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.
As an intern for Texas Entrepreneur Networks, I have spent
the last few weeks researching and writing articles about Texas’ startup ecosystem, and on the
role of corporations
in venture growth, among other things. 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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