Tag Archives: startups

Marketing and Storytelling Manifest a Startup City

Economic Development, Industry, Insights / Research, Startup Ecosystems, , , , , ,

The explosive growth of specific cities throughout the world might be the best evidence of the impact of good old-fashioned marketing. Not advertising mind you, but marketing: understanding what you have, for whom, why they care, and delivering that to them.

The last 25 years or so have witnessed the transformation of our world from analog to digital; and in that, the fact that Silicon Valley led the way while other places required time to develop the experience with the internet necessary to get the respective local economies through their “digital transformation.”  As local workforces learned how to use the internet as effectively as those at its epicenter, and people were reskilled from traditional industries into more software engineering, web development, app development, and internet roles, cities have been able to boom in this new economy.

Raising a very valid question of WHY some cities attracted the shift from Silicon Valley while others, other very notable, appealing, and capable cities, failed to attract as much.

Why Silicon Valley shifted toward Austin instead of, say, Miami

Miami, certainly popular, vibrant, viable, growing, and international… what made Austin pop most, next, more than there, or Detroit, Chicago, or even the startup popular Denver or Boulder?

Austin’s evolution isn’t the result of “tech,” infrastructure development, or startup hubs.  Hopefully you’re well aware of the fact that “if you build it, they will come,” is only true in baseball movies because that notion is well known to marketers, who too often get frustrated with tech founders who think their startup will work merely because they built an MVP that’s better than what’s out there.   Austin having tech, infrastructure to grow, and companies, doesn’t inherently CAUSE innovation and entrepreneurship to shift this direction; having built it, doesn’t mean anyone knows about it, wants it, or cares.  

Austin is the result of a series of very well-known identities that established a distinctly Austin brand.  This often happened unintentionally, and assuredly happened organically rather than with intention throughout, but because it did happen, we can learn from it to develop other innovative ecosystems by appreciating that it’s the marketing and storytelling that were the catalyst for Austin’s startup boom. 

In very rough chronological order identities associated with Austin, Texas:

  • Keep Austin Weird. Really not a promotional campaign as old as the reason for it, this characteristic of Austin hearkens back to the 60s.  The “Keep It…” campaign developed later, amusingly, as a counterculture; yet it fits Austin so well because ironically, the identity has a distinctly Texan quality to it.  No, not cowboys, wildcatters, or barbeque, Keeping Austin Weird sort of fits with Texas’ fierce sense of independence and trying to ensure this place is not like elsewhere.
  • Back in the eighties and nineties Austin had the potential to be the technology hub it is becoming today as, unbeknownst to much of today’s tech startup scene, the Austin tech scene is as old as the semiconductor.  Samsung doubling down on Central Texas isn’t really a new thing, Motorola, Freescale, and more used to call Austin home, and these hard tech roots remain part of the DNA here.  Where you can derive how intentional development (economic development) of being a hub for entrepreneurs and innovation needs to parallel this marketing and storytelling I’m exploring with you here, is evident in that while Austin had it (has it in hard tech), it’s  Silicon Valley that intentionally ran with what that was to turn it into what it is (semiconductor to PC to internet to mobile).  Austin isn’t new in tech, it’s getting its groove back, so to speak, having caught up to speed as I mentioned above other cities must do.  Austin’s *intention* moved from that hard tech into…
  • The Live Music Capital of the World! And it was sort of true. Let’s call it true enough as when it comes to Austin’s identity, it’s not that of film, art, or other cultural characteristics but music.  True enough that people know it and that gave rise to the incredible attention on ACL and SXSW (which, help tell the story of Austin and tech by launching SXSW Interactive, getting Austin’s tech groove back).   Pause here for a moment because it’s in this series of things that we can start to see how Austin in fact became ideal for startups, and not just tech… Silicon Valley wasn’t ONLY tech (no one wants to just go work in tech); Silicon Valley was born because of their own story woven with Berkley, Haight Ashbury, hippies protesting Vietnam, and culture.  The culture similar to Austin’s Weird and Live Music, that with tech, evolved into being called the… 
  • Best Place for Startups, a quality that really started in the mid-2000’s thanks to, and I know my fellow Austinites will despise me for drawing this correlation but thanks to so many from N. California are moving here.  But what we’re talking about here is WHY they moved to Austin and not somewhere else – see it yet?  Austin’s economy, weather, or quality of life wasn’t radically different than many other places, and it wasn’t because of the old Semiconductor or hard tech work that California’s internet pioneers thought, “Head East!  To Austin!”   It’s because Austin has appealing characteristics KNOWN to people.  Austinites always had the weird, the music, and more, but again, it being built doesn’t make a thing successful, it was the branding, stories, and marketing to make it all make sense, that drew millions. After experiencing a couple of bubble bursts in the Valley, and dealing with the explosive real estate costs, droves of people started saying, “there has to be someplace else, some place better.” Austin grabbed that and given those identies of the preceding years, being that alternative was obvious.
  • Most recently, though it’s still claimed to be so for “startups,” the Austin identity seems to be evolving to being the Best Place for Millennials or to Start a Business. Why? Austin is home to an exceptional number of freelance professionals, coworking spaces, consultants, and that startup identity driving people here who a) don’t want to be in N. California b) don’t want to or can’t afford it and c) are starting lower capital-intensive businesses. That is, we’ve recognized that without the substantial capital sources and high-risk tech R&D investments, we’re inclined toward things that are a quicker path to revenue hence – known new business models and a place for entrepreneurs to make money.
  • And that, blended with our music and creative past, is why I’ve been encouraging that Austin’s narrative should shift from Live Music Capital or Best for Startups to the convergence of the two, the Creator Capital of the World.   We’ll see.

