I’ve been reflecting lately on my almost decade of experience working with tech entrepreneurs at Georgia Tech’s Advanced Technology Development Center (ATDC). ATDC is a start-up accelerator that helps Georgia technology entrepreneurs launch and build successful companies. As I step back more objectively from that experience, here are some key takeaways.
- The invention or idea is an important but small part of the success equation: During my tenure at ATDC, we placed a high emphasis on technology or IP as a key advantage. We frequently questioned this emphasis but did not have an easy way to judge potential competitive advantage of more execution-play opportunities. We were largely focused on companies that were strong candidates for capital where we could clearly count capital and job creation. Strong technology, and in particular, a strong technology team was often a key part of a formula for success for a number of our companies. Clearly Dr. Paul Judge’s position as one of the world’s most respected internet security experts at Purewire, recently purchased by Barracuda Networks, is a huge asset for this member which recently had a nice exit. However, much more frequently, ATDC companies were so focused on their IP and their product that they failed to invest adequately in learning their market; they often failed to build the right product and did not learn the right approach to bring it to market. University-based technologies and companies were most at risk of being overly tech-centric because there is gobs of SBIR and other grant-financing for reputable academic inventors.
- A great founder or founding team is typically a startup’s greatest asset and just as frequently its greatest enemy. Great founders are visionaries who have PhDs – Persistence, Hard Work and Determination. They are very optimistic about how much their product or company will change the world, a mindset which is absolutely necessary. On the other hand, these founders because they love to create, frequently have a hard time transferring leadership appropriately to their first key executive hires. I frequently saw salespeople come and go before I could even meet them at ATDC. This was due to poor hires and lack of readiness by the company for this salesperson to be productive. Founders frequently can sell themselves and their ideas, but they are not always skilled at developing a product that can be sold by the average or above average salesperson most often hired by startups.
- It is discouraging to reflect on just how few women who were my peers in the high-growth, early stage technology work that I did. During my tenure at ATDC, there were no more than 2-5% women founders in our founder mix. I’m happy to have a chance to positively improve that mix. ATDC recently had a better representation of women founders in the 2009 CapVenture program which I launched a few years back. I’m also lucky to work as a founding team member with Jennifer Bonnett in driving increased participation and success via StartupChicks. We have not set a target, but we think the participation of women founders in high-growth tech ventures as measured by representation in venture forums, venture financings and other tangible metrics should at least double or triple. StartupChicks plans to identify some of the most promising and with seasoned mentors, to surround them with intensive support that can help accelerate their growth.
Look for Part II of this series in the coming week. I also invite anyone out there who builds startups, advises or supports entrepreneurs to add reflections of your own via comments.
