Entrepreneurship 2020: A Look Ahead

Heading into a new decade is a time for both reflection and predictions. What have we learned about entrepreneurship? And what do we see as trends moving forward?

2019 marked the tenth summer that MIT’s Martin Trust Center has hosted an accelerator and the eighth year of our formal MIT delta v program. I’ve had the pleasure of leading delta v for the past five years, and I’ve seen tremendous growth during that time. The summer-long bootcamp works with entrepreneurs who enter with an idea for their business and progress to product creation and new venture launch. The program is based on the Disciplined Entrepreneurship framework with the philosophy that entrepreneurship can be taught; you don’t have to be born an entrepreneur.

A Decade of Success at MIT’s delta v Accelerator

We’ve studied the path of the companies coming out of delta v; as of January 2018, 101 teams made up of 316 students had taken part, and a full 75% of these startups were either still in business or had been acquired – far above the average for new ventures. These delta v alumni companies employ more than 500 workers across the globe, and 25% of our teams have ten or more employees. According to figures on Crunchbase, as of November 2019, delta v teams have raised more than $215 million from 375+ investments. One-third of the companies raised at least $1M+, and six teams have exceeded $10M+ in funding rounds.

In the words of one of our board members, Max Faingezicht, “delta v is a driving force of the entrepreneurial ecosystem where you mix talent with motivation to go out and change the world.”

So, what changes do we anticipate in the next decade of entrepreneurship? Some of the broader trends we see are ones reflected in delta v.

A Rise in Women Entrepreneurs is Impacting the Economy

It is a fact that women entrepreneurs are driving economic growth. According to an article in Forbes on 10 Stats that Build the Case for Investing in Women-Led Startups, women were the sole or majority owners of an estimated 12.3 million U.S. businesses at the beginning of 2018, and are starting businesses at a rate of more than 1,800 per day. The number of women-owned companies is growing at a faster rate than all businesses and women of color are driving this. In addition, companies founded by women deliver higher revenue – more than 2 times as much per dollar invested – than those founded by men.  

Four out of every ten businesses in the U.S. are owned by women, according to The Women’s Business Enterprise National Council (WBENC). These businesses tend to be smaller in terms of revenue and employment. In fact, 88% of women-owned businesses generate less than $100,000 in annual revenue, while 1.7% generated more than $1 million in revenue – although both segments are growing.

At MIT’s delta v we see more women taking leadership roles in the startups. With each cohort, we strive for diverse gender and ethnic backgrounds plus a worldwide perspective, and we proactively aim to neutralize gender bias for entrepreneurs. Diverse teams offer a tremendous benefit in terms of networking and help each other solve challenges, supporting our philosophy that diversity fuels innovation. We’ve also seen that the rate of our successful women-led startups is even higher than the delta v average.

Mentorship Lays the Foundation for Entrepreneurial Success

An article in VentureBeat explains that people with access to a mentor are five times more likely to be interested in starting a business than those without a mentor. Mentorship is linked with business success, and business owners who receive three-plus hours of counseling report higher revenues and employment growth rates. The article also states nearly half of women entrepreneurs say one of the top challenges they face is finding a mentor who can direct them to the resources and organizations that can help them launch their businesses. 

At delta v, our Entrepreneurs-in-Residence and board members are built-in mentors for our student teams. Both bring resources and experience to guide the new entrepreneurs on their journey. We also encourage student entrepreneurs to find their voice. This requires mentees to speak up and be active participants in the process. They need to own their narrative, identify what is of value to them, and speak up to find a mentor or sponsor and make that relationship fruitful.

Gen Z’s Vision of Entrepreneurship

Although we work with a lot of Millennials in delta v, it’s interesting to keep an eye on the upcoming generation of entrepreneurs. (Pew Research considers anyone born between 1981 and 1996 a Millennial, and anyone born from 1997 onward is part of Generation Z.)

Gen Z has different priorities and different frames of reference than the entrepreneurs who preceded them. Amazon’s next-day delivery has always been a thing for them. They never went to Blockbuster to rent a movie and social media permeates their lives. As a result, internet-based business models are second nature; “Uberize” is even a verb used to describe a business model. Entrepreneur states that 41% of Gen Z-ers plan to become entrepreneurs.

Interestingly, Millennials are less likely to become entrepreneurs, according to a study from the U.S. Small Business Administration. It revealed that fewer than 4 percent of 30-year-olds are actively engaged in entrepreneurship, compared with 5.4 percent of Generation X-ers and 6.7 percent of Baby Boomers who were entrepreneurs at the same age. Coming of age during a time of recession and burdened with student debt, many Millennials turned to side gigs to make money. I explored the gig economy in my Xconomy article on Necessity vs. Innovation-based Entrepreneurs. Interestingly, necessity entrepreneurship is strongly counter-cyclical – that is, recessions drive necessity-based entrepreneurs to start their businesses.

