With all of the migration of businesses and financiers from Silicon Valley to “greener” pastures (with lower taxes), there is hope in places like Miami and Texas that they will blossom into the next Silicon Valley and create the next unicorns. I was recently asked about the possibility that Miami might bloom. It can?
The makers that were written about were companies like Oracle, successful VCs like Keith Rabois, and the only Elon Musk that can’t be categorized. Here are some factors that could affect the fate of Miami and Texas.
Corporate Moves: Companies are constantly moving across the country and around the world, creating many jobs when they set up offices or relocate their headquarters. This can be very good for the areas they are moving to, new hires, and many real estate agents. And it can create many part-time jobs for those who serve the new businesses and their employees. Corporate moves can also raise property prices – which isn’t always good news for low-income communities. Should we worry about the homeless if new jobs can be created? That is the billion dollar question.
Venture Capital: Will A New Territory From An Entrepreneurial Desert To Unicorn Valley Bloom When VCs Show Up? VCs can invest from anywhere across the country – and they can. Why don’t we have other areas with lots of unicorns like Silicon Valley? Some VCs moving to Miami are unlikely to make a big difference unless they are also able to attract or develop unicorn businesses. Here the myth of VC is a problem – the reality is that VCs don’t invest until aha! – when the company’s potential is obvious. VCs can give you a million reasons why a company is not suitable for their capital from Idea to Aha, but they don’t invest their millions until Aha!
Companies are “raised” from Idea to Aha by qualified and committed entrepreneurs who make progress against all odds. VCs get involved after the entrepreneur wows the company. Aha can be:
- Strategy Ah, when the company’s strategy shows the potential of a unicorn and VCs like bees are drawn to honey. This has happened with eBay and Apple. Pierre Omidyar and Steve Jobs brought the company from Idea to Aha when the VCs came. About 12 VCs rejected Apple in front of Aha!
- Strategy and leadership Aha, when the company’s strategy and leadership show the potential to be a unicorn. This is when VCs invest without asking for CEO changes. Most unicorn entrepreneurs delayed VC or avoided staying in control.
Technologies: One of the most common myths in business development is that the key to success is technology. This is why many business schools and pitch competitions focus on this idea. Based on this assumption, the proximity of world class research facilities is seen as a blessing. The question, however, is whether unicorns succeed because of technology or because of entrepreneurs. Only 1% of billionaire entrepreneurs were successful because of the technology. 99% were successful due to their strategy and implementation, i. H. Based on the skills of the entrepreneur.
Entrepreneurs: Entrepreneurs are the foundation of unicorn businesses. This is one of the key areas universities can make a difference – but the advantage is in business school, which is where entrepreneurs can be taught unicorn skills. It’s not in the tech schools unless, of course, they develop a cure for cancer. Look at Jobs, Gates, Dell, Walton, Bezos, Zuckerberg, Chesky, Kalanick, and so on. They all succeeded because of their unicorn development skills. Business schools can train entrepreneurs to start without a VC, as they do not receive a VC before Aha. This means that business schools need to shift their focus and curriculum from the idea and VC to skills and smart strategies.
MY TAKE: If Miami and Texas and the rest of the US are really going to develop unicorns, they’ll have to do more than attract wealthy VCs and other wealthy individuals looking for tax protection. You need to develop unicorn entrepreneurs who can capitalize on the potential capital of these investors. You should focus on the jockey, not the horse. To develop the next Apple, they need the next jobs. To develop the next Amazon, they need the next Bezos. Instead of business plan (or pitch) competitions, they need unicorn competitions to develop the catalyst behind the company – the entrepreneur. The genius does not lie in the idea that can be mimicked or the VC that came after the potential was obvious. It is the entrepreneur who used clever skills and strategies to get to Aha! Is that asking too much of the established venture capital and entrepreneurial education industries?