This has been a persistent question since I started my Entrepreneur in Residence gig at Andreessen Horowitz, and one that I have had to both figure out for myself and explain over and over again. If you explicitly search for it, you can find an occasional article or Quora thread on the topic – but as people rightfully point out in those, it is a rather vague role that varies in each case and from VC firm to firm. So, once-and-for-all, here’s what it’s been like for me so far.
This is the final post of 3 contemplating how Silicon Valley and European tech scenes could get closer to each other. The series are an expansion of a short speech I gave at Slush conference in November 2013 – video of which should be online soon. I believe this topic calls for more discussion and thinking along than 15 one-directional minutes on conference stage allowed. To get up to speed, read Part 1 and Part 2 here.
After looking at the widening gap between European and Silicon Valley tech scenes and establishing that the usual first priority, raising money from the other side might not be the most feasible way to fix this – the questions becomes: how can we build more non-financial ties between our scenes?
As US is not paying close attention I believe that the key to the solution is on the European side. And to succeed in driving this change in relationships, Europe needs a mindset shift.
This post is 2nd of 3 discussing ways Silicon Valley and European tech scene could get closer to each other. The series are an expansion of a short speech I gave at Slush conference in November 2013 – video of which should be online soon. I believe this topic calls for more discussion and thinking along than 15 one-directional minutes on conference stage. As an intro, see Part 1 here.
Europe’s tech scene is buzzing. Those of us who have been on both sides can attest that the people innovating there, business models attempted and technologies applied in Europe are very much aligned with what’s happening in Silicon Valley, despite of the separation. So it would make sense to link up more, right?
As a healthy sanity check before jumping to that conclusion, let us ask: why would we need stronger ties? Looking from Europe, that is.
This post is 1st of 3 in the series aimed at discussing ways Silicon Valley and European tech scenes could contribute to and gain more from each other. The series are an expansion of a short speech I gave at Slush conference in November 2013 (video of which should be online soon) but I believe this topic is calls for more discussion and thinking along than 15 one-directional minutes on conference stage.
If you were to sit in the audience of any European tech summit these days you get soaked in action around you. Would it be TechCrunch Disrupt Europe, LeWeb, or the raising 5000-attendee rocket of the region, Slush in the November darkness of Helsinki – there is no arguing that the European startup scene is in its most bustling, vibrant shape ever.
Yet, a lot of this exciting renaissance seems still to be constrained to the Old World continent.
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Thinking about the linkages between US and European tech investment and startup scenes ahead of the Slush conference in 10 days, I found an interesting paper: Deal or No Deal: The Growth of International Venture Capital Investment (PDF here) by Pandya and Leblang of University of Virginia.
Recommended reading in full for anyone who cares about intercontinental talent and capital flows, but I just wanted to share this fascinating graph:
You can often hear how foreign investments and emigration are discussed as linearly opposite ends of a see-saw: if you get more of cash invested into your country from abroad your skilled talent can stay home and build companies there as opposed to seeking interesting challenges abroad. What the authors show here is rather a two-way street, another re-inforcing cycle where the movement of talented people will eventually build into increased cross-border investment of capital:
We find that US VC firms invest more frequently in countries that have large populations of skilled migrants residing in the US. In stark contrast to existing FDI research, we find that recipient countries political institutions have limited influence over the volume of venture capital deals.
August 1st marked the end of my 8+ year journey with Skype, after returning from an academic break at Stanford. As expected, the top incoming question following my departure tweet has been “what’s next” – so let me share a bit more.
Stanford GSB Sloan Study Notes, Week 9 (39), Spring quarter
The Memorial Day week was the only one compressed to four long days this quarter, with the main theme on finalizing group projects. We submitted an operations case on optimizing pre-season parka ordering from China by a ski-wear fashion brand. And are relatively ready to present in the coming short and very last class week: a lightly market-tested business idea for a social network analytics product, a convincing churn and package upgrade/downgrade prediction model for an APAC telco and a sales organization audit for a Silicon Valley semiconductor manufacturer.
I still need to finish ~170 pages of a book on Shackelton’s Antarctic voyage in 1915 and write an essay on entrepreneurship learnings by Tuesday morning. It is a refreshingly different read of the startup era before smartphones and app stores, but got somewhat derailed yesterday with a classic “oh-so-Stanford” Saturday: an Indian Breakfast, Brazilian churrascaria lunch, meat-sweating run in the +35C weather and Singaporean dinner party well beyond sunset. Priorities, priorities…
As my friend Osamu put it last week: we have more parties than classes left until graduation. Just five of the latter on my calendar this coming Monday-Tuesday…
Covered in this issue:
- Stepping up the network analysis tooling: R
- Causal effects and regression discontinuity
- Sales org building war stories from a startup and a VP panel
- Building a bakery to Starbucks exit
- Guests from: TrunkClub, Salesforce, Quantum, LinkedIn, La Boulange/Starbucks, SunRun
Stanford GSB Sloan Study Notes, Week 3 (33), Spring quarter
Head down in two inches of readings for this week and a fresh flow of first written project deadlines, like a two-degrees-deep analysis of your friends and advisors social graph or a set of regressions to be run on profitability data of a bank who has no clue if there is any connection between the demographics and profitability of their customers.
For a little different entertainment in the Sales Orgs class we are running a simulation game where you need to manage yourself through the pipeline as a sales rep of a medical devices company. Four virtual “years” in four weeks. After a miserable first year (I hit merely about a quarter of my quota – should have read the manual before I tried to just figure the game mechanics out for 2 “quarters”) I look forward to the Tuesday class from a much more comfortable position after “year” 2. I guess the hours spent as a teen with Civilization and the likes can sometimes pay off?
GSB hosted a fun networking event this week called “Fewer than 300” – bringing people in from over 30 companies who are about to grow out of their startup phase (but are yet to break 300 employees), but have raised money and shown traction and still are just burning of enthusiasm about what they are doing. Think of the likes of Uber or Nest or Visual.ly. Good people and good conversations.
Covered in this issue:
- Analysing network centrality measures and deriving composite relationships from simple a matrix
- Using Bass diffusion models for new product adoption predictions
- Handling variability in processes (from job shops to continuous flow)
- Economics of selling SaaS subscriptions and merging sales teams after M&A
- More team-first entrepreneurial models
- History of Sloan Program at Stanford
- Data Science learnings from LinkedIn and other Greylock companies
- Guests: Vinod Khosla, Mark Leslie & part of Veritas exec team, Corey Leibow, Eric Botto, George Parker, DJ Patil