFOUNDATIONOFCOLORADO

When entrepreneurs are successful, they often want to give back to thecommunity in someway. RyanMartens, the co-founder of Rally Software,

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cameupwithagreatmodelinspiredbywhathe’dobservedMarcBenioffdowiththeSalesforce.comFoundation.

Whenmypreviousstartup,Avitek,wasacquiredin1999,wemissedahugeopportunitytotalkabouttherole,benefit,andresponsibilityofleaderstomakeourcommunitybetteraspartofourcommercialefforts.Withourfinancialwindfall,Iturnedtoourlocalcommunityfoundationtofigureouthowtostartmakingadifferencelocally.

Iwasshockedatthelowlevelofphilanthropyinourcommunity,especiallyincontrasttothestarkneedsofmanynonprofitorganizations.Fromtheperspectiveoftheentrepreneur,thecommunityreallylookedperfect.Iassumedthatyoustartedphilanthropywhenyougotolder,uponretirement.Iwasnaïveduetomylaserfocusonmybusiness.

BradFeldandhiswifeAmyBatchelorhadthesamerealizationseveralyearsearlierwhenItalkedtohimaboutit.Hechallengedmewiththewords,“Ifnotus,who?Ifnotnow,when?”

IbegananexplorationtounderstandwhatotherpeoplearoundtheUnitedStatesweredoingtobringcorporatesocialresponsibilityintotheirstartups.InoticedthegreatworktheMarcBenioff(Salesforce.comCEO)andSuzanneDiBanca(Salesforce.comFoundationExecutiveDirector)weredoing.Theyhadamodelof1/1/1wheretheygave1percentofequity,1percentoftime,and1percentofproducttotheSalesforce.comFoundationcontributebacktotheircommunityinexchangeforthesupporttheircommunityhadgiventheminlaunchingtheircompany.

WhenwestartedRallySoftware,wesetaside1percentofourequityforthecommunity.AlthoughItried,Iwasunabletogetothercompaniesandentrepreneurstofollowourlead.In2006,BradranintoDianeSolinger,theexecutivedirectoroftheEntrepreneursFoundationintheBayArea.DianehadfiguredouthowtoscalethemodelandencouragedusstartanEntrepreneursFoundationinColorado.Soin2007,weadoptedtheEntrepreneursFoundationmodelandpulledtogetherfourothercompaniestoactasfoundingcompanies.

TheEntrepreneursFoundationmodelissimple.Withavolunteerboardoflocalentrepreneurs,serviceproviders,andlocalcommunityfoundationhelp,wemakeiteasyforstartupcompaniestoendowthecommunity.Typically,thismeansgivingapproximately1percentofacompany’sfoundingequityatatimewhenthatequityisworthalmostnothing.We’vecomeupwithasimplestructureforthis,whichisawarrantfor1

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percentofthecompanythatisonlyexercisableuponchangeofcontrolthroughasaleoranIPO.Aspartofthegrant,thecompanydecideshowtoallocateitsequityintogeneralcommunityfunds,specificcommunityfunds,orevenspecificcharities.

Withthissimplestep,thecompanysignalsaclearintentiontodomoreforthecommunitythansimplyprovidejobsandcreatewealthforfoundersandemployees.Althoughacompanycansimplyjoinandmakethegrant,othersengageinmanyotherlocalphilanthropicactivities.TheEntrepreneursFoundationhelpsguidethis,byprovidingeducationaboutopportunities,buildingskills-basedvolunteeringeffortstodevelopleaders,andexploringstrategicopportunitiesforthecompanies’productsandservices.

Wetreatedthiseffortasabootstrappedstartup.Wefocusedonfindingtherightpeopletogetinvolvedearlywhilekeepingexpensesclosetozero.WeleveragedhelpfromtheCommunityFoundationServingBoulderCounty,theotherEntrepreneursFoundationaffiliates,andtheSalesforceFoundation.

Westartedwithafewboardmeetings,tworecruitingevents,andafewvolunteeringeffortseachyear.Overthefirstfiveyears,wehadseveralsignificantexits,asmallportionofwhichwasallocatedtotheEntrepreneursFoundationofColoradoOperatingfund,enablingustohireanexecutivedirector.Severalkeylocalserviceproviders,includingKPMG,Trinet,Square1Bank,SVB,Cooley,andtheRockyMountainVentureCapitalAssociation,havehelpedushostandsponsoroureventsovertheyears.

Initiallyweaddedabout10companiesayear.Withourincreasedresources,wenowplantoadd30companiesayear.Wehaveexpandedourprogramtoincludea1percentofprofitmodelfornon-VCbackedcompanies;ourgeographytoincludeFortCollins,Denver,andColoradoSprings;andourindustriestoincludebio,cleantech,andLOHAS.

ThepowerintheEntrepreneursFoundationmodelistoconnectstartupeffortstothecommunityrightnow,whenitiseasy.Theresultofthiswillbestrongercommunities,strongerbusinesses,strongerleaders,andmoresuccessatcreatinganentrepreneurialandempatheticsociety.ThatisthekindofplaceIwanttoliveandwork.

—RyanMartens,RallySoftware,@RallyOn

Theactivitiesandevents listedherearebynomeanscomprehensive.The

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Boulder startup community has a long list of additional activities, such asTEDx Boulder (http://startuprev.com/a0) started by Andrew Hyde), theBoulder Open Angel Forum (http://startuprev.com/d5) started by DavidCohen and Jason Calacanis), the Boulder Jobs List (managed by me andDavid Cohen), and Startup Colorado (http://startuprev.com/m0) led bymyself,PhilWeiser,andJanHorsfall).

Theseactivitiesarecontinuallyemergingandevolving.Oneparticularonethat has had incredible impact on Boulder is TechStars(http://startuprev.com/d6), a mentor-driven accelerator that was founded in2006 by David Cohen. In the next chapter, we’ll explore TechStars, itsinfluence onBoulder, and the power of accelerators in general on a startupcommunity.

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CHAPTEREIGHT

THEPOWEROFACCELERATORS

Ononeofmyrandomdaysin2006,DavidCohencameinandsatdown.Heintroduced himself and slid a single sheet of paper across the desk to me,which had the outline for TechStars on it. As I read the document, Davidexplained to me that he was an entrepreneur who had recently left thecompany that hadboughthis business.He’dmade a fewangel investmentsbutwasn’t happywith the dynamic of how the entrepreneurs engagedwithhim.Hefeltlikehisexperiencewaswastedandtheremustbeabetterwayforexperienced entrepreneurs to help entrepreneurs who were getting theirbusinessesupandrunning.

If these ideas, that of having entrepreneurs leading, having a long-termview, being inclusive, and engaging across the entire entrepreneurial stack,sound familiar, they should. TechStars uniquely hit on all four of theprinciples in theBoulderThesis, and this is one of the reasons it is such apowerfulconstruct.

Ilovedtheideaandwithin10minutestoldDavidIwasin.Hewasraising$230,000 to run a single TechStars program, with $80,000 of the fundingcomingfromhim.Icommitted$50,000onthespotandtoldhimthatI’dhelphimraisetherest.Following,inDavid’swords,ishowTechStarsworks.

In2006,IrealizedthatIwantedtomakealivingbydoingwhatIlove—investinginearly-stageInternetsoftwarecompanies.MostangelinvestorslosemoneyandIdidn’twanttobeastatistic.BymycalculationsIwasalreadyatadisadvantagebecauseIwasbasedinBoulder,asmallcollegetownofonly100,000people.In2006,Boulderhadsomeinterestingthingsgoingon,butbeingaprofessionalinvestorwouldalmostbydefinitionmeangettingonairplanesregularly.Iwantedtochangethatbyimportingtalentedfounders,organizingandleveragingthecommunity,andhelpingnewstartupshereinverymeaningfulways.

TechStarsworksbytakingsimpleapplicationsontheweb;businessplansarenotaccepted.Weselectandfundthebestfounderswecanfindwhoareworkingininterestingmarketsandputthemtogetherwiththebest

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mentorsandinvestorsforthreemonths.Therestispuremagic.Themodelworksonlybecausewefocusontheverybestpeople,bothasfoundersandasmentors.Inourselectionprocess,wehaveaveryheavyfocusontheteam.Infact,we’refondofsayingthatthefivethingswelookforinorderare“Team,Team,Team,Market,Idea.”Notethattheideaisnotthefocus;itwouldbeleftoffentirelyifnotforthedramaticeffectofdeliberatelylistingitlast.

TechStarsinvests$118,000ineachofabout10teamsperyearperlocation.Over80percentofourcompaniesgoontoraiseventurecapitalormeaningfulangelinvestmentafterTechStars.Mostimportantly,we’vehelpedtocreatedozensofreallyfascinatingandimportantcompanies,includingSendGrid,Orbotix,andOccipitalinBoulder.

I’moftenaskedwhyTechStarsstartedinBoulder.Myanswerisalways“becausethat’swhereIliveandIloveithere.”AlthoughTechStarsstartedbecauseIwantedtofindabetterwaytomakeangelinvestments,theequallyimportantreasonwasthatIwantedtoimprovethestartupcommunityinBoulder.

—DavidCohen,TechStars,@davidcohen

David’s vision for an accelerator had several unique components.First, itwas mentor driven. His belief that entrepreneurs learned from otherentrepreneurs,andthatsuccessfulentrepreneurslikehimwantedtogivebackby helping other entrepreneurs was at the core of TechStars from the verybeginning. You should recognize the “give before you get” philosophy atwork;mentorsrarelyknewwhattheyweregoingtogetoutofTechStarsbuttheyengagedwiththebeliefthatitwouldbeworthit.

Next,TechStarswasbothfocusedonandpoweredby thecommunityandsubsequently became away to engage the entire entrepreneurial stack. TheinitialinvestorswerelocaltoBoulderasweremostofthementors.Itwasa90-dayprogram—longenoughtobesubstantive,butnotyearroundsonoonegotburnedout. Itwas inclusive—while itwashard toget intoTechStarsasonly a small percentage of applicants were admitted to the program, therewere lotsofcommunityevents, including theclimaxof theprogram(DemoDay).

Finally,Davidhadalong-termviewforTechStars.Heknewhewasgoingto stay inBoulder for the restofhis life, sohewanted to create somethinglong-lasting that would have impact on the Boulder startup community formanyyearstocome.LittledidherealizewhenhestartedTechStarsthathe’d

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alsohaveimpactonanumberofotherstartupcommunities.

THESPREADOFTECHSTARSTOBOSTONANDSEATTLE

After the first year of TechStars, a number of entrepreneurs around thecountry reached out and asked if we’d bring TechStars to their city. Ourmantrafromthebeginningwas“qualityoverquantity,”andalthoughwehaddoneabunchofthingsrightinyearone,wedecidedtouseexactlythesameconstructforyeartwo.Asaresult,TechStarsdidn’texpandbeyondBoulderinitssecondyear,althoughwehelpedotherentrepreneursgetacceleratorsupandrunningbyopensourcingandsharingtheTechStarsplaybook.

AfterthesecondyearwecontinuedtobefocusedonqualityandresistedthepullofanincreasingnumberofentrepreneurswhowantedTechStarstocometo their city. However, at some point, Bill Warner, a Boston-basedentrepreneurwho in2008haddedicatedhimself to reenergizing theBostonstartupcommunity,literallydraggeduskickingandscreamingtoBoston.

Bill, who had previously founded Avid and Wildfile, two successfulBoston-based companies, became exposed to TechStars when he met thefoundersfromEventVue,acompanyinthefirstTechStarsprogram.In2008,Bill was working on the first MassTLC Innovation Unconference(http://startuprev.com/j2) andhewanted software to helpmanage it.This iswhat EventVue did and Bill ended up becoming an angel investor in thecompany.Shortlyafter,hecameouttoBouldertoseewhatwasgoingonandlearnmoreaboutTechStars.

He decided TechStars needed to be in Boston. He convinced us and wequickly recruitedShawnBroderick,anotherBostonentrepreneur to lead theprogram. Over a weekend we reached out to a number of Boston-basedentrepreneurs,includingColinAngle(iRobot),WillHerman(Viewlogic),andEranEgozy(Harmonix)tofundthefirstTechStarsBostonprogram.Withinamonth,applicationswereopenandwewereupandrunning.

TechStarsspreadtoSeattlethesameway.GregGottesmanandhispartnersat the Seattle VC firm Madrona were considering creating an acceleratormodeled after TechStars. They talked to Andy Sack, a successful Seattleentrepreneur, about leading the effort. Andy knew me well and wanted tosimply do TechStars instead. He convinced Greg and his partners that we

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shouldbringTechStarstoSeattle,andthentheyconvincedDavidtoexpandtoSeattle.

AsTechStars expanded geographically,we continued to learn new thingsfromeachstartupcommunity.Forexample,Seattlepioneeredtheinvestmentstructure that we now use for all TechStars programs. Andy decided to becompletely inclusive of the Seattle investment community and asked everySeattle-based VC and active angel investor he knew of if they wanted toparticipate in funding TechStars Seattle. With this approach, he wascompletelyinclusiveofthefinancingsegmentofthestartupcommunity.Wedidn’tneedthemoneyfortheprogrambecausewecouldhaveeasilyfundeditwith a smallnumberof investors, butwewanted tobe inclusiveof anyonewhowantedtoengage.

TECHSTARSEXPANDSTONEWYORK

TechStarsnowhadareplicablemodelandacceleratorswereappearingaroundtheworld.We helped enable a lot of them by open sourcing the TechStarsapproach.However,we still knew therewere other cities thatwe’d love toexpandto.NewYorkwasoneofthese,andwewereagainfortunatetofindsomeonetopullustoNewYork.ThistimeitwasDavidTisch,anativeNewYorker who was incredibly passionate about helping build the New Yorkstartupcommunity.FollowingisDavidTisch’sstoryofhowTechStarsNewYorkcametogether.

ItwasonoraboutAugust25,2010,whenwesentoutthefirste-mailaskingsomeonetobeamentorforTechStarsNYC.Thisisthemomentwestarted,themomentIknewthiswasrealandtherewasnoturningback.Within48hours,wehad40ofthetopentrepreneursinNYConboardtomentorcompanieswehadn’tevenfoundyet.Wequicklyraisedfourprograms’worthoffundingfrom25ofNYC’sbestinvestors.

NYC’sstartupcommunityisthrivingrightnow,ashasbeenwelldocumented,andTechStarsfindsitselfattheheartofit.Lookingback,theestablishmentofTechStarsinNYChashelpedcoalescethestartupcommunityandisoneofmanyfactorsatwork.

Earlyon,Inoticedthatmanyofthementorsdidn’tknoweachother.ThissurprisedmeasIassumedthatalltheentrepreneursinNYCworkingin

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andaroundtheInternetwouldknoweachother.Butthatwaswrong,andTechStarshasbecometheplaceformentorstomeeteachotherand,moreimportantly,getachancetoworkonsomethingsubstantive—namelythecreationofnewcompanies—together.

Theuniquestructureofourprogrambringstogethermentors(successfulentrepreneurs,executivesfrombigestablishedcompanies,andtop-tierinvestors),theTechStarscompanies(high-potentialentrepreneursworkingonbignewvisions),andtop-tierinvestorsfromNYC.Thistrifectacreatesahigh-qualitycommunitywithverylittlenoise.ThebroadercommunityralliesaroundtheprogramonDemoDay,attheend,andthesetofcompaniesfinishingtheprogramthatday.

InjustundertwoyearssincewelaunchedtheprograminNYC,TechStarshasbecomeafoundationalcomponentoftheNYCstartupcommunity.Themagicliesinbuildingacommunityofdeepengagement,whereentrepreneurscanworkshouldertoshoulderwithotherearly-stagecompanies,buildingasupportsystemthatgrowsprogramtoprogram.

—DavidTisch,TechStarsNY,@davetisch

Today, TechStars has geographically based programs in Boulder, Boston,Seattle,andNewYork.TechStarsrunsaverticallyfocusedacceleratoraroundcloudcomputing(TechStarsCloud)inSanAntonio.ItoperatestheMicrosoftAccelerator (http://startuprev.com/n2), which currently has programs forstartupsbuilding technologyaroundMicrosoftproducts, suchasKinectandAzure. It also co-founded the Global Accelerator Network(http://startuprev.com/f0), an organization for helping independently ownedandoperatedacceleratorprograms.AlthoughTechStarsissixyearsold,itisstill in its infancy, and its leaders continue to be committed to developinglong-termstartupcommunitiesintheircities.

ACCELERATORSAREDIFFERENTTHAN

INCUBATORSAs thementor-driven accelerator phenomenon has spread across theworld,manyorganizationshavestartedcallingthemselvesacceleratorsevenif theyshare few characteristics in common with TechStars. This is predictable,

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especially since we’ve been extremely open about everything related toTechStars,includingourstructure,howweoperate,andourresults.

However,oneparticulartypeoforganization,the“businessincubator,”hasrecentlystartedtoberelabeledasanaccelerator.Incubatorshavebeenaroundforalongtime,withthefirstknownincubator,theBataviaIndustrialCenter,havingbeencreatedin1959.Althoughincubatorssharesomecharacteristicswith accelerators, they are significantly different, and they play a differentrolethanacceleratorsinthelong-termhealthofastartupcommunity.

Incubatorswere originally created to foster economic development. Theyprovidedentrepreneursspace,infrastructure,andadviceinexchangeforafee,which was occasionally partially paid in equity. Incubators are typicallynonprofit entities or attached to a university. Although some for-profitincubators have emerged, most are an extension of an existing investor’sactivityandareoftenlinkedtotheInternetbubble.

Incubators operate year round and continuously.They focus onprovidinginfrastructureandexisttofilluptheirspacewithpayingcustomers.Thisoftenends up creating a least common denominator effect rather than the highlycompetitivedynamicthatoccurswithaccelerators.

Althoughincubatorsserveausefulpurpose,andmanyhavehelpedstartupsbecome successful, it’s important to differentiate between accelerators andincubators.Eachwill continue toevolve tomeet theneedsof entrepreneursand startup communities; I encourage those running incubators to celebratetheirdifferenceandfocusonimprovingwhattheydo,ratherthantryingtotiethemmorecloselytoaccelerators.

