Creativity > Cloning: Creating a Culture of Innovation in Asia

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This past Monday I had the opportunity to participate in a “fireside chat” with Fraser Mendel, a partner at Davis Wright Tremaine LLP, Edwin Green, a partner at Deloitte Touche Tohmatsu and Rebecca Fannin, author of Silicon Dragon and Startup Asia. It was a really great experience to converse with several people from the Seattle community interested in the fast-paced world of entrepreneurship sweeping across all of Asia, particularly in China. I shared my insight and perspective as to the ways Startup Weekend is providing hundreds of Asian entrepreneurs an opportunity to take action on their ideas and launch a company.

According to Startup Asia written by Rebecca Fannin, China has almost half a billion people surfing the Internet and 840 million people with a cellphone. India has 673 million people with a cellphone and Vietnam has a quarter of its population on the Internet. With this ever more connected population, it should not be news as to why venture capital has been flowing into Asia like an open fire hydrant funding a variety of technology and digital communication companies. Venture capital investment has tripled from $5.4 billion in 2005 to $15.6 billion in 2010.  This flow of capital has created the second and third largest markets of venture capital in the world – China and India respectively.

While continued advancement in the communication infrastructure and the injection of capital are certainly important components of helping more Asian entrepreneurs create companies, I believe that Asia has a long ways to go before becoming know across the globe as a center for innovation.

Move from Cloning to Creativity

Cloning happens all across Asia, but Chinese entrepreneurs in particular have become notorious. Several Chinese entrepreneurs has made themselves very, very rich  by copying & pasting of successful business models and then tweaking the user experience design to fit their culture. Some examples of  C2C (Copied to China) companies include RenRen (Facebook), Weibo (Twitter), Diandian (Tumblr), YouTube (Youku), Spotify (Xiami), Yelp (Fantong) and Linkedin (Ushi). I believe the success of these companies has reinforced a culture of cloning as opposed to a culture of creative collaboration. Everyone is afraid of sharing their idea with others for fear of being cloned. Yet, in order to create an environment of innovation, people must feel comfortable sharing their ideas – it is that simple.

Ultimately, I believe the lack of willingness to share and collaborate with others creates an innovation threat to the entrepreneurial ecosystem. The company I work at, Startup Weekend, is actively disrupting the way people come together, cross-pollinate ideas and most importantly – learn from and not be afraid of failure. Through several weekend long events taking place from Shanghai to Hong Kong to Beijing to Shenzhen, Startup Weekend is creating a system where ideas can collide and spawn new, truly innovative and value creating businesses.  As more and more Startup Weekend events are self-organized across China and other parts of Asia, I believe that the power of collaborative creativity between people of various backgrounds will triumph over the rampant and narrow mindedness of cloning.

For instance, this month Startup Weekend Shenzhen held its second event in the headquarters of Tencent. It was an incredibly success event with over 85 people actively trying to launch a new company. Several teams were noticed by top investors and there was even a surprise appearance by Kenny Xu formerly of Tencent. I implore all Asian entrepreneurs to participate in a Startup Weekend event and take action on your idea.

If you would like to get more involved with Startup Weekend activities in China or other parts of Asia – please email me @ keith [at] startupweekend [dot] org

 

Startup Weekend Stories: Cloudmine

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Each weekend all over the globe Startup Weekend events are taking place from Bloomington, Indiana to Lahore, Pakistan – and sometimes I am lucky enough to fly over and help manage the event. During this time I get to watch the very beginning stages of entrepreneurial stories unfold. I find it such an amazingly beautiful thing to see and feel the euphoria and adrenaline created when smart, ambitious, creative and passionate people come together around an idea. It is in this collision of connections where the best entrepreneurial stories are written – you never know what might happen or whom you just might meet.

It is these small and random stories of entrepreneurship that make what I do for a living so exciting and meaningful. I could never listen to enough Startup Weekend stories and the impact the event has had on people’s lives. One story I find particularly interesting is CloudMine. For those who don’t know (mobile developers pay attention) CloudMine is a platform that eliminates the need for you to build custom backend solutions for your mobile application. CloudMine is co-founded by Brendan McCorkle, Marc Weil & Ilya Braude.

I first met Marc Weil while facilitating at Startup Weekend Princeton. I knew I liked the guy from the beginning – he had tons of energy and loved helping out teams (even if they weren’t building on the CloudMine API). If you spend more than 2 minutes with him you pick up on his brilliance – both for business and for solving technical problems. It was during this time he shared with me the story of how CloudMine came into being.

