Tag Archives: leadership

Giving Thanks for the Essence of Entrepreneurship

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Recently, I spent time in Zurich, Munich and Milan meeting with MIT alumni, in the hopes of gaining philanthropic support for the programs run by the Martin Trust Center for MIT Entrepreneurship. As I talked with our alumni in these cities, it made me think of the Entrepreneurial Philanthropy practice put forward by lifelong entrepreneur and philanthropist, Naveen Jain. His promise is that philanthropy is at its best when it is founded on entrepreneurial zest and agility.

Naveen Jain states in a Huffington Post article, “True philanthropy requires a disruptive mindset, innovative thinking, and philosophy driven by entrepreneurial insights and creative opportunities. To disrupt the status quo, drive philanthropy at tremendous scale, and develop long-term economic vitality through giving, we must apply the same models for success in our philanthropic endeavors as we do in business.” I could not agree more.

MIT students are fortunate because they are encouraged to work on problems, projects, and ventures that will positively impact the world. During their journey, they are provided support through tailored classes, mentorship, access to Makerspaces, extracurricular programming, and competitions that offer opportunities for the application of learning and assessments. MIT alumni play a significant role in student support whether it is through mentoring, episodic coaching, programmatic support, introductions, or financial support.

Martin trust centerThe Martin Trust Center for MIT Entrepreneurship continuously finds new ways to encourage, advise, and champion aspiring entrepreneurs as they take new ventures from idea to reality. The Center’s goals are high, as are its needs; it provides the most innovative opportunities for learning and expands MIT’s global entrepreneurship ecosystem, but it depends on the support of philanthropic partners.

However, as I visited these cities, I had to ask myself – how do you raise funds to sustain entrepreneurship programs in a global environment that does not embrace it as a serious area of study, or in cultures where education is not necessarily the place you would direct your philanthropic funds, or where risk is not rewarded? Although entrepreneurship is part of our culture of innovation here in the States, it is viewed through a different lens in different cultures, as I learned in the Nordics earlier this year.

MIT alums think broadly. The people with whom I spoke on this trip are thinking about how to attract talent, innovate companies, inspire creativity – and they want out-of-the-box ideas for their communities. We had some spirited debates during our discussions as to the benefits of entrepreneurship to their particular ecosystems. The most common misconception was that entrepreneurship is about embracing repeated failure. However, I would argue that at the Trust Center, we try to mentor and guide students so that they are not repeating the failure of others. Our measure of success is that the student learns the skills to start their own businesses and that they self-identify as entrepreneurs. This lets them take risks while they’re here – ahead of the VC stage.

When I started in business out of college, it was a different time. Companies like Honeywell, IBM, HP, etc. all had training programs that cross-trained new graduates. That experience is not as prevalent today, and startups are a great way to get hands-on experience across multiple disciplines. As my expertise moved from engineering to manufacturing to service to sales operations to logistics to senior leadership etc. there mitsealwere always a willing set of mentors who helped me at critical points – for this, I am very thankful. At MIT, we teach a Disciplined Entrepreneurship approach – an approach I have seen work in practice. We have over 60 courses that provide the MIT “mens et manus” approach of mind and hand. Like my apprentice programs years ago, MIT offers hands-on programming to help students understand what working in a new business venture is like and teaches skills of finance, legal, marketing, sales, etc. with industry experience in biotech, healthcare, energy, fin-tech, and other industries.

For many of the alumni, these programs did not exist when they were at MIT. However, in speaking with them, they are confident in the educational and hands-on experiences that are available now to MIT students. Several alums said they would love to go back and be a student now. (Wouldn’t we all!?) Although the world is a different place now than even five years ago, the Trust Center keeps abreast of these changes as evidenced by the success of our MIT delta v teams. Our students are the pulse of change in the world.

Supporting an institution like MIT – and centers such as the Martin Trust Center that provide entrepreneurial programming – creates a workforce that has cross-disciplinary experience.

Demand for delta v has grown, while our budget has not increased for the program. We need funds to support these deserving student teams. As our success becomes public, so does the demand for our product, and increased resources enable us to teach others to become entrepreneurs wherever they are located. We cannot do it without a community and the philanthropy that will plant the seeds, so our students can positively impact the world.

 

How the MIT Ecosystem is Supporting Entrepreneurs

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0044_8788 copyAnother MIT delta v Demo Day is in the books! Our 2018 cohort was the biggest yet, with 25 teams presenting, and for the first time, we had a program in New York City in addition to our Cambridge team.

With all our preparation for Demo Day and the excitement of the day itself, sometimes it’s tough to step back and look at the big picture – but, it’s important. In this case, the big picture is the MIT ecosystem for entrepreneurs, and how it works to support our startups.

