What are the odds of startup success by US metro area?

1 in how many companies achieves High-Growth status by metro area. Washington DC leads the way with 1 in 326.

District of Columbia leads with 1 in 326 odds of starting a High-Growth Company. Providence is the city with the worst odds—1 in 3,297.

1 in how many companies achieves High-Growth status by metro area. Washington DC leads the way with 1 in 326.

A High-Growth Company is defined as achieving $2M+ in revenue with 20% annualized growth over a 3-year period. This definition comes from page 10 of the 2017 Kauffman Index of Growth Entrepreneurship.

The data table below shows the odds of starting a High-Growth Company in each major city in America. This data serves as a baseline for the fund I’m modeling based on the book, Grays Sports Almanac for Venture Capital. I am sharing my research notes here so that you can incorporate this data into your angel investing or venture capital models.

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Manage 10 of the 20 top startup failure risks.

Founder Friendly Standard and customer-funding can help founders avoid “No market need, Running out of cash, Not the right team,” and 7 more reasons startups fail. 

Source: Top 20 reasons startups fail is from CB Insights. I added the check marks.

The above graph shows the top 20 reasons why startups fail from CB Insights. I marked up the graph with green checkboxes to show which risk factors customer-funding (also called bootstrapping) can help you manage. Orange checkboxes denote risk factors that Founder Friendly Standard can help manage. 

Risk Factor: No market need

If you’re bootstrapping, you’ll find out pretty quickly if there is no market need. Unlike your angel and VC-funded cohorts, you’ll be able to make fast pivots while they’re lining up their organizations’ change management strategies.

Risk Factor: Ran out of cash

If you are bootstrapping, you are financing innovation with organic cash flows. This is a key growth driver in the Credit Suisse Family 1000 research. If your company is controlled by its founders, you’re more likely to pace yourself, spending the money like it’s your own vs. your VC-funded competitors who are quick to spend (principal–agent theory).

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My startup tips in one place

Here is a collection of tips for startup founders. I’ve learned these while starting three companies and transitioning into an employee of a Fortune 500 company. (All opinions are my own.)

Binge watch in Netflix style formatting.
There’s nothing like a good binge-watching session!

Amazon

Kindle Book: Grays Sports Almanac for Venture Capital (2018)

Audio Book: Grays Sports Almanac for Venture Capital (2018)

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8 personal values that you can tweet

Keep it simple. To me, this means breaking things down into 3’s. What do you value?

According to my personal coach, Joe Cohen, personal values are a powerful tool for evaluating what’s important.

Here is a list of eight of my personal values. Since what we value influences our behavior, think of this as a “user guide” to Eisaiah.

Which of these values do we share? I want to hear from you on Twitter! Tag me @eisaiah_e.

Invest long-term. To me, this means committing to productivity growth. What do you value? @eisaiah_e @j40pillars #personalvalues #personalgrowth #positivity #success #selfdiscovery

Invest long-term. To me, this means committing to productivity growth.

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I’ll be the Sean Parker to your Mark Zuckerberg

Sean-Parker_Mark-Zuckerberg

When I was in my 20s, I met Gk Parish-Philp, a co-founder of DivX. I asked him how to get investors for my startup. He said, “You don’t want investors. They’ll take too much control.”

“That can’t happen to me,” I thought.

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Celebrity moments from the #ATTBizSummit

I’ve tucked away in a break room right now to write this post from the #ATTBizSummit. The event is a shared moment with some of AT&T’s most popular innovations, partners, and customers.

During this morning’s interview, Anderson Cooper asked Thaddeus Arroyo where he could get a pair of AT&T socks. Shortly after, Thaddeus came through.

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If you build it they’ll come moments

Baseball field at night being built

Baseball field at night being built

Lowell McAdam, the CEO of Verizon, told analysts, “This is going to be one of those if-you-build-it-they’ll-come moments…” He was explaining at the JP Morgan Technology, Media and Telecom conference why Verizon plans to keep investing in microcells and attaching them to buildings.

It’s the same reason John Donovan told analysts at the Citi Technology, Media and Telecommunications Conference why AT&T was boosting its network capacity. When network speeds get faster, new technologies spring up to consume that speed. According to Donovan, “5G is different because its performance is so much better that it’s going to enable a whole bunch of new-to-the-world use cases, whether it’s live maps, autonomous cars, virtual reality.” We are indeed witnessing an if-you-build-it-they’ll-come moment for telecom.

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Some time gaps need to be expanded, not closed

Only a few Dallas drivers follow at a two-second stopping distance. Maybe this is why I crawl past two and three accidents every day on my way to work.

Generally, my blog is about designing business-to-business (B2B) marketing that shortens the customer journey. This takes focus and mental energy. Accident-related traffic erodes mental energy. Today at Toastmasters, I raised the issues of following too closely and distracted driving.

My assignment from the competent communication manual was Speech 2: Organize Your Speech. Below is the transcript.

Speech: While Driving, Keep Distance

Thank you for that warm introduction, Mr. Toastmaster.

Good morning! Last week, I left my house at 6:15am to drive to our meeting. Five minutes into my drive, brake lights lit up all around me.

A firetruck was blocking the fast lane on the 30. Ambulance and police lights flashed. There was a car wreck. I got onto the 635 freeway. Five minutes on the 635 freeway and the scene repeated itself. I passed the second accident. As I was taking the off-ramp, I found myself admiring a dark green, sleek Jaguar – as it cut me off.

I pulled into the parking lot here at Denny’s and breathed a sigh of relief. This story happened last Wednesday, but it happens every day in Dallas.

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What’s the value of a head start?

Horse crossing finish line
A head start along with 1 – 2% productivity growth becomes a sizable advantage

Early this morning, I was running on the treadmill and listening to an economics lecture by professor Timothy Taylor.

He said the year 1870 kicked off our modern era of economic growth. If you take the Gross Domestic Product (GDP), a measure of productivity, of the richest countries in the world in 1870 and compare them to the poorest countries, the ratio is 9:1.

By 1990 and the ratio widens to 45:1.

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Why do I leave money on the table? It’s for the long run.

Leave money on the table

One rainy morning in 2005, I walked out of class in Popovich Hall on the campus of USC. Next to the Starbucks coffee cart, I saw a floor sign, “Dennis Bakke. CEO of AES. Speaking at 11am.” I followed the arrow to an auditorium packed with MBA students. I was an undergrad, and I had happened upon something great. I found an open seat. What I heard next made an impact on me that has lasted to this day.

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