Startup Weekend Philly

Marc Weil met Brendan McCorkle in January 2011 while participating at a Startup Weekend event in Philadelphia. Marc describes his participation in the Startup Weekend event as the “beginning of the end of his corporate career.” As the event kicked off on Friday night, Brendan pitched his idea for the original CloudMine, a consumer product aimed at data curation and backup of mobile devices. The pitch struck a cord with Marc since he had been thinking about developing a similar product to solve his own problem. While Marc ultimately decided to apply his development skills to another team during the event, he told Brendan that he really liked the idea and wanted to learn more.  When I asked Marc why he didn’t join Brendan’s team, he said:

“I didn’t join Brendan’s team because I already had met up with my friend who came down from RIT and told him I’d be on his team. It was my first real tech event and I was a little nervous around all the new people, so I stuck with the person I knew.”

During the course of the event, Marc and Brendan worked on separate teams, each competing to be named the winner of Startup Weekend Philly where they both witnessed the birth of Launchrock. It would take a combination of other entrepreneurial/tech community events, tensions between a product manager at Oracle and an unbeknownst application to DreamIt Ventures before CloudMine would become more than just a side project of Brendan’s.

Quest for a Technical Co-Founder

Prior to co-founding CloudMine, Brendan started a company in Boston offering a SMS-based solution alerting restaurant patrons when their table was ready (as opposed to carrying around those square clunky things that vibrate); but like so many other non-technical co-founders, Brendan had to go out and earn his technical co-founder.

Months later, during a Philly Startup Leaders (PSL) happy hour, Brendan met Ilya and they hit it off together. A few weeks later Brendan introduced Ilya to Marc at Eulogy (a Belgium tavern). After a few beers, the geek fest between Ilya and Marc ensued. They have been geeking out together ever since.

When I asked Marc what he liked about Brendan he said:

“When Brendan & I were getting to know each other he just seemed like a cool and really smart guy. He was wary of the technical/non-technical working relationship and showed a strong interest in the technical side.

These days, I am more impressed each time during a customer or partner meeting at how well Brendan is able to explain how the product works in technical terms.”

Marc continued to offer his advice and helped out with technical research, but it would only be a matter of time before Marc would start cranking out code. He was about to reach his breaking point at Oracle and learn about CloudMine’s acceptance into DreamIt Ventures.

Sticking it to the Man & Dreamit Ventures 

Brendan applied to DreamIt Ventures and listed Marc (without him knowing) as the technical co-founder of CloudMine. When Brendan called Marc to inform him of acceptance (surprise!), Marc immediately stopped what he was doing to meet up with Brendan at Starbucks and signed the contract between CloudMine & DreamIt. I asked Marc why the acceptance into DreamIt Ventures made him decide to work on CloudMine full time, he said:

“I liked the idea of not jumping into the deep end with my eyes closed. I liked the social reassurance that came our acceptance into DreamIt. We had people of respect and authority giving thumbs up on the idea. DreamIt was basically saying ‘we think you can make it, we can give you money, we can help you.’”

Marc had become increasingly frustrated with his work at Oracle and was looking for a change. After a final argument between he and a product manager, Marc called a close friend who was currently working at Philly startup and asked him to ask his boss for a temporary job until the DreamIt Ventures program started in three months. The said friend’s boss agreed and Marc quit Oracle.

Brendan, Marc & Ilya then entered into the DreamIt Ventures program and went heads-down into hustler mode.

Beta Launch & Global Sponsorship

After finishing up with DreamIt, CloudMine launched its public beta at Startup Weekend. I asked Marc why they decided to launch at a Startup Weekend Philly. He said:

“We really liked the poetic closure – we’d met at a Startup Weekend, so let’s launch at one too. All our friends would be there too – it was basically good karma.”

Since their launch, CloudMine has become a Global Sponsor of Startup Weekend events around the world and now offers free resources to other Startup Weekend teams. They have also hired three employees and have received ample funding to build the company to scale more quickly.

Final Thoughts

I really love the CloudMine story because it sends such a great message to Startup Weekend attendees.

As I said at the beginning of this post, you never know whom you might meet. Make sure you engage with other interesting people at your Startup Weekend event - especially if they are not on your team. Actively increase your odds of serendipity!

Get involved with your community! Continue riding that wave of energy created at Startup Weekend and seek out other entrepreneurial/tech events in your city.