As our Managing Director Bill Aulet said in his introductory presentation, the mission of MIT is that we DO things, and that’s what this is all about. We are driven to bring knowledge to bear on the world’s great challenges. Our entrepreneurship program at delta v is about trying to solve some of these great challenges – and we do it by creating an environment and an ecosystem where these entrepreneurs can thrive and flourish.

An Inspiring Environment for Diverse Ideas

Delta v is the most inspiring environment I can think of for an entrepreneur. There’s an energy here that propels each of our teams forward. For 90 days, the delta v teams eat, sleep, and breathe their companies. They are guided through a process that makes them really think through the realities of starting an actual business. It’s not just chasing a cool idea – the fundamentals and bedrock of the business must be in place, including a solid business plan, working collaboratively with a board of directors, and testing their concepts with customers. The mentors, Entrepreneurs-in-Residence, our board of directors and the customer community are all part of the ecosystem.

This year, I was really impressed by the diverse industries in which the students worked. We had students with business ideas in crypto-currency, social, agriculture, mental health, financial, construction. And despite these wildly different spaces, the students still managed to find common ground and problem solve together. Three big themes stood out this year:

  • Inclusion – such as financial and societal inclusion
  • Human isolation – people are more connected today, but there is a lack of real relationships
  • Machine learning & AI – technologies with strong MIT foundations

A Strong Entrepreneurial Community

At delta v, we realize that a startup is only as strong as its community. So, we really focused on building more support systems for our students. We brought back delta v alums, like our keynote Spyce, a 2015 delta v alum who just closed on a $21 million series A round. We did consistent one-on-one counseling with founders and hosted outside advisors and speakers to provide novel perspectives for our students. In addition, this area provides an unparalleled innovation ecosystem access. The MIT campus and Kendall Square area is the densest innovation cluster in the world, with its concentration of startups, high-tech companies, and venture capital firms. This enriches the lives of our student entrepreneurs and expands the ecosystem where our they can grow and learn.

Personal Development as Leaders

A lot of this summer was about personal development for our entrepreneurs. I never worry about these students when it comes to technology. But it takes intentional entrepreneurship education – through many different teaching methods and technologies – to help create leaders that can rise to the challenge of starting a business. That’s something we hope to continue to grow at delta v in the coming years. Because really, anyone can raise money for their startup. But it takes better leaders and teams to know how to use that money and tech knowledge more effectively to continue generating revenue and try to solve some of the world’s great challenges.

If you want to get the full experience (and have 3+ hours), watch the video of the entire Boston Demo Day 2018 program:

To learn a little about each of the teams and view the startup videos (about 5 minutes each).

Also, see what BostInno and the MIT Sloan Newsroom have to say about Demo Day 2018!

 

How Imposter Syndrome Affects Our Best and Brightest

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psychology-1957264_1920I heard a statistic the other day that 70% of people admit to feeling like an impostor at some point in their lives.* I work with students at MIT – one of the most prestigious universities in the world – and although it attracts the best and the brightest, college students at institutions like this are even more prone to suffering from insecurity.

A former student and I were discussing her experience at MIT and she said she completed her degree in three years – not because she was smarter than the other students, but because she felt someone would find out she didn’t belong there. Wow. And it continued when she went to Harvard Business School and felt the same insecurities. Today, this woman is a successful entrepreneur, but taking risks has never come easy for her.

Imposter Syndrome is a real thing. Although it is not an official clinical diagnosis, Scientific American classifies it as “a pervasive feeling of self-doubt, insecurity, or fraudulence despite often overwhelming evidence to the contrary. It strikes smart, successful individuals. It often rears its head after an especially notable accomplishment, like admission to a prestigious university, public acclaim, winning an award, or earning a promotion.” Interestingly, minorities and women are hit the hardest. Facebook COO Sheryl Sandberg, Oscar-winning actress and Harvard alum Natalie Portman, and Starbucks CEO Howard Shultz all admit that they suffer from Imposter Syndrome and share their stories here.

Fake It Until You Make It

Those who suffer from Imposter Syndrome will probably shudder when they hear the words “fake it until you make it,” but sometimes this can be the best approach. For instance, there is a lot of research that says men will apply for a job when they typically meet only 60% of the qualifications, but women only apply if they meet 100%. This is the type of “fake it until you make it” approach that gives you a chance to level the playing field and prove yourself. The most prominent fake role, in my opinion, is parenting. You may have babysat for children and thought, “I can do this.” However, it is not until you have 100% responsibility for a child that you are aware that you are faking it. Yet we adapt, learn from our mistakes, and become better parents.