UNIVERSITYACCELERATORSThe constraints and resources of a university are unique and can play apowerfulroleinthestartupcommunity,whichwewilldiscussinmoredepthinthenextchapter.Fornow,let’sexplorehowanacceleratorcouldworkinauniversityenvironmentbytakingalookattheprogrambeingcreatedatMITby Bill Aulet, the managing director of the Martin Trust Center for MITEntrepreneurship.

Forstudentsinterestedinentrepreneurship,MITfunctionsasarampwherestudentscanbuildtheirentrepreneurialknowledgeandskillssotheyreachescapevelocityupongraduation.Thisapproachrampworkswellformanystudents,butsomehigh-levelstudentsfounditlacking,

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andeventuallydroppedoutofMIToropenlyconsidereddroppingouttostartacompanyinsteadoffinishtheircollegeeducation.TheypointedtoEllison,Jobs,Gates,andZuckerberg.TheyheardthecallsfromPeterThieltodropoutofcollege(http://startuprev.com/o2).TheywerefascinatedwithTechStars,YCombinator,andsimilarprograms.

Aswetellentrepreneurs,whenthereisacrisis,thereisgreatopportunityforinnovation.SoatMITwetooksomeofourownmedicineandexploredwhatwecoulddotomeetthischallengeofmakingtheacademicenvironmentmoreconducivetosuccessfulentrepreneurialdevelopment.

WelookedatStanford,Berkeley,Harvard,theUniversityofMichigan,andtheUniversityofWashington.WediscussedtheissuewithstudentsandsawtheirhighlevelofinterestinTechStars,YCombinator,DogpatchLabs,GeneralAssembly,andRockHealth.

WerecognizedanopportunitytocreateaprogramuniquetoMIT’smission,usingourassets,whichwouldfitwellwithexistinguniversity-basedandoutsideprograms.MIT’smissionistoeducateourstudentsandhaveapositiveimpactontherealworld.Wehaveauniqueroleinthatweareanhonestbroker—aresourcetoall,beholdentonoone.Ourassetsincludeanextensivevaluechainofinnovativeandentrepreneurialresourcesalreadyinplace,whichwecaneasilyleverageandexpandtosupportanewprogram.

Theprogramborrowsheavilyfromthebestpracticesoftheoutsideorganizations,butwedidnotsimplycopytheirprograms,becausetheyalreadyexecutethemwell,andasa501(c)(3)nonprofitwedonotwanttoappearlikeacommercialentity,anacceleratoroffor-profitcompanies.

OurprimaryguidingprinciplebehindthefirstsummerMITFounders’SkillsAccelerator(http://startuprev.com/e0)istohelpourstudentstimecompresstheprocessoflearningcriticalventurecreationskills.Weorganizedtheacceleratoraroundspace,funding,structure,andstatusforourstudents.

Ourresearchfoundthathavingacommonworkenvironmentwasextremelyimportantforstudents,givingthemasenseofcommunitythatresultsintheirlearningfasterbecausetheylearnfromeachother,getemotionalsupporttoexperiment,andaremotivatedbytheirpeers.

Thefundingallowsstudentstoworkfull-timeontheirprojectswithoutworryingaboutpayingtheirrent.EachMITstudentreceives$1,000per

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month,andtheteamiseligibleforupto$20,000inno-strings-attachedmilestonepaymentsiftheymeetagreed-upongoalsintheareasofcustomerdevelopment,product,team,andfinance.Thepaymentsaretheincentivesforstudentstobuckledownandfocusonlearningentrepreneurshipskills.

Thestructureisenoughtokeeptheteamsmovingwithoutinhibitingtheirflexibilityandtakingawaytheirproactivemuscles,aswedidnotwanttocreatedomesticatedanimalsthatcannotliveoutsidetheMITbubble.ThestudentshaveaccesstoMIT’sfullmentoringnetworkandwehelpthemplugintothatsystembasedontheirneeds.

Twiceaweekthestudentsgettogetheranddiscusswhatthey’vedone,learned,plantodo,andneedhelpwith.Wethenprovideaquickcliniconatopicrelevanttotheircurrentstate,rangingfromhowtobuildapersonatohowtodevelopafounders’agreement.

Eachteamisassignedacommittee,whichservesthepurposeofatemporaryboardofdirectors.Allthemembersofthecommitteeshavesubstantialboardexperienceandmeetmonthlywiththeteams.Thecommitteesalsodeterminewhethertheteamsgettheirmilestonepaymentsandatwhatlevels.

Finally,theprogramprovidesstudentswiththestatusofbeingpartofanapprovedMITprogramthatmakesitclearentrepreneurshipissupportedandlegitimate.Wefinditparticularlyusefultoassuageparentsthatno,theirstudentsarenotslackingoffplayingvideogamesallsummer,butaredoingalotofwork.Asonestudentsaid,“BeingselectedislikegettingaRhodesscholarshipinentrepreneurship.”

—BillAulet,MIT,@BillAulet

In the six years since TechStars was founded, accelerators have quicklybecomeapowerfulpartofa startupcommunity.Althoughuniversitieshavehadentrepreneurshipprogramsfordecades,manyhavegrownstaleovertimeanddon’tsuittheneedsofmanyoftheirstudentswhileprovidingrelativelylittle value to the extended startup community. Bill Aulet’s example of co-optingmanyoftheconceptsofanacceleratorfortheuniversityenvironmentis a powerful example of how a university can think differently aboutentrepreneurship.Formore,let’snowspendsometimeexploringhowseveralleaders at CU Boulder have created a dramatically different example ofuniversityinvolvementinastartupcommunity.

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CHAPTERNINE

UNIVERSITYINVOLVEMENT

Universitiesareausefulandimportantpartofastartupcommunity.Theyarefeeders that, at aminimum, generate a steady stream of new young peopleinto the startup community. However, there are many additional things auniversitycandotoenhancethestartupcommunity.

When I tell people that theheartbeatofhigh-techentrepreneurship atCUBoulderisthelawschool,thetypicalreactionis,“Huh?”CUBoulderisoneofthestrongeststateschoolsintheUnitedStates,anditisthecrownjewelofthe CU system. How is it possible that the law school, instead of anotherlocationonthecampus,isafocalpointforentrepreneurialactivity?

SILICONFLATIRONSAdozenyearsago,PhilWeiser,nowthedeanoftheCULawSchool,startedan initiative that is now called the Silicon Flatirons Center. I tease Philconstantly about the name because I strongly believe “Silicon [InsertGeographicLandformhere]” isnotagoodnameforanything.Heresponds,as every dean should, that a significant financial contribution will cause aname change. Phil started Silicon Flatirons as a project in the law schoolaround “international telecommunication policy and innovation.” Over theyears, it has become a key national convener of the various constituentsaround telecommunications, software, and Internet innovation. Severalimportant concepts have emerged from Silicon Flatirons’ discussions,includingtheideaofnetneutrality.

In2005,PhilandhiscolleagueBradBernthalstartedfocusingsomeoftheirenergyonentrepreneurship.Phil andBrad realized that entrepreneursdroveinnovation activity, especially around software and Internet.Given this, thepolicydiscussionneededtoincludeentrepreneurs,andSiliconFlatironscouldbeagreatconveningforceforthis.

Phil and Brad took it one important step further. Rather than trying tocontrolthediscussion,orcreateadedicatedentrepreneurshipcenteratCUas

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apartofSiliconFlatirons,theysimplyturnedthingsinsideout.Theyputtheword out to the Boulder startup community that Silicon Flatirons was aresourceforthemtouse.Theyopenedthedoorstotheirbuildingandofferedit up as a regular meeting space for the startup community (the BoulderDenver New Tech Meetup happens monthly in “the courtroom,” a largeauditoriumatCULaw).Theyexpandedthelawschool’sentrepreneuriallawclinic to get the law students out into the startup community via free legalsupport. They reached out to partner with entrepreneurship-mindedindividualsacrosscampustostarttheNewVentureChallenge,acampus-widebusiness-plan competition. They used the Silicon Flatirons platform toregularlybringamazing,interestingpeopletotheCUcampustoengagewiththeBoulderstartupcommunity.

They refused toplaya zero-sumgame.Theyworkedhard to spread theirentrepreneurial activities across the CU Boulder campus.With the ATLASCenter,BradBernthalandIstartedanEntrepreneursUnpluggedseries,duringwhichwe interviewed a relatively unknown local entrepreneur eachmonth,introducingthemtoCUandthelocalcommunity.TheyspreadtheCUNewVenture Challenge across the campus, providing leadership but not takingownershipof it.Theyworkedhard todowhatever they could to encourageotherpartsofCUBouldertoengagewiththeBoulderstartupcommunity.

In 2009, Phil went toWashington, DC for two years and worked in theObama administration, spending the last year of his tenure as the head ofinnovationpolicy.Duringthisperiodoftime,heengageddeeplyinanumberof issues and initiatives around innovation and entrepreneurship. When hereturned toCU as dean of the LawSchool in 2011 hewas unambiguouslyfocused on continuing to push the edge of entrepreneurship within anacademicenvironment.

Following are some direct thoughts from Phil Weiser on how SiliconFlatironsimpactstheBoulderStartupCommunity.

AttheSiliconFlatironsCenterforLaw,TechnologyandEntrepreneurship,wehavethreecoreobjectives:(1)tosupportentrepreneurship;(2)toprepareandencouragestudentsattheUniversityofColoradototakeadvantageofopportunitiesinthetechsector;and(3)toraisethelevelofdiscourseontechnologypolicy.Intermsofachievingtheseobjectives,thereisnowherebetterinthecountryforustobethanBoulder.AbigpartofthatisthesymbioticrelationshipweenjoywiththevibrantanddynamicstartupcommunityinandaroundBoulder.

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OurworkinbuildingSiliconFlatirons—andinprovidingaplatformforBradBernthaltodevelopanddriveourEntrepreneurialInitiative—ledustothedirectionofsupportingentrepreneurshipinthemid-2000s.Inparticular,BradBernthaljoinedusin2005withtheaimofrevitalizingourentrepreneuriallawclinic,whichservescommunitystartupsandenablesourlawstudentstogainuniquelegalexperience.Aroundthattime,wealsostartedworkingcloselywithBradFeld,whohassponsoredourRoundtableSeriesonEntrepreneurship,Innovation,andPublicPolicy,whichengagesentrepreneurialleadersinpolicydiscussions.WhenIreturnedasdeanofColoradoLawin2011afterworkingasthepointpersononinnovationpolicyintheWhiteHouse’sNationalEconomicCouncil,itwasclearthatourblossomingeffortstoengagewithandsupportthestartupcommunity—allunderBradBernthal’sleadership—werepayingdividendstoourstudents,faculty,andfundraisingefforts.

SupportingentrepreneurshipbyservingasaconveningplatformandasaninterfacebetweentheUniversityofColoradoandthestartupcommunityisacorecommitmentfromSiliconFlatironstothecommunity.Fromthebeginning,werecognizedthatouraffiliationwiththeUniversityandanabilitytobeanhonestbroker—wearenottryingtosellanything—isanassetthatwecanandshouldusetosupportthestartupcommunity.Withourplatform,wehostthemonthlyBoulderDenverNewTechMeetup,theEntrepreneurs’Unpluggedevents(withnationalandlocalsuccessstoriesrangingfromTedTurnertoCharlieErgentoDanCaruso),andaregularcrashcourseseries(ontopicsfromimmigrationissuestomarketingtomanagingIPlicenses).Withrespecttosupportingandencouragingentrepreneurshipmoredirectly,wedosooncampusbysponsoringaNewVentureChallengecompetitionandstatewidebysupportingtheStartupColoradoeffort.

ForstudentsattheLawSchoolandacrosscampus,weareemphasizingabasicpoint:youareallentrepreneursnow.Whetherornottheyjoinastartuporalargecompany,therealityisthatallstudentsshouldthinkofthemselvesasentrepreneurs.Preparingstudentstobesuccessfulentrepreneursandtojointhetechsectorinvolvesbothprovidingavaluablesetofskillsandsparkingstudents’imaginationabouttheopportunitiestheycanfindattechcompanies—locallyandnationally.Forthelocaltechcompanies,thismeansthatweneedtodeveloprelationshipswiththemandcreateopportunitiesforthemtogettoknowourstudents.Weareconstantlylookingforways,suchassomeofthe

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programsmentionedabove,todojustthat.

Onecorechallengeforfederal,state,andlocaltechnologypolicydiscussionsisthattheentrepreneurs—andthecompaniesnotevenbornyet—arenotrepresented.Engagingentrepreneurs—andwould-beentrepreneurs—indiscussionsaroundtechnologypolicyissuesisaconstantchallenge.Inshort,entrepreneursareoftentoobusytotakethetimetogetuptospeedonthedetailsofspectrumpolicy,thearcanaofpatentlaw,thedetailsofdigitalcopyrightdiscussions,oranyotherrangeofpolicydebatesthatwillshapethefutureofinnovationintheinformationindustries.AtSiliconFlatirons,wemakeaconcertedefforttobringissuesbacktofirstprinciplesandexaminethemwithawiderangeofthoughtleaders,bringinglocalentrepreneursandventurecapitalistsintothediscussion.Bysodoing,webelieve,wecanpavethewayforbetterpolicymaking.

Ingeneral,ourphilosophytowardthestartupcommunityisto“feedthenetwork.”Wearealwayslookingforwaystogivebackandcreateopportunities,suchashostingaStartupSummerprogramaspartofStartupColorado.Ineverysuchcase,wefindourselvesbeingenrichedfromourengagementwiththecommunity.AndimmersingourselvesinthevaluesofthestartupcommunitymakesusbetterateverythingwedoatSiliconFlatironsandhasaveryprosperouseffectontheentireLawSchoolandourstudents.TheCULawSchoolandSiliconFlatirons’uniqueconnectiontoBoulder’samazingstartupcommunityunderscoreswhatavaluablerelationshipcanbeestablishedbetweenentrepreneurialleadersandanengageduniversitycommunity.

—PhilWeiser,CULaw,@pweiser

SOMECOMPONENTSOFCUBOULDER

Likemost universities,CUhasmanydifferent departments, eachwith theirownpolitics,hierarchies,andfinancialpressures.Someoftheseengagewithentrepreneurs;afewofthemhavedeepentrepreneurialprograms.Thereisalotofstructurearoundthisactivitywithadvisoryboards,specificprograms,andformaleconomicdynamicsaroundentrepreneurship.

A classical component is the “entrepreneurship center.” Like many

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universities, theentrepreneurshipcenter is located in thebusinessschool; inCU’s case it is called the Deming Center for Entrepreneurship. It has anadvisory board, dedicated classes, andmany specific courses and activitiesaround it. The MBA students can be part of a student group called GEA(Graduate Entrepreneurs Association), which is affiliated with the DemingCenter. Although it’s a solid program, it’s embedded within the businessschool,andattimesithasbeenrelativelyisolatedfromtherestofcampusandthe rest ofBoulder.This has changed in recent years, partly due to a spiritsimilar to Silicon Flatirons, which seeks to connect the variousentrepreneurialactivitiesacrossCU.Consistentwiththis,theDemingCenterhasrecentlyledefforts,includingacross-campusentrepreneurshipcertificateand an engineering management and entrepreneurship certificate, to helpmake entrepreneurship classes increasingly available to non-business-schoolstudents. Although these offerings sounds like no-brainers, the waymoneyflows across campus departments can be a challenge, and the increasedopportunities for non-business students to complete entrepreneurshipcertificate programs is a healthy development. Providing avenues bywhichstudentsinanydisciplinecangetinvolvedinentrepreneurshiphelpsgetfreshbloodintothesystem,animportantfunctionofuniversities,whichIelaboratelater.

Anothertypicalcomponentisthetechnologytransferoffice(TTO).InCU’scase,theTTOisaseparategroupthathasitsownboardandarevenueagendalinked to patenting and protecting university-generated research andextracting licenses or equity from companies built around this research. Insome situations the TTO is helpful in generating new companies, but it isgenerallyseparatefromthelocalstartupcommunity.

Theengineering school,whichhistoricallyhasnotbeen focusedmuchonentrepreneurship, launched its own entrepreneurship program (calledEship)in2008.TheEship initiativedidnotgoaccording toplan. Its briefhistory,nonetheless, underscores why experimentation can be a valuable part ofuniversity entrepreneurship. By 2012, with the creation and growth of abroader cross-campus entrepreneurship certificate at CU Boulder, Eshipdecidednottoduplicateefforts.Itfoldeditscertificateintothecross-campusentrepreneurship program. Yet engineering continues to teach certainentrepreneurshipcoursesoriginallyestablishedthroughtheEshipcurriculum.Andtheexperimentcontinuestostimulateinterestinentrepreneurshipamongengineering students. In short, Eship took a path different than what theengineeringschoolhadinmind,butitstillledtosomepromisingavenues.

Universities, especially departments within universities, too often see

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entrepreneurshipprogramsasanear-termcashsolutioninaneraofdecliningstate support and rising tuitions. This is generally a mistake. Instead,universitiesneedtofundamentallyseethemselvesaspreparingstudentstobeplayers indynamic industries that requireentrepreneurial skills.There isnobettercontext for this thanstartups. Ifuniversities takea long-termviewofthis process, then students who receive great training and get involved inentrepreneurshipduring their timeoncampuswillultimatelysucceed,andafairshareofthoseindividualswillcomebackandmakehealthydonationstosaythankyoutoacampusthathelpedtheirsuccess.

CHALLENGESTOENTREPRENEURSHIP

PROGRAMSATUNIVERSITIESAlthough there aremany interesting thingsgoingonatCUBoulder aroundentrepreneurship,therearesomechallengesthatgeneralizetoanyuniversityenvironment. Brad Bernthal describes three key challenges: (1)entrepreneurial engagement is not rewarded within the faculty incentivestructure, (2) lack of resources for entrepreneurial programs, and (3) cross-campus collaboration is not in the DNA of a university. Bernthal providessolutionstoeachoftheminthefollowingsection:

Instartupconversationsthereispowerfulrhetoricalappealtomakethelocalresearchuniversitythenext—andyoucanfillintheblankhere—MIT,Stanford,orsimilarresearchinstitutioncloselytiedtoathrivingstartupcommunity.Whatthisactuallymeansisseldomwelldefinedandoftenfrustratingtoanyonetryingtoaccomplishthegoalofintegratingentrepreneurshipmoredeeplyintotheuniversity.