If this has motivated you to attend a Startup Weekend event in your city – check out our Global Events Calendar or email me @ keith [at] startupweekend [dot] org

Startup Weekend Facilitators

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I am now back in Seattle still riding the wave of energy created during the 2nd Startup Organizer’s Summit in Austin Texas! We had over 150 organizers from all over the world fly in and participate. Startup Weekend Organizers truly impact the lives of people through their event organizing efforts and I found it incredibly powerful and inspiring to hear stories from all over the world. This Summit has only amplified my motivation to expand the reach and impact of Startup Weekend around the world.

During the event I gave a short 5 minute talk about Startup Weekend Facilitators and their role with respect to the global Startup Weekend Community. In the early days of Startup Weekend (for those who don’t know) a Startup Weekend “Facilitator” (usually a single member from the core team or an early adopter of Startup Weekend events) was sent to an event to support the local organizers and maintain the consistency of the event structure. I believe this form of layered support and learned experience for events has helped to create a sense of community and connection between everyone involved in a Startup Weekend event. I am a firm believe that Startup Weekend Facilitators must continue to play a role in building and acting as the bonds between different entrepreneurial communities.

Below is a summarized version of what I talked about.

Facilitators

Today, Startup Weekend Facilitators are highly passionate and incredibly experienced past event organizer’s who possess the knowledge and know-how to design and create a truly amazing Startup Weekend event. Many of these Facilitators have participated in the Startup Weekend Facilitator Training Program and are equipped to answer questions about event planning logistics and know how to maintain a high-energy environment during events. These Facilitators are in various parts of the world and are a unique group of people. Of the 515 co-organizers and 399 lead-organizers, only 85 people in the world have ever facilitated a Startup Weekend event.

Facilitators have this wonderful collective knowledge and rich networks that they have developed through their Startup Weekend event planning experiences. Through these experiences and lessons learned, Facilitators are in a position to support their local events at a higher-level than just finding a suitable venue or ordering food. They can make introductions to past event sponsors, potential coaches and/or judges. They are able to talk about what was done poorly at one event or what was done really well at another. I believe that in order to expand and continue inspiring entrepreneurs to take action, Startup Weekend must leverage this collective knowledge and rich networks to maintain the consistency, increase the frequency and most importantly, the quality of events that are held around the world.

But that is not all – I view Startup Weekend Facilitators as the bonds between different entrepreneurial communities. We have Indian facilitators going to Singapore events. American facilitators going to Egyptian events. Danish facilitators going to Kenyan events. And for me, this is a BEAUTIFUL OPPORTUNITY, because Startup Weekend is one of the few (possibly the only) organization in the world that has the capacity to make these connections between people from different entrepreneurial communities. It is important that we continue to find ways to make these connections between people from different communities because when we do, relationships are made, sparks fly, and serendipity occurs.

If you are interested in learning more about what it takes to become a Startup Weekend Facilitator – please visit http://startupweekend.org/facilitator/

How to Rock Your Startup Weekend Event

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Each Startup Weekend event is a platform for experiential education in entrepreneurship. In order to make the most of your experience, I’ve put together a few suggested guidelines for working through the weekend. These are my views only, and are not representative of Startup Weekend.

 1.     Prepare Your 60 Second Pitch

Startup Weekend events are such a great place to find and interact with other ambitious, creative and passionate people. If you want to share an idea, you better make sure to have your 60 pitch prepared. First, I suggest opening with who you are and your skills, then clearly articulate the problem you want to solve and for whom. There are all sorts of fascinating problems in the world – pick one worth solving. Second, define how you propose to solve this problem. Don’t get into the details and certainly don’t talk about how you will “monetize.”

Make sure to impute yourself as a “team player.”  People that have the highest probability of attracting top talent are those who are charismatic, confident, and show a willingness to be flexible and participate in the concurrent designing of a new product. Finally, research your idea and the competitive landscape  – not doing so makes you appear lazy and naïve.

2.     Build a Complimentary Team 

I’ve found that teams with complimentary skill sets perform most efficiently. Each member of the team can be assigned an equally important task and then focus on executing on that task. There are four core areas that you need to focus on during the course of the event – customer validation, designing and building of your MVP, business model design and final presentation. With that said, I suggest making sure your team consists of one business development or marketer, two developers (one front-end and one back-end) and one really great designer.

As you assemble your team it is critical that you are totally honest and transparent with your intentions for the weekend and after. Some members of the team might not be prepared to leap off the proverbial cliff on entrepreneurship, others will be. Be prepared to a candid conversation with your team after the adrenalin and euphoria of the weekend wear off.

3.     Customer Discovery & Validation

After you have assembled your team and gotten to know one another, make sure everyone understands the problem you’ve set out to solve and who are the people most affected by this problem. These are the people you will want to validate your proposed solution against. Your proposed solution may change during the course of the weekend, but make sure to stay focused on solving the same problem.