Deep Stealth Mode

My boss often talks about his first startup company being in a very “deep stealth mode” – meaning it failed. It failed, but is he a failure? Of course not. Today, Bill Aulet heads up the Martin Trust Center for MIT Entrepreneurship and he’s an accomplished professor, speaker, and author. He learned that each risk he took – and continues to take – makes him stronger. The book Antifragile by Nassim Nicholas Taleb discusses that although fragile things break under stress, there’s an entire class of other things that don’t simply resist stress, but actually grow, strengthen, or otherwise gain from unforeseen and otherwise unwelcome stimuli. There are some benefits from stress, disorder, volatility, and turmoil that may allow us to not only survive but flourish.

If you fail at a job what is the worst that can happen? You may get fired. Yet, the sun does come up the next morning. You figure out what happened, and hopefully, what you’ve learned. Then you can address the problem and try again. The key is the reflection and the learning but also taking the risk to try again. So why do most entrepreneurs fail a few times before they get it right? It may be that they are doing things that have never been done before. In some instances, they may not have the necessary skills. But the question is, can they learn or surround themselves with the right people to move forward?

Advice for Overcoming Imposter Syndrome

Going back to the story of my former MIT student; she looked to her mentors when she was faced with a decision to go out on her own and start a business. I could see that it was a positive step for her and knew she would do well. She struggled to make the decision, but we helped her through the process and assured her of her strengths. Ultimately, the decision was her own, and the leap was significant. She now has a thriving business and influences many people with the work she does every day. So what did we tell her?

  1. Be open to the possibilities.
  2. Find joy in what you do.
  3. Be open to change and learn.
  4. Learn from both failure and success, and let them make you stronger.
  5. Be a disciplined entrepreneur.
  6. Surround yourself with a board of advisors.
  7. Enjoy life!

The Scientific American article suggests two of the ways to overcome Imposter Syndrome are to choose a mentor (the way she chose to work with the Entrepreneurs in Residence at the Trust Center) or become a mentor. Becoming a mentor lets you gain perspective, share what you know, and nurture others.

I have grown through the ranks at large companies, completed entrepreneurial stints at two startups, and now I’m in education, guiding new entrepreneurs. Each move was, in my opinion, a risk with challenges, new people, and new technology. However, if you are lucky, you will have a long life with lots of options. I can tell you first hand it is much more meaningful to want to learn, from mistakes or circumstances, but it’s also important to know that even if I fail … I can start again.

*Statistic attributed to the International Journal of Behavioral Science

The delta v Culture: Six Entrepreneurial Essentials at MIT

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delta-v-2017-On June 12, we’ll open the doors to this summer’s delta v cohort, beginning an intensive 3-month entrepreneurial “boot camp” for MIT student entrepreneurs. This post looks at the culture of delta v and how this environment helps to grow entrepreneurs.

The saying “culture eats strategy for breakfast” is attributed to management guru Peter Drucker and was made famous by Mark Fields, president at Ford Motor Company. It speaks to how vital culture is in an organizational setting. At MIT, Professor Bill Aulet has written an article that explains why, as an organization, we believe culture is essential for entrepreneurs.

For delta v, MIT’s capstone student venture accelerator, we create a culture of entrepreneurship that is all about risk-taking and the freedom to make mistakes. Although delta v operates out of a cool space with a startup feel, it’s about more than the free coffee and ramen noodles or the walls you can write on. The vibe of delta v is different because of the people inside it and the meaningful work they do. If you’re one of the fortunate student teams accepted into the summer-long “entrepreneurship boot camp,” you’ll be surrounded by smart people all working on new companies with big goals. During the summer, the teams will be working in small cohorts in similar fields and will also participate in being part of a greater cohort, where a true sense of teamwork and collaboration is established.

The staff at delta v know they are assisting students who are making a positive impact in the world. In this experimental culture, failure is expected because students are encouraged to take risks and stretch to their full potential. This is a safe zone to try new ideas and the disciplined entrepreneurship framework provides a basis and common language for the staff to work with students. The framework isn’t a hard and fast set of rules, but it’s more like a common operating system that guides all of the teams.

As part of the culture of delta v, we also bring in the outside community to meet and assess the student teams from an educational perspective – not to look for deal flow but to participate in the students’ learning experience. A key milestone for MIT delta v teams is meeting with their board of directors and gaining valuable input from these advisors. This year we are also starting a delta v cohort in New York City to expose students to a network that is relevant for their company, for example, fintech, real estate, fashion, media, the arts – but, again, with a common operating system. As students gain experiences throughout the summer, they also build trust and respect within the greater Boston and New York communities that will be important as they launch their companies.

