Gwin Scott

Bootcamp Emergence

Great article today in the WSJ on an entrepreneurial case study, noting the importance and significance of boot-camp style programs to help with the funding efforts of those with a solid idea. Memphis entrepreneurs note a few things: 1)importance of networking even if you feel like the source is a dead end; 2)get out of your comfort zone; 3)develop a user base bf getting/going after funding; 4)note where his revenues are--$1.5 mill--they exist!!; and 5)be hungry and persistent--Fienberg pitched hundreds of contacts in and out of his network and came up with 17 who were interested.....and they werent all local, but located around the US. Message there is to find other angels outside of where you live and dont put all of your efforts in one location.   WSJ article

Entrepreneurial Superstars

Check out the latest INC which is the annual Entrepreneurial Superstars edition of the fastest growing private companies in the US. One interesting stat that I noticed, as a result of their CEO survey of 250 execs, was the statistical mix of the leaders and their companies.

Of the companies that were profiled 1) 42.5 was the median employee count; 2) $9.9 million was the median 08 revenue; 3) 888.5% was the median growth rate.

Of the CEO's 1) 90% were male; 2) 10% were female; 3) 21% were minority

Age range:  1% < 25 yrs   27%--25-35   41%--36--45    22%--46--55    9% > 55 yrs

Marital Status  1) 80% married  2) 5% divorced  3) 15% single

Im not sure what exactly this means, but there are some trends of this group---everyone is in a high growth sector with thriving industries---most were male---68% were from the ages of 25--45 so this is a young person's game---majority were married which i guess brings forth greater stability and enhances that hunger factor bc there is someone else out there that matters/that you have to provide for.

Also in another edition, I wanted to point out a slide show that INC did on 6 ways to be a better CEO. They are:  1) Delegate More  2) Become a Better Judge of People  3) Communicate well with your Board  4) Get Better at picking winning Ideas 5)Develop a sense of Humor 6) Just Be more Patient  http://www.inc.com/ss/6-ways-be-better-ceo#5  All are great instincts which have come from some solid leaders ie Twitter, Zappos, Y-Combinator, Enterprise Rent a Car, etc...

Entrepreneurial Superstars

Check out the latest INC which is the annual Entrepreneurial Superstars edition of the fastest growing private companies in the US. One interesting stat that I noticed, as a result of their CEO survey of 250 execs, was the statistical mix of the leaders and their companies.

Of the companies that were profiled 1) 42.5 was the median employee count; 2) $9.9 million was the median 08 revenue; 3) 888.5% was the median growth rate.

Of the CEO's 1) 90% were male; 2) 10% were female; 3) 21% were minority

Age range:  1% < 25 yrs   27%--25-35   41%--36--45    22%--46--55    9% > 55 yrs

Marital Status  1) 80% married  2) 5% divorced  3) 15% single

Im not sure what exactly this means, but there are some trends of this group---everyone is in a high growth sector with thriving industries---most were male---68% were from the ages of 25--45 so this is a young person's game---majority were married which i guess brings forth greater stability and enhances that hunger factor bc there is someone else out there that matters/that you have to provide for.

Also in another edition, I wanted to point out a slide show that INC did on 6 ways to be a better CEO> They are:   1) Delegate more  2) Become a Better Judge of People 3) Communicate well with your Board  4)Get Better at picking winning ideas 5)Develop a Sense of humor, and 6)Just be more patient http://www.inc.com/ss/6-ways-be-better-ceo#5  All good insights from some noteworthy stars of Twitter, Zappos, Y-Combinator, Enterprise Rent a Car, etc....

Coldplay

Cool interview last night on 60 Minutes with chris martin of coldplay. I really like his approach to being a rock star in that their band is especially humble and appreciates putting forth the effort every night, even though he claims that there talent isnt that great. He mentioned that they were just subbing in the rock world, until U2 returned from vacation.

One other element to the interview that I sought interest in had to do with chris's term of 'the silhouette factor'. When they are performing on stage, Chris mentioned that it is hard to see the actual audience because of all the lights, but they can see all the entry/exit doors in the back of the concert halls where light would beam back to the stage. If there were a lot of people coming and going (seeing their silhouettes) getting 'hotdogs' and drinks, then that was his sign that maybe they werent playing the right songs and they needed to shift the rotation a bit.

