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We need to do more about the technology skills gap.

“I don’t even know how to use my own damn email,” says the Mayor of a city I visited on the tech tour this year.

It would be easy to publicly shame him for admitting that he still hasn’t quite figured out something that most of us take for granted but, in his defense, he also asked me to bring a few investors to town for a week and allowed me to park my Airstream right in the middle of his downtown business district. He means well and he’s trying to make things right for his people.

His city, like many cities around the US & Canada, is faced with an impending problem: one of the biggest factories in town is planning to downsize and nearly 1,000 local jobs will be eliminated within the next year. He and his team now recognize that bringing another factory to town — particularly one that can re-employ those 1,000 people — is near impossible.

He needs to find ways to provide training for these people and the tech community hasn’t made that easy.

On one extreme, local colleges and universities have created certificates, associate’s degrees and bachelor’s degrees, but these cost money and not everyone has the months or years required.

On the other extreme, we’ve created code bootcamps for adults that want to enter the software development industry, but those cost money and not everyone needs to code.

Middle America need something else.

Middle America needs a basic on-ramp into the technology world for adults coming out of decades-long careers in other industries.

Two suggestions:

  • If you’re an entrepreneur in this space, you could build a huge business on technology skills training across Middle America. Go do it.
  • If you’re a city leader, consider incentivizing your adult constituents to seek out and obtain technology skills.
  • If you’re attending any tech events in your city — no matter how big, small or sophisticated — take one non-tech friend with you to every event. Collisions matter.

Same pitch, different city.

The tech tour, sometimes, feels like Groundhog Day.

In every city, a local accelerator / incubator director talks about their “great” companies. The local entrepreneurs all complain about the lack of capital. Everyone else just wants to figure out what startups actually do.

To be honest, it’s hard not to become a little cynical after a while.

If I had a magic wand (and unlimited cash), I’d force at least one entrepreneur, one investor and one community leader to come with me to at least one other city on the tech tour.

Only then would they realize that it really is the same everywhere else. It’s just as hard, just as noisy and just as frustrating for everyone else.

I’ve learned something else along the tour this year: it’s so easy for everyone to claim that it’s easier elsewhere. Mostly because it absolves the individual for taking ownership of their own problems.

If you’re trying to build a company, 99% of what you need to know is available via Google and the last 1% is available via email. Bonus points if you get on a plane (or come with us).

If you’re trying to build a community, 99% of the challenges you’re facing have been handled by your peer in another city. Email them. Better yet, get on a plane (or come with us).

If you’re just trying to figure out what a tech community looks like, it’s never been easier to visit coworking offices in other cities. Again, get on a plane (or come with us).

If I could figure out some way to systematically connect entrepreneurs and community builders with their peers across North America, I’m fully convinced that they would all have no other choice than to raise the bar for themselves.

How startups will transform local economies, where 75% of investor dollars go and how to think about your career.

Happy Friday.

We’re on our way to Ft Wayne, IN for the week — if you’re nearby, please come hang with us. As for 2017, we’ve started to book stops in Sioux Falls, Lubbock, Oklahoma City and a few others — let us know if you’d like to bring us to your town. If you’re an investor, executive or community leader that would like to visit other cities with us, please apply to join — it’ll be fun, I promise.

It’s a cool week here in DC and, to be honest, it’s nice to be home for once. That being said, we’re starting to lock in stops for the 2017 tech tour so let me know if you’re interested in letting us pull the Airstream to your city and hang out for a bit.

  1. “You’re busy, so I’ll keep this quick.” [Link] [Tweet]

There is an inverse correlation between the length of your requests and the likelihood that you’ll get what you want. Keep everything short.

2. “Apple is the world’s largest owner of CNC milling machines and swiss style lathes.” [Link] [Tweet]

Apple operates acres and acres of CNC machines to meet the demand of 1M phones per day.

Between data centers that serve the information we see every day and the facilities that actually make the things that we carry around in our pockets every day, it’s fascinating to realize how little we ever think about them.

3. “75% of the investment $$ went into graduates of four programs: @ycombinator, @techstars, @500Startups & @angelpad.” [Link] [Tweet]

If you’re applying to an accelerator and can get into one of the four above, do it — no matter what. If you don’t make the cut, accept the best offer you can get and work your ass off.

4. You guys, how good is SNL going to be this weekend? [Tweet]

Ezra Klein nails it.

5. “My thesis is that five $10 million companies could transform our economy.” [Link] [Tweet]

Yep.

Talent and ambition are equally distributed. Functional expertise and venture capital are not. This is why we’re doing the tech tour: it’s about bringing functional expertise and venture capital to cities that don’t normally receive it.

6. “Investors are NOT funding a startup for it to survive, but rather for it to thrive.” [Link] [Tweet]

A trick question I like to ask companies that I’ve invested in: “so, how much runway do you have now?”