Theblueprintforaleadingentrepreneurialresearchuniversityistobethreethings:(1)acommunitycatalyst:anervecenterwherethestartupcommunityconvenesandinformationspilloversoccur;(2)amagnet,teacher,andpipelineforthenextgenerationofentrepreneurialtalentintotheregion;and(3)asourceofinsight,rangingfrominnovativeideasthatcanbecommercialized,tobroadandfundamentalunderstandingsaboutwhatmakesstartupsaswellasstartupcommunitieswork.

Formidablebarriersinacademia,however,presentchallengestothis

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idealizedvisionofanentrepreneurialresearchuniversity.Atleastthreereasonshelpexplainwhytopentrepreneurialuniversitiesaretheexception,nottherule.We’veencounteredallthreeatCUBoulderandhaveappliedthesolutionsIdescribebelowasawaytoaddresseachofthem.

Challenge 1: Entrepreneurial engagement is not rewarded within thefaculty incentive structure. Scholarship and basic research are theuniversity’scoinsoftherealm.Commercializationandentrepreneurshipare,atbest,viewedasaniceversionoffacultyservice.Atworst,juniorpretenure faculty commits career suicide by getting too involved inthese“distractions.”

The solution is to not try to slay the largest dragon. True believersaroundentrepreneurshipinauniversityfloatavisionthatstartupswillcount toward faculty tenure, and a high percentage of professorswillbecomeentrepreneurs.Inalmostallcases,thisisfalseandresultsinaquixoticquesttostartwiththehardestproblemsonacampus.Instead,the true believers should pursue winnable opportunities unlikely toencounter institutional resistance. For example, my passion over thepastfiveyearsinvolveswhatamountstoastartupwithinCUBoulder,known as the Silicon Flatirons Center’s Entrepreneurial Initiative.Universities are great, natural conveners with often excellent andsometimes underutilized facilities. Leveraging this, we launched aseries of public events that connect and celebrate the startupcommunity, with the ambition to connect the CU campus and thesoftware/telecom/geekportionsoftheentrepreneurialecosystem.Inthepastyear,wehelpedprovide48public-facingstartupeventswithover6,500attendees.Wecreatedanervecenterofstartupactivityoncampusthatdidnotrequireapprovalsorfundingfromcentralcampus,theCURegents, or other administrative bodies. It just required a fewcommittedindividualswithintheuniversitytomoveitforward.

Challenge2:Wedon’thavetheresourcestodoX.Resourcechallengestypicallytaketheformofshortagesinthenumberofprofessorstoteachclasses,moneytofundinitiatives,andfacilitiestohouseprograms.Thisisespecially true today,givendismalanddecliningpublic support forAmericanresearchuniversities.

Thesolution is toco-optyourcommunity’sresources.ThebestcourseI’vebeenassociatedwithisVentureCapital,aclassthatIco-teachwithJasonMendelsonfromFoundryGroup.Similarpatternsofcommunity

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involvement, such as hosting theBoulderDenverNewTechMeetup,reinforce our roles as conveners in the community. In a similar vein,CU’sEntrepreneurialLawClinichelps formand launch20 startups ayear, which ismade possible by a network of 15 volunteer attorneyswhoworkcloselywithlawstudentstosupervisetheclinic’swork.Thetown-gowncombinationof full-timeprofessorandexpertpractitioner,which is powerful and underutilized within academia, enables auniversity’sentrepreneurshipeffortstotakeflightwithouthavingtobeentirelyself-fundedandself-sufficient.

Challenge 3: Cross-campus collaboration is not in the DNA of theuniversity. Entrepreneurship is a cross-functional activity and cutsacross many departments in a university. Often each department thatgets involved inentrepreneurshipwantsdirect and immediatebenefitsfromitsefforts.Departmentsandcenterseachchase thesamedonors,are architected as individual silos, and lack a tradition of rewardinginterdisciplinarywork.Finally,membersofdifferentdepartmenteffortsareregularlycomparedinawinner-take-allfashion.

Thesolution is to pick your rival intelligently. Focus the campus andsupportersontherealcompetition,whichisacompetinguniversity,notthedepartmentacrossthestreet.AtCUBoulder,Ihighlightthattherealcompetition is theUniversityofTexas (andAustin), theUniversityofWashington (andSeattle),Duke and theUniversity ofNorthCarolina(and Research Triangle Park), and leading universities in startupcommunitiesinIndia,China,Brazil,andelsewhere.

Furthermore,leadersoncampusshouldidentifycommonprojectstoworkonthatspanthecampus.Thisnurturestrust,openslinesofcommunication,andsendsanimportantsignalofcollaborationtothecommunity.Forexample,halfadozenorganizationsatCUBoulderjointlybuiltandrunacross-campusentrepreneurshipchampionshipseries,titledtheCUNewVentureChallenge.Oneofourobjectivesistocollapsethecampusandassemblewidenumbersofindividualsthatrarelyconnectinothercontexts.

Campuseffortstocatalyzeentrepreneurship,likethestartupstheyseektopromote,involvesignificantriskoffailure.Whentheyfail,thisshouldbeacceptedandnotpunished.Whentheysucceed,althoughthereisrarelytheequityupsideforthecampusparticipantsthataccompanystartupsuccess,theexperiencebuiltinthecontextoftheuniversityispowerful.Connectingauniversitytoastartupcommunitypreparesstudentsto

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performvaluablerolesingrowingindustriesand,inturn,thecommunitybenefitsfromauniversitythatprovidestalent,opensitsdoors,andfostersanenvironmentthatcelebratesthestartup.

—BradBernthal,CULaw,@bradbernthal

WHYTHEYDON’TWORKINISOLATION

Like most universities, CU has many activities around entrepreneurshipspread throughout the entire campus. In isolation, each is interesting andoccasionally does something that is additive to the startup community.However, these activities are fragmented, often opaque to outsiders, anddifficult to engage with. Furthermore, hierarchies tend to dominate; withineach department the resources available, people involved, and academicstructuretendtofollowaclassichierarchy.

Because the Boulder startup community uses a strong network approach,the leaders tend to engage in places in which it’s easy to engage. SiliconFlatironscreatedthistypeofenvironmentand,asaresult,manyoftheleadersintheBoulderstartupcommunityhaveengageddeeplywithSiliconFlatironsand CU Law. If you did a survey of the 500 or so people at any randomBoulderNewTechMeetup and asked if theyhad ever been to theDemingCenter for Entrepreneurship,my guess is that fewer than 20 percent of thepeopleinattendancewouldhavebeen.

Fortunately, theleadersatCU,includingPhilandBrad,aretakingalong-termview.Theyrecognizethattheuniversityisafeederandneedstobeakeyresourceforthestartupcommunity,ratherthanaleader.Asaresult,they’veadoptedanetworkview,bothwithinthestartupcommunity,byopeningtheirdoorswideandbeingaconvenerforanyactivitythatsomeoneinthestartupcommunitywantstoinitiate.They’vedonethesameacrosscampusbybeingasinclusiveaspossiblewithcourses,programs,andactivities,insomecasesagainsttheirdirectfinancialinterestinthecontextoftheByzantineuniversityaccountingapproach.

This leadership has impact on other leaders at CUwho, over time, haverealizedthatanetworkedapproachismuchmorepowerfulthanahierarchicalapproach.Asaresult,professorsthroughouttheschoolwhoareinterestedinentrepreneurshiparelessconcernedwithhowitimpactstheirdepartmentand,

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instead, simply are engaging in whatever is going on that is interesting tothem.

THEREALVALUE—FRESHBLOODINTOTHESYSTEM

Universities provide one key input into the startup community—a steadystreamof smart young people. Someof these studentswill be interested inbeingentrepreneurs;otherswillbe interested inworking forentrepreneurialcompanies. Eitherway, if the startup community can connect effectively tothesestudents,it’sahugewinfortheuniversity,thestartupcommunity,andthestudents.

I’m always fascinated by the reaction I get when I talk to students inentrepreneurship classes. Recently, I gave a lecture at anMIT class calledFoundersJourney. ItwasaCourse6class (computerscience)and theroomwas full; I was the guest lecturer near the end of the semester.Duringmyclass,Iaskedhowmanyofthestudentsintendedtostartacompanyrightoutof college. Only a few handswent up. Although I was surprised, I startedasking randompeople in the roomwhy they took the course.Almost all ofthem said that theywanted to learnwhat itwas like to be an entrepreneur,betterunderstandwhat itwouldbeliketoworkinastartup,andhavesomecontextforthefuturewhentheymightwanttostarttheirowncompany.Ithenasked them how many wanted to work for a startup, rather than a bigcompany,aftergraduating.Almosteveryhandintheroomwentup.

Therearemanydifferentwaystoengagestudentswithlocalstartups.BenLimmer created one approach, called startups2students, while he was asophomoreatCUBoulderwhenhegrewworriedthathewasgoingtoendupinthebowelsofamega-corporationdoingsomethinghehated.FollowinginBen’swordsishowstartups2studentscameabout:

SinceIcanremember,ItoldmyfamilythatIwasgoingtoworkwithcomputersandtechnology.Aftergraduatinghighschool,IwentofftoCUBoulderwithadesiretolearnmoreaboutthedelightfullygeekyworldofcomputerscience.Thefirstyearofclassesflewby.Then,sophomoreyearcamearound.Theclasseswerestillinteresting,butIstartedthinkingaboutmycareeropportunitiesaftercollege.Iknewtherewerelotsofjobsavailableinmyfieldofstudy,butIwasworriedthatalltheopportunities

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wereatmegacorporationswhereIwouldnotbeabletohaveatangibleimpactonthecompany’ssuccessorfailure.Panicsetin.Maybecomputersciencewasn’ttherightdirectionforme.

Aftertryingtohashthingsoutonmyowntonoavail,IwenttotwoofmyprofessorswhomItrusted,ClaytonLewisandDirkGrunwald.BothClaytonandDirkweresurprisedtohearthatmybiggestconcernwasworkingforcorporategiantsbecausetheyknewsomethingIdidn’t.Unbeknownsttome,Iwasinthemidstofoneofthemostthrivingstartupcommunitiesinthecountry.ThefactthatCUBoulderwassoisolatedfromthesurroundingstartupcommunityscaredallofus.Wesetouttochangethat.

Tohelpsupportthisgoal,DirksuggestedthatIrestartagroupthathadbeendefunctforsometime,theComputerScienceUndergraduateAdvisoryCommittee(CSUAC).WereinstatedthegroupwithpassionateundergraduatestudentswhowantedtohelpmoldtheCUexperienceforothercomputersciencestudents.WewantedtobeacatalystforchangeandinfusetheBoulderstartupcommunitywiththepooloftalentedstudentsatCU.

Afterafewbrainstormingmeetings,CSUACdecidedthatthebestwaytokickoffanewrelationshipbetweenCUandstartupcompanieswasinonebigbang.Whynothostanon-campuseventwherelocalentrepreneurscouldcomeinandtalkabouttheircompanies?Maybesomestudentscouldgetsummerinternshipsorevenfull-timepositionsfromaneventlikethis.Insteadofoverthinkingit,wejustwentforit.Ifitflopped,atleasttherewouldbepizza.

CSUAClargelylefttheplanningoftheformatoftheeventuptome.Iwantedtheeventtobequickandfun,withtheprimaryfocusonnetworkingbetweenstudentsandstartupcompanies.Iwantedtoencourageadialoguebetweenstudentsandentrepreneurs,insteadoftheusual“studentsasconsumers”–stylepresentationsIhadbeeninvolvedwithinthepastwithcorporategiants.Technologyissomethinginterestingandtheopportunitiesareendless.Iwantedtoempowerstudentstodiveintothetrencheswiththesetechnicalvisionariesandtrytoconnectpeoplewithwhomtheysharedcommonpassions.Therefore,Ilimitedcompanypresentationstoamaximumofthreeminutestogivethestudentsatinyglimmerofwhateachcompanysoughttodoandencouragethemtolearnmoreafterthepresentationsviadirectconversation.

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Weorganizedtheeventbyleveragingeveryconnectionwehadtothestartupcommunity.Afterseedingthediscussiontoseveralprofessors,IwasconnectedwithBradFeldandDavidCohen.Afterexchangingafewe-mails,bothBradandDavidwereintenselyexcitedtogetmeintouchwithlocalstartupcompanieslookingforfreshtalent.Suddenly,myinboxwasinundatedwithe-mailsfromlocalentrepreneurswhowereinterestedinmeetingmotivatedCUstudents.WebookedthetinyComputerScienceEducationalLabandstartedsigningupcompaniesforthefirststartups2studentsevent.BeforeIknewit,threemonthshadpassedandwehad13companiesandover50studentsconfirmedtoattend.Weweregoingtoneedmorepizza.

Ontheeveningoftheevent,theroombuzzedwithanexcitementIhadneverseenbeforeamongthestudents.Passionatestudentslistenedintentlytotheshortpresentationspreparedbyeachofthecompanies,scribblingnotesofpeopletheywantedtoapproach.Thepresentationsflewby,andwhenthenetworkingtimecamearound,commonlyintrovertedcomputersciencestudentswereshakinghandsandconnectingwithCEOsandCTOsoffascinatingstartupcompanies.Theamountofexcitementandpassionintheroomwasdizzying.Towardtheendoftheevent,Istoodbackandobservedtheroom.IknewthatCUandtheBoulderstartupscenehadmadetheimportantinitialconnectionthatwouldlastbeyondmycollegeexperience.

ForthelasttwoyearsofmycollegeexperienceI,alongwithhelpfromCSUAC,meticulouslygrewtheeventeachyearwithabiggervenueandmoreexcitingnewstartupcompaniesofferinginternshipstostudents.Thesecondyearhad15startupslookingforinternsandemployees.Thethirdyearhad20.Wehadtostartgivingaway“nonpresenting”spotstotrytokeepstartups2studentstruetotheoriginalvisionofshortpresentationswithafocusonnetworking.AfterIgraduatedin2011,IentrustedtheeventtothenextgenerationofCSUACers.Iwaselatedtobeattendingstartups2students2012,notasastudent,butasafull-timeemployeeofacompanyIwasintroducedtothroughstartups2students.

Launchingthestartups2studentseventissomethingIwillalwaysbeproudof.Notonlydidtheeventhelpme,personally,todiscovermyplaceinthetechnologyworld,butitalsoactedasacatalysttogetCUBoulderandtheBoulderstartupcommunityconnected.Tothisday,Ilovehearingfrompeoplethatfoundtheircurrentjoborinternshipthroughstartups2students.Ilovethatsomeofmyformerclassmateswentoffandstartedtheirownstartupcompanies.Toanyoneinterestedinstartingan

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eventlikestartups2students,goforit!Ittakestimeanddedication,butitisincrediblyworththeeffort.Worstcase,ifitflops,atleasttherewaspizza.

—BenLimmer,@l1m5

Another approach, used by Bart Lorang, the CEO of FullContact, is toengage aggressively with the Colorado School of Mines Field Sessionprogram.Bartdescribestheprogram,theengagementwiththestudents,andtheresults:

ThefoundersofFullContactrecentlytrekkedtoColoradoSchoolofMines(CSM)inGolden,Colorado,toattendoneofmyfavoriteevents:ComputerScienceFieldSessionpresentations.NotfamiliarwiththeSchoolofMines?Youshouldbe.It’saterrificengineeringschool;in2011itwasranked29thinAmericaamongpublicuniversities.

FieldSessionisquicklybecominganannualritualforus.WeheadovertoSchoolofMinesaround10:30a.m.,watchincrediblygiftedcomputersciencestudentsgivetheirpresentations,cheeronthedemos,shareafewlaughs,thenafterwardsweallheadovertoWoody’sWood-FiredPizzaforacelebratoryfeast.

FieldSessionisacapstonecoursethatletsCSMcomputersciencestudentsapplyeverythingthey’velearnedtodatebyworkingforsixweekswithanactualcompany.Studentsworkinteamsoftwotofourpeopleandareexpectedtowork40hoursaweekforthedurationoftheproject.Attheend,theyshouldhaveanalyzedaproblem,producedadesign,andimplementedanddocumentedasolution.

TheCSMteamsself-selectthecompaniesandprojectstheywanttoworkwith.HopingtogetthatCOBOLprogramconvertedintoaWindowsDLL?Goodluckgettingateamonboard.Onlythecoolestprojectsandbestcompaniesendupwithateam.

Thevaluepropositionforbothpartiesissimple.Studentsgetreal-worldexperienceworkinginsideacompanywithrealdeliverablesandanopportunitytoimpressaprospectiveemployer(nottomentioncoursecredit).Companiesgetaninjectionofyoungtalentintotheirorganizationforashortperiodoftime,aworkingdeliverable,andthechancetoevaluatepotentialhires.

In2011,wewerefortunateenoughtoscoreanamazingteamoffourCSMstudents.Thestartoftheprojecthappenedtocoincidewiththe

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beginningofTechStarsBoulder.Asaresult,FullContacthadeightpeoplejammedintotheTechStarsbunkerandourCSMteamwasforcedtoworkoutofthesupercramped“pillbox”intheback.Buttheyweregoodsports,andtheygottowitnesssomeoftheTechStarsmagicfirsthand.TheyevenattendedDemoDayandwatcheduspitch.Ourteamturnedouttobeverybrightandincrediblygifted,somuch,infact,thattwoofthemhavecomeaboardFullContacttoworkwithusfulltime.

Thisyear,wewereabletolandtwoincredibleteams.Likelastyear,wemadetheconsciousdecisiontotreatCSMteamsjustlikeemployees.OurfeelingisthatifwetreattheCSMteamslikeinterns,we’llgetintern-likeresults(i.e.,lessthanideal).Butifwetreattheteamslikefull-fledgedteammembers,they’lldobetterworkandbemorelikelytowanttobepartofourcompanyinthefuture.

Asaresult,wefullyassimilatedtheCSMteamsintoourdaily,weekly,andmonthlyprocesses.Theteamsworkedfromourofficeeveryday—thistimeinDowntownDenver—andtookpartinourdailystand-ups.Theyalsotookpartinourweeklydemos,retrospectives,one-on-ones,andmonthlyall-hands-on-deckmeetings.

