AUSTIN, TX- Some of the greatest minds in Venture Capital
and Texas’s startup scene came together at the AT&T Conference Center last
week to get down to business. With a
focus on closing the series B funding gap in Texas, over 42 investors including
Shell Corporate Ventures, Bain Capital Ventures, and Live Oak Venture Partners,
met with over 27 $5M+ revenue companies, as well as Texas state
representatives, to address the funding gap, share ideas, and close some deals.
My work with TEN gave me a glimpse
of the current state of investors and founders in Texas, and the symbiotic
relationship they share. But naturally, theory can only teach you so much and
my entrepreneurial sweet-tooth was hungry to learn more; to experience that
world firsthand, preached straight from the mouths of those who are building
it.
I found exactly what I was looking for, and much more, at
the Texas Venture Growth forum.
The day began with a welcome from TXVGF host Paul Watson, and
moved into a keynote with Texas State Representative for House, Jason Villalba.
Mr. Villalba expressed a genuine desire for the state to work alongside the
venture growth industry to accelerate innovation and job creation in Texas. In
light of a discussion on the shortcomings of the Texas Enterprise Fund, Mr.
Villalba envisioned a relationship where the Texas government would co-invest
alongside select venture capital partners. This would eliminate the need for
the government to choose winners and losers in companies, as well as the
potential for alleged “cronyism”, while maximizing the impact of taxpayer
dollars on job creation. This was a particularly refreshing message from the
Texas State that was, essentially- “we want to help you do what you do best to
create jobs, and largely keep the institution out of it”.
I spent the rest of the day getting inside the heads of
founders of growth-stage companies and venture growth pundits. My main
reaction- holy cow these people are smart. Five of my favorite takeaways from
the event are:
-The next generation of software will be centered around big
data. By integrating an additional layer of data-mining, companies create a
unique competitive advantage that is difficult for new entrants to replicate.
Talent “poaching” is a real and present danger for founders
of tech startups, especially in Austin with larger corporations opening offices
and seeking the best talent.
What makes Silicon Valley such an attractive ecosystem is
the velocity of information sharing. Austin’s startup ecosystem growth
shouldn’t be focused on becoming the next Silicon Valley, but could do well to
better connect founders, investors, and talent. Josh Baer’s co-working space
and accelerator, Capital Factory, as well as the TXVGF itself are making great
strides in this respect.
Keep it simple, be succinct, and know what you are talking
about to sound like a total genius.
And lastly, venture capitalists are people too. When
somebody has the ability to slap down a check for $10 million, it’s easy to put
them on a pedestal and view them as some sort of a financial demi-god. When it
came down to it, the investors I interacted with were down-to-earth,
passionate, and exciting people who are entrepreneurs and innovators at heart.
They focus on holistically adding value to the world, as much as they do on
making money.
It was a tremendous honor to share an experience
and grow alongside all of the individuals present, and I am deeply humbled by
the perspective that I gained. This is
an exciting time for Texas startups and investors, and I am exhilarated by the
thought of participating alongside some of my new friends in the
industry. Now, to summarize my understanding of startups and investment
post-TXVGF, I leave you with the words of Anthony Volodkin, Founder of Hype
Machine: “Be undeniably good. No marketing effort or social media buzzword can
be a substitute for that”.
Thanks again for the insight, and I hope to see you all at
TXVGF 2016.
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