MediaFile

from Paul Smalera:

Brad Feld’s four ingredients for thriving startup cities

BOULDER, Colo. -- One of the most resonant talks I heard at last week's Big Boulder conference was also one of the shortest. In about twenty minutes, Brad Feld, who is without exaggeration the godfather to the Boulder startup community, explained exactly why it is that Boulder feels like a town on the verge, and why it's teeming with startups. A lot of it has to do with Feld himself.

It's not just that Feld is a co-founder of Techstars, the nationwide startup incubator that got its start in Boulder, or that the college kids -- and lately, mid to late twenties startup veterans -- flock to Boulder in hopes of getting a few minutes of his time to discuss their ideas. It's not just that Feld's Foundry Group scored big with an exit on Zynga, though that credibility certainly helps. And it's not just that he picked Boulder as some magical perfect place to be a startup Mecca. In fact when I asked him why he moved there from Boston, he said, laughingly, it was because, "my wife told me she was moving to Boulder." He figured he had better go along.

"Happy warrior" is usually a phrase reserved for politicians on futile crusades, but the four principles that Feld talked about that make Boulder a burgeoning startup locale are ones that he seems to embody, not just talk about. And as to my earlier post, wondering where and whether Boulder needed a billion dollar startup (or founder) to justify itself, Feld more or less shrugged it off. If that outcome is a natural result of the principles Feld sees as key to keeping Boulder a great place to found a company, then great. If it's not, I get the sense no one, he least of all, would mind very much.

Brad Feld's four ingredients for thriving startup cities:

1. The startup community has to be led by entrepreneurs.

Everyone who's not an entrepreneur, says Feld, "is a feeder." Feeders can be useful, indeed even essential. Lawyers, bankers, shared workspace providers, venture capitalists, business services, city hall, even incubators, are all essential components. But if one of those groups get into the position of calling the shots on what the community should be, Feld thinks it won't work.

2. Take a very long term view of success; a twenty year view at least.

If you took a look at a decade-long slice of Silicon Valley, and you took the the period from, say, 1992-2002, you'd have to assume that the promise of technology was a huge bust. But if you encapsulate the next decade, you'd get a better picture of how out of the ashes of the dot-com bubble bust, a new and perhaps more resilient approach to tech startups came about. It's foolish, then, to assume that any startup city is going to have its ecosystem all figured out in a relatively short period of time.

from Paul Smalera:

The platform problem in social media

The two speakers from Twitter -- Ryan Sarver and Doug Williams -- had just left the stage at Big Boulder, a data conference I'm attending in Colorado, when Twitter, the service, went down Thursday. Neither of them have anything to do with keeping the service up and running, but the restless audience probably still would've thrown the hotel-provided notepads and candies at them if they could've. Such was the level of dissatisfaction about the Twitter platform's outage yesterday -- and let's face it, any day a service we rely on goes out, even when the crowd in question doesn't consist of users and consumers of social big data, and the odd journalist.

The outage may have been poorly timed for Sarver and Williams, but the incident speaks to a larger problem the companies represented in this room are facing: building on top of social platforms.

Consider Zynga. The high flying gaming company, built primarily on top of Facebook's Open Graph, has faced record lows in its stock as investors have lost some confidence in the company's ability to continue growing. Or consider just about any other company, social or not, that is trying to reach its fans and customers in the social media world.

from Paul Smalera:

Startups are big in Boulder, but where are the tech billionaires?

"I'm not interested in working on this unless it's going to be a multi-billion dollar idea. If I thought this would be a hundred million dollar company -- what's the point?" - Anonymous entreprerneur discussing his startup. Overheard in front of Ozo Coffee, Boulder, CO.

I'm in Boulder, Colorado for a few days this week to attend Big Boulder, a conference devoted to the social side of "big data." Gnip, the company hosting the conference, is one I've written about before. They're doing the plumber's work of connecting all the firehoses of raw, public user data from social media companies like Twitter and Tumblr up to clients that want to derive insights from the wisdom of these online crowds.

A quick note on the definition of "big data." Generally speaking, it's the sort of data set that's so huge, even running a simple report on it won't tell you anything interesting. For example, if you could ask the IRS for a list of all the 25-30 year olds in the U.S. that paid taxes last year, you'd get back a list, alright. But what would be useful about it? On the other hand, if you could filter that list by several other factors: did they pay capital gains, did they owe over six figures in taxes, what is their self-reported job title, and so on, you might end up with a list highly correlated to young, dot-com millionaires and billionaires, like Mark Zuckerberg. And you might cross reference that list against all the other data sets you can find on them: where they live, where they shop, where they travel, what they watch, eat and listen to. It's all out there.

from Paul Smalera:

All your Tumblr are belong to Them

Forget Instagram’s billion-dollar payday. Forget IPOs, past and future, from Facebook, Groupon, LinkedIn and the like. And ignore, please, the online ramblings of attention-hungry venture capitalists and narcissistic Silicon Valley journalists with the off-putting habit of making their inside-baseball sound like the World Series. Their stories, to paraphrase Shakespeare, are tales told by idiots, full of sound and fury, but signifying very little about the impact of technology on most of our lives. (Sure, some of their tales are about great fortunes, but those are only for a select few; to summon the Oracle of Omaha rather than the Bard of Avon, only a fool ever equated price with value.) Their one-in-a-million windfalls are just flashes in the pan. Or, actually, they are solitary data points, meaningless when devoid of context.

That context is here. It’s come, in part, because of the cunningly simple social and curatorial tools that media companies like Twitter, Tumblr, Facebook and Pinterest give away to their users. But making sense of our social world is only possible with the the tools and technology behind what we call Big Data. The massive information collections spawned by our digital world are too big to address directly, so smart scientists have used fast computers to carve the data into real knowledge. This is how Big Data is already changing the way the world works.

But Big Data is young; though there are hundreds of accessible data sets already, there are still many more chaotic stores of information its tools can tame. Take, for example, social media: Yesterday, social media API company Gnip announced that it is providing customers with all of Tumblr’s data, what in techspeak is called the firehose. What Gnip and competitors like DataSift are providing to customers are Social Big Data firehoses that can be perfectly filtered into gently babbling brooks lined with digital gold nuggets. When the tech media wonder out loud how social companies will ever make a buck – sifting the gold out of their user-generated content is a huge piece of the puzzle.