Silicon Valley, Alley, Flatirons, Prairie, Beach — the startup tech community and business has leaped from its legacy home of Northern California to nearly every major city in the U.S. As each area of the country sets a stake in creating a place that fosters and helps grow startup business, there is increasing talk of these new, great hubs for the industry.
It also brings up an interesting discussion point about what makes a good startup community. The answer ranges — what entrepreneurs and founders might need at an early stage of the company can often be different from the desires and needs of executives and employees working in the business at later stages. While some believe it’s networking events and media attention, others look to deal flow and access to capital within their city. Some may benchmark it by a robust community of resources, like engineers and other talent. Everyone, of course, looks to jobs and job creation as an integral element.
For entrepreneurs and founders, needs are often centered around an environment where they can focus and leverage the ecosystem. This group in the ecosystem often benefits from access to capital, networking and/or educational events, but the type of curriculum for conferences, attendees, and other elements can be different from what executives and employees working with a tech hub might seek or benefit from. In terms of resources, it can range from affordable office space, to good talent pool, and of course, investors. Though because we are in a truly global (and often virtual) world, these elements can be surprisingly less important or necessary — good companies and ideas can find and work with remote resources and often do successfully. In terms of learning and access to resources, many startup entrepreneurs and founders need or want to learn as much about corporate structure, equity allocation and other business elements of owning a company as they do strategies and other means to grow or market their business. With email and the internet, networking to find potential partners or customers can often be done without attending events. Therefore, moving the founder or entrepreneur to attend such gatherings has to be focused on the potential of a return on their time investment as many are juggling busy schedules as is. Legalities such as tax breaks, regulations, and other elements can also be important for entrepreneurs and many cities have worked to create this to attract startup business.
For executives and employees, what constitutes an ideal startup tech community depends on the stage of the company . Events where business development and marketing executives can evangelize the company, meet and network with peers or potential customers, can be key. Connecting with the tech community outside of the company takes a different value proposition and need. Access to resources shifts a bit — talent to support the company efforts such as engineers, marketing, graphic designers, and sales or business development executives may replace the desire or benefit of meeting potential investors and other founders. Just the same, availability of top talent is as critical to this group within a startup tech environment. Talent is attracted to where it can earn income or revenue, and markets that are not demonstrating job opportunities and growth are often passed on. Regulatory and compliance issues tend to be less or not relevant as employees are often removed from this burden within a business.
But as there are some differences among the needs of everyone within a technology and business market, many things that are the same. Location and/or ease of getting around the community can be critical to all regardless of what position they hold in the company. Affordable housing and other personal services such good medical practitioners and schools can be an attractive benefit. Good restaurants, grocery stores, and even eco-friendly living may be top of mind for many in the industry. It takes decades to build a flourishing community of startups and entrepreneurs, it cannot be willed, and many factors play a vital role. When such a community reaches a critical mass it becomes uniquely nurturing and self-perpetuating. While media coverage and attention is often assumed to be a value, it’s important to understand that a technology community best benefits from the right kind of attention. Inflated expectations or ‘hype’ within a market can actually hurt its growth, both long and short-range.
Creating the impression or illusion that a market or the companies within it are ‘hot’ is not always for the good — in some instances, it can set companies up for the impression of failure when the natural, often unavoidable challenges or pitfalls of any startup company come into the picture. What’s more beneficial from a media and attention standpoint isn’t the ‘deals and exits,’ or the ‘buzz’ alone, but important fundamentals such as real market traction, authentic, steady growth, market maturity, solid leadership and management, and many of the components that helped put the original ‘Silicon’ (the Silicon Valley) startup market on the map.