It is important that you find product/market fit by finding enough people who are willing to pay for the value created from your product or service. I believe you shouldn’t begin building a solution to a customer’s problem until you have spent time talking with them about your proposed solution and have gathered their feedback/input. I like to take some time checking out the solutions of competitors by using tools such as Compete or Quantcast or simply Googling keywords I think potential customers would use to find my product or service.

With that said, get out of the building and go talk to your potential customers. You can use tools such as AskYourTargetMarket, distribute surveys using Wufoo and get fast answers through MerchnicalTurk. Incorporate this customer feedback/input into the design of the mechanism that solves their problem. This mechanism is called your Minimum Viable Product (MVP).

4.     Define and Design Your Minimum Viable Product

You want to get your MVP designed, built and tested in the market place as fast as possible – so you can start making decision on real data.

Eric Reis defines a minimum viable product as:

that product which has just those features and no more that allows you to ship a product that early adopters see and, at least some of whom resonate with, pay you money for, and start to gave you feedback on

When mocking up a MVP make sure you really care about and focus on user experience design (U/X). While this encompasses a lot and given the short nature of the weekend long event, I suggest focusing on bringing together beautiful and powerful visual design with simple usability. Keep it as simple and intuitive as possible. I suggest never giving users more than three options to choose from or three directions to navigate towards.

5.    Build Your MVP

Some smart person said “work smarter, not harder.”

I have experienced too many teams that try and build something from scratch when there already exists a really great solution – usually in the form of an API. Don’t spend time building the backend of your mobile app – use CloudMine. Don’t build a payment systems – use Dwolla or Venmo. Use the cloud platform Heroku and be sure to check out Twitter Bootstrap.

6.     Business Model Design: Value Proposition and Customer Acquisition Strategy

I implore everyone to read Business Model Generation by Alexander Osterwalder. In it contains the Business Model Canvas, which is a great tool for generating a period of creative deep collaboration between team members, and provides a framework for teams to clearly define the relationships between all components in their business model. But during the course of the weekend I think it is important to only focus on two things: your value proposition and defining how you are going to get your first, 10th, 100th and 100,00th user.

Making sure you’ve designed and built a product that creates value by solving a problem is usually the most effective way of generating more and more users. But you must begin marketing to your customers in one way or another. Spend some time thinking about really creative, fun and low-cost marketing methods to attract customers.

7.     Engage with Coaches

During the event you have many smart people who are ready and willing to help you. You are foolish not to take advantage of them. I am not saying that whatever they tell you is 100% correct, but they can most certainly challenge you on assumptions and give you another perspective.

8.     Showoff  Your Work

The mantra of each Startup Weekend event is “No Talk. All Action” and in many cases, teams will present a functioning prototype – not a perfect one, but a functioning one. This is great! Live demonstrations of prototypes always get a reaction from the crowd and judging panel. But don’t be discouraged if your team was unable to build a functioning prototype, since this is the situation with most teams that are unable to attract at least one developer. Instead, focus on something else your team did really well. Maybe all you and your team could manage was setting up a simple splash page – but you did an amazing job marketing and have 500 people signed up for your beta release. Or perhaps you spent valuable time with potential customer discussing the U/X and have beautifully designed mockups. Each one of these situations present an equally important outcome that can be achieved through varying team skillsets, but it is the team that can tie everything together and deliver a charismatic final presentation who usually wins.

9.  Get your Steve Jobs on! 

You and your team have worked hard and now it is time to shine! Make sure you impute to the crowd and judges your team’s high potential for success by appearing prepared, fun and excited to show off your work.

The first step is preparedness – practice, practice, and practice. Whoever is going to pitch (I don’t suggest having more than one person) should start preparing at least three hours before.

Next, focus on telling a story and sell a vision. Have some passion in your voice and act really excited about what you have achieved.

Finally be prepared for questions from the judges! Some very common questions include – who are your competitors and why are you different? What are the barriers to entry? How big is the potential market? How are you going to generate revenue? How are you going to market and acquire customers?

 

Startup Lessons Learned

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I currently work at an amazing company called Startup Weekend. The organization supports entrepreneurship through experiential education events for developers, designers and business minded people alike that have the entrepreneurial itch and are ready to doing something about it. I get to travel around the world and listen to investors and tech-entrepreneurs speak about a variety of topics as they relate to the tech-startup world and man have I learned a lot.

