What drives success in your budding ecosystem?
I attended the World Startup Report at Fishburners on Monday night. Presented by Bowei, former Linkedin and founder of CardMunch, who is braving a whirlwind trip around the world checking out some startup ecosystems.
Peter Davison, Fishburner’s Co-founder, joined on Skype from Canberra. Noting it’s the re-investment from those returning from the valley (or elsewhere) that have a greater impact, not only in terms of captial, but for their ‘inspiration and knowledge, which get people excited.’ Remarking that Sydney has lower reinvesting cycle than the likes of Israel, Ireland and China.
Effectively it’s a catch 22, people will return when the ecosystem is attractive enough, however, the ecosystem would thrive on their return.
The panel discussed where Australia sit in term of their own ‘Operating System’
Bowei describes 6 categories for creating an ecosystem, effectively benchmarking against the US & China.
- Market
- Capital
- People
- Culture
- Infrastructure
- Regulations
Whilst this criteria is ‘subjective’ to Bowei’s opinion, the basis for comparing could provide useful insights for those growing a startup ecosystem of their own.
So what are the positives that can come out of looking at our ‘Operating System’ in Australia. Rather than basing it on the above criteria, looking at the relationship between us and the following; Money, Family, Society, Culture, Religion & Appearance
Giving each criteria a number on a scale of zero to 3, he mentions the US having less culture, more of an emphasis on money, family and appearance.
The most interesting thing I found was how those in the room saw Australia, and marked each categories out of 3. The panel presented their thoughts, which in my opinion mirrored the US. Motivation for money was however less than that of their US counterparts.
So what is the motivation to grow YOUR own ecosystem? Raise capital, earn monies, build a business. I’m certainly not motivated right now, to forgo a wage and go it alone. Nor am in anyway incentivised to do so. I lack the skill to build something out of nothing.
I think it comes down to personal ability and responsibility. The need to fulfill something, that deep down niggles at you to act on a certain dream. On the other hand, as Bowei says, in the Valley, entrepreneurs are treated like Rockstars. What better motivation than that.
Each part of the system fuels the next. The early startups need capital to expand. The investors, require more fuel for their portfolio. When do the wheels stop turning? It stops when the money runs out and the ideas run dry. So is the money the fuel keep all things pumping? Bowei makes the point, ‘the reason you’re not getting investment is because your business is not making any money’.
Taking as much as I could from the event, and thinking long and hard about, what is required for an ecosystem and where is Australia placed in comparison to the rest of the world. What is essential for growth is motivation, money and skills.. or perhaps it’s just taking that risk and being ready to embrace the failures along with the successes.
More interesting reads:
http://afr.com/p/technology/home_advantage_comes_first_for_start_MR41VPxkZbBlILbv2dK6qM