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Brad Feld - Startup Communities: Building an Entrepreneurial Ecosystem in Your City

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An essential guide to building supportive entrepreneurial communities

Startup communities are popping up everywhere, from cities like Boulder to Boston and even in countries such as Iceland. These types of entrepreneurial ecosystems are driving innovation and small business energy. Startup Communities documents the buzz, strategy, long-term perspective, and dynamics of building communities of entrepreneurs who can feed off of each others talent, creativity, and support.

Based on more than twenty years of Boulder-based entrepreneur turned-venture capitalist Brad Felds experience in the field?as well as contributions from other innovative startup communities?this reliable resource skillfully explores what it takes to create an entrepreneurial community in any city, at any time. Along the way, it offers valuable insights into increasing the breadth and depth of the entrepreneurial ecosystem by multiplying connections among entrepreneurs and mentors, improving access to entrepreneurial education, and much more.

  • Details the four critical principles needed to form a sustainable startup community
  • Perfect for entrepreneurs and venture capitalists seeking fresh ideas and new opportunities
  • Written by Brad Feld, a thought-leader in this field who has been an early-stage investor and successful entrepreneur for more than twenty years

Engaging and informative, this practical guide not only shows you how startup communities work, but it also shows you how to make them work anywhere in the world

Brad Feld: author's other books


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CONTENTS Cover illustrations Silhoueted figure Leontura - photo 1

CONTENTS

Cover illustrations Silhoueted figure Leonturaistockphoto Silhoueted women - photo 2
Cover illustrations Silhoueted figure Leonturaistockphoto Silhoueted women - photo 3

Cover illustrations Silhoueted figure Leonturaistockphoto Silhoueted women - photo 4

Cover illustrations: Silhoueted figure: Leontura/istockphoto; Silhoueted women and man: edge69/istockphoto; City Background: C. Wallace

Cover design: C. Wallace

Copyright 2012 by Brad Feld. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com . Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions .

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com . For more information about Wiley products, visit www.wiley.com .

Library of Congress Cataloging-in-Publication Data:

Feld, Brad.

Startup communities : building an entrepreneurial ecosystem in your city / Brad Feld.

pages cm

Includes index.

ISBN 978-1-118-44154-1 (cloth); 978-1-118-48333-6 (ebk); 978-1-118-48330-5 (ebk);

978-1-118-48331-2 (ebk)

1. Entrepreneurship. 2. New business enterprisesEnvironmental aspects. 3. CommunitiesSocial aspects. I. Title.

HB615.F45 2012

658.1'1dc23

2012028586

To Len Fassler, who has taught me more about entrepreneurship than anyone else on this planet.

FOREWORD

During the past three decades, startups in the United States have created nearly 40 million American jobs, all the net job creation in the country over that period. As we recover from a deep recession, our ability to innovate, build iconic companies, put people back to work, and inspire the world will once again be determined by whether entrepreneurs continue taking chances on a dream to start a business. After all, the story of America has always been the story of entrepreneurs going against the grain to imagine a better tomorrow.

On January 31, 2010, President Obama announced the creation of the Startup America initiative, telling the American people, Entrepreneurs embody the promise of America: the idea that if you have a good idea and are willing to work hard and see it through, you can succeed in this country. And in fulfilling this promise, entrepreneurs also play a critical role in expanding our economy and creating jobs.

On that same day we launched the Startup America Partnership, the privately funded component of the Startup America initiative, based on a simple premise: the leading source of job creation in this country comes from young companies starting up, growing, and innovating. One of our goals through the Startup America Partnership is to support regional startup ecosystems throughout the country where entrepreneurs, investors, local leaders, universities, and other partners foster an environment ripe for startup activity.

Brad Feld has been a pioneer in developing regional ecosystems, first with TechStars, and more recently as one of the leaders on the Startup Colorado regional initiative. He has taken what he has learned and created this book to help shape the thinking about best practices for developing startup communities.

At America Online (AOL), Zipcar, and LivingSocial, Ive experienced firsthand the significant contribution that a strong entrepreneurial ecosystem has to a business. While Silicon Valley is the iconic example, we are seeing success and potential in other places as well, like Washington, D.C.; Chicago; Denver; Boston; Seattle; Portland; Austin; Raleigh; and Nashville.

But the startup revolution isnt limited to these citiesany locality in the United States can build a vibrant startup community if it strategically brings together the key partners who support growth. In fact, the barriers to entry have never been lower for many sectors across the economy. Thats why we launched the Startup America initiative, and thats why this book is such an important contribution: Brad does a great job using the Boulder, Colorado, regional ecosystem as a blueprint for creating and developing a sustainable startup community in any city. If you want to know how to usher in a new wave of job creation, innovation, and growth in your city, I recommend reading this book.

As we emerge from a difficult period in our economic history, we once again turn to entrepreneurs to lead the way to a brighter tomorrow. These startups, the brave men and women behind them, and the many mentors who complement their efforts form the backbone of the startup ecosystem. Brads book will help you understand how that process works, and will provide you with the tools you need to achieve results anywhere in the United States.

Come join us on this startup revolution.

Steve Case

Chairman, Startup America Partnership

Chairman and CEO, Revolution LLC

August 2012

PREFACE

In the fall of 2008 the world financial markets were rocked in an unprecedented way. The global financial crisis that ensued created massive uncertainty across our society and resulted in extraordinary actions by governments and companies throughout the world.

In a parallel universe, something else was happening. Entrepreneurial companies such as Facebook, Twitter, LinkedIn, and Zynga were growing at an equally unprecedented rate. While these companies, and many others, were emerging from Silicon Valley, communities across the country were brimming with startup activity. My hometown of Boulder had become known throughout the world as a great startup community, but cities like New York, Boston, Seattle, Portland, Chicago, and Austin were also seen as nexuses of startup activity.

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