Now look at that progression. Was it planned from the beginning? Certainly not. But it is a series of pivots that build upon the best of the preceding culture/economy and evangelize tremendous potential. THAT, being broadly known, is what drives people to a city and while that wasn’t planned from the beginning, you can be certain that each stage is intentionally development, messaged, and embraced (by many; not all).

People have and always will move to economic opportunity first and cultural fit (being somewhere personally appealing) second. The prominently considered reasons people buy a home: schools, value, job, etc. are valid but they are only valid in as much as they help establish where people live, not WHY they live there. People moved to Detroit to work in the automobile industry, they inundated LA to get into film, and they flocked to Austin because of the counter-culture yet familiar and prosperous economy of entrepreneurship and independence – but that’s not why they wanted to be there nor how they knew to be there – each had a history of culture and character, known to the world, that drew the world’s attention.

Media is Capital: Startup Success Starts with Story and Community

Social Media, , , , , , , , ,

Possessing a compelling story outweighs merely having a brilliant idea so much so that media has become the new capital for burgeoning founders.

The fundamental concept here is that media — encompassing storytelling, audience engagement, and community building, well beyond what you might consider it to mean in “the press” — serves as a powerful currency. For startups, especially in their early stages, the ability to attract and engage an audience can be more crucial than securing financial capital. Why? Because a passionate, engaged community can provide invaluable support, validation, and momentum that money alone cannot buy.

The Power of Storytelling and Community

At its core, a startup thrives on its ability to connect with people. A great story does more than just convey what your business does; it humanizes your brand, making it relatable and memorable. This narrative forms the backbone of your startup’s identity and helps differentiate you in a crowded market.

Consider the example of Airbnb. Early in its journey, Airbnb faced significant financial struggles. What helped them persevere was their compelling story and the community they built around the concept of belonging anywhere. Founders Brian Chesky and Joe Gebbia famously sold custom-designed cereal boxes to raise initial funds, a move that not only provided much-needed cash but also captured media attention and public imagination. This quirky, relatable story became a pivotal part of their brand identity, fostering a strong, supportive community.

Another powerful example is Red Bull, which, beyond giving you wings, we explore with founders in detail in our incubators. The company famously evolved from an energy drink company into a media powerhouse with a strategy revolving around creating content that resonated with its target audience—extreme sports enthusiasts and adrenaline junkies. They invested in producing high-quality videos, sponsoring extreme sports events, and even launching their own media house, Red Bull Media House. This venture produced a wide range of content, from documentaries to live event coverage, that not only promoted their product but also built a lifestyle brand around it. This approach has made Red Bull synonymous with extreme sports and adventure, far beyond just an energy drink.

Why Media is More Critical Than Capital for Startups

  1. Audience Engagement and Validation: When you build a strong media presence, you attract a community that believes in your vision. This audience acts as early adopters and brand advocates, providing critical feedback and validation that can guide your development and refine your product.
  2. Organic Growth and Virality: A captivating story and an engaged community can drive organic growth far more effectively than traditional advertising. Users who are emotionally invested in your brand are more likely to share your story, leading to viral growth—a phenomenon that paid marketing campaigns often struggle to achieve.
  3. Credibility and Trust: Media coverage and a robust online presence can significantly boost your startup’s credibility. Being featured in reputable publications or gaining traction on social media platforms builds trust with potential customers and investors alike. For instance, Tesla’s rise can be attributed not just to its innovative products, but to Elon Musk’s masterful use of media to craft a compelling vision of the future.
  4. Resource Efficiency: Leveraging media is often more cost-effective than extensive advertising campaigns. Crafting a compelling narrative and building a community requires creativity and strategic thinking more than substantial financial resources. Startups like Dollar Shave Club used viral videos to disrupt traditional markets without the need for massive advertising budgets, showcasing how media can level the playing field for smaller players.

