All posts filed under “Business

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Entrepreneurship at Cambridge University

At the end of last year, YouNoodle.com published a list of the Top University Startup Communities. Cambridge University came in 3rd, right after Stanford (Silicon Valley) and MIT (Boston). Oxford University came in 6th. Here is how YouNoodle came up with the ranking:

YouNoodle has designed an algorithm to calculate each university’s significance as a startup community. Significance is determined by factors including the number and quality of the startups in the university, activity of its groups, business plan competitions, availability of talent and investment in the area, and the success of past startups.

I’m not surprised that Cambridge ranks just behind Silicon Valley and Boston. While this list focuses on University startup communities, I believe that Cambridge is an incredible place to be for entrepreneurship no matter the criteria. I’m sure Charlie would say that something from New York should be on the list (and I would agree), I think it’s both fair and correct that Cambridge is ranked as one of the top startup communities in the world.

Silicon Valley and Boston are clearly in a class by themselves based on the sheer size of the communities there. But Cambridge is a hidden gem. You must recognize that the startups coming out of Cambridge are only rarely the consumer-focused, trendy companies. What gets funded here tends to be hard science, technology, microchips, sensors, biotech, and the like. If you’re reading this blog, I guarantee you that technology invented here is within a few feet of you right now… virtually all mobile phones use ARM chips, for example. Recent successful startup founders I’ve met have developed sensors for chemical detection (and have received a multi-million dollar contract from the US military), and a wearable sensor to help women accurately track their body temperature and fertility cycle to help them get pregnant.

To put numbers on it, nearly 10% of all venture investment in Europe was in Cambridge. What do we have here:

  • One of the world’s best Universities, with significant science and technology focus
  • St. John’s Innovation Centre, a fantastic incubator for nascent businesses. Mailboxes, virtual offices, general offices, and services for growing businesses.
  • Cambridge University Entrepreneurs, which provide workshops for entrepreneurs and hold a series of business plan contests each year.
  • Very experienced venture capitalists, such as Amadeus Capital.
  • CUTEC (Cambridge University Technology and Entrepreneurship Club), which hosts a large conference in May of each year, as well as smaller events and networking sessions throughout the year.
  • A VERY large angel funding network, the most prominent of which is the Cambridge Angels. Many of these angels are very available to students and local entrepreneurs, and they tend to be very active in and around Cambridge.
  • Center for Entrepreneurial Learning, which hosts events like the famed Enterprise Tuesday sessions, as well as a full programme of other events.

So I’m very happy I’m here in Cambridge as I work on my plans. If you’re starting anything in the science or technology fields in Europe, Cambridge is one of the best places to be.

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Very cool rocket photos and news from SpaceX

I’ve been following SpaceX for years, since they were building their first hardware and trying to launch it from a small island in the Pacific. I posted this fall when SpaceX became the first privately-funded company to successfully launch a liquid-fueled rocket into space. That was their Falcon 1 launch vehicle, with 1 engine. They’ve had their Falcon 9 vehicle (9 engines) in development for nearly as long, and just before New Years Eve it was fully integrated on its launch pad at Cape Canaveral! SpaceX took four tries to get Falcon 1 into orbit, and I hope that the first Falcon 9 launch works straight off.

The recent HUGE news for SpaceX is that they were awarded a $1.6 billion (yes, with a B) contract to launch 12 rockets and send 20,000kg (~22 tons) of cargo to the International Space Station. NASA may also elect for additional missions for a total of $3.1 billion total value! They will be competing for longer-term contracts with Orbital Sciences. One difference is that SpaceX will be launching Falcon 9 in the next couple of months, where Orbital doesn’t expect to launch their newly designed vehicle until at least 2010, putting SpaceX a year ahead. An interesting paragraph in this Wall Street Journal article regarding the contract says quite a bit:

SpaceX, which easily came out at the top of all the cost, management and technical rankings, is slated to start flights in late 2010, and the contracts stretch for seven more years.

Anyway, I thought people might enjoy photos of what will likely be the future of commercial spaceflight in the US for many years to come. (All taken from SpaceX’s Updates page.)

Beautiful shot of Falcon 9 at the Cape:

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Fully integrated at the Cape:

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Fitting the HUGE fairing to the rest of the rocket:

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Another shot just before the fairing was attached:

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Nine, yes NINE first-stage engines shipping from testing in Texas:

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The second stage engine:

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Key articles about the current crisis

I haven’t written much here about the current economic crisis, but it’s been affecting everyone for quite a while, now. Part of the problem I’ve seen is that there’s so much day-to-day news and analysis that it’s hard to get the kind of articles that really step back and evaluate the whole situation in context.

Perhaps it’s because 2009 just kicked off, but there have been a few recent articles that I wanted to highlight that could (should?) help everyone understand the broader problems that the economy has been facing.

“The End” – by Michael Lewis. It’s a long but very interesting article that deals with the housing bubble, how it blew up, and the people who warned of the specific dangers long before. Excellent, excellent read.