Six elements of the delta v culture are shaped by our principles at the Martin Trust Center for MIT Entrepreneurship:

  • MIT Standard of Excellence and Rigor – The delta v teams receive not only the highest quality education, but also the highest quality advising, and practical experiences as well.
  • Collaboration – By partnering with various departments and centers within MIT and the greater community these startups will be prepared to collaborate for the success of their businesses.
  • Diversity – Encouraging a wide variety of perspectives, people, and ways of doing things mean that new ideas and concepts are examined from many angles and the diverse contributions make each company stronger.
  • Experimentation – delta v is the place to “fail forward” and try everything in a supportive environment.
  • Honest Broker – Since MIT does not take a financial stake in the delta v startups, our focus is solely on nurturing and assisting the education of the entrepreneur.
  • Mens et Manus – MIT’s motto, “mind and hand,” fuses academic and practitioner perspectives for a well-rounded entrepreneur.

The way the Martin Trust Center shapes the culture within delta v will be reflected by each of the entrepreneurs and their ventures. Good or bad, all our past experiences come into play as we create something new. Sometimes we choose aspects of a culture we want to emulate. Other times, we actively realize that a certain way of doing things is something we want to avoid. Many of the delta v teams will go on to become successful entrepreneurs that help to solve some of the world’s toughest problems. (Read about some of them in the news here.)

We hope that each student and team carries forth the culture of delta v.

 

Why Consistent, Passionate Leadership Makes all the Difference

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Netezza4_halo

I had lunch the other day with a friend and former colleague; he had been the CEO of a successful company that we worked together to build. As usual, we caught up and reminisced, but what struck me about our conversation was our discussion around leadership, and how much truly good leadership contributed to the company’s success, culture, and camaraderie.

He shared that as he visits companies that have been built by previous employees – and staffed by a lot of talent from his previous companies – and he is greeted with such warmth. He said folks tell him that being a part of the company he led was one of the best experiences of their lives. I agreed. We had a great team, a great product, and built a company of significant value that positively impacted customers’ businesses.

He chuckled at my recollection, said he kept emails from his staff telling him how badly things were going, how people disagreed with decisions that were being made, and that working with “so and so” was painful. In hindsight, that is true. So, is it the halo effect, where you remember only the positive and time fades the rest? Or, were we really accomplishing something as a team? I believe it is a bit of both.

Certainly, there were some low points – like when we blew a presentation, a product launch, hired the wrong people and took too long to recognize it, failed a customer, or failed to deliver as a team. We scaled fast but not fast enough, we forecasted sales but sold different models, we worked ridiculous hours. But, at the end of the day, we delivered it together. If we didn’t deliver on a customer commitment, it was “all hands on deck” to get that issue corrected, and that was a core value of the company. However, we also did a lot right. We focused on organic growth, so there was an opportunity to grow and learn. We took risks and learned from what worked and what didn’t.

I also talked to a former colleague who was just 21 when she joined the company. She remembers feeling personally responsible for making customers happy and making the company successful … and, everyone felt that way. If we weren’t passionate about the company, we wouldn’t care so much, and we wouldn’t have told the CEO all the things that we thought were wrong.

As a leader, how do you get employees to think like this? Part of it is to be transparent, celebrate successes, and think ahead to what is next. Communication of both successes and failures is essential, as is laying down the challenge to do better. I remember every day, as I left my office, I saw a sign that read, “Did I move the company forward today?” It was simple, yet meaningful. It was personal for me, and it was personal for others.

We had a mantra of: Performance; Simplicity; and to Be easy to do business with. It was a simple, yet consistent message of expectations – the expectations of our customers (who called us on it), and the expectations of our employees who focused on it internally and externally by communicating in an authentic way (rather than with charts or PowerPoint). This shared set of beliefs and living the culture every day became the guide rails we used to make decisions.

Leadership in building an enterprise is fraught with strife. How you show up everyday matters. It matters how you lead by example through good times and bad, the signals you send to the employees, prospective employees, customers, and investors. It matters what you say, and how you say it. People see how you carry yourself, and how you treat others. The CEO job is lonely, and all paths lead there, so it is vital that CEOs have their support network to provide perspective.

Maybe I have been lucky (or wise) in choosing the companies I have worked with, but I have experienced terrific leadership at a variety of companies, including employees that challenge those leaders to be better, and customers who depend on that. So, at the end of the day, I am pleased to hear that my former CEO is treated well – as he should be. There might be a bit halo effect as we reminisce, but in my experience, creating something special for others creates its own halo.

 

Where are the Hungry Dogs? A Look at Entrepreneurs in the Nordics.

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When you think of an entrepreneur, you probably conjure a picture in your head: a tenacious achiever, a passionate risk-taker – essentially one of the “hungry dogs.” But culturally, this is not a universal characterization.

I was recently invited to Norway to teach an “Innovation Crash Course” workshop to postdocs and PhDs at the Technoport 2018 Deep Tech conference, technoportwhich focused on deep tech and what governments, universities, entrepreneurs, and corporations are doing to speed research from R&D labs to make a real impact on society. I was fortunate enough to spend time with entrepreneurs, potential entrepreneurs, and those supporting entrepreneurship in the Nordics, and the experience taught me quite a lot – including not to filter my view of entrepreneurship with a US-centric lens.