Thisyear,weendedupwithtwoawesomedeliverablesandfourCSMstudentswhohaveagreedtocomeaboardfulltimeforthedurationofthesummer.Assumingallgoeswell,mostofthemwillcontinuetobepartofourteamduringtheschoolyearandbeyond!

—BartLorang,FullContact,@lorangb

THEPOWEROFALUMNIInternshipsandrecruitingeventsareapowerfulwaytoengagestudentswiththestartupcommunity.Connectingthethreadsofthestartupcommunitywithentrepreneurial alumni, especially thosewho havemoved out of town aftertheygraduated,isanotherpowerfuldynamic.

Althoughmanyuniversitieslookattheirsuccessfulentrepreneurialalumniassourcesoffunding,Iencouragethemtomakeahugementalshiftandviewthem as leaders who can contribute back to the university in manynonfinancialways.When theydo this, theyoftengetmoremoney from thealumni than they would have otherwise, and they create a much moresatisfyingrelationshipwiththealumni.

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Almost all successful entrepreneurs who I’ve met have affinity for theirschool.Youhearofstoriesabout famousStanfordalums(Brin,Yang),MITalums(Bose,Stata,D’Arbeloff,Swanson),andUniversityofMichiganalums(Page, Costolo). Although you don’t always hear about CU Boulderentrepreneurialalums,thereareplentyofthem,includingGlennJones(JonesIntercable),LibbyCook(WildOats),SteveElls(Chipotle),andotherup-and-coming stars like Dave Morin (Path, Facebook) and Jeremy Bloom(Integrate).

Thereareahandfulofverysimplethingsuniversitiescandotoleveragethepower of entrepreneurial alumni, especially those who have moved to adifferentpartoftheworld:

Bringalumnibacktocampus:First,invitethembacktocampusannuallyand make it easy for them to come. Have them come on a Thursdaywherethereisalotofactivityfollowedbyaweekendsportingevent.OnThursdayandFriday, setupa seriesof student interactions, includingawell-publicized seminar at which they talk about what they are doing,tour theirdepartmentand thecurrent research that isgoingon,attendaroundtablewithasetofstandoutstudentsworkinginthesameareaastheentrepreneur, and have lunch and dinnerwith interesting people.Makesure you know the social activities the alumni enjoyed and incorporatethem into the mix. Make it frictionless—cover all travel and lodging,make it comfortable and easy. If they are sports fans, they’ll stay overFridaynightandenjoyagameonSaturday;ifnot,theycanheadhomeonFriday.

Create a mentor relationship with the alumni and a top student in hisarea. In Boulder, we’ve created a CU Alumni EntrepreneurshipMentoring program by which we match up successful entrepreneurialalumniwith studentswho are interested inmentorship. This is a long-term,multiyear relationshipduringwhichnomoneychangeshands,butthealumniagreestobeavailableonaregularbasiswiththestudentandmeetfacetofaceforamealatleastonceaquarter.We’veaffiliatedthiswithTechStarsBoulder,sothealumnimentorandthestudentcaneasilyengage inapartof theBoulderstartupcommunitybybecomingpartofthe extended TechStars community and participating in aspects ofTechStars during the summer if they’d like. Using a Facebook group,we’vebuiltacommunicationnetworkacrossallthestudentssotheycanshare their experiences with each other and build community amongbuddingentrepreneursatCU.

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Highlightthealumnipublicly.AtCUBoulderIco-runaprogramcalledEntrepreneursUnplugged.InthiscollaborationbetweenSiliconFlatironsandCUATLAS(AllianceforTechnology,Learning,andSociety),wedoaCharlieRose–stylepublicinterviewwithanentrepreneuronamonthlybasis.ManyoftheentrepreneursarealumsofCUBoulder,andmostofthemarenothighprofile.Thisisaneffectivewaytohighlightthemmoreclearlyinthelocalecosystem,especiallyaroundtheuniversity.

The relationship between a startup community and a university can be apowerfulone,but it isoftencomplicated.By focusingon specific activitiesand remembering that the university is a feeder to the startup community,greatthingscanhappen.

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CHAPTERTEN

CONTRASTSBETWEENENTREPRENEURSAND

GOVERNMENT

A reliance on government is one of the classic problems in startupcommunities that I discussed earlier. We routinely anthropomorphizegovernmentandsaythingslike“OurgovernmentdidX.”

Althoughit’seasytofallintothetrapofviewinggovernmentasanabstractentity, especially given the amount of time and energy it consumes aroundspecific issues, it’s important to always remember that government is acollection of people.Many of them arewell intentioned, especially aroundanything that creates jobs or new tax revenue, but they often have nounderstandingofwhatentrepreneursdoorthepressurestheyface.

However, if you understand a few differences between entrepreneurs andgovernment (and I recognize I’m anthropomorphizing in this case),entrepreneurial leaderscaneffectively incorporategovernment intoastartupcommunity.Let’sgoalittledeeperonthistopicandexplorewhatgovernmentcandotobehelpful.

SELF-AWAREVERSUSNOTSELF-AWARE

Great entrepreneurs are intensely self-aware. They know exactlywhat theyarebadatanddescribeitoften,asin,“ThisiswhatIsuckat.”Governmentleadersrarelytalkthisway.Entrepreneursfailoftenandownit;governmentleaders rationalize why something didn’t go their way. Entrepreneurs aredirectly critical of themselves and others and support their viewpointswithdata. Government leaders work to “impact public opinion.” It’s a differentvocabularyandaprofoundlydifferentbehaviorpattern.

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In contrast, government leaders are chronically not self-aware. This isespecially true in state and local governments, where the leadership oftenasserts that something is happening as though they wish it were. Theassertions are often about activities in which the causality is completelymisunderstood. This is often the case concerning economic development,whichisthecategorythatgovernmentputsastartupcommunityin.

This is a problem only if the entrepreneurs rely on their state or localgovernmenttoleadthestartupcommunity.Becausemanyofthegovernmentleaders, and almost all of the government employees, have never beenentrepreneurs, they can’t relate to the dynamics of how entrepreneurshipreally works. Furthermore, although they can craft wide-ranging plans, dolong-term studies, and create extensive white papers, they rarely can actquicklyandpreciselyaboutaspecificinitiative.

BOTTOMUPVERSUSTOPDOWN

Entrepreneurs work bottom up and government works top down. Whenentrepreneurs start a company, they do all of the work. They don’t haveresources, staffs, structure, or a framework for what they are going to do.They just go do it. Government is exactly the opposite—there is a well-defined hierarchy, existing infrastructure, staff that persists from oneadministration to the next, and clear rules of engagement for getting thingsdone.

Onceagain,wevisitthethemeofnetworksversushierarchy.Entrepreneursoperate in anetworkedworld; governmentoperates in ahierarchicalworld.Whenthesecollide, itcanbeimmenselyfrustratingtoentrepreneursastheywatchgovernmentbeponderous,slow,andcompletelyineffectiveathandlingissues that entrepreneurs could get done in a day. Entrepreneurs have littlepatienceforthis,especiallywhentheyseeobviousdecisionsgettangledupinpolitics about other things that make no sense to entrepreneurs and havenothingtodowiththeissueathand.

Thesolutionforstartupcommunitiesistosimplycreateaparalleluniverseof activity. Government is going to do whatever it is going to do aroundstartups,entrepreneurship,andeconomicdevelopment.Someof thiswillbehelpful; much will be a waste of energy. Entrepreneurs should engage ingovernment-related things they believe will be valuable and that they find

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stimulating.However, they should not rely on any particular outcome fromtheseactivitiesorfromthegovernmentingeneral.Instead,theyneedtocreatetheirown,durablesetofactivitiesforthestartupcommunity.Optimally,theseactivities will be bottom up and engage anyone in the community who isinterestedinparticipating.

MICROVERSUSMACROEntrepreneursoftenfocusonthemicro,thatis,specificthingsthatneedtogetdone or will have impact. In contrast, government focuses on the macro.When I talk to leaders in government, they use words like global,macroeconomic, policy, innovation, and economic development. These arenot words that entrepreneurs use; entrepreneurs talk about lean, startup,product,andpeople.

SeveralyearsagoIwasgivingatalkabouttheBoulderstartupcommunitytoacross-sectionofBoulderbusinessand localgovernmentpeople.Duringthe Q&A section, a woman I knew got up and said, “What do you thinkecodevosshouldbedoingtohelp?”Istood,stunnedforamomentbecauseIdidn’tknowwhatecodevoswere.AllIcouldthinkofwas“WhipIt”fromthepunkrockbandDevo,andIhadtorestrainmyselffromblurtingout“WhipIt,Whip ItGood.”When I realized shewas talkingabouther role,whichwaseconomic development for the city of Boulder, I said, “First, stop callingyourselfanecodevosinceI’mcertainthere’snotasingleentrepreneurintheroom who has any idea what that means.” I then went on to make a fewsimple suggestions about how, as a feeder, the Boulder economicdevelopment people could be helpful, but themomentwas defining formesincethelanguagewassofundamentallydifferent.

Every quarter I see reports in the local newspaper about things likeincreased/decreased amount of VC activity in the quarter, the number ofpatentsgrantedasanindicatorofinnovationactivity,andmonthlychangesinunemployment.Our governormakes an annual state of the state address inwhichhefocusesonthechangesinthestate’seconomicoutput.Thebusinessnewspapers report annual earnings, change in stock prices, and totalcompensation of executives in the sameway they report box scores in thesports section. Almost all of this information is irrelevant to a set ofentrepreneurialleadersonalong-termjourneytocreateasustainablestartupcommunity.

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ACTIONVERSUSPOLICYEntrepreneurs are hard wired to take action; government leaders focus oncreating policy. Once again, there is a fundamental disconnect in languagethat can simultaneously consume an enormous amount of energy andmakeentrepreneurialleadersinsanelyfrustrated.

I’vebeeninnumerousmeetingswithgovernmentleadersandtheirstafferstalking about a particular issue relevant to entrepreneurship. In thesemeetings, I talk directly to the government leader, who engagescharismatically and thoughtfully about the issue. Sometimes theseconversations are robust and detailed; often they are 15-minute-longcollectionsoftalkingpointsinterspersedwithniceties.Afterthegovernmentleader drops off the call or leaves the room, the real discussion with thestaffersbegin.Policyquestionafterpolicyquestiongetsasked.“Howwillthisimpactthat?”“Whywouldthispersonoverhere,whoclearlyhasadifferentagenda,supportthis?”“Couldweaddthislanguageintowhatyouaresayingsothere’sacompromise?”“I’mnotsurewecantakethispositionbecauseweneedthesupportofsoandsoonsomethingelse.”

Inmanycases,theseconversationsleadnowhere.Insituationsinwhichyouhaveastrong,thoughtfulleaderlikethecurrentColoradoSenatorsUdallandBennett,orapreviouslysuccessfulentrepreneurinCongresslikeJaredPolis,youendupwithsubstancearoundentrepreneurshippolicy thatcan translateintoaction.Often,however,you just endupboggeddown in themorassofadditionalpolicytalkinwhichnoactioncanorwillbetaken.

Thisisespeciallytrueinstateandlocalgovernment.Thelengthoftimeittakestoworkthroughthepolicydiscussionisoftencompletelyatoddswiththe urgency entrepreneurs feel. Recognizing the difference is sanitypreservingforentrepreneursandgivesthemachance,shouldtheydecidetoengageinthepolicydiscussion,ofactuallyhavingsomeimpact.Itiscrucialtounderstandthatthisimpactwillonlycomeoveralongperiodoftime.

IMPACTVERSUSCONTROLImpactisakeywordforallentrepreneurs.Inanetworkedsystem,youwanttohaveimpact;inahierarchy,suchasgovernment,youwanttohavecontrol.Sure, many government people talk about their desire to have a positiveimpact,but theydo this throughhavingcontrol.Entrepreneurs,on theother

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hand,arereallyonlyinterestedinimpactand,ifsomethingdoesn’tmatter,ordoesn’twork,theymoveontothenextthing.

It’s impossible to control a startup community. This is the final, andpossiblymostimportant,reasongovernmentshouldn’tplayaleadershiprole.The natural tendency of government is always to control, that is, to set uphierarchyandbureaucracythatcontrolsandsustainsaparticularstructure.Astartupcommunityisarapidlyevolving,ever-changingthing.Itdoesn’tneeda long-term structure; that will emerge from the continually evolvingactivitiesoftheentrepreneurialleaders.Itdoesn’tneedahierarchybecauseitrunsonanetworkmodel.Mostimportantly,itdoesn’tneedanybureaucracybecausethisjustslowsdownprogressandthenecessaryandcontinualchangethathastohappenoveralongperiodoftime.

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CHAPTERELEVEN

THEPOWEROFTHECOMMUNITY

Throughout the Boulder startup community we’ve developed a series ofdeeplyheldbeliefsabouthowtobehaveandinteractwitheachother.Thesebeliefs evolved organically; therewas no rules committee or hierarchy thatvotedonthem.However,whenyouwanderaroundBoulder,you’lloftenhearthesephrasesrepeatedorseetheseconceptsinaction.Theubiquityofthemcreatesanamazingamountofcommunitypower.

GIVEBEFOREYOUGETOneofmydeeplyheldbeliefstothesecretofsuccessinlifeistogivebeforeyouget.Inthisapproach,Iamalwayswillingtotrytobehelpfultoanyone,withouthavingaclearexpectationofwhat is in it forme.If,over time, therelationshipisoneway(e.g.,I’mgiving,butgettingnothing)I’lloftenbackoffonmylevelofgivebecausethisbeliefdoesn’tunderlieafundamentallyaltruisticapproach.However,byinvestingtimeandenergyupfrontwithoutaspecificallydefinedoutcome, I have found that, over time, the rewards thatcomebacktomeexceedmywildestexpectations.

Agroupofushaveworkedveryhard to incorporate thisgive-before-you-get philosophy into the Boulder startup community. You rarely hear thewords, “What’s in it for me?” around Boulder; rather, it’s “How can I behelpful?” Introductions flowfreely,asdo invitations.As I travelaround thecountry,Ihearpeople talkingabouthoweasyit is toengagewithpeople inBoulderandhowgoodkarmaflowsfreely.Thisisgivebeforeyougethardatwork.

Akeyattributeofagreatmentor is someonewho iswilling tocontributetimeandenergy to amenteewithout a clear expectationofwhat is comingback.DavidCohentalksaboutthisconstantly,andheleadsbyexample,notjustwithTechStarscompaniesbutalsowithmanyothercompaniesinwhichhe’snotaninvestor.TechStarshasspecificprogramslikeTechStarsforaDay

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(http://startuprev.com/n3) thatareopen toanyonewhoapplies toTechStars,givingthemastrongunderstandingofthementordynamics.AndifyouaskTechStars mentors why they participate, most of them say something like“SomeoneoncehelpedmewhenIwasayoungentrepreneur;Iwanttogiveback.”

Therearedefinitely situations inwhichgivebeforeyougetbreaksdown.When someone gets, and gets, and gets, and never gives anything back, itgoesfromtedious,toannoying,touninterestingreasonablyquickly.Whenagive-before-you-getphilosophyisembeddedinthestartupcommunity,peoplewho only get but never give generate negative reputations and the startupcommunityoftenrejectsthem,asahostorganismrejectsaparasite.So,makesureyouarealwaysgivingatleastasmuchasyouaregetting.

EVERYONEISAMENTORThebestmomentinamentor-menteerelationshipiswhenthementorlearnsasmuch,ormore,fromthementee.Ifyouaskmostmentorswhytheydoit,this is one of the core reasons. If you take a long view on the mentorrelationship,itbecomesclearthatboththementorandthementeeareactuallymentors. If you extend this to the startup community, everyone becomes amentor.

Often people ask me what they can do to help the Boulder startupcommunity.Oneofmyresponsesistofindonepersontheycanmentor.Focuson your specific skill or background, and let the community know you arewillingtomentoronepersononthis.Showupatthestartupevents,liketheBoulderNewTechMeetup,andannounce thatyouareanexpertat thingXandyouarewillingtoteachittooneotherperson.Betteryet,holdaregularseminar,Meetup,oropenofficehoursaroundit.

The culture of widely sharing knowledge, experience, and expertise isincrediblysatisfyingandself-reinforcing.Themoreyoudo, themoreyou’llsee others in the community do. There are gems everywhere, oftenundiscovered,thatappearwheneveryonebecomesamentor.

EMBRACEWEIRDNESSBoulder isaweirdplace.In the1960swhenthehippiesweredrivingto theBayArea from the East Coast, some of them ran out of gas nearBoulder.

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They looked around, liked the mountains, and decided to stay. Boulder’sreputationof25squaremilessurroundedbyrealityiswellearned.

In his book The Rise of the Creative Class, Richard Florida talks aboutweirdnessasakeyattributeofinnovativecommunities.He’sgoneontostate,“You cannot get a technologically innovative place unless it’s open toweirdness,eccentricityanddifference”(NewYorkTimes,June1,2002).

The Boulder startup community embraces weirdness. You don’t have tolook a certain way, dress a certain way, or act a certain way. People cansimplybethemselvesandareacceptedforwhotheyareandwhattheydo.AllyouhavetodoiswanderaroundforafewdaysupanddownthePearlStreetMallandyou’llseewhatImean.

BEOPENTOANYIDEAI’ll tryanythingonce,as longas it’snot illegal. I’mcuriousandI’vefoundthat thebestway to learn things is to try things.Trying things and runningexperiments is a corollary to being open to any idea and has becomewellunderstoodthroughouttheentrepreneurialecosystem,especiallyintech,asamethodologycalledtheLeanStartupthathasbeenpopularizedbyEricRies.

Inahierarchy,whensomeonesuggestssomething, the immediatereactionis to start asking questions and try to figure out why it won’t work. In anetwork, the opposite approach often happens. When someone suggestssomething,justrespondwith,“Awesome—godoit.”Theyeitherwillortheywon’t.You’llrecognizethisasbeingsimilartotheapproachofgivingpeopleassignments. You get a natural filtering process. If someone doesn’t moveforwardwithanidea,notimewaswasted.Iftheydo,thentheresultsappearandoftenmorepeoplegetinvolved.

