Incubator Archives

The world needs more 007s

When you look for successful companies who have somewhere more than 25-50 employees, you will find about 400,000 companies. And when we assume about 6 billion adults you will come to 0.007% of people founding, co-founding and running those companies. Entrepreneurs are clearly a extremely rare minority. Now – the number is obviously dominated by the developed nations who have a culture of business builders. One may think also a much better education system. But the argument of education is not quite holding. Most of the successful entrepreneurs actually quit school before graduation and just started their company. Many of today’s or even yesterday’s entrepreneurs did not come from a wealthy family or from a family with entrepreneurial background or had a great education. Researching the background of hundreds of entrepreneurs we worked with made it pretty clear: The only pattern is no pattern.

How Many More Hidden Gems are there?

Now the most interesting question arises: How many of those hidden gems do we have all over Africa, Asia, Latin America, Eastern Europe and the rest of the world?

At the World Innovations Forum we are looking especially for that minority of often laughed at, crazy people with amazing ideas that seem to be completely unrealistic. We are not necessarily looking for people who want to start a company but also those who would love to become a co-founder or work in a startup like environment in a corporate innovation lab.

Test Your Entrepreneurial DNA

If you like to know whether you maybe a good entrepreneur or a good co-founder or somebody living your entrepreneurial dream in a corporate innovation lab, do your your test. This project is not funded by any corporation. Therefor we need to fund it ourselves and ask for $2.50 to contribute to the WIForum organization. You will win regardless. If you know you are an entrepreneur, great, if you know you are probably not, you can safe time and money from trying and if you still want to try – you actually should anyway.

After you completed the test we will review it and let you know. Those who appear to be especially talented will be invited to an interview to possibly join the WIForum Entrepreneurum, a special entrepreneurship preparation program that may lead to an entry into the Innopreneurs Academy.

Join the Innopreneurs Academy

The Innopreneurs Academy will work with participants deeply on innovation design, creating ground breaking innovation and building their company within a six month period. The developed world was built on the shoulders of a handful of amazing entrepreneurs. We see no reason to experience the same in all nations. The only difference we are looking at: Don’t make the same mistakes the old world did and grow monster companies that can no longer innovate. Instead build highly specialized highly connected enterprises where many other enterprises deliver specialized parts or services. Economies with a small number of monster organizations are doomed to fail, while highly agile economies with lots of innovative companies collaborating show the most stable societies.

NOTE: this concept may look completely contradicting the idea of inclusion. But in the case of entrepreneurship we cannot circumvent mother nature. There are only so many talents on earth – but we want to include all of them. Democratizing entrepreneurship.

I’ve been asked so many times that I felt it would be good to write a blog post.
Obviously there are many consulting services, software developer and others who could built your MVP in a rather short period of time. Then you get what you asked for and can enter the market. If customers report bugs, you go back to your developer. And you hire them again and again – or you ignore the requests for now until you get more funding. It sounds totally logical. However reality tells a very different story:

Your MVP is a barebone minimum solution. It is supposed to be up rather quickly and your customers tell you what they experience, what they like and what they don’t like. If you have a CTO, it is not just taking the bug reports but carefully listening to each request. Each discussion with a customer contains a wealth of insights about how they use the product, what key benefits they have or want to have, how it is or should be integrated in other technologies and so forth. From that moment on you get probably daily requests for changes and more important lots of tiny little cool ideas that your developer or developer team can implement. I remember we received 1,400 feature requests, update requests and bugs within the first three month. You can’t pay your outsourcing organization to handle that.

Moreover our CTO saw what directions this will take and prepared the platform a bit differently. In the first six months, he was involved in almost any customer discussion. He needed to know and feel where this is going. More importantly he sensed functionalities based on the customer stories that led to functionalities they didn’t dear to ask but made a lot of sense and was no problem to do. The CTO is the one person who shapes the product, the future technology decisions and the technological direction of the company like nobody else. This cannot be outsourced – not at reasonable cost.

On top of all, the CTO does not try to build an MVP that meets the specification you gave them. The CTO is building the foundation of a solution that will change the world in the future and crafts an MVP that acts like the first cell of an organism.

Early Adopter Customer

If you have a sensational new application, you won’t get typical customers. Those ask you who else is using it, how many customers you have, are you funded and so forth. And so you have to look for early adopters. Thos premium customers are willing to check out new things because also they want to lead their market. BUt if you tell them that the technology was done by a freelancer, outsources, service organization or a like they get less motivated. They are taking a risk, dealing with a ne technology – but far less so when there is no CTO.

With all that said, there should be no reason to hire a consultant, rather than involving a top notch technologist.

Hire or Co-Founder?

first: as a startup you just cannot hire a top performing developer. No matter what you offer to pay. Therefore attract them as co-founder. Yes, they are hard to find and you want to start. But there is no shortcut what so ever. If that technology is a core element and differentiator of your business, than the person that builds it and develops it further over the next 10 years should have a seat on the founders bench.

As an investor

I would never invest in a company that outsources their development. It’s too clear that there is no technological focus or the technology doesn’t play any important role. It also shows that the founder could not attract any co-founder and I must ask: can they attract customers?

All in all the number of reasons for a co-founder CTO outweigh the short term benefit of getting a MVP slapped together for a demo.

Are You a 007?