This article in Entrepreneur outlines “7 Traits of Successful Entrepreneurs,” which include tenacity, passion, tolerance of ambiguity, vision, self-belief, flexibility, and rule-breaking. But, it makes me think –are we looking only at entrepreneurship from an American perspective? This post shares my experiences in Norway and my thoughts on how the region’s culture and social policies influence its entrepreneurs.

The Entrepreneurial Scene in the Nordics

Although Americans are known for our entrepreneurial spirit and the “American dream,” Nordic countries are also embracing entrepreneurship. Interestingly, according to The World Bank Economy Rankings, Sweden is ranked #13, Norway #19, and Denmark #34 for ease of starting a business, as compared to the U.S. at #49. (New Zealand is in the #1 slot.)

Oslo, Norway is seen as one of the world’s best startup hubs even though it’s one of the most expensive cities in the world. Entrepreneurs can expect a refreshingly balanced approach to work/life and a great environment to base tech or communication startups. Norway’s startup scene is also starting to blossom in terms of investment, and these articles in Shifter and Medium show how other Nordic countries, specifically Finland and Sweden, are doing particularly well in terms of investments, with Denmark also catching up.

The Problem for Entrepreneurship in Norway

Although there is a welcoming environment, is the drive to be an entrepreneur similar to the U.S.?  An in-depth article in Inc. magazine reports, “The problem for entrepreneurship in Norway is it’s so lucrative to be an employee,” says Lars Kolvereid, Professor at the University of Nordland, who was the lead researcher for the Global Entrepreneurship Monitor in Norway.

In the U.S., about one-quarter of startups are founded by so-called necessity entrepreneurs – people who start companies because they feel they have no good alternative. In Norway, there is less necessity; the number is only 9 percent, third lowest in the world after Switzerland and Denmark, according to the Global Entrepreneurship Monitor.

The social welfare system is quite different there as well. The article explains there are no private schools in Norway; education is public and free, from nursery school through graduate school. In addition, the unemployment rate is low, and, if you are unemployed, there are generous benefits. Every Norwegian trondheim-2068802_1920worker also receives free health insurance in a system that produces longer life expectancy and lower infant mortality rates than in America. At age 67, workers get a government pension of up to 66 percent of their working income.

Zoltan J. Acs, a professor at George Mason University and former chief economist for the Small Business Administration’s Office of Advocacy, summed it up, “The three things we as Americans worry about – education, retirement, and medical expenses – are things that Norwegians don’t worry about.”

Essentially, the wealth and comfort prevalent in Norway and Denmark mean there is less of a “hungry dog phenomenon,” something that was even remarked upon by the people I met with at the Technoport conference. This makes it a challenge to recruit young people to work for startups since they are well compensated in the public sector, don’t have debt, and generally lack incentives to take the risk. In addition, while I was in Denmark I heard that many startups are bought by American companies before they have a chance to make an impact on the Danish economy, so the benefits are not seen by the founding country.

Of course, Norway’s generous social benefits are financed largely from higher taxes, another consideration for entrepreneurs. However, as the Inc. article explains, Norwegian entrepreneurs tend to see taxes as an exchange of cash for services, rather than a burden. All of these factors certainly set a different stage for Nordic entrepreneurs as they consider starting their own businesses.

A Need for Entrepreneurship and Innovation in the Public Sector

I met with MIT alumni in both countries and came away with a better understanding of a need for entrepreneurship in the public sector. There is a strong corporate culture of innovation programs that are challenging the current thinking, but these share some of the same challenges that U.S. corporations face. Examples include budget cycles that are often incompatible with the reaction time needed to respond to new market changes and conditions, attention that gets divided between current versus future business challenges, functional silos, and challenging organizational dynamics.

A Successful Transformation from an Oil-Rich Economy

The economic impact of the oil industry is another factor when considering entrepreneurship in Norway. The focus of the Technoport conference was on energy, education, and ecosystems. And, although Norway’s oil industry has always been a key economic contributor for the country, it is a finite resource with all constituents looking ahead to what industries can, will, or should do to replace (or supplement) oil in the future.

In an article in TechCrunch, Anita Krohn Traaseth, the CEO of Innovation Norway, says that it’s time for the country to look beyond oil. “Norway needs to develop and build several growth sectors to contribute to a more diversified and sustainable national economy.”

“The fundamentals in Norway to make a successful transformation are solid,” she explains. “We still have a low unemployment rate, we still have a huge capital reserve toentrepreneur-593358_1920 make necessary investments for the future, we have a strong growth of entrepreneurial focus and companies. This is all about how we prioritize, reposition investments, build competence, and have the guts to make important, and maybe radical, political decisions today to secure tomorrow.”