Part of trying something is to understand how to fail fast. If you trysomething and it doesn’t work, being able to either pivot based on thelearningorcall itquitsandstopwastingtimeandenergyonsomethingthatisn’tworking is key.However, if youdon’t try, youwon’t have thedata toknowwhethersomethingisworking.

BEHONESTAphrasemypartners and I atFoundryGrouphaveused formanyyears is

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“intellectualhonesty.”Ourgoal,simplystated,istonotbullshitoneanother.Regardless of the emotions you feel about a particular issue, decision, orsituation,beingintellectuallyhonesttrumpseverything.Sometimesyouhavetodigdeep todo this, especiallywhen thediscussion isheatedor therearedifferentopinions,butifyoutakeanapproachofalwaysexpressingyourselfhonestlyandrecognizingthatyoucouldbewrong,youputyourselfinamuchsimplerandmorepowerfulpositioninlife.

Thisappliesstronglytothedynamicsofastartupcommunity.Therewillbemany different perspectives, motivations, opinions, and agendas swirlingaround.Individualsrespondtofeedbackdifferently:Someneedalotofpraiseand are extrinsically motivated; others, like me, are deeply intrinsicallymotivatedandalthoughwehearpraise,itdoesn’treallyhavemuchimpactonus.Recognizethatyourstartupcommunitywillcoverawiderangeof thesebehaviors.

RecentlyweheldaStartupAmericaRegionalSummitinBoulder.Init,120peoplefrom27statesdescendedonBoulderfortwodaystodiscusshowtheywerebuildingstartupcommunitiesthroughouttheirstates.ThiswasthethirdStartupAmericaRegionalSummitaspartoftheStartupAmericaPartnership(http://startuprev.com/n0) and it was an awesome experience. Afterwards,ChristianRenaud,oneof theprincipalsbehindStartup Iowa,wrote a reallyusefulpost titledWhat I learned inBoulder (http://startuprev.com/d7). In it,hecapturednicelytheconceptofbeinghonest.

Youdon’tgetstrongerandbetterbypeopletellingyouthatyouarealreadyperfect.Yougetstrongerbybeingpushedbyyourworkoutbuddycallingyouabigwimpandthatyouneedtodoubleyourweightanddoubleyourrepsoryou’regoingtobethe98-poundweaklinggettinghis/herbuttkickedatthebeach.

Thisleadsmetomysecondpoint,whichisthat…someonehastobetheasshole.IwasinitiallytakenabackbythedirectnessofthefeedbackthatpeopleweregivingeachotherduringtheSummitaswellastheMeetup.BradFeldfromTechStarsinparticularwasdirect,blunt,andchallenging.Aftertheinitialshockhadwornoff,itoccurredtomethatallofthefeedbackwasconstructiveandprobing,andnotpeopletryingtoknockeachotherdownapegortwobecauseoftheirownlowself-esteem.Thisrequiresthatsomeoneneedstobetheassholeintheroomwhodoesn’tkeepthepeace,whochallengesthequiet,whotakesyouonfull-contactandmakesyoustrongerandbetter.

—ChristianRenaud,Present.io,@xianrenaud

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AlthoughIdon’tencourageyoutotakeonthepersonaofanasshole,Ithinkthe ideaof beingdirect, blunt, and challenging is a powerful one.Plus, it’seasiertoalwaysbehonestbecauseyouneverhavetorememberwhatyousaidwhenwhateveryousaidwasthetruth.

GOFORAWALKToomanymeetingshappeninconferencerooms.Therearegreatexamplesofleaders who have meetings by going for walks. Steve Jobs immediatelycomes to mind as an example. One of my most significant mentors, LenFassler,taughtmethisapproach.WheneverLenandIhadsomethingseriousto talkabout,wewent forawalk.Thenumbersof timeshepokedhisheadintowhereverIwasworkingandsaid,“Hey,Brad—let’sgoforawalk,”aretoo numerous to count. And, in the evening, after everything had settleddown,ifweweretogetherwe’doftengoforawalkandtalkwhilehesmokedacigar.

I’veadoptedthisapproachandoftenwalkwhentalking.Ihaveatreadputerinmyoffice (a treadmill fromSteelcasewith a computer on top) andwalktwo to fourhoursadaywhen I’m in theoffice.When I’mon the road, I’lloftenwalkduringmyphonecalls,especially incities likeNewYorkwhereI’dratherwalk30minutesfromonemeetingtothenextthanhopinacab.

I’ve adopted this inBoulder.Whenever Iwant to have a long discussionwith a CEO or founder who I’m working with, or need to work throughsomethingwithsomeone,weoftenwalkoutthedoorofmyofficeandmakealoop around town. More and more, I see other entrepreneurs walking andtalking to each other, working through whatever is on their mind, whilechangingthecontextfromasmallconferenceroomtothegreatoutdoors.

Walking isn’t the only thing to do. Seth Levine is a huge cyclist. Heregularlyhopsonhisbikeandgoesforaride.InthebookIwrotewithDavidCohen,calledDoMoreFaster:TechStarsLessonstoAccelerateYourStartup,SethhasanicechapterintheWork-LifeBalancesectiontitled“GetOutFromBehind Your Computer.” In it, he describes how and why he bikes withentrepreneursheworkswith.

MyeffortsatlunchridesandmeetingsstartedwithAriNewman,theco-founderandCEOofTechStars2007participantFiltrbox.Theideawaspurelysocial.Ariisanaccomplishedriderandwethoughtitwouldbe

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funtoheadouttogetherforaride.Iquicklyrealizedthattokeepupwithhimonourrides,however,Ineededtogethimtalking.SoIstartedtoaskhimquestionsabouthisbusiness,whichwassomethingIknewAri,likeallentrepreneurs,washappytotalkatlengthabout.ThiswasanaturalextensionofthemoreformaltimewewerespendingtogetherthroughtheTechStarsprogram,asIservedasleadmentortoFiltrboxduringtheirTechStarssummerandcontinuedworkingwiththecompanyaftertheyexitedtheprogramandreceivedinstitutionalfunding.NotonlydidthesediscussionshavethedesiredeffectofslowingAridown,butourridesprovedtobeperfectsettingstotalkabouttheprogressofthecompany.Awayfromtheoffice,ridingthehillsofBoulder,itwaseasierforustocollectivelygainperspectiveonthebusinessthatweweren’tabletowhenwewerephysicallyconfinedbythewallsoftheFiltrboxoffice.

Whilemy2008TechStarscompanywasnotasathleticandourmeetingstookplaceinthemoretypicalformatinaconferenceroom,AriandIcontinuedtoworkonFiltrboxthatsummeronourregularrides.AsIstartedmentoringEverlaterintheTechStarsprogramof2009,cyclinghadbecomeameaningfulpartofmysummeragenda.WithalargegroupofcyclistsinvolvedintheBouldertechscene,therewereregularlunchtimeridesthroughoutthesummer(thegroup,calledGeeksonWheels,usedTwittertoarrangerides).Withthisasthebackdrop,itwasnaturaltomakecyclingacentralpartofmyworkwithEverlater’sfounders,NateAbbottandNattyZola.Nate,Natty,andIscheduledregularweeklyrides(sometimesseveraltimesaweek)andwhilewedidn’tkeepaformalagenda,eachridehadanumberoftopicsplannedoutforustocover.Inthisway,weworkedthroughmanyoftheearlychallengesthebusinessfacedasitmovedfromideatorealityinthecourseofthesummerof2009.Ourtypicalrideslastedfrom60to90minutes,duringwhichtimewewereabletofocusonthebusinesswithoutinterruption.Andwhilegettingsomefreshairhelpsbringperspective,it’shardtoavoidthinkingaboutproblemsinanewwaywhenyou’reoutoftheoffice,surroundedbythebeautyoftheBoulderfoothillswhileyourmindiscompletelyclear.

Itdoesn’tmatterwhetheryouareawalker,running,biker,ortennisplayer.Getoutofyourofficeandenjoytheplaceyoulive,whileworkingwiththepeopleyouarewith.

—SethLevine,FoundryGroup,@sether

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THEIMPORTANCEOFTHEAFTER-PARTY

Inmanysituations,therealpartyhappensaftertheofficialpartyends.Thisisstronglythecaseinarobuststartupcommunity,wheretherearemanyeventshappeningallthetime.Althoughsomeoftheseeventshavelotsofroomforsocialization, especially at the grassroots level, others don’t, or it’s anawkwardenvironmentforthiskindofinteraction.Thisleadstothevalueoftheafter-party.Followingareafewexamples.

Eachmonth, after theBoulderDenverNewTechMeetup,variousgroupsinformallydescendondowntownBoulder.Theeventusuallyendsat8,soby8:30thereareclustersoffolkshavingdinnerthroughoutBoulderandtheyallknowthat if theywanta finalnightcapafterdinner, theBitterBar iswherethey’ll all meet up. According to BruceWyman, who was at many of theafter-parties:

TheBitterBarwaseasilytheplacewithperfectafter-party-likefeelthatcateredtoadeeplyengagedcrowdofgeeks.Thesamecareandpassionthatwebroughtinourrespectivefieldsandareasofexpertise,theybroughttodrinksandcocktails.Atthebar,there’dbeashareddiscourseonthebittersbeingmadein-housethatweekorthesourcingofsmallbatchesofselectbourbonswhileattheotherend,itwaseasytohearadeeplydetaileddiscussionaroundtheesotericaofloadbalancinganddatabaseduplication.TheBitterBarprovidedthefuelandenthusiasmthatpropelledmanypeopletomeet,talk,anddream.Overtime,peoplebecamewellknownandasyou’dwalkin,themixologistswouldalreadybecateringtoyourpossibleneedsandmeetingyournewcolleaguesandfriends.ItwasafamilythatkeptgrowingandwasequallyasinvitingasBDNT.

—BruceWyman,@bwyman

AftereveryTechStarsDemoDaythereisalwaysanafter-party.DemoDayusually happens in the morning and finishes over lunch, but everyone isinvited, including thebroader community, to the after-party that happens inthe evening. This is a final event of a TechStars class and is a chance foreveryone to let off some steamwhile hanging outwith all the peoplewhohavesupportedthem.

WhereverBenHuh,theCEOofCheezburgergoes,agameofWerewolfis

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suretoensue.Bentravelsconstantly,evangelizingCheezburger,andheoftenendsupdeepinthemixofwhateverisgoingoninastartupcommunitythathe’svisiting.HelovesplayingWerewolfbothasawaytogettoknowpeoplebetteraswellastounderstandhowtheythink.

Eachoftheseapproachesbuildscommunity.Yourstartupcommunitymightadoptsomeoralloftheseorcreatenewonesofyourown.Regardless,alwaysrememberthatcommunityisattheheartofastartupcommunity.

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CHAPTERTWELVE

BROADENINGASUCCESSFULSTARTUPCOMMUNITY

Throughout this book, I’ve usedBoulder as an example of a strong startupcommunity.However,theBoulderstartupcommunityisstillrelativelyyoung(only 40 years old with huge acceleration over the past decade) and has anumber of weaknesses. In this chapter, we’ll explore some of theseweaknesses along with what some of the leaders in the Boulder startupcommunityaredoingtoaddressthemoverthenext20years.

PARALLELUNIVERSESAlthough Boulder has an incredible entrepreneurial density, it actually hasfivestartupcommunities.I’minvolvedinthetechcommunity,whichIoftenrefertoassoftware/Internetforclarity.Theotherfourarebiotech,cleantech,naturalfoods,andlifestylesofhealthandsustainability(LOHAS).

Let’s focus on the natural-foods startup community.Celestial Seasonings,startedinthe1960s,isoneofBoulder’sfavoritenaturalfoodscompanies,butdidyouknowthattwocompanies—Alfalfa’sandWildOats—whichmakeupabout a thirdofWholeFoods,were started inBoulder?Or Izze?OrWhiteWave?OrHorizonDairy?Thelistislong,anditkeepsgoingsincethereisarobust contemporary natural-foods startup community spawning newcompanieseveryyearlikeJustin’sNutButter.

I’m a personal investor in Justin’s, and I like Justin Gold a lot. I knowLibby Cook, the founder of Wild Oats. I know Hass Hassan and BarneyFeinblum, the founders of Alfalfas and am an investor in their VC fund,Greenmont Capital, which is dedicated to investing in natural-foodscompanies.Wearefriendsandsayhellofromacrosstheroomwheneverwerun into each other at a restaurant or an occasional event, usually of theentrepreneur-of-theyearvariety.

However, the Boulder natural-foods startup community runs in a parallel

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universe to the Boulder tech startup community. To date, the intersectionpointshavebeenweakandare artificial.The samecanbe said forbiotech,cleantech,andLOHAS.

Recently,IwasataneveningeventorganizedbysomeoftheleadersintheBoulderbiotechstartupcommunity.Theyinvitedmeasoneoftheleadersofthetechstartupcommunityaswellasaninvestor,andafewotherinvestors,to talkwith some biotech leaders and entrepreneurs ostensibly about betterlinkingthetechandbiotechcommunities.WhenIgotthere,IrealizedIwasthe only person from the tech startup community. Therewere a handful ofpreparedremarksgiveninacasualsetting.After45minutesofthis,Irealizedthevastmajorityoftheseremarkswereaimedatme,asaninvestor,andattheother investors in the room, to explain to us the amazing opportunities ininvestinginbiotech.Acorepartoftheargumentwasthatreturnsoverthepastdecade from biotech investing were better than tech investing; therefore,smartinvestorsshouldinvestinbiotech.

At some point I was asked to give some comments. I started by saying,“Youneedtogetridofthechiponyourshoulderaboutbiotech.”Somuchofthediscussionwasnegativeabouttechinanefforttojustifybiotechinvesting.Inmymind,thiswasclassiczero-sumgamebehavior.Ithenwentontosaythat I thought the idea of creating linkages between tech and biotech wasawesome, but they should be focused on community building across theentrepreneurs, not by getting techVCs interested in investing in biotech. Ialsoassertedthat theirmacrodatawereirrelevant.Investorsarenot lookingfor the indexed returns of broad segments; they were looking to invest inextraordinarycompaniesandgetoutsizedreturnsbecause,iftheydidn’t,theywouldn’tbesuccessful.

TheeventendedandIwenton todinnerwithaBostonentrepreneurwhowas in town for the upcoming Glue Conference (http://startuprev.com/c1).He’s also a TechStars mentor and was spending time with the TechStarsBoulder teams. Aswe sat down, one of the participants from the previouseventwalkedin.Hehappenedtobeoneofthesuccessfulentrepreneurswhohadmetwith theBostonentrepreneur fordinner thepreviousnightbecausetheyhadoverlappinginterestsinacompany.WehadagoodchuckleaboutthesmallworldofBoulder andamore serious exchangeabouthow ineffectivethepreviousmeetinganddiscussionhadbeen.

Severalmonths later, there’s beenno follow-up, at least notwithme. It’spossible thebiotechleaders in theroomhadenoughofme,butmyguess istheiragenda,whichwas to try tohighlight thebiotechcommunity toa few

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potentialinvestors,wasaccomplished.Inmyopinion,thiswasahugemissedopportunity.

INTEGRATIONWITHTHERESTOFCOLORADO

I-25isahighwaythatrunsfromthetopofColoradotothebottom.Therearefourmajorcities locatedwithina two-hourdriveofeachother.FortCollins(population 150,000) starts at the top, then Boulder (population 100,000),then Denver (population 2,000,000), and, finally, Colorado Springs(population 750,000). Each city has a strong individual identity, and civicpridecausesmanytoworkhardtohighlighttheircityasthebestinthestate.Thisresultsinanothermissedopportunitytoconnectthestartupcommunitiesinanefforttoamplifyentrepreneurshipacrossthestate.

AlthoughIspendplentyof timebouncingbetweenBoulderandDenver, IspendverylittletimeinFortCollinsorColoradoSprings.I’veneverinvestedinacompanyineithercityandhistoricallyhaven’tfeltparticularlyconnectedtoeitherstartupcommunity.

AyearagoIwas invited toColoradoSprings togiveakeynotespeechatthePeakVentureClubabouttheBoulderstartupcommunity.PeakVenturesistheorganizedangelgroupinColoradoSprings.IsaidIwaswillingtocomedown,butlet’smakea24-hourexperienceoutofit.IofferedtodoadinnerthenightbeforewiththeleadersoftheColoradoSpringsstartupcommunity,atalkinthemorning,additionaltalkstostudentsatUniversityofColorado–ColoradoSpringsduring theday,andfinishupwitha lunchmeetingwithagroupofyoungColoradoSpringsentrepreneurs.

IdrovedownandsettledintothebeautifulGardenoftheGodshotel.JohnStreet, an old friend and successful Colorado Springs entrepreneur (whosepreviouscompanyMXLogicwasbased inDenver)pickedmeupanddroveme to one of the most beautiful houses in Colorado Springs. There,overlookingthe town,onamagnificentevening,Idrankexcellentwine,atedelicious food, and hung out with the patriarchs of the Colorado Springsstartupcommunity.“Oldwhiteguys”Ithoughttomyselfaswetalkedaboutwhat needed to happen to re-energize the Colorado Springs startupcommunity.“Weneedmorecapitaldownhere—therearenoVCs.”“Weneedbetterentrepreneurs.”Theconversationunfoldedinapredictableway.

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ThenextmorningIattendedatwo-hourmeetingofthePeakVentureClub.Therewere about200people in the room,manyofwhomwereguests thatday to hear my talk. Thirty minutes was consumed by announcements,followedbyafewsponsors,followedbyafewentrepreneurspresentingtheircompanies. I thendidmytypical rantonstartupcommunitiesandansweredquestions.Afterdoinganinterviewwiththelocalpaper,IwasshuttledofftoUCCSwhereIgaveatalktofreshmeninaseminarclassabouttakingcontrolof their future. I then ended up at a local gallery in Old Town ColoradoSpringssurroundedby20peopleundertheageof30.ForthefirsttimesinceI’dbeen inColoradoSprings, I sawdiversity (raceandgender),youth, andrealstartups.Almosteverypersonintheroomwasstartingabusinessexceptfortheonepersonfromthemayor’soffice.Wehadanawesomeconversation.WhentheyaskedwhattheyneededtodotogetpluggedintothepatriarchsImet the night before, I said, “Ignore them. If andwhenyou are successful,theywillcometoyou.Godosomethinggreatanddon’tworryaboutthem.”ThenIrodebacktoBoulderwithmyfriendJohn,whohaddinnerwithsomeentrepreneurstherethatevening.