Building a Thriving Community Around Your Brand

Building a community starts with understanding your audience and what resonates with them. It involves continuous engagement, authenticity, and delivering value beyond your core product. Social media platforms, blogs, and interactive content like webinars and podcasts are excellent tools for fostering this connection.

Glossier, a beauty startup, built its brand on community engagement and customer feedback. By actively involving their audience in product development and using social media to create a dialogue, Glossier cultivated a loyal following that propelled them to success without traditional advertising.

Crafting a Powerful Pitch

Your pitch must be more than a presentation of facts and figures or a fill-out of the pitch template some accelerator or article told you to fill out; it should be a story that resonates on an emotional level. It needs to convey not just what you do, but why you do it and why it matters. Simon Sinek’s Golden Circle model emphasizes starting with the “why” to create a deeper connection with your audience.

To measure the success of your pitch and overall media strategy, focus on engagement metrics: shares, comments, and community growth are more telling than simple view counts. And let me pause here because if you’re a startup founder, you likely thought I was referring to your Startup Pitch (a pitch deck), and I am… because your storytelling as a startup should be a varied and compelling as that which you create online to promote yourself.   Tools like Google Analytics and social media insights can help track these metrics and refine the content you create, helping turn media into far more than likes.

For startups, media truly is the new capital. Embrace the power of story and community, as these elements can transform your vision into a thriving business. Building a strong narrative and engaging your audience are not merely supplementary tactics—they are fundamental to your startup’s success. By leveraging media effectively, you can achieve organic growth, build credibility, and foster a supportive community that money alone cannot buy.

For further reading, consider exploring resources such as “Building a StoryBrand” by Donald Miller or “This is Marketing” by Seth Godin, which delve deeper into the art of storytelling and community building in the digital age. These works provide practical insights and strategies that can help amplify your startup’s media presence effectively; this is *capital* that you can raise right now, making fundraising far easier when it comes to engaging and interesting investors in what you’re doing.

Why Accelerators Fail Startup Founders

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Let’s take the two most distributed Startup Development Organizations in the world, and tease  out what’s happening In a point of fact: overwhelming most Accelerators *fail* founders; but why?

With such a bold assertion, let me properly set the stage by pointing out that when 90% or more of all startups fail rather quickly, it’s not a criticism that most continue to fail through Startup Development Organization.  The fact is that the world simply can’t sustain everyone launching so many ventures doing similar things.  What I want to explore with you is why *most* seem to fail to meaningfully improve upon the averages.

Two most distributed Startup Development Organizations: Techstars and Founder Institute.

These two are not the same thing. The only similarity might be the fact that they have grown to operate locally, depending on local directors, mentors, and investors.

People often shine a light on YCombinator but a distinction of YC is that it’s almost entirely run through Silicon Valley. These two programs, which I’ve referred to as distributed, are not because they are operated more locally (which is what I mean by being the most distributed).

Until about 2005, “startups” in the modern sense of the word, were almost entirely based in N. California. I say “modern sense” because it’s critical to appreciate that while a startup is still, as it has always been: a startup, what happened before 2005 is that the internet was born and quite literally changed every industry. Where that largely started was Silicon Valley… meaning the experience, the partners, the investors, and opportunities, were as it pertained to the internet (for the most part) there.

Please don’t misconstrue that as praise of Silicon Valley and admonishment of elsewhere. I’m not saying “Silicon Valley” is better or that the way things operate there is ideal… Rather, in figuring out how anything works well (or doesn’t work well), we have to be pragmatic and realistic about the circumstances of how something is run – and overwhelmingly most internet-oriented talent, money, companies, and experience, then, was there.

A “startup” is still fundamentally a temporary venture in search of a new business model and that hold true everywhere while also explaining why a startup is NOT “tech” or internet specific things – but since the internet CHANGED *everything* about our world; the likelihood of a new business model (a startup) having an impact in any sector quickly became dependent on the internet and experience with it. It would take a decade (or more) for that experience to move from Silicon Valley (as it did to Austin, Texas) or mature elsewhere (as it certainly is now).

But let’s not wade into startups or the history of the internet too much, let’s get back to Accelerators and why/how so many fail to meaningfully support founders.

First, what would it mean to meaningfully support founders?

If the average rate of success of startups is around 10% (90% of startups fail), then we can easily expect that the rate of success through an Accelerator is greater. Yes? Challenging Startup Development Organizations is the fact that a 20% success rate is an astounding 100% improvement on our economy and yet, it also means 80% still fail (and that’s a lot of disappointed founders). Bottom line, anything north of 1 in 10 being successful could well mean that the program had a positive impact.

