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If The Shoe Fits: First Round’s Survey Is Not Encouraging

Friday, December 8th, 2017

A Friday series exploring Startups and the people who make them go. Read all If the Shoe Fits posts here.

5726760809_bf0bf0f558_mI said Tuesday that I wasn’t holding my breath in hopes of change when it comes to harassment in the workplace.

I blamed two main reasons, one societal and the other legal, but KG sent me an article yesterday that diminish the likelihood even more.

The articles cite an annual survey done by First Round on various topics, such as hiring, compensation, funding, etc. Last year they added diversity and inclusion and this year they added questions about harassment.

The companies are venture-backed and from all over — the Bay Area, New York, Los Angeles and other parts of the US.

Every year, we survey as many venture-backed startup founders as possible to figure out what it’s like to run a technology company right now. This year, we got more responses than ever before — 869 — giving us an even more precise pulse on what entrepreneurs think, feel, fear, and value.

These founders are the bosses of tomorrow’s tech sector, which doesn’t bode well.

As you can see they aren’t kids who are likely to change their attitudes when they “mature.”

55% have been in business for three to five years. Nearly 60% have an all male board and slightly more than half say their team is “mostly male.”

Actions speak louder than words and most don’t have any formal policies regarding diversity and inclusion or harassment.

Maybe I’m missing something, but there’s nothing about the majority of these new “leaders” that changes my mind regarding the likelihood of real change.

Image credit: HikingArtist and First Round

Entrepreneurs: Venture Summit Silicon Valley 2012

Thursday, December 20th, 2012

kg_charles-harrisVenture Summit Silicon Valley 2012 really brought home to me, yet again, the importance of being in the “right” crowd in order to move forward as a startup CEO.  This event was packed with a mixture of entrepreneurs, VCs, angels, bank and debt financing partners and press.  All the things necessary to succeed.

However, one of the most important issues seems to be the ability to network.  While all the necessary people were here, gaining value from the experience was more related to being able to meet the right people.  To do this should be easy in this environment, but I saw a lot of people who had difficulty going up and introducing themselves to other participants, or who didn’t have their 10-second explanation of what their company does clearly articulated.

In fact, it was quite interesting to see how many of the entrepreneurs present had difficulty with one or both of these issues; to aggressively introduce themselves to others and who couldn’t smoothly describe what they did in a few sentences.

How is it possible to be willing to pay so much money to be in the right place and still stumble on the goal line?

The density of interesting persons was sufficiently high where this may not have been a significant problem, but as a startup CEO it is absolutely essential at all times to be able to say what the company does, in a simple and easy to understand manner.  Especially to people who are not experts in the area you are working in, which describes most investors and partners.

I’d like to laud Tony Perkins and AlwaysOn to have put on a conference that brings together entrepreneurs and potential funders in such an intimate setting.  The surroundings were beautiful at the Ritz Carlton in Half Moon Bay, the people interesting, and the keynotes, presentations and breakouts well thought out.

Mobile, cloud, big data, industrial internet – up

Social media – down

The most interesting aspect of AlwaysOn Venture Summit Silicon Valley was getting a perspective for where the technology industry is going and what’s being funded.  There are a number of major trends that entrepreneurs need to be aware of while building companies and investors have clarity around if planning an investment to drive towards a profitable exit.

AlwaysOn VSSV is an annual gathering of some of the leading entrepreneurs and investors in Silicon Valley and beyond, focused on understanding investment themes and technologies that will drive the future.

At this particular conference, it was clear that one of the most important trends was the significantly reduced presence of Internet and social media startups among the speakers and on the panels.  The seemingly unstoppable social media storm has slowed down quite a bit.

One of the factors cited for this was that there was a saturation of these types of startups and another was that investors, having invested heavily in these companies over the past few years, were looking for investments with more predictable outcomes.

The effects of the GroupOn and Facebook IPOs (among others) resulted in negative investor sentiment toward these types of businesses.

So, what’s in vogue these days?

Mobile and big data companies seem to have taken over where Internet and social media left off.  The opportunity in the mobile space is a result of a movement that started about a decade ago when people moved from the desktop to the laptop.  The interaction with computers is now iterating to handheld devices such as smartphones and tablets, which are with us most of the time and collect data on what we do, where we are and who we interact with.

All this collected data forms the basis of the big data opportunity.  The ability to use this data to deepen our understanding of customers, manufacturing processes and many other areas has been a dream of business people, politicians and technologists for many years.

I’m personally very happy about these trend shifts.  Partially because EMANIO is perfectly positioned to take part of the development of this new industry of big data and analysis, but also because it has been difficult to understand the business basis of the social media phenomenon.

It has been difficult to discern a pattern for success within social media, but with mobile and big data this is much more logical.

KG Charles-Harris is CEO of Emanio and a special contributor to MAPping Company Success.

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