Monday, July 21, 2008

Chicago Entrepreneurs Prefer Meat and Potatoes

Apparently, New Enterprise Associates managing general partner Peter Barris agrees with the "Pooh v. Tigger" assessment of the Chicago startup scene in my last post. According to last Monday's Tech Matters column by Brad Spirrison in the Chicago Sun-Times:

"Barris appreciates a “less-faddish” and more meat-and-potatoes approach to building new businesses. He says Chicago is a place where profitability is more important than novelty."

Unfortunately, Barris' comments also reinforce the stereotype that Chicago is not the best place to start a new business:

Barris compared area entrepreneurs to grapes in Napa Valley that manage to persevere through "rocky, inhabitable soil". He added: "They have to work at it. The process of working at it is what gives the grapes that distinct quality."

Funny. Chicago's "rocky soil" has many great supportive organizations for the tech community such as the ITA, ITDA and Tech Cocktail; several entrepreneurial centers; great universities; (Fast Company's U.S. city of the year); experienced lawyers; and a huge financial community. There are plenty of Chicago tech success stories - Spirrison lists three in his article. Aircell, based in Itasca, just closed a $265 million round of financing.

So why the bad rap? Does it really matter anyway? Here in Chicago, we just get da job done.

Friday, July 18, 2008

Pooh and the Chicago Technology Community

This week I attended the ITP Policy Kickoff Meeting. I sat with some interesting people - Bret Johnson, director of the Homeland Security Innovation & Entrepreneurship Center
and Laura Hale, founder of a fan fiction history wiki.

I'm not going to comment on the ITP or its role as yet another technology advocacy organization in Illinois. Ron May covered the topic quite nicely in his newsletter.

What I found frustrating at the meeting was Chicago's typical "second city" technology industry attitude. Everyone knows that Chicago is WAY down on the list of locations where VC's invest and that the East and West Coasts are pulling talent from here. Please don't tell me that again.

Can the Chicago tech community please lose the "kick-me" sticker on its back? No one at the meeting mentioned that Fast Company named Chicago the 2008 U.S. City of the Year!

U.S. City of the Year: Chicago | Fast Company

Maybe it was old news to some, but what a great endorsement from a magazine that bills itself as: "A blended media website and community platform for people passionate about business ideas. Our core topics of concern are innovation, technology, leadership, management, social responsibility, design, careers and work/life balance." The award is definitely worth repeating.

Here's one quote from the article:
"A punk rocker from Wales once declared that he avoided L.A., because there they talked about whom they were going to play with; and he avoided New York, because there they talked about the projects they were going to do. In Chicago, he said, they come to work -- without regard for what others might think."

In the world of Pooh, you might say we view ourselves as Eeyore, the intelligent, humble and slightly depressed donkey. Silicon Valley sees itself as Tigger, the bouncy, egotistical tiger who thinks it can accomplish anything, but often doesn't. If Pooh were a VC, would he give his money to Eeyore or Tigger?

Oh, Fast Company, Chicago's tech community says "thanks for noticing me".