What is it that we can EXPECT that reinforces that an Accelerator would have a greater rate of success?

  1. Accelerators don’t (shouldn’t) take on every founder. They are curating what can get in; presumably selecting ventures more likely to succeed. Our noble intentions to help everyone who wants to be an entrepreneur aside, the facts are well researched that few are capable, the market only has room for so many ventures, and we know what causes startups to fail – with this in mind, it’s realistic that a good Accelerator will *not* support everyone.
  2. They accelerate – whatever that might mean, we can safely conclude that it means they will provide resources or do things that result in a startup accomplishing more, faster.
  3. They connect by making it easier for entrepreneurs to find anyone who might be meaningful to what they’re doing, saving time and money, while avoiding bad advice or wasted cycles in founders who might otherwise talk to the wrong people.

Begging now the question, why might said program NOT be impactful?

  1. They do try to help everyone OR (more likely) the program directors have an agenda or little startup experience – in either case, onboarding founders who are not likely to succeed. The danger in this is not that it would keep the rate of success lower; the issue being that startups and founders who shouldn’t be accelerated, take time, talent, and resources, AWAY from the ventures that might.
  2. Are they actually accelerating or are they just using that word? What would be required to “accelerate”? Probably, things like PR, marketing, capital, or even some development resources (be those software developers or business developers helping close partnerships). Let’s be blunt, if an “Accelerator” isn’t “Accelerating” then they are a drain on your startup community and they’re misleading founders and investors – likely contributing to a higher-than-average rate of failure.
  3. Most so-called Accelerators, I find, operate locally, and with the greatest respect to the good intention, a network of the ideal mentors, investors, or other resources for a startup are NOT within your neighborhood. Is the Accelerator actually connecting founders with EVERYONE most relevant to the startups or is it limited to the network of people preferred (or worse, who are paying to be involved… perhaps under the guise of “investing”). I can speak from experience to the fact that it very frequently happens that a Startup Development Organization makes mentors or Angels pay to make themselves available within and it’s a severe detriment to founders… constraining who the founders can meet and allocating capital not to the entrepreneurs but to an intermediary.

Take for example our MediaTech ecosystem as an example of how those circumstances are detrimental to founders.  We’re a fairly close knit sector of the economy wherein the other programs, notable mentors, and meaningful investors, tend to know and support one another; so, when I see an “Accelerator” in Austin (where I live) that isn’t connecting something they helping in media, with our world, we know they’re full of s*** — they’re failing to meaningfully help startups in media (and likely getting paid in the process).

I want to consider a 4th factor that I didn’t mention as a contributing factor to success (because, frankly, we know from research about startups that having this doesn’t actually cause success): Capital.

While capital available to founders won’t result in a greater rate of success, since we’re talking about Accelerators, we can’t overlook the fact that Accelerating would mean they have capital available and/or reduce costs as exceptionally as possible (by having things funded for founders).

How do Accelerators operate in your experience? Are they charging founders for desks? (that’s coworking)  Are they charging founders to connect with mentors?  (that’s predatory)  Are investors freely available or do startups have to Pay to Pitch? (that’s disgusting)

Is Capital readily available in the form of reduced (near zero) costs to founders, or actual investment? OR is the Accelerator neglecting that Acceleration costs startups money?

You can’t accelerate ventures if you’re not actually making that possible.

By the way founders, providing AWS credits and HubSpot for free for a year, is NOT investment from an Accelerator and you should NOT be giving up anything (such as equity) to get that. Such things are readily available through any Startup Development Organization, so an Accelerator claiming $50,000 of investment, warranting equity from you, which is really just in the form of technology or other services, is taking advantage of you.

How We Got Here

Now that we have a sense for why some Accelerators succeed while others fail, why do so many fail?

Let’s revisit my point about the internet and the fact that “Accelerators” exploded on the scene from 2005 until about 2015 (with them now essentially in every city).

Startups then, and now, are dependent on experience with the internet.

How exceptional is that experience in your city? Did the Accelerator owners start their careers at Salesforce, Amazon, or Yahoo? Have the mentors who are involved worked in SaaS, mobile apps, or cybersecurity? Are the investors available in the ecosystem experienced with THIS context or are they wealthy people who have been successful in Real Estate, Oil, Ranching, Construction, or some other still fairly traditional field?

What happened around 2010 (after the 2000 dot com bust and when the economy was recovering… and then again after the mortgage crisis in the United States resulting in another recovery period) is that cities throughout the world wanted to lean in on helping entrepreneurs in this new economy. And yet, the EXPERIENCE with the internet was not yet there.

Techstars and Founder Institute had not yet scaled throughout the world and so “Accelerators” were emerging in cities, locally run, locally funded, and locally mentored.