Conclusion

Just as entrepreneurship in the U.S. is complex and driven by many factors, so is the entrepreneurial environment in the Nordics. On the plus side for Nordic entrepreneurs, because higher education is free in Norway, students don’t graduate with the crippling debt that is an issue for so many young professionals in the U.S. This provides an opportunity to focus on jobs they love, versus jobs that can pay back the loans.

A Forbes article titled “Four Things Entrepreneurs Can Learn from Denmark’s Work Culture” cites teamwork, a flat, non-hierarchical structure, autonomy, and a compassionate management style as reasons for successful entrepreneurship – quite a different list than the seven traits listed by Entrepreneur at the start of this post.

At Technoport I was able to see that Norway is working to create a vibrant entrepreneurial ecosystem to provide solutions to some of the world’s most difficult problems. I believe the mix of people I met in Norway and Denmark – young, older, entrepreneurs, corporates, and investors – are all willing to learn from each other and are looking for their role in supporting the entrepreneurial ecosystem.

 

The Time is Now for Women to Step Up, Speak Out, and Take Control

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On this year’s International Women’s Day, I’d like to reflect on how we can encourage women to speak up, be heard, and support each other. The #metoo movement has brought to light countless examples of abuse, mistreatment, and harassment, but if there is one positive glimmer out of all that is being shared, it’s a sense of solidarity and empowerment.

I believe that entrepreneurship can be a path to channeling that energy and creating positive outcomes. The time is now to step up and speak out. The time is now to take control of your own destiny. Stop saying “I’m sorry” and start saying “I’m ready to make a difference.”

I believe that sometimes making a difference is being your own boss. In my role as Director of MIT’s educational accelerator program, delta v, I work every day with both female and male student entrepreneurs. Some of these students have ideas that may change the world someday, but even more important is their sense of pride and accomplishment when they can make decisions that shape their own direction and have a positive impact on other people.

Maybe being an entrepreneur is not for everyone. But, if and when you are in a position to define your own path, you have turned the tables and now have control. You can help not only yourself but others.

Female Entrepreneurs make a Difference

This infographic from Entrepreneur on female entrepreneurship shows that women are founding companies at historic rates with more than 9 million women-owned businesses in the U.S. today. These businesses will provide over 5 million jobs this year. Interestingly, businesses with a woman on the executive team are also more likely to have significantly higher valuations (64% higher) at Series A. These statistics demonstrate that women are creating new models of leadership, and that is hopefully changing the balance of power.

How to Get Started

Now is the time to be an entrepreneur, yet the hardest thing about entrepreneurship is getting started. Newton’s first law states an object at rest stays at rest unless acted upon by an external force – and this is true for entrepreneurship as well. So, you need to give yourself a push. For inspiration, here are some stories of female entrepreneurs gaining ground at MIT.

Find the focus that is right for you. Entrepreneurship for small and medium enterprises (i.e. opening your own business in an established industry, such as a florist, hair salon, or consultant) is different from innovation-driven entrepreneurship (i.e. the next “big idea”, inventing something new) but they both let you be your own boss.

What are you curious about? What do you dream of doing? How would you get started? Now is the best time. There are many educational resources (online, classes, workshops etc.), and there are a lot of folks who are willing to be mentors. Plus, check out co-working spaces that are great for startups. In the Boston area, we have the CIC in Cambridge, Venture Café, WeWork, etc. that also have speakers and educational resources in all areas of building a business.

Resources for Entrepreneurs

On any given day in Boston, there are events that budding entrepreneurs can attend – many are free, or some charge a small fee. Find the one that fits you. The City of Boston just held a series of events for women, Linda Henry runs HUBweek, there are Mass Challenge programs around the world. These all help expose those interested in entrepreneurship to various options. Here are a number of resources and organizations in the Boston and Cambridge area. Search online to find others in your area. Starting a Business (City of Boston)

The activism among several organizations has opened a lot of eyes, and hopefully recognition. Where women were once dismissed, that there are signs that voices should be heard – from women on boards to women funding enterprises. There is positive momentum, and you can make a difference. The time is now. Give yourself that push!

Originally published here in BostInno.

Entrepreneurship: Making the Middle Matter

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minnesota-1086095_1920Call it the problem of the middle—the middle states and the middle class—two groups that have struggled with problems that, while they are inexorably linked, are different all the same.

Historically, most of the venture capital in America has been active on the coasts, leaving a vast portion of the country without seed money for innovative new startups. At the same time, the Midwest has suffered from a loss of manufacturing jobs and, as a result, has in some ways failed to flourish in the same ways as other parts of the country. And, of course, there is no shortage of news articles outlining the many struggles facing the middle class, in general, in America.