The group is very conscious of putting forth the right effort each night and in giving the fans what they paid for. It is great that they have such a high awareness that they have to constantly engage their audience or they will leave.

It was a nice wake up call, that we need to be aware that putting forth the right effort in all that we do....and to be cognizant of the silhouette factor in keeping folks/customers aligned with the value that you bring, so things dont get in too much of a comfort zone or status quo position.

Fixed vs Growth Mindset

 I just read a great book entitled Mindset by Carol Dweck, who does an excellent job of describing the difference between a fixed mindset and a growth one. She explains that it isnt merely about our abilities and talent that bring us success on how we can learn to fulfill our potential, but more in the attitude and mindset. There is both a business and personal relevance to this (ie with kids why praising their intelligence and ability doesnt necessarily develop self-esteem and lead to accomplishment, but could endanger being successful). 

The premise is based on intelligence where it is static with a fixed mindset and it is always being developed in a growth one. The highlights are that a fixed mentality leads to a desire to look smart and therefore a tendency to:

--avoid challenges

--get defensive or give up easily

--see effort as fruitless or worse

--ignore useful negative feedback

--feel threatened by the success of others

So as a result one may plateau early and achieve less then their full potential, while a growth mindset leads to a desire to learn and therefore a tendency to:

--embrace challenges

--persist in the face of setbacks

--see effort at the path to mastery

--learn from criticism

--find lessons and inspiration in the success of others

So as a result, one can reach ever-higher levels of achievement.

Check it out. I know this is one, ill try to read every year and many Memphians could benefit from too!

Observations of In-Efficiency

Over the last few months, ive seen firsthand or heard of others experience specific inefficiencies that have occured that represent a broad scope of situations. The bottom line is that it is a waste of time and counter productive to our daily tasks. Im talking about some pretty basic areas, but over time they add up and can be somewhat annoying. Much of it is in reference to meetings/email and customer service oriented areas that easily could be improved...and whoever the front line points of contact are, i think there needs to be greater awareness that this is occuring ie:

--Meeting in person when an email vote would be acceptable (1 hr of waste)

--Meetings that occur with no agenda or no objective or that go on too long. Also people that are looking for advice and insights and then dont follow up at all when offered ie 'Im lkg for a job, can you introduce me to someone at fedex or that does x and y' (3-4 hrs of lost time)

--One of our EM partners goes to the DR's office every 2 mos or so and they always ask him the same 15 questions which he responds 'the same as last time or that hasnt changed'...so in an act of small courage, he leaves the room and tells the person administering to get his file...bf he sees the DR...so he can make a few phone calls. His message was, that my time is valuable and dont waste even 30 min on something you already have in a file. Good on him.

--A friend asked the post office to forward his mail on a certain date and it took 2-3x for them to get it right which bc of his travel schedules his mail built up in his box and when he returned it started getting forwarded. (minor inconvenience)

--Credit card company--I reactivated a visa card recently and for some reason bc of security issues i assume it took about 4-5 days for any transactions to be accepted, when they told me that the card was activated. After calling them 2 more times they again said that the card was good and on the 3rd attempt, it was finally accepted. also in speaking with that cust svce rep about adding my wife to the acct and to send an extra card...that never occured and i had to call again which they said that for some reason, it never got sent. (1 hr over 3-4 calls of being on hold/on the phone waiting)

Sometimes we dont have full control over these situations and certains things are always going to happen, but in trying to be more selective and offer suggestions, can only improve the productivity levels as it is hard to get time back once it is gone!

The Filtering of Requests

In what I do each and every day helping high growth startups and early stage companies on a variety of fronts, the number of requests that come are frequent and constant. Our main focus is to work with and analyze our 27-28 portfolio companies in an effort to help them accomplish their goals ie build revenues and become profitable.. The is just a fraction of the focus, as it encompasses a lot more than those areas. It is really imperative too to have a working pipeline and funnel of those who are interested in what we do--in hopes that they will one day enter our program at EmergeMemphis.