Around the same time we saw books emerge (books such as Lean Startup or Zero to One) heavily embraced by the Startup ecosystem; yes, because they are good books, but also, to an extent they emerged because of the growing demand from people throughout the world to have a guide to Accelerate startups and give founders direction.

“Don’t know how to do a startup? Read Lean Startup” We’d often hear, as though a playbook puts a founder on the right path.

Don’t get me wrong, these are EXCEPTIONAL books… IF you have experience with startups and you fully appreciate what they’re guiding and why.

Why do most Accelerators fail founders? A confluence of circumstances:

  1. Little experience with the internet
  2. Reliance on books
  3. Local dependence
  4. Insufficient startup experience
  5. Failing to “accelerate”

Before I move on I want to reinforce my point about the internet because I don’t want anyone to misconstrue that I’m saying a startup has to be on the internet or that if your venture isn’t, it isn’t a startup. What happened around 2005 was that the entire world finally started shifting to the impact of the internet: how we shop, how we pay, how we communicate, how we research and learn, and so on. A Realtor (someone selling real estate) would no longer be effective if they didn’t know how to use the internet in support of their job.  That example translates to every sector and thus, every startup. That, perhaps your startup is a new BioTech device or electric vehicle… maybe you have invented a new beverage you want to bring to market, or you are working in Space technology — if you (or your team members, mentors, investors, or this Accelerator) don’t know how to use the internet effectively and efficiently, you will suffer and struggle. You can’t do marketing and promotions well, you can’t find resources as well, and you will fail to effectively connect tools, platforms, and infrastructure that you need, as well as others can.

The delta of time from 2000 until about 2015 (when experience with the internet really finally started to permeate throughout the world beyond Silicon Valley) meant that EVERY venture was at a severe disadvantage without that experience. This is a massive contributing factor to why Accelerators rarely failed to change the 10% success rate and while even today (due to legacy models or the people still running them lacking this experience), Accelerators too often fail.

So What Of Techstars and Founder Institute?

(Why did I mention them?)

Around this same time is when Techstars and Founder Institute emerged from Silicon Valley – exceptional programs. These two were rather distinct from the other major brands in this regard because what they did was expand to other markets, making their work accessible to far more throughout the world.

This was (and should be) in high demand because after all, if you want an Accelerator in your city, why would you try to reinvent the wheel within a local ecosystem of inexperience, when you can take on what is established, proven, and more far reaching?

The rub was… for these programs to operate throughout the world, they irionically had to depend on that very local community. With all the trappings of doing so, a very effective program wherein everyone is experienced and aligned to how it works, will stumble and struggle as they have to sift through (i.e. sift out) consultants, investors, and mentors within a new community.

Challenging.  But that’s not why I mentioned Techstars and Founder Institute in particular (though hopefully now we’ve unpacked some thought provoking insight to explore about why Accelerators often fail). 

The reason I mention these two things is that Incubators and Accelerators are NOT the same.

Accelerators are NOT Incubators; Incubators are not accelerators.

In cities throughout the world where stakeholders are just desperately trying to make something work, gain support and resources, and have an impact, people mince words.   People will call it an Accelerator because you’re asking for an Accelerator; and failing to deliver what we should expect an accelerator actually does for founders, we have the failed impact to which I’ve been referring but is *that* REALLY even an Accelerator if it is helpful or is it an Incubator?

Incubators TEACH, work with, or research and develop.  

This is an incubator.   That into which a mere egg is placed in hopes that it becomes a healthy chicken.  An incubator isn’t the antibiotics, shelter, or feed provided to existing chickens to help accelerate their growth!  If your city lacks incubators and hopes that Accelerating founders will make your ecosystem successful, you’re neglecting all of the education, R&D, and collaboration that must precede accelerating anything.  Accelerators fail founders because they’re failing to expect incubators to exist to get everyone off on the right start.

We see the implication of the lack of these distinctions and the failure of startup communities to support Startup Development Organizations in the right way at the right time, in how “Accelerators” take on anyone, in how Accelerators aren’t accelerating because they’re giving lectures on marketing fundamentals or how to find a co-founder (clearly EARLY stage requirements), or in how they take on pre-seed founders ? Image that, that’s trying to make a chicken hatch before the egg is even *ahem* seeded. 

Your ecosystem must start with and support Incubators if you hope to have mentors, investors, and entrepreneurs who know what they’re doing and can provide meaningful opportunities to Accelerators.

Let’s revisit our three considerations in this, the context of Incubators instead of Accelerators.  What is it that we can EXPECT that reinforces that an Incubator would have a greater rate of success?