“We live in a fractured society,” argues MIT economist Peter Temin in an MIT News article on America’s two-track economy. “The middle class is vanishing.”

According to Temin, America now features two sectors: an FTE sector, where people who work in finance, technology, and electronics tend to thrive, and a low-wage sector, where workers often struggle. The middle class, traditionally an area of national strength, is starting to disappear. Moreover, the FTE sector overwhelmingly focused and fixated on both coasts, has for a long time neglected investment opportunities in the Midwest.

Venture capital—specifically venture capital aimed at the oft-ignored middle states—could be part of the solution. The central part of our country is often ignored as an ideas hub. Most accelerators, venture capitalists, and startup programs are focused on a few key cities on the east and west coasts. The Kauffman Foundation, known for its emphasis on education and entrepreneurship, recently published an article focusing on both the middle class and the middle states, asking: “Is the Middle the New Edge?”

It states: “The middle ground is too often dismissed as unremarkable when it is truly necessary. The middle should be appreciated as an admirable place to be – where people work together to solve big problems and move our nation forward.”

Interestingly, research from the Kauffman Foundation shows that while startup activity is half of what it was a generation ago, entrepreneurs are making a comeback – and the mid-country states are particularly active. Of the 10 metro areas with the highest growth in entrepreneurial activity last year, six are in the middle of the country. This short video gives a great overview of how the middle might be able to give our nation a crucial advantage.

One way to energize innovation and entrepreneurship in Middle America is with infusions of capital and training. Steve Case, the billionaire co-founder of AOL, has started a seed fund called Revolution that plans to raise up to $100 million to fund promising startups in the Midwest. J.D. Vance, author of Hillbilly Elegy, has teamed with Case to find the right companies to champion. They are also starting a “Rise of the Rest” tour to educate entrepreneurs and fund pitch contests in emerging startup communities in the middle of our country.

How can innovation and technology help in the middle?

As new technology is disproportionately displacing middle-class jobs, how can innovation help narrow the income inequality gap?

A Boston Globe article titled “MIT Awards Focus on Tech That Helps Low, Middle-income Workers” focuses on MIT’s first Inclusive Innovation Competition. Erik Brynjolfsson, who helped launch the competition, points out, “Technology is creating enormous wealth and curing diseases. But a lot of people aren’t sharing in that bounty. It’s been easier to think, ‘how do I take an existing task and automate it?’ We are trying to change the conversation.”

The competition awarded prizes of $125,000 to four companies that target the “sweet spot” between technology and people to drive more innovation to underserved communities. Twenty other finalists received $25,000 each. One of the goals of the competition is to start getting more nonprofits and private investors thinking about how to ensure the innovation economy works for all.

It is tempting to get wrapped up in the excitement around the next unicorn company with a $1 billion-plus valuation, but we also need to take a step back to see not only the shooting stars, but also the entire night’s sky. Those in the middle can offer a lot – backed by hope, pride, and rigor. As educators and supporters of entrepreneurship, let’s make sure we support their opportunities.

This article was originally published on Xconomy.

Reflections on delta v 2017

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It’s hard to believe I’ve recently finished my third year of guiding MIT startup teams through our delta v student venture accelerator. The 2017 cohort was another fantastic group of entrepreneurs and startups, and I look forward to seeing the places they will go as they develop their businesses and grow as individuals.

One useful exercise that we’ve done each year is to look critically at the delta v program at the end of each session and assess what went well and what could be improved. I believe this has helped us refine and grow our program, and I’d like to share some of our top findings:

Positive changes

We had great feedback from this year’s cohort, and did a comparison between 2016 and 2017. Here are some stats, and our take on what we’re doing well:

  • This was our largest cohort to date. We supported 21 teams and 65 entrepreneurs.
  • The average team size decreased from 5 members in 2016 to 3 members in 2017 – we feel that a smaller team size means more involvement in the process for each student.
  • The percentage of female entrepreneurs increased from 26% in 2016 to 45% in 2017 – we are making good strides toward gender parity and neutralizing gender bias, both important goals.
  • For the first time we expanded the delta v program with a Startup Studio in New York City supporting seven additional teams
  • The students were especially pleased with the founders’ dinner speakers and the interaction and support from our Entrepreneurs in Residence (EIRs).
  • They also generally liked the amount of programming included this year.
  • We implemented longer and more structured board meetings in response to requests made after the 2016 program; this was well received.
  • The teams closed more business during delta v than ever before, reaching more than $100K in revenue over the summer months.
  • Based on a survey of the students, the average net promoter score for the 2017 cohort was 93.6.
  • 100% of students surveyed are willing to be a reference for the program going forward.

We also reached out to our delta v board members for their feedback. Here’s what two of our board members had to say:

“Serving on a delta v board reminds me of the interdependency of the roles of ‘change agents’ and ‘game changers,’ irrespective of age or accomplishment. Board and delta v members, alike, seamlessly assume these roles while educating and constructively guiding each other to the launch milestone.”