Oneof thepeoplewhoattended theeveningdinneroverlookingColoradoSprings was Jan Horsfall. Jan is a successful entrepreneur who has beeninvolved in severalBoston-based companies but lives inColorado Springs.HewasatthePeakVenturesMeetingandsentmeanoteafterwardthatsaidessentially,“Okay, I’min—time tobringsomeof theBouldermagic to thisplace.”Sincethen,JanhasbeenworkingtirelesslytoreenergizetheColoradoSpringsstartupcommunityusingmanyofthethingswe’vedoneinBoulder.In less than a year, the energy level in Colorado Springs is off the charts.Startupsarecomingoutof thewoodworkeverywhereandtheentrepreneursareonceagaintheleaders.Thepatriarchsdidn’tdoit.Theonestalkingaboutitdidn’tdoit.Thegovernmentdidn’tdoit.Theentrepreneursdidit!

Oneofouryear-oneinitiativesatStartupColoradoistoreplicatetheenergyinBoulderintheotherthreefront-rangecities.DenverandColoradoSpringsareoff togreatstarts,withFortCollins finally looking like it’skicking intogear. A year-two initiative will be to start more effectively integrating theactivityupanddowntheFrontRange.Checkbackin20years.

LACKOFDIVERSITYDiversity inastartupcommunitycomes in twoforms:ethnicityandgender.Although the population of Boulder is roughly split on gender, there’s no

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denying the fact that the city is primarily Caucasian. Within the startupcommunity,althoughit’sgettingbetter, therestill isameaningfulimbalanceamongentrepreneursbetweenmenandwomen.

Let’s start with gender, because, in many ways, it’s easier since thepopulationisalreadyroughlysplitbetweenmenandwomen.However,whenyouwanderaround theBoulder startupcommunity,youseemoremen thanwomen.Thisisespeciallytruewhenyouareinaroomoffounders.

Boulder is extremely inclusive, so it’s nice to see theNewTechMeetupsbeing25+percentwomenandanincreasingnumberofwomenshowingupatother startup events.Women likeKristaMarks (Kerpoof co-founder/CEO),Nicole Glaros (TechStars Boulder managing director), Libby Cook (WildOatsco-founder),andNancyPierce(CarrierAccessco-founder)playactiveleadership roles in thestartupcommunity.However,weneed todomore toincludewomenintheBoulderstartupcommunity.

In2005,IstartedworkingwithLucySanders,CEOofNationalCenterforWomen and Information Technology (NCWIT) (http://startuprev.com/a1).NCWIT has become the most knowledgeable organization about engagingwomen in computer science. Through activities like the NCWITEntrepreneurialAlliance (http://startuprev.com/c2),NCWIT isworkingwithentrepreneurial companies across the United States to engage deeper ingettingmorewomen involved in tech.Aspart of this,Lucyhas someveryspecificwaysformentobeadvocatesfortechnicalwomen,asshe’swrittenabout inherblogpost,TopTenWays toBeaMaleAdvocate forTechnicalWomen(http://startuprev.com/n4),whichfollows:

Followingare10waysmaleadvocatessaytheysupporttechnicalwomenandpromotediversityeffortsintheirorganizations.Thesepracticesarederivedfrom45in-depthinterviewsconductedbyNCWITresearcherswithmalecorporateemployeesintechnologyorganizationsordepartments.Usetheseideastoinfluenceyourownefforts.

1. Listen towomen’s stories:Male advocates in technicalworkplacesidentify listening to their female colleagues’ and bosses’ stories abouttheirexperiencesatworkasoneof thekeydrivers for theiradvocacyefforts. The women’s stories alerted them to pressures andcircumstances they might never have noticed. Let women know thatyou are interested in hearing their perspective if they are willing toshare.

2. Talk to other men: Male supporters say talking to other men is

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critical.Theyraiseawarenessaboutwhygenderdiversityisimportant,share what they have learned from women’s stories, and interveneprivately to correct discriminatory treatment, as needed.They suggestpracticingwhatyoumightsayindifficultconversations.

3.Seekoutwaystorecruitwomen:Becausemenoutnumberwomenintech, women must be actively recruited. Inviting female students toapplyforinternships,requiringhiringcommitteestointerviewacertainnumber of candidates from underrepresented groups, and providingpromisingminority employeeswith development experiences are justsomeofthewaysmensuggestshiftingthestatusquo.

4.Increasethenumberandvisibilityoffemaleleaders:Maleadvocatesrecognize thathaving rolemodels foradiverse rangeofemployees isimportant for recruitment, retention, employee satisfaction, andproductivity.Raise thevisibilityof femaleemployeesandconsciouslydevelop more female leaders who can model a range of leadershipstyles. Provide technical and managerial opportunities, training, andpromotionsaspartofthisdevelopment.

5. Mentor and sponsor women: Although female role models areimportant,womenactuallybenefitgreatlyfrompowerfulmalementors.These mentoring relationships should be tailored to the individual’sneeds, but two common suggestions are helping women navigate“hidden rules” in the organization and making technical women’saccomplishmentsmorevisibleintheorganization.

6.Noticeandcorrectmicro-inequitiesorinstancesofunconsciousbias:Despiteourbestintentions,weareallsubjecttobiases.Whenyouseeinstancesofunconscious(orconscious)biasinyourorganization,takeaction. Some suggestions include restructuring communicationchannels, moving people’s desks or offices, paying attention to whospeaks and who is interrupted in meetings, shifting departmentalpolicies,adjustingsalarydiscrepancies,orhavingone-on-onetalks.

7. Establish accountability metrics: As the adage goes, what getsmeasured gets done. Effective male advocates describe establishingmetrics to diversify internship programs, new employee interviews,hires, promotions, and even themakeup of project teams.When youmakediversitypartofwhatindividualsareevaluatedoninperformanceappraisalsorforfundingallocations,changesoccur.

8.Modelalternativework-lifestrategies:People inpositionsofpower

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need to model work-life balance if these practices are to becomerespectedandaccepted.Settingasidetimetoattendfamilyorpersonalevents, publicly utilizing leave policies, and respectfully encouragingemployees’ alternative or flexible work hours are some ways mensuggestdoingthis.

9.Makediscussionsofgenderlessrisky:Sometimesitiseasierformentobringupgender issuesbecausetheyareunlikelytobeperceivedasspeaking in theirownself-interest.Raisediversity topics inmeetings;includeinformationinnewslettersorinprofessionaldevelopment;andcoordinate with female colleagues about how to best handle larger-groupconversations.

10.Reachouttoformalandinformalwomen’sgroups:Maleadvocatesstressed the importanceof requesting invitations to technicalwomen’smeetings,participatinginwomen-in-techgroups,andmakingsurethatothermen,especiallytopleadership,attendaswell.Menalsodescribedthe benefits of sendingmale colleagues to conferences like theGraceHopperCelebrationofWomeninComputing.

—LucySanders,NCWIT,@ncwit

In20years,whenIlookback,Iexpectthatthegenderratiointhestartupcommunityleadershipwillberoughlyequal,butit’lltakeanothergenerationtogetthere.

RaceismoredifficultbecausetherearesofewminoritiesinBoulder.Asaresult,ittakesrealleadership,frompeoplelikeTomChickoree(Filtrboxco-founder), who is leading a new TechStars program called RisingStars(http://startuprev.com/k0).Thisprogramextendstechnology-companystartupopportunities to demographic groups that are currently under-represented inthetechstartupcommunity.It’sahighlyselectiveentrepreneurship-mentoringprogram,whichpairs individualhigh-qualityunderrepresentedentrepreneurswith individual TechStars alumni to help them develop the entrepreneur’svisionintoaviablecompany.

Although TechStars RisingStars isn’t limited to activity in Boulder, TomandTechStarsarebothbasedinBoulder,soit’savisibleexampleofplayersintheBoulderstartupcommunitytakingactionalongthisdimension.

SPACE

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Everyrapidlygrowingstartupstruggleswithspace.Whenyouareacompanyofthreepeople,youcaneasilyfigureitout.Asparebedroom,coffeeshops,co-workingspaces,andthedarkcornerofafriend’sofficeareallgoodplacestostart.Bythetimeyougetto10people,youarenowpayingalandlordrent.Ifyouhaverapidgrowth,youquicklyrunoutofspace,havetosubleaseyourexisting space (which can be even more complicated if you are alreadysubleasingfromsomeone),findnewspace,dealwiththepainofmoving,andthen,whenyououtgrowthatspaceinninemonths,doitalloveragain.

Thisproblemisexacerbatedwhenyou’vegotabunchof rapidlygrowingcompanies in your city, especially if it’s small city like Boulder. Everyonewantstobedowntownbecausethat’swheretheactionandtheentrepreneurialdensity are. However, growth in Boulder is deliberately constrained by thepolicies of the Boulder City Council, so there is very limited new officespace. When existing inventory is tight, rents increase significantly. Beingdowntown becomes less cost-effective. Once you get over 100 people it isverydifficulttofindacceptablespace.

It becomes an endless game ofmovable chairs that I’ve seen played outsince the mid-1990s. It’s particularly painful right now because there arenumerousfast-growingcompaniesthatsimplycan’tfindspaceinBoulder.Ayearago,peoplewerestillbeingcreativeabout this.Recentlythey’vegivenup and have startedmoving out to the edges of the city or to neighboringcities.Intheshortterm,thiscreatesspacefornewcompaniestofillbutmakesit harder to keep up the incredible entrepreneurial density dynamics ofBoulderforthelargercompanies.

ThereareseveralinitiativesunderwayinBouldertoaddressthis.ThefirstisamajornewofficedevelopmentrightintheheartofdowntownwheretheoldDailyCamera (our localnewspaper)buildingsits. Ifdonecorrectly, thiscould meaningfully expand the amount of available startup space indowntown Boulder. At the same time, several of the larger companies arelooking to do a better job of linking up their expanding campuseswith thedowntowncompanies.Workingineveryone’sfavoristhefactthattheoverallfootprintofthecityisrelativelysmall—it’sonlyafewmilesfromoneendofBouldertotheother.

It’s not clear to me that there’s a solution for this other than focus oncreatingrealstartupneighborhoodswithinthecommunity.InlargecitieslikeBostonthishasresultedinaseriesofstartupneighborhoodssuchasKendallSquare (Cambridge), Central Square (Cambridge), Harvard Square(Cambridge), InnovationDistrict (Boston), LeatherDistrict (Boston), South

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End (Boston), and Rte. 128 (Waltham). The local entrepreneurial leaderswork hard to connect these neighborhoods together in a larger startupcommunity. I expect as the Boulder startup community continues to grow,we’ll have to putmore focus on this to sustain the incredible connectivitybetweenpeoplethatentrepreneurialdensitydrives.

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CHAPTERTHIRTEEN

MYTHSABOUTSTARTUPCOMMUNITIES

I’mnottheonlypersonwhoisspendingalotoftimethinkingaboutstartupcommunitiesthesedays.TheKauffmanFoundationhasdedicatedsignificantenergytothiseffortbecausetheyviewentrepreneurshipasthekeytofutureeconomicvitalityinourcountryandaroundtheworld.

As a result, I’ve asked Paul Kedrosky, a Senior Fellow at the KauffmanFoundation, to weigh in with some of the myths he regularly hears aboutstartup communities. Although these myths are similar to some of theclassicalproblemswediscussedearlier,Paulbringsanewperspectivetothemixandhammershomeanumberofpointsmadeearlier.

We’llbeginwithoneofmyfavoritemyths:“WeNeed toBeLikeSiliconValley.”

WENEEDTOBELIKESILICONVALLEY

ItisusuallyamongthefirstquestionsIgetaskedasItravelaroundtheworldresearchingandtalkingaboutentrepreneurship,innovation,andventurecapital.Thequestionis,ofcourse,howcanwecreateourownSiliconValley?

Tosavetime,hereistheanswertotheSiliconValleyquestion:Youcan’t—youonlythinkyouwantto.

Granted,everyonethinkstheydo.Ithasbecomeacliché,butthereisaSiliconprettymucheverywhereasyoutravelaround,tothepointthatitismeaningless.Itisalsoareminderhowmanyplacesgetthingsconfused,thinkingthattheycan,byborrowingthetrappingsoftheBayarea,createtheirownworkingfacsimileofit.

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ThesuperficialtrappingsofSiliconValleyareobvious.Theyinclude:bountifulVC;researchuniversities;lovelyweather;ahostofyoungtechnologystartups;andafewlarge,successfulcompanies.Further,weatheraside,thesetrappingaresurprisinglyeasilycopied.YoucanattractVCs,especiallyifyouofferstatematchingfundsorsubsidies;youcanbuildorrebrandresearchuniversities;andyoucanstarttrumpetingvariouslocalstartupsandtechcompanies.This,ofcourse,neverworksinthelongterm,asthediscardedSilicon-everywherenamesshouldtellyou.

WhatiswrongwithmimickingSiliconValleyinanefforttocreateyourown?Itiscargo-cultstartup-communitycreation,notunlikethepost–WorldWarIIstoriesofislandculturesinthePacificthatcreatedfakerunwaysinhopesthoseairforceaviatorswouldreturnwithmoneyandtrade.ThisblindmimicryofSiliconValleyconfusestheresourcesofthatparticularcommunitywiththecausesofstartupcommunitycreation,growth,andrenewal.

MuchofwhatmakesSiliconValleyoranystartupcommunityworkhastodowiththingsthathappenbelowthesurface.Ithastodowiththepermeabilityoforganizationalboundaries,dictatingwhetherpeoplecanmovefreelyandbringtheirtalentswiththem.Itisdrivenbythecontinuouscollisionofyoungentrepreneursinadenseurbanenvironmentwhoarecoming,going,orsimplymillingabout.Itturnsoutthatthesesuccessfulcentersseemassivepopulationturnoverallthetime,allowingthecommunitytoevolve,almostbiologically.Allofthisismucheasiertobringoffinrealcommunitiesthaningiantentrepreneurialhubsthatemptyoutonweekendslikemidcenturycitydowntownsfullofskyscrapers.

Therearedeeperthingsgoingon.MuchismadeoftheeasewithwhichhavingfailedentrepreneuriallyisacceptedinSiliconValley.Thishasmanycauses,includinghistoryandtheU.S.geneticmakeup,butitalsohastodowithsimplegeography:Bybeingfarfromfamilyandfriends(Californiaisayoungstatesettledbyimmigrants),proto-entrepreneursfeelfreertotrythingsthantheywouldbeiftheywerelivingacrosstownfromtheirfamily.Alittlealienationgoesalongwayinstartupcommunities.

—PaulKedrosky,KauffmanFoundation,@pkedrosky

Trying to create the next SiliconValley is a fool’s errand. If that’s reallyyourgoal,saveyourselfalotofheartacheandsimplymovetoSiliconValley.

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WENEEDMORELOCALVENTURECAPITAL

Anothercommonrefrainthatwetouchedonearlieristhenotionthatweneedmore local venture capital.Although there is always an imbalance betweensupplyanddemandofcapitalatany time inanymarket,Paulexplainswhyequatingstartupcommunitiesandventurecapitalisafundamentalmistake.

IwasinBrazilnotlongagotalkingtosomepoliticiansaboutstartupcommunities.Yes,theysaid,weareworkinghardoncreatingamoreentrepreneurialcity,sowehavecreatedapoolofcapitaltogetmoreventurecapitalhere.That’snice,Isaid,butlet’sgetbacktotalkingaboutstartupcommunities.Wewentbackandforththiswayatleastthreeorfourtimesbeforeitbecamecleartheyhadmadeafalseandcommonequivalency:Startupcommunitiesandventurecapitalarethesamething.

Theywerewrong,butthey’renotalone.AlmosteverywhereIgo,peopletalkaboutventurecapitalandstartupcommunitiesasiftheyarethesameor,worseyet,thattheformercausesthelatter.Itisalazyandconvenientwayofthinkingandisamyththatinhibitsalotofprogress,especiallyinnascentstartupcommunities.

Venturecapitalisaservicefunction,notmateriallydifferentfromaccounting,law,orinsurance.Itisatypeoforganizationthatservicesexistingbusinesses,notonethatcausessuchcompaniestoexistinthefirstplace.Whilebusinessesneedcapital,itisnotthecapitalthatcreatesthebusiness.Pretendingotherwiseisreversingthecausalityinadangerousway.

Venturecapitalneednotbelocatedinyourcityforittofindopportunitiestoinvestin.Weoperateinanincreasinglyflatandmobileworld,onewhereinvestorsquicklyhearaboutinterestingopportunities,nomatterwheretheyarelocated.Theycanfindandeveninvestindealsonlineandfromafar,throughserviceslikeAngellist(http://startuprev.com/b3)andKickstarter(http://startuprev.com/e1).Evenifventurecapitalistsmissagooddeal,thereisnothinglikehavingmissedonetoconvinceinvestorstopaymoreattentioninthefuture.Communitiesshouldspendmoretimeshowinginvestorswhatthey’vemissed,andlesstimecomplainingthatinvestorswon’tbuyintopromisesoffuturegains.

Finally,venturecapitalsimplyisn’tthatimportanttostartups.Lessthan

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oneinfiveofthefastest-growingcompaniesintheUnitedStatestakeanyventurecapitalatanypointintheirhistory.Lessthan0.5percentofallnewbusinessesintheUnitedStateseverraiseventurecapital.Wheredotheygetcapitaliftheydon’tgetventurecapitalandthey’retoonascentforbanks?Theusualways:friends,family,creditcards,and,thebestwayoffinancingabusiness—fromtheirowncustomers.

Venturecapital,whileawonderfulaccelerantofsomecompanies,isneithernecessarynorsufficienttocreatestartupcommunities.Whilemostentrepreneurseventuallyneedriskcapital,itwillcomeasafunctionoftheopportunitiespresented,notbefore.