  1. Incubators don’t (shouldn’t) take on every founder. The might welcome everyone who wants to learn, research, or collaborate but they are doing so within a sector of the economy where they can most benefit those entrepreneurs and investors.  Our noble intentions to help everyone are accomplished by helping everyone WITHIN a distinction rather than everyone who says “founder” “tech” or “startup.”   Thise coalesces not just startup stage experience but also industry expertise, partners, investors, and opportunities. 
  2. They incubate, developing an idea, or would-be founder, by teaching what we very well know about how startups succeed and why they fail, by working with founders from an experienced point of view, and by participating in the research necessary for an innovation or entrepreneur to avoid mistakes and uncover opportunities. Preceding the acceleration stage, they drastically reduce the rate of failure throughout… enabling Accelerators to be more successful.
  3. They connect by making it easier for entrepreneurs to find anyone who might be meaningful to what they’re doing, saving time and money, while avoiding bad advice or wasted cycles in founders who might otherwise talk to the wrong people.  (Point #3 is exactly the same, which is why Incubators and Accelerators should be sector specific)

Why might an Incubator NOT be impactful?

  1. They do try to help everyone OR (more likely) the program directors have an agenda or little startup experience – in either case, failing to meaningfully help founders. The danger in this is not that it it misinforms and misleads founders and investors.
  2. Are they actually incubating? What would be required to “incubate”? Probably, things like experience, curriculum, tools, community, and marketing. Let’s be blunt, if an “Incubator” isn’t helping turn eggs into chickens then they are a drain on your startup community – likely contributing to a higher-than-average rate of failure.
  3. Incubators can and should operate locally with the support of the network, companies, and investors from industry.  The network of the ideal mentors, investors, or other resources for a startup are NOT within your neighborhood but they are within your sector and when an Incubator is effective for entrepreneurs, they are ensuring entrepreneurs learn from and work with the people who know best. .Evidence of this?  Your City, local companies, investors, and even Accelerators would be underwriting such Startup Development Organizations because if they genuinely wanted to help startups (as they claim), they’d put the expertise in place to start them on a better foot.

Accelerators too often fail founders.  Frustratingly, the research, experience, and resources are well established and validated such that we can expect Accelerators *don’t* fail founders (as much).  If you’re struggling with your ecosystem, questioning programs, or trying to figure out what could be done better, ask first, “who’s teaching everyone, and do they know what they’re doing?”

Invention, Creativity, and Innovation are Merely the Gears that Turn a Startup

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We’re witnessing throughout the world that our focus on “tech” for the sake of technology skills, and STEM education to support that, is actually failing people.

Don’t be misled… yes, an education in technology will result in a decent job; more so than most University studies which result in poorer job prospects.

I’m referring to the broader economy and societal impact; that tech alone, evident in historically very technical countries, tend not to excel nor sustain their competitive advantage long. Technology, alone, is not innovation, and tech, as a distinction, is not a startup.

Evident in the recent impact of AI, many software engineering, web development, and coding jobs, have just evaporated. This isn’t something unusual or unknown to social scientists – the role of technology is to replace people, particularly in technical roles.

Hence, I was asked, what is the relationship between creativity, innovation, and invention? How does creativity or invention lead to the creation of jobs and opportunities in startups?

Creativity > Invention > Innovation

Perhaps you can agree on that ranking of priority or order:

  • Creativity is required to capably invent
  • Invention is the application of technology
  • Innovation is the adoption of invention

One can’t meaningfully exist without the other and yet it struck me that there is a more meaningful appreciation of creativity, invention, and innovation, in further appreciation how and why marketing enables innovation to create value.

Far too many would-be founders set out with an invention – they have the solution, the prototype, or the MVP, and they’re now seeking the funding to make something of what they’ve invested in developing.

These are the founders who fail. At the startup stage of our economy, a conventional wisdom exists that 90% of all startups fail; frustratingly, because the research into personality types, causes, and priorities, well establishes WHY and HOW startups fail, yet founders still set out to first Build / Solve / Prototype… and then….

They’re backwards. And they’re wrong.

It’s easy to perceive that technology and a product is what changes the economy, for example:

  • The Printing Press replaced copiers
  • Machines replaced farmers
  • Assembly lines replaced tradespeople
  • Robotics replaced builders
  • The Internet replaced knowledge workers
  • The Content Management System replaced website designers
  • AI is replacing a lot of technical skill works

What this neglects is that it isn’t the invention that changes anything, it’s the innovation and adoption in the market. Fail that in favor of your being focused on invention a solution, and you will fail. We know this, yet many disregard it.

Take a look at this flywheel. I love flywheels, having used them before to explain how to raise capital or how to develop an ecosystem:

Asking how Creativity, Innovation, and Invention relate it a little myopic when we just compare them or put them in lists to correlate them. That visual is a valuable way to think about it.