At the earliest stage of the company, the only correct answer is related to the number of iterations you’re able to try before running out of cash.

7. “The problem … is we think technology can only be new.” [Link] [Tweet]

Let’s not confuse innovation with technology:

Old planes are familiar, reliable, and trusted, but they require constant attention to keep in working order. The work of maintenance is essential, but invisible, the costs recorded as “depreciation” or “overhead.” Politicians and CEOs scramble to claim credit for their investments in R&D, but technicians, mechanics, and janitors keep the world running. By confusing the history of innovation with the history of technology, Edgerton argues, we not only miss this labor, but also we misunderstand the work of scientists and engineers.

8. “VCs have a portfolio, entrepreneurs get one shot (at a time)” [Link] [Tweet]

Read this article over your next cup of coffee, it’s a fascinating study. As they say, amount of capital raised is a vanity metric.

9. “The people in SF think you’re not as good, because if you were, you would already live in SF.” [Link] [Tweet]

This attitude, primarily within the SF tech community, was the primary reason I moved back to DC. It felt too disconnected from the rest of the world.

10. “I’m worried too many millennials look at our work — as just work.” [Link] [Tweet]

Cal Newport, I believe, once said that being successful was about being good at something, that you like doing and that a lot of other people want.

I think the real problem here is that too many millennials have accepted jobs because of the money rather than the career potential. You can always buy the BMW later, but you can’t get your earliest professional years back.

Firehose

You can get the full stream of the things I read, it’s all on Twitter — follow me: @paulsingh.

-P

Fear drives me.

There, I said it.

I’m worried all the time. I know the venture industry’s changing. I know startups keep changing. I know that we can’t all just sit in DC, San Francisco or NYC anymore. On top of that all, I know there’s someone else out there that’s just a little bit hungrier than me. So I focus on doing the things that no one else is doing… yet… (e.g., hauling an Airstream around North America) to try to stay one step ahead of the curve.

In many ways, the most successful founders I’ve met tend to share a similar mindset: they’re more self-aware and more relentlessly resourceful. They use those two traits to speed up their execution personally and professionally.

A sense of urgency is the most important thing we can bring to any entrepreneur. The challenge, however, is that each entrepreneur needs slightly different inputs to drive that urgency. For me, it’s that constant fear. For others, it’s a chip on their shoulder. Everyone’s different, you get it.

Every city I’ve visited seems to have resources for people that might want to start something. Sometimes they also have resources for people that have already started something. What’s lacking are resources for importing urgency to a city’s entrepreneurs.

I’ve said before that I’m not sure that entrepreneurship can be taught but I do know that it can be learned. I think the same thing goes for that sense of urgency. If we could get more entrepreneurs — regardless of whether they want to build a local business or a venture-scaled business — to meet and know their peers, I’m convinced it would only speed up their path to success.

Never judge the idea.

If I’ve learned anything as an investor over the past few years, it’s that the companies that end up creating the most jobs (and returning the most money) almost always look like products at the beginning.

If I find myself in a meeting where the founder is talking about the product for more than 50% of the allotted time, something’s wrong.

It could be that the founder is overly focused on the product instead of the growth of the product. It could be that I don’t understand enough about the market itself (in which case, I shouldn’t be investing in it anyway). Or it could be something else entirely.

This is exactly why traction matters and why founders should lead with it: traction is the only leading indicator that a product might eventually turn into a company.

The key idea here is to recognize that judging ideas isn’t worth anyone’s time. Especially when we’re talking about companies that can acquire their customers online and/or service their customers online.

Moneyball for Cities

Trailing indicators are a terrible way to measure the future potential of a city’s tech scene. Aggregating the numbers make these trailing indicators even worse (e.g., aggregate capital raised, aggregate revenue, aggregate number of employees).

If you want to make your city better, start something. If you want to help make your city better, invest in programs and events that help more people start something. This is why, at the local level, we ought to be talking more about entrepreneurship than innovation.

With roughly 470 first-time venture firms trying to raise a fund, the overall micro-VC trend doesn’t appear to be slowing. Simultaneously, the global interest in startups continues to grow. Bringing it all together is the growing sentiment that Silicon Valley isn’t the only place to start and grow tech companies anymore.

The point is that all the signs are pointing towards the economic growth of smaller cities and, given what I’ve seen on the tech tour this year, the best way to predict which cities are poised to become local tech hubs is to track the number of new businesses (read: startups) created over time.

The best way to gauge the potential of a city’s future tech scene is to track the number of business license filings. This is probably the best leading indicator of a city’s “openness” to entrepreneurship over the long term.

Moneyball for cities is all about creating more startups and then doubling-down on those companies by creating more resources for the companies that show actual traction. Ultimately, creating ten new $1M/year companies or one new $10M would drastically transform local economies and the only predictable way to ensure that happens is to get more entrepreneurs to step up to the plate.

