Posts Tagged ‘silicon valley’

Posted on October 23, 2011 - by Wayne Sutton

Location matters for your startup via Scott Allison

Before you launch your startup think about your location. Read Location matters for your startup by Scott Allison.

Y-Combinator partner Paul Graham recently wrote an essay, “Why startup hubs work“:

If you’re in a startup hub, unexpected good things will probably happen to you, especially if you deserve them.

And it’s not just the increased likelihood of serendipity, but to do your best work, who you hang around with matters.

Jim Rohn said:

“You are the average of the five people you spend the most time with.”

via Location matters for your startup « Scott Allison’s Blog.

Posted on September 8, 2011 - by Wayne Sutton

The harsh reality for black entrepreneurs in the web/tech space. Your chances of raising startup capital are slim to none. Someone prove me wrong please!

Flickr photo by By rickz

Let’s start with some facts:
African Americans make up 1% of Internet company founders nationally. (source)
Whites make up 87% startup founders, with Asians make up 12% (source)
Minority angel investors account for 2% of the angel population. (source)
Minority-owned firms represented 6% of the entrepreneurs that presented their business concept to angel investors. (source)
92% of venture backed startups are male (source)
California ranks as the highest state in terms of number of VC deals with 48%, with New York at 14% and Boston at 8% (source)
Half of the startup founders who Raise Money ages range from 35-44 (source)
Black unemployment: Highest in 27 years (source)

Hot Topic for 2011: Black Startup Founders/ Entrepreneurs
This year like never before have conversations, meetups and programs been launched and talked about why are there so few blacks in tech, or why black startup founder are not getting the same opportunities or access or why such programs as the NewMe Accelerator and organizations such as Black Founders are needed. It’s about time is how I feel about since I’ve been in the web/tech space since before the first dot com bubble and even though the internet is suppose to make things a level playing field, sadly when it comes to launching a web tech startup and getting funding it’s not. Some people act like racism doesn’t exits and want to say if you have a great idea or product, you have the same chances as everyone else. I tell you that is just not true in most cases.

True Stories from Silicon Valley:
This summer while we were in Silicon Valley for the NewMe Accelerator we learned a lot and kept hearing a few repetitive stories. One was about a young teenage Indian programmer who worked for another startup, left and pitched an idea, no app, no MVP, nothing but an idea and walked away with over $700,000 in funding. Another was from leading Venture Capitalist and investors such as Jay Jamison, Mitch Kapor, Michael Arrington, and Ron Conway that there are not enough Black startup founders and/or they don’t see enough Black Startup founders walk through their doors and/or there are not enough successful Black startup founders who have raised funds as examples for others. So if you don’t see the need for such programs such as the NewMe Accelerator or Black Founders or groups such as Blacks in Tech. Don’t argue with me… I dare you to argue with them.

flickr photo by Juan Haro Rodríguez

Black Founders/ Entrepreneurs Are you ready?
Since the launch of the NewMe Accelerator we have received tones of request from Black Entrepreneurs with startup ideas looking for help in terms of mentorships, funding, partners, investments, design help, programming help, you name it. But most of the time the request is looking for small seed investments to get an an app or product launched. When the phone rings I can almost predict the conversation, it goes a little something like this: Hello, I have an idea or startup that’s going to be big. Can you help with funding or mentoring or introduce me to someone with money. Every now and then someone will say, I’m building a new social network that’s going to be bigger than Facebook and I my response is usually, Ok, can you send me a deck and after that I hear nothing.

Regardless of the phone calls or who has an idea or not, one thing I learned being in the Valley during the summer is there’s a system, a format a bar set by other startup founders to raising capital and that bar is high. It doesn’t matter what color you are, if you don’t follow the protocol or format or standard unless you have a NBA friend, or rich uncle or have the right people in your network with capital and trying to raise money for your startup in this economy…good luck!

Getting in and making a difference:
With everyone launching a startups these days or have an idea to launch one, this is why the business / community accelerators are on the rise and startup accelerator/incubator such as Y combinator, Founders Lab, Tech Stars, and 500 Startups are like the NBA and NFL draft for entrepreneurs.