As each new generation makes its way in the world, it is fascinating to see how they view entrepreneurship and the new types of businesses they create.

What’s Ahead for delta v?

With the data we have gathered on the delta v teams over the past decade, one of our next steps is to develop a more scalable playbook so that we can extend our reach even further. At MIT, we rely on observations, research, and experimentation. Our motto, mens et manus (which translates from Latin to “mind and hand”), is present in everything we do. In entrepreneurship classes and programs, this approach is vital. Our students don’t automatically have a higher success rate; they learn the fundamentals of becoming an entrepreneur hands-on. At the Martin Trust Center, we have integrated the mechanics of new venture creation in curriculum, programming, community support, and we have validated them on a world stage.

As the collective knowledge of entrepreneurship improves, we continue to move forward to meet the needs of the entire entrepreneur. However, like any discovery, it takes several experiments and iterations to fully understand aspects of the problem you are trying to solve. We realize that mental fortitude and self-awareness are crucial to moving forward and are implementing some exciting new programming in this area.

As we prepare to lead entrepreneurs into the next decade, there are some “big rocks” to address. We need to prepare students for financial discussions and mental stamina for the funding process. We need to focus on establishing a culture and nurturing it, supported by our team. A business reflects the character of the founding and growing team, so the journey starts with an individual and builds to a long-term game.

Why Give Back? Reflections from delta v Board Members

At MIT delta v, the capstone educational accelerator for MIT students run by the Martin Trust Center for MIT Entrepreneurship, our board members are a very special part of the entrepreneurial mix. Each summer, the student teams work extremely hard to identify their beachhead market, build the right product, and secure initial customers as they form and grow their startup companies. On a daily basis, they receive mentorship and coaching from the Trust Center staff and the Entrepreneurs in Residence, but the rubber really meets the road when it’s time for the board of directors meetings. The board members bring in their real life, outside perspectives as the teams prepare to formally present their startups at the culmination of the program on Demo Day.

The delta v students live and breathe each detail of their startups every day, and interactions with their board members gives the students a chance to step back, look at the big picture, and convince others of their vision. They must rise to the challenge of communicating their business plan clearly and succinctly. There is a huge opportunity to learn from people on the board, who know a great deal about business fundamentals and have tremendous networks that can help an entrepreneur.

Our board members are incredible! Each of them is assigned to a startup team based on their industry interest, and they dedicate a minimum of 90 minutes per month during the summer to these meetings, not even counting preparation and follow up. The board’s specific role is to evaluate a team’s progress based upon rubrics and metrics focusing on customer and market understanding in month one, product development in month two, and the readiness of the business to launch in month three. In each meeting, the board evaluates how successful the team has been in meeting benchmarks and then awards the team an associated amount of equity-free funding. As a result, both the teams and the members of the board take these meetings very seriously.

But what’s in it for these volunteer board members?

Each of these people are highly successful, incredibly busy business executives, entrepreneurs, faculty, or domain experts. I’m sure each and every one could use a little extra downtime in their lives – especially over the summer – but instead they choose to engage with us at delta v. None do so passively; they come prepared and are tough graders for these student teams. Since delta v is an education accelerator, none of them have an equity stake in the companies they advise.

So why give back? I reached out and asked board members why they chose to do this. Their answers are truly amazing and inspiring.

Why have you chosen to give of your time, talent, and wisdom?

“Entrepreneurship requires a support network. It is almost impossible to do it alone. I have received so much support from the MIT ecosystem (that) I want to do whatever I can to help provide the same support for others in the community.” Adam Blake, entrepreneur and investor, Board Member for Viridis

“To me, the energy that radiates from the MIT community is like no other in the world. The ‘pay-it-forward’ mindset is so intrinsic to the culture at MIT; thus, I feel honored to be able to share anything I have learned so far, which might be helpful to others.” Amanda von Goetz, FERMATA Profiling,
Board Member for
Season Three

“My brain finds all this engaging. The board members and the structure help these [students] move along on their developmental path, which in turn contributes to the world’s ‘good’ business karma.”
Antoinette Russell, Eaton Vance, Board Member for
CaroCare

“I have received a lot of help and encouragement in my career to take on tasks that seemed impossible (sort of like starting a company!), and this is my way of paying it forward.” Chris Zannetos, Covered Security, Board Member for Quantifai

“All the time I invest in it is well spent, for it’s equally inspiring and enriching to hear new ideas, thought processes, and extract so much from all this talented and diverse melting pot.” Jerome Selva, IBM Watson Customer Engagement, Board Member for Quantifai

“Entrepreneurship matters! It drives our society forward and helps us solve the world’s greatest problems. Giving our time and sharing our experience is how we keep the startup fire alive.” Max Faingezicht. Entrepreneur, Board Member for Precavida

“Servant leadership is very important to me – it’s all about enriching the lives of others, building better organizations and ultimately creating a world that is more caring and equitable.” Rita B. Allen, Rita B. Allen Associates, Board Member for CaroCare

With all the worthy causes, why delta v?