With the gear of an Invention alone, you will not move efficiently.

Creativity and Innovation working upon an invention is what turns a gear into a machine, or rather, part of a machine.

What do we do with this to make a difference?

Consider your startup a car. Full of gears such as this, our invention is merely one small gear among many, and without creativity to pivot, compete, and try, along with market development so that your invention might be innovative, you have a small gear of little consequence.

Still, the car doesn’t go anywhere without the engine of a team, the fuel of passion, the resources of good tires, the mirrors to see where you’ve been and the windows to keep an eye on where you’re going.

Going… where?

Our car has to be on a road and it requires that your startup know which road to take, which turn is best, and which shortcut might help. If you don’t have intel while driving, you’ll hit that construction roadblock up ahead, get stuck in traffic, or discover too late that a bridge has been washed out. This road is marketing, the path on which you’re moving forward, the map to know where to go, and the traffic updates so you can get there as best as possible.

Just ignore the fact that ChatGPT’s Dall-E still can’t spell properly, the image still gets my point across

Drop the gears of invention, innovation, and creativity, in your startup but know that your venture isn’t going anywhere without the components of a car that get it out of the garage and onto the road. Most importantly, for the love of driving, don’t just step on the gas… you have to know where you’re going of your never going to get there.

Startups: What Exactly is Execution?

Insights / Research, Startups, , , , ,

I want to put your head on a specific focus as we explore this question. In the last few weeks, I’ve tackled the question of an ideal team for a startup, sharing new research about personalities, been critical of expectations, and proposed that understanding and avoiding how startups fail is more important than attention directed at what is working for you.

Throughout these weeks, the word “execution” kept coming up and you know as well as I do, advising execution is one of the most popular turns of a phrase.

  • “Ideas are easy. Implementation is hard.” – Guy Kawasaki
  • “The way to have a company that executes well is you have to execute well yourself.” – Sam Altman
  • “No excuses. No explanation. You don’t win on emotion. You win on execution.” – Tony Dungy
  • “Execution is the game.” – Gary Vaynerchuck
  • “Execution is everything.” John Doerr

Execute what?

Friends and peers know I’m not a fan of meetings and as I asked myself that question, my mind kept wandering to time spent in meetings as the best counter-point to what it means to be getting shit done. I’m prone to say, “The only reason that warrants a meeting is because something is wrong. What’s wrong? Let’s fix that so we don’t spend more time meeting.” And I find that the work that I do in MediaTech Ventures, teaching founders and developing ecosystems for cities, comes from this underlying tendency I have that if we address what’s wrong, we can focus on doing the work that matters.

In Startup Development Organizations, we can expect that the mentors, advisors, and program, are overcoming obstacles for founders and mitigating risks for investors. If (since) we know execution matters so much, we should all be ensuring that founders aren’t wasting time on the wrong things:

  • Building before knowing what the market will support
  • Selling more than listening
  • Talking with the wrong people
  • Designing with perfection in mind rather than releasing and testing
  • Putting together collateral more than developing relationships
  • Dictating what it should be because it’s what you want
  • Trying to protect or keep secret ideas, stifling progress
  • Bringing the wrong people on to the team or even what might be the right people but the wrong time

In that last regard, I recently sparked a wonderful discussion about the ideal team in a startup, noting, “Startups are exceptionally unlikely to work out, meaning the team sort of has a moral obligation to do whatever necessary to make it work (otherwise everyone loses); and that very often means you are not a fit. Startups aren’t companies wherein they can afford to train, manage, and work with you to make a job work – you all have a responsibility to make the venture sustainable and successful.”

What led me down this past was first, a study conducted by Oxford Internet Institute, University of Oxford, University of Technology Sydney, and the University of Melbourne which found that founding teams that have a need for variety and novelty, reduced modesty, an openness to adventure, and heightened energy levels are MUCH more likely to be successful. With that in mind, I blended the path to success with the known causes of failure to provide you with a matrix you can use to weigh whether or not the team you have is ideal.

That brought us back to the fundamental question here, to do what? Most founders waste a lot of time on the wrong things and as a startup, you have limited runway. Execution matters but no one ever clarifies HOW TO FOCUS

CLOSE, CODE, and CREATE – the Keys to Execution

Meetings. Sell, another too frequently heard bit of startup advice, sell!

Why do I criticize selling when it’s such popular advice and when it seems obvious that you need to talk to customers and bring in cash flow?

Founders and startup teams get lost in the weeds of doing things rather than delivering the results that matter – That’s execution.

CLOSE

One of the primary reasons I couldn’t continue working in companies (established companies) is because of increasing frustration with Agencies who love providing numbers about all the things they’ve done.