“Risk Management” – by Joe Nocera. This is an article from Sunday’s New York Times Magazine that goes deeper into the concepts of measuring risk. Specifically it gets into the “Value At Risk”, or VaR, method of measuring risk. While the model is generally good for day-to-day risk measurement, it is far from complete. Using VaR simply can’t tell you how bad it can get… and we’re seeing that how bad it can get now.

The End of the Financial World as We Know It
How to Repair a Broken Financial World – both articles by Michael Lewis and David Einhorn.
This is a two-part OpEd (no idea why they split it that way) from the New York Times. While not as good as the first two, it does take some of the lessons learned and ties them to what we can (should?) do going forward.

Letter about Madoff to the SEC – This letter was written and sent over three years ago, detailing how and why Madoff’s fund was a Ponzi scheme. No one listened or investigated deeply!

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My newest project (tentatively … IdeaGreenhouse)

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I believe strongly in transparency when starting a business. While some people try to keep their “secrets” locked up, all it really does is lock those entrepreneurs away from valuable feedback. Business is about execution; if you’re working on something you’re passionate about and actually executing, you have nothing to worry about.

So I’d like to explain the project that I’ve been working on for a while more to you here. In a sentence, it’s a business devoted to helping you collect, develop and most importantly implement great new ideas. Tentatively named IdeaGreenhouse, it’s web-based software and optional advising services for companies, clubs, community groups, interest groups and any other organization to use internally to help them do things better.

What does it do?

This software allows anyone with an idea to submit it into the system. Any other user can comment on it or support it through a voting-type system. Most importantly it lets users create and volunteer for micro-tasks to take the idea forward. Instead of relying on a small group of connected people in the heart of a business or organization to evaluate ideas and implement them, it connects the people in the company that are really interested in the idea and that have the skills to make it happen.

I’ve been thinking about the software and sketching it out for quite a while. Earlier this fall I worked with an outsourced developer to get a prototype established, which is now up and running. I’m taking advantage of my MBA class to help get comments and feedback on the prototype by using it to help find ideas that will improve the Cambridge MBA. It’s at the point now where I can clone that initial site fairly easily for new alpha-testers. If you’re interested in becoming an alpha-tester, please contact me!

Who is it for?

Who is an ideal customer? One example is my rowing club in London. The club has several hundred members, and over a hundred active rowing members at any given time. There’s also a lot of excitement around the club’s 150th anniversary next year. A lot of members have tons of great ideas to raise money, make improvements to the facilities, run the clubhouse and rowing program better, etc. But it’s virtually impossible for one person with an idea to press ahead and make it happen. Right now all the ideas come through a small group of volunteers (all overloaded anyway) for evaluation and implementation. It “doesn’t scale.”

Another use? Potentially as an political interest-group tool. While change.gov is great in that you can submit your questions/ideas to government, what you’re really doing is throwing them over a wall and hoping the people on the other side can see what you see. Instead, a group like the Electronic Frontier Foundation (EFF) could establish a site to develop the best policy ideas and marketing ideas to bring about those policy changes. They could connect lawyers, tech stars, business types, video producers and who knows else to work collaboratively to develop the best policies going forward.

The biggest revenue-potential is companies that are looking to constantly improve and innovate. Software like IdeaGreenhouse can connect people across silos in an organization to find solutions to problems, new innovations, or simple better ways of doing things across a business. Instead of relying on approval through a “chain of command,” the people in the company that are passionate about an idea can connect and move it forward themselves.

While the traditional method of “throwing ideas over the wall” for someone else to review and approve is great (it’s not too much work), implementing ideas is about a thousand times better. It’s a heck of a lot harder, but it’s incredibly satisfying when it does. IdeaGreenhouse is a tool that will help get businesses and organizations do that.

Competitors

There are a ton of competitors in the “submit ideas and vote for them” category. Starbucks and Dell have both used SalesForce.com’s ideas application, with lots of publicity. Change.gov uses Google Moderator, and there are more commercial solutions like GetSatisfaction and others.

Where IdeaGreenhouse is different is that it is an internal tool, to use the knowledge and experience of your employees/members/organization. It is NOT a tool to get feedback from your customers. The users don’t just submit ideas, they work to accomplish the ideas, too.

There are some enterprise-level software applications that do this, but they all focus on large companies exclusively. IdeaGreenhouse will scale to work with any size company or organization.

The Team

The team working on this consists of me and Dom Orchard, a PhD student in Computer Science at the University of Cambridge. (Really smart, and a fellow Jesuan.) Dom also drafted the logo above.

Feedback

I’m creating a “landing page” to detail this more soon, and will post that here when I do. I’ve got a few different names I’m going to try out, and will use Google AdWords to hopefully find the best one of the bunch. (See here for more.)

If you have any feedback, please contact me, or submit a comment below. This is what I plan to spend much more time talking about this year, and look forward to any/all of your thoughts.