Some notes from a master class on Lean Entrepreneurship by Jeff Snider June 13th
Let’s consider innovation, entrepreneurship and growth as distinct challenges and what is required for them respectively.
· Innovation needs knowledge and we have a good tech talent environment in Denmark
· Entrepreneurship is the commercializing innovation and it needs knowledge (although a different kind), a big market economy and risk willing capital
· Growth companies are companies that increase their revenue or number of employees by 60% over two years.
Considered as distinct activities, they need different environments to thrive.
DK is a strong technological lab and test bed for new ideas, with highly educated and loyal employees.
Silicon Valley on the other hand offers a huge market, lots of capital and entrepreneurial know how which is needed to develop an innovative idea into a sustainable product.
However lots of start-ups waste time and money going to the US when it is not necessary or timely.
Therefore Danish entrepreneurs can learn from the ‘Israeli model’ and ‘cherry pick’ their way to success. That is placing the founding team, early funding and tech-development in the home country and then when time is right moving the company to the US, hiring an American CEO, sales and marketing staff, scaling, growing and funding the company in an environment and an market-economy that can really accelerate it. The original company then becomes a R&D department in a larger company and the technology is developed in a safe environment with loyal competent engineers.
Thinking in these terms you will be taking advantage of national comparative strengths and leveraging Silicon Valley for what it can do when the time is right. And that requires that you think of innovating, starting up and growing your business as distinct challenges that require different environments of cultivation.
The cherry picking model