Entrepreneurship 101MaRS CenterApril 30, 2008

Is Specialization Limiting orEmpowering? Cost/Benefit analysis of education.

Personal experience: mine and others.

Observations from an unexpected career path.

Summary. To specialize or not to specialize?

What is Education: Up to and including undergraduate you’re

assimilating known information. Getting up to speed with the current state of the art. Demonstrating capacity to apply new

knowledge/tools – critical thinking.

Given the vast information known, a narrow focus isrequired to achieve “state of the art” knowledge.

To make an original contribution (graduate studies)an even narrower focus is required.

Benefits of Education: Quality of life:

Knowledge is good. Opportunity to get paid for what you know, not what

you do. Earning Potential:

On average, higher degrees means higher income. Promotion Potential:

There can be inherent ceilings associated with a givenlevel of education.

Cost of Education: Opportunity Cost:

Time & Money that could have been spent doingsomething else.

Lost earning years. Your education debt is not just tuition, books, room and

board but should also include all money that could havebeen made.

Lost experience. If you’re inclined to start a business it is generally “easier”

when you’re younger and have fewer responsibilities anddependants.

Travel or altruistic experiences.

Personal EducationalExperience: Well educated family. Graduate school was the

expectation. Directly into undergraduate program (Physics at

Guelph) after high school. Switched to chemistry to improve employment odds. Refused to apply to graduate school and was hired

at Xerox Research Center. Contact was a 4th yearpolymer chemistry Prof whom also worked at Xerox. Xerox Research Center had ceilings.

Educational Experience(con’t): Went to graduate school at McMaster (Engineering

Physics) believing it was a necessary hurtle to managetechnology projects. Tried to pick a relevant project and complete it as quickly as

possible. Worked with two staff members to help construct a lab,

one had a Ph.D. in physics and worked 8 years on apacific island, the other was finishing an undergraduatedegree he had dropped out of several years prior.

Completed graduate studies in 4 ½ years with a Ph.D.and no Masters.

Work Experience: In 1994 joined a start-up firm looking to bring a novel flat

panel display technology to market. The firm was associated with a Prof I had done course work

with. Other opportunities were with 3M, Nortel or a Post Doc.

overseas. Dealt with angel and venture investors early on. IPO in

1996. Stock appreciated 10 times IPO price in 18 months.

Spent 8 years with the company. Went from staffscientist to VP of R&D reporting to the CEO. Traveled the world to interact with suppliers, customers,

joint ventures and licensing partners.

Work Experience (con’t): Left the tech firm in 2002 to join Canada’s largest

privately owned mutual fund company, AIC. Hiredas an investment analyst.

Was part of the team that invested in technologystocks globally.

Completed the CFA program in 2005. Challenging industry hurtle

Became lead Portfolio Manager of a Science &Technology fund in 2006.

Work Experience (con’t): In March of 2008 joined Greenrock Asset

Management as the founding Portfolio Manager. Mandate is to create and manage a hedge fund

focused on Clean Technology. Building the company, and the fund, from the ground

up.

Observations: The wealthiest people are not the most educated.

Elements like: determination/laziness,tenacity/insecurity, risk aversion/appetite, fear offailure/drive for success are more important.

Relational skills also more important.

If maximum wealth creation is your goal, education isnot important.

Observations: Personality traits are not binary.

Don’t ask “Am I an entrepreneur?”, ask “Howentrepreneurially am I”.

We are all somewhere on the spectrum of intelligence,determination, risk appetite, salesmanship, etc.

Always show willingness and function to the best ofyour ability. It is your attitude that will open doorsmore than specific results.

You can conclusively abandon a pursuit only afteryou’ve given it your best effort.

Observations: Generally, the corporate leaders of the world (CEOs)

have the position because they desperately want tobe CEOs not because they’re the most competent. Education will open the door and ambition carries you

through to the top. The best leaders realize the more they empower

others the more effective leaders they become – agreat irony many don’t realize.

Observations: Being effective at assimilating and applying

information is a very powerful skill. Building understanding from 1st principals enables

discernment and originality. Learning to ask the right questions is critical.

Understand what the circumstance requires – not whatyou want to do.

It is the skills you acquire through education that aremost valuable, not the content of what you learn.

Summary: Every definition and path to success is unique.

You will better understand your unique abilities andpassions by being diligent in all that you do.

Maximize the benefit of every experience by learningthe principals at work then specialization leaves youwith tools applicable to a broad range ofopportunities.