“It’s always as much of a learning experience for me to be a part of a team on the ground floor of some amazing ventures. It’s also a wonderful opportunity to network with students in the program, as well as colleagues and business professionals/executives throughout different disciplines and industries within the Boston community.” – Rita B. Allen

 “delta v is the program that I wish existed when I was a student. I believe it epitomizes the ‘manus’ part of the MIT motto ‘mens et manus’ and serves as one of the most important mechanisms for enabling MIT technology and talent to create value for the world.” Adam Blake

“It is an incredible opportunity to connect and reconnect with out-of-this-world alumni from all corners of the MIT community, to problem solve alongside diverse minds, and to continue learning and growing through the experiences of others.” – Amanda von Goetz

“delta v is a driving force of the entrepreneurial ecosystem where you mix talent with motivation to go out and change the world.” Max Faingezicht

What is one thing that you can look back on during this summer’s program that makes you say, “This was worthwhile”?

“The common passion and conviction embodied by the participants – alumni, faculty, and board of directors – to seek ways to make the world a better place.” – Jérôme Selva

“The team I worked with is moving to India to start the company that they worked on. I’d like to think that we helped them to refine their approach over the summer and seeing the team follow through with real action is very gratifying.” – Adam Blake

“To be able to be a part of the launch and initial pilots of CaroCare, a new venture founded by two visionary young women.” – Rita B. Allen

 “I have found the teams to be tremendously open to feedback and re-assessing their assumptions; seeing them not just take our advice on face value, but really evaluating the feedback and exploring whether it should impact their plans. That makes it worthwhile.” – Chris Zannetos

“Seeing the progress of the teams is humbling. The amount of work that happens in just a few weeks gives us a glimpse of what is possible when we are focused and determined.” Max Faingezicht

“The team’s energy, their passion, their pure and unbridled excitement for what they do, is contagious in the best possible way. This is positive energy that reinvigorates and re-inspires you, which you can then take back with you into your own respective spheres.” – Amanda von Goetz

If you could share one piece of advice with students as they launch their startups, what would it be?

“You need to lead. Never forget that pivoting – and communicating the pivots – is an integral component of building.  You cannot build this on your own – you need those teammates – but you also need to lead.” – Antoinette Russell

 “Try to get as far as you can with as little capital as you can before scaling up.” – Adam Blake

“Get physically fit and work as hard as possible to stay that way. Being a founder is not an easy job, and it comes with a pretty hefty amount of stress. For that reason, it is really important that you stay as strong and healthy as possible. Get into ‘fighting shape,’ not just for yourself, but also for your team, and for all of the people who believe in you.” – Amanda von Goetz

“Be intellectually honest about your assumptions and challenge them constantly.” – Chris Zannetos

“Follow your passion, fuel your conviction, focus on outcomes to succeed together! The results will come!” – Jérôme Selva

“It’s always about people. Don’t get lost in the minutia and forget about your team, your customers, your partners, or your investors. In the end, people make up the journey, and that will determine the breadth of your impact.” Max Faingezicht

“Stay humble, honest, paranoid, and ALWAYS hustle.” – Rita B. Allen

One final note …

I’d like to give a big thank you to Martin Trust and his family; without him there would be no platform for delta v. Marty Trust passed away recently, and he will be fondly remembered by all of us at the center that bears his name. To learn more about Marty and his legacy, read this tribute by our Managing Director, Bill Aulet.

MIT delta v 2019 Startups … and a Look Back at How Far We’ve Come!

MIT delta v Demo Day is TODAY, Friday, September 6 at 4:00 pm ET!

This is your chance to meet the next generation of world-changing startups …
If you’re on campus, join us at Kresge Auditorium; please register here. (Doors open at 3:30.) For everyone else, you can join us virtually by watching the Livestream link. You can also follow the Trust Center’s Twitter feed and the #MITdeltav hashtag.

