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Alejandro Alex Lazarow - Out-Innovate: How Global Entrepreneurs--from Delhi to Detroit--Are Rewriting the Rules of Silicon Valley

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The new playbook for innovation and startup success is emerging from beyond Silicon Valley--at the frontier. Startups have changed the world. In the United States, many startups, such as Tesla, Apple, and Amazon, have become household names. The economic value of startups has doubled since 1992 and is projected to double again in the next fifteen years. For decades, the hot center of this phenomenon has been Silicon Valley. This is changing fast. Thanks to technology, startups are now taking root everywhere, from Delhi to Detroit to Nairobi to Sao Paulo. Yet despite this globalization of startup activity, our knowledge of how to build successful startups is still drawn primarily from Silicon Valley. As venture capitalist Alexandre Lazarow shows in this insightful and instructive book, this Silicon Valley gospel is due for a refresh--and it comes from what he calls the frontier, the growing constellation of startup ecosystems, outside of the Valley and other major economic centers, that now stretches across the globe. The frontier is a truly different world where startups often must cope with political or economic instability and lack of infrastructure, and where there might be little or no access to angel investors, venture capitalists, or experienced employee pools. Under such conditions, entrepreneurs must be creators who build industries rather than disruptors who change them because there are few existing businesses to disrupt. The companies they create must be global from birth because local markets are too small. They focus on resiliency and sustainability rather than unicorn-style growth at any cost. With rich and wide-ranging stories of frontier innovators from around the world, Out-Innovate is the new playbook for innovation--wherever it has the potential to happen.

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Startups are one of the most important forces for change But far too many - photo 1

Startups are one of the most important forces for change. But far too many regions have fixated on the Silicon Valley model as the only way to build a startup ecosystem. Out-Innovate takes you on a tour of innovative entrepreneurs and companies around the globe, to provide a guidebook on how to successfully start and scale world-changing businesses wherever you might be.

CHRIS YEH, coauthor, Blitzscaling and The Alliance

Out-Innovate is replete with inspiring and instructive stories of innovation from around the world. Whether in middle America or middle Africa, its a go-to book for anyone with an idea for starting and scaling a business.

DIANA FARRELL, president and CEO, JPMorgan Chase Institute

In Out-Innovate, Alex Lazarow has perfectly captured Silicon Valleys Detroit Momentthe realization that Asia and other emerging markets arent simply generating local clones of American startups, but raising the bar for innovation and product quality on a global basis. Brilliant.

NICK NASH, co-founder and managing partner, Asia Partners; retired Group President, Sea Limited

Silicon Valley is a source of inspiration for many tech entrepreneurs around the world, but innovation coming from emerging countries, Africa, and other locales beyond the Valley is now raising the game. In his captivating book, Alex Lazarow vividly describes this changing context and the strategies required to succeed within it.

SACHA POIGNONNEC, co-founder and co-CEO, Jumia

The wide world of innovation does not always look and act like Silicon Valley. In fact, among rising markets in particular, there is a shared experience entrepreneurs and investors navigateregardless of history, culture, language, or geographywhere the Silicon Valley model is only part of the story. This important book articulates rich new models for local and global entrepreneurs looking to engage on those markets terms. This book could not be more timely.

CHRISTOPHER M. SCHROEDER, co-founder, Next Billion Ventures; advisor and venture investor; and author, Startup Rising

We need to move beyond the Silicon Valley playbook for startup innovation. In this trenchant work, Alex Lazarow shows that there are new principles and practices that apply in quickly changing conditions of scarcity and adversity. In other words, wherever you are.

VIJAY SHEKHAR SHARMA, founder and CEO, Paytm

Lazarows book will not only inspire you with its global stories of innovation, it will give you real models to follow. Wherever you are, if you have an entrepreneurial idea, you need to read Out-Innovate.

MUDASSIR SHEIKHA, co-founder and CEO, Careem

If disruption is about moving fast and breaking things, Lazarow zooms us out of the Valley, beyond borders and buzzwords. Out-Innovate is the new global playbook for how to observe different and create different.

SCOTT HORTLEY, author, The Fuzzy and the Techie

Alex Lazarow draws on his vast global experience to shed light on the models and practices of startups all over the world. In doing so, he articulates one of the great promises of todays high-tech world: that access to innovation is no longer the exclusive right of a select few locations. Anyone, anywhere, who is interested in innovation will benefit from reading this book.

YOSSI VARDI, one of Israels early entrepreneurs

Out-Innovate

Out-Innovate

How Global Entrepreneurs from Delhi to Detroit Are Rewriting the Rules of Silicon Valley

ALEXANDRE LAZAROW

HARVARD BUSINESS REVIEW PRESS

BOSTON, MA

HBR Press Quantity Sales Discounts

Harvard Business Review Press titles are available at significant quantity discounts when purchased in bulk for client gifts, sales promotions, and premiums. Special editions, including books with corporate logos, customized covers, and letters from the company or CEO printed in the front matter, as well as excerpts of existing books, can also be created in large quantities for special needs.

For details and discount information for both print and ebook formats, contact .

Copyright 2020 Alexandre Lazarow

All rights reserved

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to , or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

The web addresses referenced in this book were live and correct at the time of the books publication but may be subject to change.

Library of Congress Cataloging-in-Publication Data

Names: Lazarow, Alexandre, author.

Title: Out-innovate : how global entrepreneursfrom Delhi to Detroitare rewriting the rules of Silicon Valley / Alexandre Lazarow.

Description: Boston, MA : Harvard Business Review Press, [2020] | Includes index. |

Identifiers: LCCN 2019046745 | ISBN 9781633697584 (hardcover) | ISBN 9781633697591 (ebook)

Subjects: LCSH: New business enterprises. | Entrepreneurship. | Success in business. | GlobalizationEconomic aspects. | Creative ability in business.

Classification: LCC HD62.5 .L39 2020 | DDC 658.1/1dc23

LC record available at https://lccn.loc.gov/2019046745

ISBN:978-1-63369-758-4

eISBN: 978-1-63369-759-1

The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48-1992.

To the men and women in the arena

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

THEODORE ROOSEVELT

We need to out-innovate, out-educate, and out-build the rest of the world.

BARACK OBAMA

Contents

Introduction

Beyond Silicon Valley

Xavier Helgesen was troubled. He had just returned to his home base of Arusha, Tanzania, after weeks spent pitching Zola, his startup, to Silicon Valley investors. It was 2014, two years into the journey, and Zola already had thousands of paying customers and a large potential market. But Xavier had secured only a fraction of the capital that a pedestrian San Francisco startup might expect to raise in months.

Xavier had co-founded Zola with Erica Mackey and Joshua Pierce to tackle a seemingly intractable problem: eight hundred million people in Africa live offgrid and are vulnerable to systematic disadvantages resulting from a lack of electricity. These hardships include respiratory health problems from kerosene smoke inhalation, lower educational attainment due to limited light sources, and the inability to plug in mobile phones and thereby access the opportunities of the digital world.

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