—PaulKedrosky,KauffmanFoundation,@pkedrosky

ANGELINVESTORSMUSTBEORGANIZED

The last myth we will explore is the idea that angel investors must beorganized.Thereareexamplesofeffectiveangelgroups,buttherearemanymoreexamplesofones thataremerelyawayforwealthyindividuals togettogether on a periodic basis and torture entrepreneurs. In the followingsection,Paul talks about thevalueoforganized angelgroups andwhy theyareneithernecessarynorsufficientforstartupcommunities.

Thereisabouta50/50chancethatwhenIfirstmeetanewangelinvestorinalmostanycitytheywilltellmeahorrorstoryabouttheirlocalangelinvestinggroup.Theymaytellmeabouthowtheywenttoacoupleofmeetings,andstopped.Why?Ittakestoolong,they’llsay.Theseangelsneverwritechecks,theywillcomplain.Ican’ttakealltheprocess,they’llsay.

Moststartupcommunitiesfeelliketheyaren’tcompleteuntiltheyhaveatleastoneangelinvestorgroup,onethatmeetsregularly,screenscompanies,seepitches,andthen,aftergroupdeliberation,investsindividuallyinyoungcompanies.Itiseasytoseewhythey’resoappealingassomuchstartupactivityhappensundertheradarincoffeeshops,garages,andonline.Havinganorganizedangelgroupthatmeetsregularlyandseesstartupsisanobvioussignthatyouaredoingthingstofomentastartupcommunity.

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GreatangelinvestingorganizationsexistallovertheUnitedStates,andaroundtheworld,andtheyhaveinvestedinmanygreatcompanies,aswellashelpingmanyangelsbecomebetterinvestors.Butlikesomuchinastartupcommunity,theyareneithernecessarynorsufficient.

Forprospectiveangelinvestorswhodon’tthinktheyhaveenoughdealfloworwantsomeonetohelpthemthinkthroughthescreeningorlegalprocess,anangelinvestinggroupcanbeagoodthing.Butsayingthatsomeangelinvestorscanbenefitfrombeingpartoforganizationsdoesn’tmeanthatallwill.Communitiesmustfeelthattheirstartupcommunityisn’tworkingifgroupsofangelinvestorsaren’tmeetingeveryTuesdaynightintheircitytoscreenstartups.

Manyangelinvestorsareformerentrepreneurs,withallthatthatimplies.Theyareimpatient,headstrong,andoftenfondofoperatingindependentlywhentheyinvest.Waitingforanangelgrouptocometoadecisioncanbetoughforsuchpeople,especiallywhenyourecognizethatearly-stageinvestingisintuitive,notempirical,andgroupscantendtowardamean,shyingawayfromriskyandunusualinvestments.

Thebeststartupcommunitiesembraceinvestingdiversity.Someangelswillwanttoinvestthroughangelgroups.Theywillfindoneanotherandformsuchgroups.Otherangelinvestorswilloperateindependently.Neitherapproachiswrong,sostartupcommunitiesshouldtryhardnottofixateonangelgroupsandembracebothapproaches.

—PaulKedrosky,KauffmanFoundation,@pkedrosky

InBoulder,we’ve had several angel groups come and go over the years.Currently the two most effective ones are Open Angel Forum(http://startuprev.com/d5) and the Boulder Angels. Neither of these areformalizedgroups,butrathera looselyknitsetof individualangel investorswhoperiodicallygettogethertolookatpromisingcompanies.

John Ives, one of the members of the Boulder Angels, describes how itworks.

Boulderishometoasmallinformalangelgroup,theBoulderAngels.ThegroupwasfoundedinJanuary2007byeightinvestorswhowereincreasinglyunsatisfiedwiththeexisting,muchlargerandmoreorganizedangelgroupsintheBoulder-Denverarea.Thegroupfoundthelarge,formalangelorganizationstobeexpensiveandapoorsourceofdealflow.

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BoulderAngelswascreatedwithtwomajorassumptionsinmind.First,weassumedanangelgroupcouldbeveryinformal,lightweight,andnimble.Wewantedtogetmovingandstarthelpingthelocalstartupcommunityasfastaspossible.Wedidnotconsiderformingacorporateentity,hiringadministrativehelp,orrentingofficespace.Ourgroupjuststartedmeetingformonthlylunchesandbeganreviewinginvestmentopportunitiestogether.

Fiveyearslater,BoulderAngelshasproventhatangelnetworkscanoperateinanagile,informalmanner.Thelogisticsofrunninganinformalangelgroupareminor.BoulderAngelsadministrationrequiresminimaltimetoschedulemonthlylunchesandfacilitatelunchtimediscussions.Overall,coordinatingBoulderAngelstakesnomorethanthreehoursamonthonorganizationaloroverheadactivities,twoofwhichareatourmonthlylunch.

BoulderAngelsdeterminedthatitwouldrelyonitsownmemberstosourceandscreenpotentialinvestmentsratherthanadedicatedandcompensated“dealscreener.”Oneofourunwrittenrulessuggeststhatmembersshouldperformsufficientduediligencebeforeintroducinganopportunitytothegroup,suchthatsheisreadytocommittoaninvestment.Thisdoesnotmeanthatourmembersalwaysflysolo.Quiteoftenasubsetofthegroupwillcoalescetoreviewandvetanopportunity.

Whataboutallofthetimeinvestedinduediligence,leadingaround,andsupportingastartupoverthelifeoftheinvestment?Alloftheseactivitiesconsumeasignificantamountoftime.However,theseactivitiesarenecessaryregardlessofthestructureoftheangelgroup.Inotherwords,theyareafixedcostofstartupinvestingnomatterthestructure.

Acriticalgoalofanyangelorganizationshouldbetobuildanetworkoftrustedco-investors.Theinterpersonalrelationshipsbetweenangelinvestorsareveryimportanttothesuccessofthegroupandtheentrepreneurialteams.Itisimportanttobuildacommunityofangelinvestorswhosharemutualtrustandarecomfortablebeingintheproverbialtrencheswitheachother.InBoulderAngels,webelievethatourstrongpersonalrelationshipshelpustomovequicklywhennecessaryandboldlywhenappropriate.

BoulderAngelshaspurposelygrownslowlyfrom7to10peopleoverthecourseofthelastfiveyears.Theslow,deliberategrowthreflectsanotherunwrittenrule:Newmembersareinvitedtojoinonlyafterwehavehadgoodexperiencesco-investingwiththenewmember.Thisistoensure

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thatweareaddingpeoplewhoarewell-behavedinvestorsandarewellthoughtofbytheBoulderstartupcommunity.

—JohnIves,BoulderAngels,@jives

Although formalized angel groups canwork, it is best to just get starteddeveloping strong interpersonal relationships based on trust, building yourcollective network in the startup community, and making investments inpromisingentrepreneurs.

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CHAPTERFOURTEEN

GETTINGSTARTED

Youcancreateavibrantlong-termstartupcommunityanywhereintheworld.Throughout thisbook I’vegivenyou theBoulderThesis, a framework, andexamples.We’vecoveredclassicalchallengesandmyths.Aswewrapup, Iwanttoleaveyouwithafewexamplesfromaroundtheworld.

GETTINGSTARTUPICELANDSTARTED

We will start with the story of Startup Iceland (http://startuprev.com/i1).AlthoughyoumaythinkofIcelandasatinyrockinthemiddleoftheoceanorthefocalpointoftheglobalfinancialcrisesthatstartedin2008,todaythiscountryof300,000hasanascentbut thrivingstartupcommunitydue to theeffortsofahandfulofentrepreneurs.Oneofthem,whoI’vehadthepleasureto get to know over the past year, is Bala Kamallakharan. Following is adescriptionofhowBalahelpedgetStartupIcelandstarted.

IalwaysgetcrazyideaswhenIhavealotoffreetime.ThedaywasOctober5,2008,Sunday,andIwasonaplanebacktoIceland,wherethegovernmentofIcelandhadjustannouncedthattheywouldtakeover75percentofGlitnir,thethirdlargestbankinIceland.IwasthenewlyappointedHeadofIndiaforGlitnirinMumbai,andovertheweekendIhadbeenfranticallytryingtogetholdofmyboss,theCEOofthebank,ortheCFO,oranyonewhowouldpickupthephoneandtellmewhatthehellwasgoingon.Noonedid.ThatwasthefinancialcrisisthatIsawfromfar,faraway.TheentirebankingandfinancialsysteminIcelandhadcollapsed.IcamebacktoIcelandandwithinacoupleofweeksIwaspromptlyfiredfrommyjobandtheentireInternationaldivisionofthebankwasshutdown.

ThecountryofIcelandrevoltedandthegovernmentofIcelandwasbroughtdown.Therewasanemergencygovernment.Ihadalotoftime

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onmyhandsbecausetherewasnotmuchhappeningandIstartedthinking,“WhatdifferencecanImake?”Icelandickrona(ISK)hadbeendevaluedandlost70percentofitsvalue,equityinmostofthecompanieshadbeenwipedout,nationaldebtwasthroughtheroof,andeveryonewastalkingabouthowspectacularlyIcelandhadsunk.

Itwasatoughtime.Iaskedmyself,“Whereandhowdowecreatevalueandequity?”Ihadanepiphany;theanswerwasentrepreneursandstartups.

IgottoworkandmeteveryyoungentrepreneurandstartupinIceland.Icataloguedallofthemandsawthatatthegrassrootsleveltherewasachangehappeningthatwasnotobviousonthesurface.ImadeapersonalmissionstatementthatIwantedtohelpentrepreneursandstartups.

WhenIstartedonthisIreallythoughttheonlythingtheentrepreneursandstartupsneededhelpinwasinraisingmoney.Iwassowronginthatnotion.IstartedreadingeverythingthatIcouldlaymyhandson.IbumpedintoFredWilson’sblog(http://startuprev.com/l4)andBradFeld’sblog(http://startuprev.com/o4andhttp://startuprev.com/h1)andwasamazedatthewealthofknowledgeandwisdomthatthesetwoindividualsweresharingfreelyontheInternet.

ImetthissmallteamsittingintheoldfishingfactoryintheReykjavikHarbor,workingontextmining.Theywereeachyoungerthan25yearsoldandcalledtheircompanyCLARA.Theywantedtobuildasoftware-as-a-servicecompanythathelpedgamingcompaniesunderstandtheircommunities.

Iwasstartled.ThesekidswerenotworriedabouttheISKorthegovernmentortheglobalfinancialcrisisoranything.Theywerebuildingsomethingandwantedtosellittocreatevalue.Iwasimpressed.

Ifoundoutthattheyneededcapitaltogettheirminimumviableproductontothemarket.Therewasaslightproblem,asIhadnomoney,soIreachedouttomyfamilyandfriends,convincedthemtoinvestinIcelandandthisyoungteamcalledCLARA.MypartnersthoughtIwascrazybuttheyindulgedme.WeinvestedinIcelandagainstalloddsin2009.

WhenalltheotherIcelandicentrepreneursfoundoutthatIhadinvestedinCLARA,Ihadafloodofrequeststomeetnewcompanies.Itookeachandeverymeeting.ItwaspainfullyobvioustomethatwhattheIcelandicentrepreneurialsystemneededwasnotjustmoneybutalsomentoringandabridgetoalargermarket.

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IstarteddoingresearchandfoundthisthingcalledTechStars.IwasblownawaybytheideaandstartedmycampaigntomoveIcelandtowardastartupculture,whatInowcallStartupIceland.

StartupIceland’smissionistobuildasustainablestartupecosystem.Onepieceinthatecosystemisamentorship-drivenaccelerator.Ittookalotofconvincingtobringthetwodifferentincubators,abank,andabunchofmentorstogether.TheresultwasStartupReykjavik(http://startuprev.com/g4),anacceleratorestablishedinApril2012thatispartoftheGlobalAcceleratorNetwork.

Thenextpieceinthepuzzlewastobuildbridgestobigmarkets.TheonlywaythatIthoughtwecouldachievethisinscalewastodoanannualconferencefocusedonentrepreneurship,makingtheparticipationandpresentersreallyrelevantsoentrepreneursaroundtheworldcouldcometoIcelandandmeetthelocalstartups.Buildingbridgesisaboutrelationshipsand,inthehyperconnectedworldofFacebook,Twitter,Google+,onecanconnectonline,buttoreallybuildrelationshipsonehastobreakbread,shakehands,andlookeachotherintheeyes.Conferencesprovideafantasticplatformforthat.

Ihaveneverorganizedaglobalconferencebefore;actuallyIhaveneverorganizedanyeventthathadmorethan10people.IjusthadthisburninginthepitofmystomachthatIhadtodoit.Isleptverylittle,readeverything,andloandbehold,BradFeldwroteablogpostaboutstartupcommunities.IwrotetohimandinvitedhimtocometoIceland.Hedid,weorganizedStartupIceland,andtheentirestartupcommunityunderstoodwhatIwastryingtodoandralliedbehindme.

Wehadourshareofhiccups.Theestablishedcompanies,governmentalagencies,andmanypeoplekeptsayinghowthiswasnevergoingtowork,andsomeeventhoughtitwasthestupidestofideas.Ijustshutmyearsandkeptatit.

TheconferencewashostedonMay30,2012.WehadafantasticturnoutwithentrepreneurstravelingallthewayfromSingapore,SouthAfrica,andMissouri.

Wheredowegofromhere?Thereisalotofworktodo.Awiseinvestortoldmethatthefutureisunpredictable,sohedoesnottrytopredictthefuture.WearestartingtoputthepiecesinplaceforIcelandthatincreasetheoddsofsuccessforstartupsandentrepreneurs.Ibelieveithastobedoneonepieceatatimewithalong-termview.

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Mydreamisthat10yearsfromnowpeoplelookbackandsay2012wasadefiningyearinIcelandforstartups,thatIcelandicstartupsgrowuptobeglobalcompaniesservingglobalcustomersinasustainableway,andthatentrepreneursfromaroundtheworldthinkofIcelandasaviableplacetostarttheircompanies.

—BalaKamallakharan,GreenQloud,@balainiceland

BIGOMAHAHalfway around the world, Jeff Slobotski has been involved in creating astartupcommunityinOmaha,Nebraska.

IstartedmyjourneyintohelpingcreatetheOmahastartupcommunityaboutfiveyearsago.Ihadalwaysbeenfascinatedandpassionatearoundstudyingcommunities,whetherwithinasocialserviceorvolunteerorganization,politicalparty,ortheprivatesector.I’veappliedthisenergytoourstartupcommunityincludingtheinvestors,mentors,universityprofessors,andtheentrepreneursthemselves.

IreturnedhometoOmahaafterworkingforatechnologycompanybasedinNewYorkCity.IhadbeenexposedtothestartupcommunitythatwasdevelopingrapidlyinNYCalongwiththoseinSanFranciscoandBoston,andwasfascinatedbythelevelofconnectivityandgrassrootsenergythatwasevident.WhenIreturnedhome,IrealizedthatwehadthesamequalityofindividualshereinOmahaandtherewasnoreasonwecouldn’tcreateavibrantstartupcommunityhere.

TheentrepreneursImetwereheads-downandsiloed,workingontheirowninitiativesaloneandlargelyunawareofwhatwasgoingonaroundthem.Atthetime,therewasnooutletfortellingthestoriesoftheentrepreneursworkinghardinourownbackyard.ThiswastheinspirationforSiliconPrairieNews,awebsitewestartedtohighlightanddocumenttheindividualsdoinguniquethingsinandaroundthegreaterOmaha,DesMoines,andKansasCitycommunities.OurgoalhasneverbeentobuildOmahaandtheregionintothenextSiliconValley;instead,wearefocusedontakingthestrengthsandassetsthatareuniquetoourregion,andbuildinguponthem.

Aswebeganconnectingourstartupcommunity,weusedonlineandofflinemethods.Weheldfrequentlocaleventsforentrepreneurs

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includingBarCamp,StartupWeekend,andotherMeetups.In2008,wehostedSarahLacy,awell-knowntechnologywriter(nowCEOofPandoDaily)whileshewasontourforherfirstbook,OnceYou’reLucky,TwiceYou’reGood.Over150peopleshowedupfortheevent,andwewereinspiredtoengageourcommunityinthestartupactivityatanationallevel.

ThismotivationledtothecreationofBigOmaha(http://startuprev.com/h2).Wehadourfirsteventin2009andthisyearwehad700attendeesfromroughly25statesandthreecountries.ThroughBigOmaha,weareabletoconnecttheinnovatorsandentrepreneurswithintheregion,butmoreimportantly,presentersreturntotheircitiesoutsideoftheregionwithanewsenseofawarenessabouttheMidwest.Thisbuildsbridgeswithintheregion,whileconnectinguswithopportunitiesaroundtheUnitedStatesandtheworld.

—JeffSlobotski,SiliconPrarie,@slobotski

STARTUPAMERICAPARTNERSHIP

TheactivitiesinBoulder,Iceland,andOmahaarenowplayingoutregularlyin cities through the United States and the world. In early 2011, inconjunctionwithaninitiativefromtheWhiteHousecalledStartupAmerica,agroup of private individuals, foundations, and corporations launched theStartup America Partnership (http://startuprev.com/n0). I’ve been involvedsince the original inception of the idea in mid-2010 and today the StartupAmericaPartnershipincorporatesmanyoftheconceptsoftheBoulderThesisandotherideasdiscussedinthisbook.

Shortlyafteritwascreated,ScottCase,theCEO,realizedthatabottom-upapproachwasmore powerful than a top-down approach.DonnaHarris, themanaging director of Startup Regions, Scott, and the team at the StartupAmerica Partnership began an initiative to create a “Startup AmericaPartnership” region in every state in the United States. Startup Colorado,which I co-chair, was one of the first regions to get created. Following, inScottandDonna’swords,are theattributesofastartupcommunity theyareactivelydrivingtocreateineverymajorcityandstateintheUnitedStates.

Americahashistoricallybeenanaturalathletewhenitcomestostartups

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—everycityandstatehasarichlegacyofcompaniescreatedbyboldandambitiousfounderswhosawopportunitiesothersdidn’t.Startupswerethecoredrivertothecities’successandtoournationalstrength.Buttoday,naturalathleticismisnolongerenough—weliveinaglobaleconomy,andournationalsuccessdependsonourabilitytofocusenergyoncoachingournaturalabilitiestothenextlevel.