A quick background … MIT delta v is MIT’s student venture accelerator providing a capstone educational opportunity for MIT student entrepreneurs who spend three months in the summer working in preparation to hit escape velocity and launch. Demo Day is the culmination of the program – the biggest day of the year for entrepreneurship on the MIT campus – so get ready to learn about the next wave of MIT startups that are ready to change the world!

Every summer we select the best of the teams that apply – students with an interesting idea or proof-of-concept – and we help them to create impactful, innovation-driven startups. For 2019, 17 teams worked full-time at the Martin Trust Center on MIT’s Cambridge campus, plus 7 teams that worked at the MIT NYC Startup Studio in New York City.

These teams were focused on:

  • Team building, organization development, and dynamics
  • Understanding their target market, customers, and users
  • Learning the mechanics of venture creation (company formation, legal, financial, raising money, and more)

This year’s delta v teams are listed below, with a brief description and the companies’ web sites. At Demo Day, each team will have an opportunity to launch their company to the world via a short intro video followed by a live presentation from the founders. (You can also see more in-depth overviews of the 2019 delta v teams on our website with each team’s Demo Day presentation shared on our website after the event.)

delta v startups – 2019 cohort

Abound
Early learning, without the screens https://aboundparenting.com/
Hardworkers
A digital community for working-class Americans hard-workers.com  
Ocular Technologies
Diagnostics at the speed of sight
www.ocular-tech.com  
Acoustic Wells
Intelligent IoT for the oil and gas market
www.acoustic-wells.com
Haystack Ag
Empowering a new generation of farmers www.haystackag.com
Precavida
One-stop shop healthcare platform with a personalized navigator www.precavida.com.br  
Alpaca Technology, Inc. Helping people find their homes www.rentalpaca.com  
Haystack Health Intelligent chronic disease management platform https://www.haystack.health/  

Quantifai
We scale low-touch customer success with machine learning www.quantif.ai
Atem Helping people breathe easy https://www.getatem.us/  

Insanirator
Solving urban sanitation, now https://www.insanirator.com/  
Season Three
Boots for Humans www.seasonthree.com  
auggi
Building AI technology for better gut health management www.auggi.ai  
Live Sports Markets Fantasy sports shouldn’t end when the game begins www.livesportsmarkets.com SirMixABot
Preferred drinks, preferred location https://www.sirmixabot.com/  
CaroCare
Personalized, on-demand care for new parents and their babies www.carocareco.com  
Lynx
Explore the city in a new way!
www.lynxsharing.com
Spatio Metrics
Enabling a future in which every building makes us healthier www.spatiometrics.com

Easel
Flexible Childcare, because life happens!
easel.care  

Mantle Biotech
Extreme biology, extreme impact http://mantlebiotech.com/  
TireTutor
Buying tires made easy https://tiretutor.co/    
Elemen Skin care so personalized that it evolves with you www.skinelemen.com   Nextiles Smart apparel for superior workout www.nextiles.tech    
Viridis
Enabling financial inclusion through affordable and scalable data solutions www.viridisrs.com  

As our 2019 teams have been preparing for Demo Day, I’ve been reflecting on my past five years as a leader of the program, and my current role as Executive Director of delta v. The program has evolved and changed during that time, and I believe it has gotten stronger each year.

My reflections on five years with delta v

My plan for the summer of 2015 was to take some time off, enjoy a little rest and relaxation, and figure out the next chapter of my life after serving as an IBM executive and completing my doctorate degree. I learned about MIT’s Martin Trust Center for MIT Entrepreneurship, which was a place where I could see ultimately merging two of my passions – education and entrepreneurship. That initial phone call from Bill Aulet, the Center’s Managing Director, meant my relaxing summer plans were ruined!

Bill talked to me about this accelerator program he had started and how he needed someone to run it for the summer. I had never met Bill, but his passion, energy, and approach to entrepreneurship was in sync with my experience, and his excitement was contagious – so I signed on for summer 2015.

Over the years, the program name has changed.

We’ve gone from the Beehive, to FSA, then GFSA, to delta v, a name that literally means a “change in velocity.” We believe delta v truly captures what happens to these students when they join us for MIT’s accelerator program. The venue for Demo Day at MIT has also changed as we keep growing and more people want to come and be the first to meet our teams!

We’ve experienced geographical expansion as well. After initially taking the Demo Day show on the road with invitation-only events in New York City and Silicon Valley/San Francisco, we’ve now completed the third successful year of the MIT NYC Startup Studio – a separate cohort run by Carly Chase. (Watch this NYC Startup Studio video for a quick overview.)

The teams are amazing, which has been a constant through the five years.  