Lately, Ive been amazed by the # of requests with startups and those early stage entities looking for funding. Relationship capital is important for these entrepreneurs, esp here in Memphis...and there is a direct correlation to who you know and how that translates into your success in raising equity. Im mainly talking about angel investors solely and in some instances vc's. I believe people feel like we have the answer to all of their problems-- where Id rather lead them in the right direction (if they meet a whole host of guidelines and qualifications)...and let them find their own answers and let the strengths of their own merits get the right results.

We are more than happy to help facilitate the right requests if others are willing to help themselves and prove that they are worthy of being helped. Why do I need to spend my time working with someone who doesnt listen or is willing to be taught and isnt putting forth the right amount of effort. More importantly, what happens if one doesnt really know someone--and they ask your help to raise money or set them up with a strategic partner. Why risk it? (If i followed up on every request, im pretty sure my credibility would be tarnished with those potential recipients....or victims). The onus should be on the requestor to get a plan and develop the right relationships and trust where one is totally confident and willing to help. Anything done too soon or prematurely, Id really have to question that person's judgment--which I have done a lot lately, as some expectations are too high and unrealistic.

It should be about setting forth a methodical process which takes time, so my advice to those 'askers' if you want to be helped and coached is:

--to be patiently proactive        --to focus on getting to know the person you are asking help from

--to not be overly demanding    --to manage expectations

--to be realistic on how you differentiate yourself and your product from the market--dont BS

--to follow up on what you say you are going to do in a timely manner

--to understand the environment/strengths and weaknesses of where you live

I look forward to hearing more and in getting some of your perspectives on this.

Intel Capital Forum

EmergeMemphis yesterday hosted an investment forum by Intel Capital that brought together vc's, angels, tech transfer folks, and entrepreneurs here in Memphis. There were stimulating conversations about the startup community here and where certain gaps were. Mark Rostick of IC did a great job of presenting and helping define what successful characteristics they look for in both entrepreneurs and early stage companies....as well as covering areas like sectors they invest in and current trends they see in the vc world. Being a worldwide investor, in 08, IC invested about 1.6 byn in 170 deals around the world with a good percentage of that being in early stage companies. generally they invest about 4-600 million per yr on new stuff and reinvesting in current deals.

Building a sustainable community that attracts vc's from all over is certainly a goal, but we as a community need to focus on current wins and even starting small and building on success. it is a long term proposition and will require a certain amount of filtering to make sure the most qualified and experienced entrepreneurs are showcased. Angel networks are a necessary ingredient to helping build companies to get them to the level of being vc worthy. Memphis needs to focus on its strengths and certainly not try to replicate what others are doing.

we are working on doing a full scale assessment of public needs of entrepreneurs and what it takes to further build and prioritize the right strategy so that others know that Memphis is on the map...

Hatching Success

The Commercial Appeal here in Memphis just completed a compelling article on EmergeMemphis and the value of incubators. Profiled were 2 of our companies, RemitDATA and Gaskill Strategies, as well as some interesting stats. Remit has just recently graduated and has been in a hyper growth mode, after securing 5 million in venture funding from noro-moseley in atlanta and ssm partners in memphis. Bently Goodwin has been at the helm since inception and has done a masterful job of managing growth and incrementally building revenues to @ 6-8 million dollars. You will be hearing more from this company, esp as they continue to build further momentum. Check out the article which further validates why it is important for startups to launch in this sort of environment : Comm App

Thx to James Dowd for getting it right!

5 Primary Startup Documents

For those early stage startups out there, here are a few key documents out there that are worth understanding more about....as compiled by david cohen of Techstars  in boulder and his legal counsel. Pay close attention to the term sheet and subscription agreement, as those go into detail about ownership percentages, capitalization and valuations, and other rights and covenants that any entrepreneur needs to be aware of. Many folks got burned and dont fully comprehend some of the intricacies and details involved of these and that is why getting legal help is imperative, esp in helping set up the correct company infrastructure beforehand. Startup docs Thx to Brad Feld's blog for making me aware of this, as he is always an informative and well-connected source that has been a success with most everything he touches when it comes to startups.