  • Kristine Van Amsterdam, delta v board member

“As board members, we have the thrill and privilege of helping young entrepreneurs take those critical first steps to turn their ideas into real-life and life changing entities. Many of the ideas born here will become companies that impact the world.”

  • Janet Wu, delta v board member

 We’re thrilled that 100% of the 2017 board members are interested in participating in the program again next year.

Of course, there is always room for improvement. Here’s what we’re working on:

  • Our (new!) physical space is getting cramped with 21 teams.
  • Next year, we want to work more with the students to prepare them for meetings with the investment community.
  • The students gave us specific requests for new programming in areas from budgeting to negotiation to team development.
  • There was also a request for even more structure with the board, in terms of setting the agenda to focus on upcoming milestones.

We take feedback from our students and board members seriously and will be evolving the program for 2018. We wish our 2017 cohort much success! If you are interested in more detail on delta v, including seeing what some of our past alumni are doing, check out this year’s Martin Trust Center Annual Report.

Wow! That’s Such a Cool Job!

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Cool jobI have recently been catching up with colleagues from companies past, and when I let them know what I am doing now, I often get the reaction, “Wow! That’s such a cool job.” And it is … I’m fortunate to be the director of delta v, MIT’s student venture accelerator. Each year, we guide a new group of startups through “entrepreneurship boot camp” and help them to launch their startup ventures into the real world. This past summer, I worked with 21 startup teams as they were striving to either gain traction or make the tough decision to regroup. It was an amazing group of students with ideas that address real world problems.

But, I also thought I had a cool job at age 12 when I cleaned up after dogs at a kennel. I had a sense of purpose, got to fulfill a passion of mine by working with animals, and met some great people as well.

trish-cotter_real-estate-innovation_croppedThe organization I worked at most recently, prior to MIT, was IBM – a company that is trying to bring data analytics insights to companies, so they can address real world problems. The complexity of what both our MIT startups and IBM are doing, albeit in different ways, struck me. Are they so different? I have deep respect for IBM’s CEO, Ginni Rometty, who is moving a company the size of a small nation. However, the leaders of the MIT three-person startups are also scaling difficult challenges and placing bets with tremendous odds of failure.

The Three Constants of a Cool Job

I started my career at Honeywell – a big company for sure, where many people (mostly men) took me under their wing as an apprentice in engineering. This laid the foundation for my career, and I learned skills that I call on to this day. Why did I work from 4 am to 4 pm shifts to test chemical baths? —because I loved the people I worked with, we were doing interesting work, and I had mentors who were willing to share their time with me. As my career went on, and I worked with smaller companies, I saw the same trend… great people, interesting work, and mentorship. This is when I started to spend time mentoring others.

New Challenges Every Day

demo day 2Is MIT any different than a corporation? The complexities of a university rival corporations, but the opportunity to be immersed in new technology brings me back to my days at Honeywell. Working with our startup teams, I feel like a first year engineer every day. The teams in delta v are addressing new science for medicine, solutions for water scarcity, addressing the lack of open spaces, and use of AI to improve workers skills to name a few. These students range from undergraduates through post-docs, from all engineering disciplines to business. It is the team that matters most in start-ups. After reminiscing with my colleagues from Honeywell, Computervision, Sun Microsystems, Stratus, Visual Networks, Netezza, and IBM it is also the teams and the challenges they overcame that they most fondly remember. We took on challenges together and broke down those challenges into manageable parts, then worked together to achieve a goal. The other key item was leadership. Great vision and a lot of latitude to solve the problem for customers (clients, suppliers, internal organizations) reflected on inspired leaders.

Comparing this to our student ventures, they are all focused on solving a customer problem or addressing a new market – the same thing all successful companies focus on. You solve those problems with a team approach—you don’t have all the answers, but you learn, assess the new information, and address the issues.

The Greatest Success comes from People

Are huge corporations and startups all that different?  Sure, they both have their challenges in infrastructure – which is sometimes a help and sometimes a hindrance. But, at the end of the day whether you are a 300,000-person company or a three-person company, the people in a company need each other. (Maybe you can hide in a corporation, but if you want to do satisfying work is that really working?)

At this point in my career I have seen big, medium, small, and now micro-small companies. All of them have their own struggles but the greatest success comes from people. My realization is that any job can be a really cool job, as long as you are working with people who will challenge you, lift you up, and inspire you to do your best.

This post was originally published on the MIT Sloan Experts blog at:  http://mitsloanexperts.mit.edu/wow-thats-such-a-cool-job-trish-cotter/

This video will give you a glimpse of what we do at the Martin Trust Center for Entrepreneurship at MIT.