Many teams from my first year (Sandymount, Woobo, Khethworks, Humon, Ori Systems, VS Particle, and Spyce) are still going strong and even growing by leaps and bounds. Each year we see delta v startups become successful; they gain funding, win awards, even get acquired.

Feedback from our students each year has helped shape the program along they way. They’ve let us know how they want to learn, what is valuable to them, and what is different from what they learn in their classes. The initial feedback was that delta v was too curriculum-based, and since MIT had a lot of entrepreneurship course work that students had previously taken, we pivoted and began bringing in outside subject matter expert speakers plus added the support of multiple Entrepreneurs-in-Residence (EIRs). The hands-on, experiential learning at delta v is what differentiates these successful startups.

Our board members are incredible.

The delta v teams are guided along the way by a mock board of directors. The board is made up of heavy hitters – business executives, entrepreneurs, faculty, and domain experts – who give generously of their time and talents. When I started in 2015, I reached into my community, particularly with The Boston Club and the Society of Women Engineers to increase the diversity and technical expertise on our boards.

We also familiarized the boards with our rubric, and the Disciplined Entrepreneurship vocabulary that is so central to our everyday discussions. Last year was the first where we added delta v alums to the board, allowing current teams to learn from their peers who had gone through the same process.

We’re constantly improving our storytelling.

The best startup idea in the world will fall flat if you can’t explain it effectively. Each year, we realize more and more how communication – within delta v, with the board members, and ultimately at launch – is just as essential as a team defining its target market or raising funds. This year we used more video, put a greater emphasis on storytelling for Demo Day, and introduced Entrepreneurship Confidence and Communication as part of our program.

We have fantastic stories to tell and inspiring businesses to launch. Tune in to Demo Day 2019!

It’s a Wrap: MIT’s Educational Accelerator Demo Day 2016!

mit-gfsa-demo-16

Congratulations to all of the teams that presented at our Educational Accelerator Demo Day! We kicked off MIT’s campus-wide t=0 celebration of entrepreneurship and innovation, which will continue through September 18.

If you couldn’t join us, this post gives a quick recap; and you can catch all of the presentations on video as well. For an overview of the companies presented, check out this BostonInno article – “These are the 17 Startups MIT Kept Hush-Hush this Summer.”

First of all, in my last post I had let you know that our Global Founders’ Skills Accelerator (GFSA) would be changing its name. We are now MIT’s delta v accelerator.  Why the name change? The derivative of velocity is acceleration!  Hence, the MIT Acceleration Program delta v.

delta v literally means a change in velocity, and we believe this truly captures what happens to these students when they join us for MIT’s accelerator program.

The delta v Demo Day is focused on MIT students, and students filled the auditorium and were even sitting in the aisles. Our Managing Director Bill Aulet kicked of the program and explained how these startups have reached “escape velocity” and have been “kicked out of the house” so to speak.

Bill was followed by keynote speaker Dharmesh Shah, the CTO of HubSpot and an MIT grad. He talked about increasing the success for these student startups – how to get started, why you should avoid stealth mode, why speed matters, how to find a co-founder, attract amazing people, and give yourself crazy ambitious goals. He tells students to take advantage of all your classes to hone your skills… and he says he has never heard of a single entrepreneur who regrets taking a shot at a startup (even if it failed).

Governor Charlie Baker also joined us at Demo Day, and spoke about the amount of wizardry that comes out of MIT and the staggering contribution that MIT has made to the Commonwealth of Massachusetts, the country and the world.

It was then on to the student presentations. Fourteen startups made it through to Demo Day, and their company ideas covered topics from mental health to virtual reality.  We saw compelling videos from farmers whose lives have been changed because of MIT students, transportation in Rwanda and Mexico that will reduce costs for carriers, a way to make freight transportation more efficient and increase the income of truck drivers, and several ways to improve the environment.  We learned about innovations could change the lives of families dealing with cancer treatment and students in Africa.

Interested in learning more? Check out the companies that presented. They are listed below, in alphabetical order, along with links to their websites.  And, if you have a bit more time, check out the teams presenting in our Demo Day video recording.

Alfie
Armoire
Deepstream
dot Learn
Emerald
Factory Shop
FleteYa
Hive Maritime
kiron
Kumwe Logistics
Lean on Me
Leuko Labs
perch
Rendever
ricult
Solstice Initiative

I think everyone who attended Demo Day was inspired and impressed by the power of entrepreneurship at MIT. Now, we’re onward and upward, with t=0 this week with a full schedule of activities every day. Later this month, the delta v teams will be heading to New York City and San Francisco to meet with alumni and investors.

We hope you are inspired too!