What makes communities of startups thrive, and how have they been impacted by the recession, COVID-19, and the remote work trend?
Brad Feld addresses these questions in this episode and in his new book “THE STARTUP COMMUNITY WAY: Evolving an Entrepreneurial Ecosystem” and the second edition of his book “STARTUP COMMUNITIES: Building an Entrepreneurial Ecosystem in Your City.”
You may know Brad as the legendary investor who co-founded the Foundry Group, and who has been an early stage investor and entrepreneur since 1987. Brad previously co-founded Techstars, and was an early investor in Harmonix, Zynga, MakerBot, and Fitbit. He writes the widely followed Feld Thoughts and Venture Deals. He currently is chair of the National Center for Women & Information Technology and on the boards of Path Forward, the Kauffman Fellows, and Defy Ventures.
On the Chemistry of Silicon Valley
“Today’s Silicon Valley, if it started from scratch, could not create Silicon Valley.”
On Initial Conditions of Startup Communities
“The punch line of that is that you don’t have a deterministic outcome. When you have a child, raising a child is a complex system. You can’t say that when the child is twenty-four years old, these are the things that child will be doing and will have done and how they will be living. All of the interaction effects over time in the moment affect what happens in the evolution of that child. Same thing with the startup community.”
On Racism in Startups and Venture Firms
“There is no question that empirically the number of non-white, black and brown voices and black and brown founders’ is a very low single digit percentage of the (startup and venture) population. And if you add in women into that mix and say black or brown women, that’s an even smaller percentage of the population. And so then the question is in now, what do you do? Its a complex system so you can’t just say, ‘OK, here are the new rules and this is what’s going to happen’. Rather you’ve got to have participation of ALL of the different actors that have influence and ability in order to change things.”
On the Effect of COVID-19 on the Importance of Place for Startups
“Startup communities are complex systems that go through phase changes. In February, if you had said to anyone: “In three months, ninety nine percent of office workers around the world will be working from their houses.” That person would have said, you’re crazy, that’ll never happen. It can’t happen. The technology won’t support it. People won’t tolerate it. Not possible. But lo and behold, that’s what happened. And it works OK. We understand that place still has a lot of importance, especially around startup communities. However, the notion of connecting places together and building things that have a virtual component or that have a bigger geographic spread is also important.”