It’s the same everywhere.

I’m hiding in the corner of a Starbucks in Dupont Circle this morning when someone walks up to me.

Her: “Are you the same Paul Singh that’s been driving around in an Airstream? I met you when you came through Tulsa and parked your trailer in front of 36 Degrees North.”

Me: “Well, yes. Also, fun fact, I survived a tornado that same week! Well, actually, the tornado was three blocks away but I’m pretty sure that still counts.”

It turns out that she and her husband had moved to DC for grad school after our visit to Tulsa.

During the conversation, we got into the topic of how Tulsa’s tech scene compared to other places I’d been on the tour through 2016.

In short, it’s pretty much the same everywhere.

Most cities of less than 300,000 people seem to only have one coworking space. Maybe they have one angel group. If they’re lucky, they’ve got one code school.

Other than that, they’re all spread thin just trying to keep things afloat.

The local entrepreneurs are just trying to build their businesses. The local elected officials are trying to figure out what tech companies actually do. The local community leaders are trying to figure out how to get things organized — and how to pay for it all.

If you want to level up, doing more is just the baseline. It’s important to hop on an airplane (or get in the car) and go visit other places. Go meet your peers in similar cities. It’s really that simple.

I’m not sure that entrepreneurship can be taught but I do know that it can be learned.

Whether you’re trying to build a company or a community, the best thing you could do is visit other places and talk to as many people as you can. Figure out what’s working, what’s not working and think about how to apply that to your own city. Don’t forget to give back a little bit too.

Pro tip: just go hang out at coworking spaces in other cities. You have no excuse anymore. Better yet, join us on the North American Tech Tour through the US & Canada.

What startups should actually celebrate, why non-tech people keep talking about manufacturing jobs & the 10X mentality.

Happy Friday.

It’s a cool week here in DC and, to be honest, it’s nice to be home for once. That being said, we’re starting to lock in stops for the 2017 tech tour so let me know if you’re interested in letting us pull the Airstream to your city and hang out for a bit.

In other news, we finally got around to updating the website. What do you think? 

  1. “Don’t blame the playa, blame the game.” [Link] [Tweet]

It’s probably fair to say that most investors don’t appreciate (or remember?) the struggle that entrepreneurs face when trying to get their business off the ground.

It’s also probably fair to say that most entrepreneurs spend exactly zero minutes trying to understand how investors think or how the distribution of returns typically work for any set of investments.

2. “The simplest explanation for my departure is money, or, more accurately, the lack of it.” [Link] [Tweet]

This is one of the best written pieces I’ve ever read on the topic of moving from the “big city” to someplace in the Midwest.

I think it’s harder to start your career outside of certain larger cities but, once you’ve gained a bit of experience, there’s no reason why you can’t move to someplace more affordable to continue your career.

3. “There are basically four strategies that a couple can practice at a restaurant.” [Link] [Tweet]

In case you’re wondering:

A communist economy is a terrible idea. A communist dinner table, on the other hand, truly is a bounteous paradise.

4. “Never reduce a target. Instead, increase actions.” [Link] [Tweet]

This is your pep talk for the week.

5. “You should celebrate any day that you don’t have to sell off another part of your company.” [Link] [Tweet]

This entire article reads like satire until you start recognizing that uncomfortable feeling inside you that says “this is all so true.”

6. “Asking for advice is lazy is because you can’t build a business or career or a life on everybody else’s opinions.” [Link] [Tweet]

I recorded this interview while visiting Syracuse on the tech tour earlier this year. It looks a lot more coherent in text than it felt while I was rambling across the table to the reporter.

7. “If you want to survive, don’t just build a network. You have to build a hive, and eventually a hivemind.” [Link] [Tweet]

As we begin locking in the 2017 tech tour stops, I’ve been thinking quite a lot about this same idea. Stay tuned, I think I have an idea…

8. “in early-stage, he needs to see 5x, but most funds are just gunning for 3x.” [Link] [Tweet]

If you’re looking for a quick pulse of what GPs and LPs are thinking these days, this is for you.

9. “there can be no revival of American manufacturing, because there has been no collapse.” [Link] [Tweet]

 

If you consider yourself part of the tech community, you’re not surprised by the rise of coworking spaces, accelerators and code schools all over the country.

If you’re trying to help build your tech community, however, it’s worth reading this piece to better understand why our elected leaders hang on to manufacturing and other “low tech” jobs.

Pro tip: when you head to your next tech event, try to convince one of your “non-tech” friends to join you. That’s the best way to reduce the divide between the tech and non-tech communities.

10. “What if we came out clean and acknowledged that we’re not making enough money?” [Link] [Tweet]

Less grinfucking, more real talk. Kthx.

Firehose

You can get the full stream of the things I read, it’s all on Twitter — follow me: @paulsingh. You can always find me (and the rest of the Results Junkies community) in Slack, apply to join.

-P