Start Ups Are Sexy

Entrepreneurship is alluring. The lone cowboy on their own taking on the big bad world. I notice lately people are talking a lot more about start ups. This isn’t a surprise to anyone in Silicon Valley where the idle chatter at dinner, soccer games, cocktail parties, and the pool is about the latest start up idea. It’s ingrained in their culture and like Martha says, “that’s a good thing”. By the way, if you go to Iowa, don’t say “start up”. It has a bad connotation. Say, “new company”.

That’s not the case in Chicago, yet. It’s starting to happen more and more though. Today I went to the Chicagoland Entrepreneurial Center 2012 Forecast. It was well worth my time. Some really great speakers, and some nice energy in the room. Kevin Willer has done a great job of reconstituting the CEC into what it should be.

A lot of things were talked about, but I want to highlight a few. Kevin said all the pieces are in place for Chicago to take off as an entrepreneurial center. He’s right. Think about this:

1. The human capital is here. We have innovative people transforming ideas into companies.
2. There are several world class universities within a 3 hour drive of Chicago.
3. The financial capital has formed, and is continuing to form to invest in companies. Supply begets demand. Supply side economics works!
4. There are angel groups that are active. Mine did 8 deals last year, some were follow on investments.
5. The social capital is forming here. State and local governments, and corporations are supporting the ecosystem.
6. There are great ad hoc organizations in Chicago that support entrepreneurship. Hint to the Chicago Economic Club, change your new member form to have a designation for entrepreneur or angel financier!

Plus, we are getting successful exits. All this is great, but Chicago and the midwest can do more. A lot more.

A reporter asked me about the ecosystem and I asked them a question. How come your publication, and the other main publications in Chicago don’t use Ycharts on their website for stock information? They have embeddable, customizable links. They could use them on the web. It’s free, so the cost is right. That’s a classic case that shows a way for a big company to support the start up ecosystem at no cost.

It’s really fun to talk about start ups at cocktail parties because you seem so “current” or avant garde. However, the devil is in the details and we need to quit talking and start patronizing. It’s not easy to create an ecosystem, and no one can do it on their own.

Become a customer. Buy products from them. Are you a small business? Why aren’t you using Fee Fighters? Boutique? How come you aren’t signed up for Noblivity? Are you going to college or are you a college counselor? Recommend Alltuition. It goes on and on. The money you spend, the hit you give them on their website adds, up to profits for the company. It keeps the servers humming and the ecosystem growing.

The ecosystem is here. We have the money. We have the talent that wants to create the next great company. Now it’s time for you to participate too-buy something from them if you can. In many cases, it’s free.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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