Thekeytoeverysuccessfulstartupcommunityisstartups.Ifyoudonothingelse,makesureallthefoundersandfoundingteamsarevisibleandconnectedtoeachother.Beyondthat,we’veidentifiednineattributesofasuccessfulstartupcommunity.Nocommunityisperfectonanyofthemeasures.Wheredoesyourcommunitystackup?

Leadership:Stronggroupofentrepreneurswhoarevisible,accessibleandcommittedtotheregionbeingagreatplacetostartandgrowacompany.Intermediaries:Manywell-respectedmentorsandadvisorsgivingbackacrossallstages,sectors,demographics,andgeographiesaswellasasolidpresenceofeffective,visible,well-integratedacceleratorsandincubators.NetworkDensity:Deep,well-connectedcommunityofstartupsandentrepreneursalongwithengagedandvisibleinvestors,advisors,mentors,andsupporters.Optimally,thesepeopleandorganizationscutacrosssectors,demographics,andcultureengagement.Everyonemustbewillingtogivebacktohiscommunity.Government:Stronggovernmentsupportforandunderstandingofsignificanceofstartupstoeconomicgrowth.Additionallysupportivepoliciesshouldbeinplacecoveringeconomicdevelopment,tax,andinvestmentvehicles.Talent:Broad,deeptalentpoolforalllevelofemployeesinallsectorsandareasofexpertise.Universitiesareanexcellentresourceforstartuptalentandshouldbewellconnectedtocommunity.SupportServices:Professionalservices(legal,accounting,realestate,insurance,consulting)areintegrated,accessible,effective,andappropriatelypriced.Engagement:Largenumbersofeventsforentrepreneursandcommunitytoconnect,withhighlyvisibleandauthenticparticipants.TheeventsincludeMeetups,pitchdays,conferences,happyhours,startupweekends,bootcamps,hackathons,celebrations,andcompetitions.Companies:Largecompaniesthataretheanchorofacityshouldcreate

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specificdepartmentsandprogramstoencouragecooperationwithhigh-growthstartups.Capital:Strong,dense,andsupportivecommunityofVCs,angels,seedinvestors,andotherformsoffinancingshouldbeavailable,visible,andaccessibleacrosssectors,demographics,andgeography.

—ScottCase,DonnaHarris,StartupAmericaPartnership,@tscottcase,@dharrisindc

You should recognize these concepts as appearing often throughout thisbook.Scott andDonna recognize that abigpartof thevalueof theStartupAmerica Partnership is consolidating the best thinking about startupcommunities and evangelizing them throughout the country to any city orregionthatwantstocreatealong-termstartupcommunity.It’sbeenanhonortoworkwiththemasIhonedtheBoulderThesis,testingitwiththemmanytimesindifferentplaces.

DOORDONOT,THEREISNOTRY

My favorite thing about startups is that they don’t require anyone’spermission.Great entrepreneurs just start doing things. These are the sameentrepreneurswhocanbetheleadersoftheirstartupcommunity.Theyjustdothings,likemanyofthepeopleyou’vereadaboutinthisbook.

Although it’s a long, challenging journey to create andmaintain a startupcommunity,nopermission isneeded.Startupcommunitiesexistallover theUnitedStatesandtheworld.Somearealreadyvibrantanddurable;othersarenascent.Hopefully this book has given you lots of ideas and inspiration tohelp take your startup community to the next level.Remember, it’s a long-termjourney,sobepatientandpersistent.

AsYodaoncetoldLuke,“Doordonot,thereisnotry.”

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ABOUTTHEAUTHORBradFeldhasbeenanearly-stageinvestorandentrepreneursince1987.Priortoco-foundingFoundryGroup,heco-foundedMobiusVentureCapital and,prior to that, founded IntensityVentures,acompany thathelped launchandoperatesoftwarecompanies.Previously,BradwasanexecutiveatAmeriDataTechnologies after it acquired Feld Technologies, a firm he co-founded in1987 that specialized in custom software applications. Brad is also a co-founderofTechStars.

Brad currently serves on the board of directors ofBigDoor,Cheezburger,Fitbit, Gnip, MakerBot, MobileDay, Modular Robotics, Oblong, Orbotix,SEOMoz,StandingCloud,andYeswareforFoundryGroup.

In addition to his investing efforts, Brad has been active with severalnonprofit organizations and currently is chair of the National Center forWomenandInformationTechnology,cochairofStartupColorado,andontheboardsofStartupWeekendandtheApplicationDevelopersAlliance.

Brad is a nationally recognized speaker on the topics of venture capitalinvesting and entrepreneurship. He writes the widely read blogs FeldThoughts andAsk theVC.He haswritten three previous books:DoMoreFaster: TechStars Lessons to Accelerate Your Startup, Venture Deals: BeSmarter Than Your Lawyer and Venture Capitalist, and BurningEntrepreneur:HowtoLaunch,Fund,andSetYourStart-UpOnFire!

Brad holds Bachelor of Science and Master of Science degrees inManagementSciencefromtheMassachusettsInstituteofTechnology.Bradisalso an avid art collector and long-distance runner. He has completed 22marathonsaspartofhismissiontorunamarathonineachofthe50states.

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INDEXAAccelerators,powerof

comparedtoincubators

TechStars

expansiontoNewYork

spreadtoBostonandSeattle

university

Activitiesandevents

BoulderBeta

BoulderDenverNewTechMeetup

BoulderOpenCoffeeClub

BoulderStartupWeek

CUNewVentureChallenge

EntrepreneursFoundationofColorado

IgniteBoulder

officehours

StartupWeekend

YoungEntrepreneursOrganization(YEO)

BirthingofGiantsevent

Addoms,Ben

After-party,importanceof

Artificialgeographicboundaries,creating

Aulet,Bill

Avitek

Awieda,Jesse

www.itdf.ir

BBayh-DoleActof1980

Benioff,Marc

Berberian,Paul

Bernthal,Brad

Bhargava,Rajat

Biotechstartupcommunity(Boulder)

BitterBar

Bizspark(Microsoft)

BlueMountainArts.com

Bostonstartupcommunity

BoulderAngels

BoulderBeta

BoulderDenverNewTechMeetup

BoulderOpenAngelForum

BoulderOpenCoffeeClub

BoulderJobsList

Boulderstartupcommunity

Boulderaslaboratory

historyofBoulder

beginningofnextwave(2003–2011)

collapseofInternetbubble(2001–2002)

pre-Internet(1970–1994)

pre-Internetbubble(1995–2000)

BoulderStartupWeek

BoulderThesis,xii,xvii

Brown,David

Businessincubators

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CCalacanis,Jason

Capital,complainingabout

Carman,Carl

Caruthers,Marv

Case,Scott

Cohen,David

Coleman,Bill

ColoradoInternetKeiretsu

ColoradoSchoolofMinesFieldSessionprogram

ColoradoSpringsstartupcommunity

Community,powerof

after-party,importanceof

embracingweirdness

giveandtake

honesty

mentors

opennesstoideas

walking

Creativeclass

CUNewVentureChallenge

Cuccaro,Nick

Currie,Andrew

DDemingCenterforEntrepreneurship

Diamond,Howard

DiBanca,Suzanne

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EEmailPublishing

Entrepreneurialdensity

Entrepreneurs

andgovernment,contrastsbetween

actionvs.policy

bottomupvs.topdown

impactvs.control

microvs.macro

self-awarevs.notself-aware

leadershiproleof

asparticipantsinstartupcommunity

EntrepreneursFoundationofColorado

EntrepreneursUnplugged

Enwall,Tim

Essler,Pete

Events.SeeActivitiesandevents

Everlater

External(agglomeration)economies

FFailingfast

Falls,Tim

Feedercontrol

Feinblum,Barney

Filtrbox

Florida,Richard

Franklin,Jim

www.itdf.ir

GGlobalAcceleratorNetwork

Gold,Larry

Gold,Terry

Google

Gottesman,Greg

Government

beingtoorelianton

andentrepreneurs,contrastsbetween

actionvs.policy

bottomupvs.topdown

impactvs.control

microvs.macro

self-awarevs.notself-aware

asinstigatoroffeedercontrol

asparticipantinstartupcommunity

HHaislmaier,Jason

Harris,Donna

Higley,Tom

Highway12Ventures

Hill,John

Holland,Kirk

Horizontalnetworks

Horsfall,Jan

Huh,Ben

Hyde,Andrew

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IIBM

IgniteBoulder

Investors

Ives,John

KKamallakharan,Bala

KauffmanFoundation

Kedrosky,Paul

LLawton,Jenny

Leadership,attributesof

beinginclusive

beingmentorshipdriven

experimentingandfailingfast

givingpeopleassignments

havingporousboundaries

playinganon-zero-sumgame

TheLeanStartup(Ries)

Lefkoff,Kyle

Lejeal,Jim

Leonsis,Ted

Levine,Seth

Limmer,Ben

Lorang,Bart

M

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Makare,Brian

MarketsandHierarchies(Williamson)

Markiewicz,Tom

Marshall,Alfred

Martens,Ryan

MassachusettsInstituteofTechnology(MIT)

Founders’SkillsAccelerator

Matchlogic

Mendelson,Jason

Mentors

Mercure,Merc

MessageMedia

Microsoft

MicrosoftAccelerator

Miller,Tim

Moyes,Frank

Myths,aboutstartupcommunities

needtobelikeSiliconValley

needingmorelocalventurecapital

organizedangelinvestors

NNager,Marc

NationalCenterforWomenandInformationTechnology(NCWIT)

Natural-foodsindustry(Boulder)

Nelsen,Clint

Networkeffects

Newcomers,havingabiasagainst

Newman,Ari

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Nouyrigat,Franck

OObama,Barack,xi–xii

Omahastartupcommunity

PParticipantsinstartupcommunities

entrepreneurs

government

investors

largecompanies

leadersandfeeders,importanceof

mentors

serviceproviders

universities

Pastfailures,avoidingpeoplebecauseof

Patriarchproblem

Platt,Mike

Polis,Jared

Postinformationera

Principlesofstartupcommunities

BoulderThesis

entrepreneurialstack,engaging

entrepreneurs,leadershiproleof

historicalframeworks

inclusiveness,fosteringaphilosophyof

long-termcommitment

Problems,classical

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artificialgeographicboundaries,creating

attemptbyfeedertocontrolcommunity

avoidingpeoplebecauseofpastfailures

capital,complainingabout

government,beingtoorelianton

newcomers,havingabiasagainst

patriarchproblem

riskaversion,havingacultureof

short-termcommitments,making

zero-sumgame,playing

RRaindanceCommunications

Regional Advantage: Culture and Competition in Silicon Valley and Route128(Saxenian)

RegOnline

Reich,Robert

Renaud,Christian

RiceUniversity

TheRiseoftheCreativeClass(Florida)

Riskaversion,havingacultureof

Robertson,Niel

Rodriguez,Ef

Rodriguez,Juan

Roser,Jim

Route128(Boston)

SSack,Andy

Salesforce.comFoundation

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Sanders,Lucy

Saxenian,AnnaLee

SendGrid

September11

ServiceMetrics

Serviceproviders,asparticipantsinstartupcommunity

Short-termcommitments,making

SiliconFlatironsprogram

SiliconValley

Slobotski,Jeff

Smallbusinesses

SocialThing

SoftbankTechnologyVentures

Solinger,Diane

Solon,Mark

StanfordUniversity

StartupAmerica,xi

Partnership

RegionalSummit

StartupColorado

StartupCommunitieswebsite,xv

StartupIceland

creating

StartupRevolutionwebsite,xv,xviii

StartupWeekend

startups2students

StorageTek

Syntex

www.itdf.ir

TTechnologytransferoffices(TTOs)

TechStars

expansiontoNewYork

spreadtoBostonandSeattle

TEDxBoulder

Tisch,David

Trefler,Alan

UUniversities

asinstigatorsoffeedercontrol

asparticipantsinstartupcommunity

alumni,powerof

componentsofCUBoulder

entrepreneurshipprograms,challengesto

gettingfreshbloodintothesystem

networkedapproachvs.hierarchicalapproach

SiliconFlatirons

Universityaccelerators

UniversityofColoradoBoulder

componentsof

DemingCenterforEntrepreneurship

Eshipinitiative

technologytransferoffice(TTO)

CUNewVentureChallenge

lawschool(CULaw)

SiliconFlatironsprogram

www.itdf.ir

VVenturecapitalindustry(Boulder)

Vernon,Todd

WWarner,Bill

Weaknesses,instartupcommunities

diversity,lackof

integration

paralleluniverses

space

Web2.0

Weiser,Phil

Williamson,Oliver

Wyman,Bruce

YYoungEntrepreneursOrganization(YEO)

ZZero-sumgame,playing

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ANEXCERPTFROM

STARTUPLIFE:SURVIVINGANDTHRIVINGINARELATIONSHIPWITH

ANENTREPRENEURbyBradFeldandAmyBatchelor(2013)

FRIDAYNIGHTFIGHTSAkeytoeffectivecommunicationistochooseatimeandplacetotalkwhenbothpartnersarerested,ready,andrelaxed,andtodothisonaregularbasis.Ifoneortheotherofyouisexhaustedorstillwoundupfromtheworkdayorprocessingsomeotheremotionalevent,itwillbemuchmoredifficulttohavegenuineconnection.

When we were first living together and working at the same startupcompany,FridaynightwouldoftenbethefirsttimewehadbeentogetherallweekbecauseofBrad’sfrequentout-of-towntravel.Amywouldwanttohavesome connection and talk about our relationship, while Brad was justexhausted and didn’twant to talk at all.Although neither of us is quick toanger,theseconversationswouldalmostalwaysdeteriorateintobickeringandfrustration, which didn’t help either of us feel good. We often had socialcommitmentsofsomesort—dinner,movie,friends—andBradwasoftenlateordistractedfromtheweekandstillintheprocessofshiftinggears.Amywasalsooftentiredfromherworkweekandlowonreservesofpatience.

It tookusan inordinately long time to figureout thatweweren’t fightingaboutourrelationship,butweweremerelytiredandtheendofalongweekisjustnotagoodtimeforintensecommunication.Itsoundssosimplenow,butatthetimeitoftenfeltlikeaweeklycrisis.Wechangedtheunderlyingpatterntodinnerandamoviewithonlyminorchitchatandnoprobing relationshipqueriesfromAmyuntil later in theweekendwhenwewerebothrestedandready.Bydoingthis,westoppedhavingFridaynightfights.

It’s easier to defer needing to communicate to a better time if trust isdeveloped that there will be a time for talking, and soon; the importantbusinessofcommunicationwillnotalwaysgetmoveddownthepriorityto-do

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listbehindotherurgent(butnotimportant)items.Wedidcommittocatchingup about what was going on in our lives every weekend—having thisconsistentweeklycommitmentwasthebasisforusbeingabletodefergoingdeeponthingsonFridaynights.

FollowingisanexampleofhowFridaynightfightsstartfromBrad’spointofview.Thishappenedrecently,which isagoodreminder thatyouhave tokeeppracticing these techniquesover time and that someof theunderlyingissuesneverreallygoaway.

Fridaynight,at6:20p.m.,Amycalledme.Myfirstthoughtwas“F@#$—Iscrewedup.”IansweredthephoneasIwaswalkingdownthestairstothefrontdoorofmyofficebuilding.

Me:“Heythere.”

Amy:“IhopeyouarealmosttoKeystone.”

Me:“Er,um,I’mjustleavingmyofficenow.”

Silence.

Iexpectyou’vehadaconversationthatstartedthatwayandyouknowwherethisisgoing.EarlierinthedayIhadtoldAmythatIthoughtI’dbeinKeystone,whichis90minutesfrommyoffice,around6:30,andsuggestedthatwedodinnerandamovie.UnlessIhadmagicallyinventedateleportationdevice,Iwasgoingtobeabout90minuteslate.

Iapologized.Amyappropriatelywaspissedoff.Sheexpressedherfrustration.Iapologizedagain.Thenshedroppedthebomb—shewasdressedupandreadytogoouttodinnerandseeamoviethatIhadpromisedherearlierthatday.Datenightruined.

Iapologizedagain,toldherIknewI’dblownit,andgotinmycarandheadedtoKeystone.I’dhadalong,intenseweek(likemostofmyweeks)andfeltcrappyanddemoralized.WhatIhopedwasgoingtobeagreat,relaxingweekendwithmyfavoritepersonintheworldhadstartedoffcompletelywrong,entirelyduetomenotprioritizingus.

Twenty years ago, Brad bought a statue of Abe Lincoln, the LincolnMemorial version, and put it in the middle of a bookshelf in our sharedapartment.Wewereinourmid-20satthetimeandwecommittedto“letAbemoderate our Friday night fights.” Since he was a speechless inanimateobject, his actual utility was to remind us of civil wars and greatpeacemaking.WequicklyagreednottohavehighexpectationsforourFriday

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nights as communication time. Instead, wewould use them as a chance towind down from the week, reconnect, and get aligned for a nice weekendtogether.

Here’show the recentdevelopingFridaynight fightdescribedearlierwasavoided.

Aboutanhourintomydrive,Amycalled.Sheapologizedforbeingsoupsetearlier.Shewashappyandcheerful,toldmeshecouldn’twaittoseeme,andwasjustdisappointedthatmyworkhadoverrunmygoodintentions.Iapologizedagain,butfeltdeepreliefsinceIknewthatwewerebacktoagoodplace.I’dstillscrewedup,butatleastwe’dnowhaveachancetogetthingsstartedontherightfoot.

WhenIarrivedinKeystone,IconsciouslymadesurethatIdidn’trushtocheckmye-mail.Wesaidhello,Iplayedwiththedogsastheygreetedme,andthenwemadetwocupsofteaandsatdownonthecouchtogether.Wespentthenexthourcatchingupwitheachotherontheweek,justtalkingaboutwhatwehaddoneandwhatwewerethinking,allthewhileplayingwithourdogs.Byabout9:30wedecidedtocallitanight.Whilenotdinnerandamovie,westartedtheweekendoffright.

Westill haveour statueofAbeLincoln.The tacticofwaiting for agoodtimeforrealtalkinghasserveduswellformanyyears.

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