Before going to work at Startup Weekend I took action and did something about my own entrepreneurial itch. While working in South Africa I spent a lot of time thinking about going back to school for my MBA – I even started to study for the GMAT once. Ultimately I could not justify to myself the expense and future benefits. Instead of studying business theory in a classroom I thought I would be much better served by channeling my time and energy into launching my own company. I had no doubt in my mind that if I worked hard enough I could create a viable business. I decided it was time to JFDI.

I started a company called GreeNEWAL Group (co-founded with my best friend). We were in the business of providing residential homeowners energy audits and home energy ratings (which we subcontracted out qualified professionals). Essentially my real business was lead generation for home energy auditors and home performance contractors. However, things did not go as planned … go figure (sarcasm). With that said, I was quickly humbled in front of my family, friends and local community.

I get a great laugh when I think back about some of the mistakes I made. I certainly have no regrets but here is what I learned.

1.)    Nothing is ever 50/50

I’ve learned that most businesses fail because co-founders break up. You can add my company to that ever-growing list. Early on my co-founder and I talked about how we would split ownership – we were best friends and 50/50 seemed like the obvious and fair thing to do. We never discussed situations that may arise such as, what if I want to move away or what if I can’t commit enough time or what if I have a personal financial emergency and need liquidity. These are among a long list of dirty and uncomfortable issues you should discuss before you spend a nickel.

You should be brutally honest with yourself and your co-founder about expected responsibilities and make sure you do that co-founder equity vesting thing …

2.)    Charisma and Confidence 

I am not very technically inclined (albeit trying), but I can sell pest control door-to-door, cold-call i-bankers with confidence and I have sat across the desk of a small business CEO and convinced them to do business with me. When starting out, you shouldn’t be afraid to ask for what you want but you better be prepared to have a convincing and honest answer as to why.

3.)    If you are Ying – find your Yang

Don’t hire yourself twice – figure out what you are good at and find someone who can do what you can’t. My co-founder and I did not compliment each other’s skill set and we ended up spending money and time on things we should not have. Ultimately, you need to always work with people you love, who are smarter than you are, and aren’t afraid to tell you the truth – even if you aren’t ready for it.

4.)    Embody the Staples “Easy Button”

The customer experience is a big deal – don’t fuck it up. I totally did. After homeowners had their initial energy audit or home energy rating our business model required homeowners to complete extensive paperwork to receive government reimbursements and then I sent them to a directory of potential home performance contractors. This was not only annoying but created zero value for them when it came time to take action on the recommendations presented in the final home energy audit or home rating.

5.)    Government incentives don’t work … at all

If anywhere in your business model you have the slightest reliance or engagement with the government you will either strangle yourself with red tape or kill the customer’s experience – probably both. If you need taxpayer dollars to make people feel like they are purchasing something of value you better cut your losses now.

6.)    People act like the want options but they really don’t

I learned that people like to be in on the conversation, but ultimately want to be told what they need or should do. They don’t want to invest in more time and more research and more calls and more appointments and more troubleshooting. They just wanted their problem solved and they wanted me to get it done for them. Take charge, be cunning and control your customer’s options. Don’t be afraid to tell your customers what they need and how you can get it for them. When you do make sure you don’t just alleviate their pain point, do it right and eliminate it for them completely.

7.)    Validate your idea with potential customers before you even design a logo or get business cards made

Call it lean or customer development or common sense – but don’t launch a product or service if you can’t find enough people who are excited by it (because it solves a pain-point) and most importantly be willing to pay (because you create value). Seems simple but too many people get caught up in the rapture of launching something they want – not what people in a market need.

8.)    Role Models are Good not God

I am fortunate to know a few successful businessmen. I felt totally comfortable asking them for advice and drinking their Kool-Aide. Before my co-founder and I committed any money, we decided that if Mr. I’ve Made a Million Bucks thought it was a good idea we would take that proverbial leap off the cliff of entrepreneurship. Well, Mr. I’ve Made a Million Bucks thought it was a good idea so we jumped. In retrospect, no one asked me enough questions about execution. The gritty details of how I was going to get my 1st, 10th and 100th customer, who were my strategic partners and why, what will the customer experience be like, etc. Run away from people who tell you everything what you want to hear and make sure to find someone who can challenge you to the point where you have go back and figure something out. When you reach that point that you’ve answered all the “how the hell are we going to do that” questions – it’s go time. In the end you can bullshit about ideas all day over cocktails, but if you don’t have a plan for execution you’re just getting drunk.

What do you think? Is the experience and lessons you learn trying to launch a company more valuable than a MBA?