The numbers for how many black startup founders who have participated in such programer have yet to be made public and while a few incubators are well diverse such as 500 Startups in terms of race and gender none have had a large or a significant amount of Black founders participate over the years. If I’m wrong, show me the data and explain the 1%. This is why we launched the NewME Accelerator, it’s why I’m happy to see the growth and future of the Black Founders group in Silicon Valley and why programs such as the DreamIt and Comcast Ventures for minority-led startups are being created.

If you’re a founder that makes it into one of these programmers, consider yourself lucky and take advantage of the opportunity because you may not get another chance and there are thousands of entrepreneurs who would love to be in your shoes.

Your startup chances by idea and team to raise money:
I don’t have any hard data yet but this is my observation for Black Startup Founders/ Entrepreneurs:

Idea + Team = Chances to raise money

Start a new social network
Single founder with no startup and no coding experience = .5%
Team (developer, CTO, designer) with little experience = 2%
Single founder with experience from a huge successful social network = 4%

Launch a hip hop or Urban platform or urban blog/website or urban video site
Single founder with no startup and no coding experience = 1%
Team (developer, CTO, designer) with little experience = 3%
Single founder with experience = 5%

Launch a mobile (iPad, iPhone or Android) app
Single founder with no startup and no coding experience = 5%
Team (developer, CTO, designer) with little experience = 10%
Single founder with experience = 20%
Team (developer, CTO, designer) with little experience = 30%

*If you’re a black woman and single founder = -1%

The harsh reality for black entrepreneurs in the web/tech space. Your chances of raising startup capital are slim to none. If you’re an entrepreneur, good luck and prove me wrong. If you’re an accelerator or incubator, open your doors and prove me wrong. If you’re a venture capitalist please prove me wrong!

PS:
There’s nothing wrong with launching a startup, not raising or taking any money and being successful by making money form your customers. Good luck!

Posted on June 25, 2011 - by Wayne Sutton

Video: Mitch Kapor on the value of the NewMe Accelerator and what Kapor Capital looks for in startups

Originally posted on Blackweb 2.0

The NewMe Accelerator just completed it’s first full week of working with amazing mentors and speakers from the Silicon Valley. Closing out the week NewMe startups had a chance sit down for one on one sessions with well known Venture Capitalist Mitch Kapor @mkapor of Kapor Capital. Before the sessions begin Mitch talked to the NewMe Accelerator startups first class on how he learned about the accelerator, why the NewMe Accelerator is important to have in the Silicon Valley and what Kapor Capital looks for in startups when considering investing. Take a look at the video and notes below.

Why the NewMe Accelerator is important for the Silicon Valley?

The NewMe Accelerator is supported by generous sponsors, speakers, and mentors. Sponsors include: Interactive One, Google, Tagged, Gunderson Dettmer, Syncom Ventures, PepsiCo, Kapor Capital, Bronze Investments, Justin.tv, and e3 Innovation Fund.

Posted on June 23, 2011 - by Wayne Sutton

Silicon Valley Welcomes First of its Kind Minority Accelerator

The Silicon Valley Welcomes First of its Kind Minority Accelerator was originally posted on BlackWeb20.com

Silicon Valley welcomed the first ever technology accelerator for minority-led start-ups, NewME Accelerator. NewME’s select participants commenced their first class on June 16 and will participate in this program throughout the summer.  The start-up founders are based in a shared house in Mountain View, Calif. and are utilizing co-working space at Citizen Space in San Francisco.

This program gives the founders a unique opportunity to learn from key industry leaders during private group dinners and one-on-one mentorship. The founders will leverage this once-in-a-lifetime access, and being in the epicenter of Silicon Valley’s culture, for nine weeks to take their ventures to the next level.  Speakers and mentors will include representatives from successful start-ups such as Tagged, Facebook, Twitter, Foursquare and Zynga Games. The accelerator concludes with a demo day at Kapor Capital August 4th where founders will pitch their products to various investors and members of the start-up community.

“The amount of support and interest from the Silicon Valley community in the NewME Accelerator is overwhelming,” shared Founder & co-Producer Angela Benton. “It serves as a testament to not only the need for a program like this, but also to the excitement and stewardship of the mentors and companies who are participating.  We are thrilled about this summer and the companies and individuals who’ve agreed to be involved.”

The accelerator provides housing, transportation and other basic living needs in addition to the mentorship and access to some of the industry’s elite minds. The intent of the program is to remove some of the barriers involved with being an entrepreneur and help pave the way for even greater success.  The program is supported by various sponsors who support not only the program’s mission but entrepreneurship in general.  Many of the program’s supporters view their participation in the 9 week long program as an opportunity to connect with budding entrepreneurs and expand their own businesses.

“Whether it is with our 100 million registered users or our own employees, everyday Tagged celebrates diversity and the entrepreneurial spirit. The opportunity to partner with the Accelerator is a natural fit for us,” said Greg Tseng co-founder and CEO of Tagged. “In addition to helping racially diverse entrepreneurs get their start, as my co-founder and I once did, our involvement also helps us connect with and ultimately attract the best talent to Tagged.  The NewME Accelerator is providing both the entrepreneurs and us with a great opportunity to connect, learn and teach.”

NewME has a total of thirteen start-ups participating in its first cycle.  Five were pre-selected while the other eight were selected from a large pool of applicants. Eight of the participating companies will travel to Silicon Valley to be housed this summer while the other 5 are Bay area locals. Applications were evaluated by the producers of the accelerator and selected based on concept, quality of pitch, and the problem the product solves in addition to several other criteria.

Yesterday the group gathered at Zibbibo in Palo Alto to commence the programs curriculum with it’s first speaker out of a series of others with Interactive One CTO Navarrow Wright.  The discussion included practical information on how each participants pitch could be modified along with candid stories of Wright’s experiences leading technology teams and raising money in Silicon Valley.

The start-ups include:  goKit, kloud.co, Pencil You In, Cued, TriOut , BeCouply, Playd, FetchMob, Aislefinder, Central.ly, Mosion, Qykno, +1 stealth start-up.

The NewME Accelerator is supported by generous sponsors, speakers, and mentors.  Sponsors include:  Interactive One, Google, Tagged, Gunderson Dettmer, Syncom Ventures, PepsiCo, Kapor Capital, Bronze Investments, Justin.tv, and e3 Innovation Fund.

Posted on February 18, 2011 - by Wayne Sutton

Barrack Obama Silicon Valley tech supper with the stars. Where was the diversity?

Last week a post called “Startup America needs to look more like America” by Kalimah Priforce that was reposted on Quora fired up a debate between some noted Silicon Valley venture capitalist and other startups founders. The post led to a follow up post by Kalimah called “MAKING HISTORY | WILL SUPER ANGELS & TECH MAVENS CLOSE THE MINORITY-LED STARTUP GAP?. The debate and conversations were also continued on HackerNews. In other words, it’s a touchy subject.

Yesterday President Barrack Obama held what the various blogs are calling “tech supper with the stars” and the White House released a photo of a big cheers moment at the dinner table as you can see below.

From devicemag here’s the full list of attendees according to the NY Times, LA Times and SF Chronicle:

John Doerr, partner, Kleiner Perkins Caufield & Byers
Carol Bartz, president and CEO, Yahoo!
John Chambers, CEO and chairman, Cisco Systems
Dick Costolo, CEO, Twitter
Larry Ellison, co-founder and CEO, Oracle
Reed Hastings, CEO, NetFlix
John Hennessy, president, Stanford University
Steve Jobs, chairman and CEO, Apple (seated next to Obama, above)
Art Levinson, chairman and former CEO, Genentech
Eric Schmidt, chairman and CEO, Google
Steve Westly, managing partner and founder, Westly Group
Mark Zuckerberg, founder, president and CEO, Facebook (seated next to Obama, above)

Wow, I would have loved to have been a fly on the wall during the dinner. You can’t argue that everyone on the list is deserving and I like the male to female ratio. But there was not one minatory Silicon Valley CEO or founder worthy or available to attend? I know there are debates about why each of the individuals where invited. You can read about that via a Search Engine Land post called “Who Sat Where? Why Was He There?“.

It’s not like there are no black founders, entrepreneurs, and executives in Silicon Valley because there’s a list on Quora here: Who are some notable black founders, entrepreneurs, and executives in Silicon Valley? At least they could have invited @MCHammer. Maybe next time guys!

Just a simple observation and if you attend a lot of technology events, conferences, or meetup the diversity ratio at the dinner table is about accurate how it is outside of the bubble.

I normally don’t blog about race or the lack there of in the web/tech/startup space but it’s becoming more of a hot topic and a much needed conversation. Plus I’m doing my 28daysofdiversity.com series and the dinner photo just made me think about it even more. #justsayin