We got you 1000 visits! Your viral marketing campaign reached 100,000 people. That press release was on 24 different sites. We ran 12 new ads and set up 3 more campaigns. We got you leads.

And I felt like I was pulling my hair out as a, then, junior working professional, as the management and Board of the company seemed satiated with work being done. “Thanks agency! Here’s more money, keep up the good work.”

What the hell?

I only care about results and results aren’t found in work done, results are the conclusions sought: close business.

Get that LOI with a potential partner, get the contract signed, launch the form that signs up customers so that they pay. This is execution as a startup.

You should not care at all how the meetings are going and don’t distract the team with new possibilities. Of course, keep everyone aligned to the vision and mission of the venture but having meetings with leads is not execution! Close deals.

CODE

Startups get lost in the weeds of designs. CTOs fear putting something up because that work reflects their skill. Founders bury themselves in opinions and articles explaining what’s ideal. Product releases stall because, “we’re not ready.”

That isn’t execution.

Get it done, get it pushed, get it live.

Startups are experiments. As you endeavor to uncover new business models for innovative solutions, you cannot KNOW what is right or what works and the ONLY way to find out is to just put it up. Stop overthinking, stop seeking perfection, and stop making excuses.

The WORST investors or partners in a startup are the people who doubt working with you because there is a bug on the site or a feature isn’t working. The faster you can iterate, LEARN, and pivot, the more likely you are to find success; and anyone expecting a startup to be flawless is someone you don’t want to be working with. Get it up!

CREATE

People often ask how I can write so frequently and so much. The answer? Because my being concerned about typos, tone, length, or my confidence in my own opinions, prevents anything at all from being shared. I write knowing full well you might disagree with me; in fact, I want you to disagree with me – startups almost ALWAYS fail – Advisors who claim they’re right and tell you what to do, with certainty, are idiots (if anyone was “right,” we wouldn’t need you being a founder of something people haven’t figure out yet, would we?)

Never waste time doing an entire redesign of a website; just change it, go.

Holding off on that newsletter because you only have 10 subscribers?? How many is the right number?

Group thinking the perfect pitch deck? Make one, start pitching, and listen to feedback.

Afraid to even start? You need that patent or you’re still working a job? No one else is waiting…

Social media have you stifled because you don’t know what to tweet? Just tweet it! You can always tweet something else tomorrow!

Appreciate these keys to execution in reverse order because I need to you see that execution isn’t the work underlying the accomplishment, it’s the accomplishment, and anything you’re doing that takes you or your team away from accomplishment, makes your venture more likely to fail!

Create something… such as the code to get the solution going… so you can close business.

Execution means getting it done. If you or your team aren’t, you need to rethink your focus, right now, and anyone failing to get shit done should be an advisor (at best) rather than someone on the team.

Founders, VCs Might Not Like My Sharing This, But They Should

Insights / Research, Startups, , , , , , ,

One of the more challenging skills to help develop in a founder, is being able to discern b.s. from experienced and valid advice. As you might imagine (and I hope you can relate from the all too prolific frequency with which this happens), it’s particularly difficult to know how to put questions back on a person from whom you’re seeking capital.

We live in a society in which we’re led to believe that the accumulation of wealth = success, or that the popularity of a brand or personality means they know what they’re doing; first and foremost, appreciate as a founder the idea that if anyone’s advice was “correct,” they’d be doing it, and you’d be out of the job.

How to Validate the Advice of a VC

Over the years, I’ve developed the habit of using 3H to discern if any advice is valid, and I want to share that with you because I’ve been increasingly asked how to deal with accelerators and investors that don’t seem to know what they’re talking about. At the root of the challenge of validating advice is the social norm of developing a good relationship with people; requiring, avoiding calling them out, avoiding making people feel like they’ve been caught with their pants down, and truly, being genuine in trying to work together.

I’m sure, or rather, hope, you’ve heard the advice about fundraising, “When in need of funding, ask for advice, and if you’re seeking advice, ask for funding.”

Inherent in that, recognize, that advice from investors is most likely valid advice about what is ideal for them. Drawing from their experience, their job, and the expectations of raising and managing funds, what they advise WHEN in the context of raising capital, is experienced advice. But that doesn’t mean it’s right, how it should sit with you is greater merit given the source. In my experience, the other most likely form of advice from an investor is advice given because they are trying to help you overcome something but it might be something with which they’re not familiar – they know something is amiss so they’re offering some advice that might help.

How then do you validate if advice given actually comes from a place of experience and know-how? That it’s valid? Rarely (largely, if you think about it), is advice from an investor based in experience with what you are trying to do.

The risk that creates for all of us is that when entrepreneurs take investor advice on the surface, it’s likely misleading, wrong, or at least, inexperienced.

Bobby Goodlatte, Managing Partner at Form Capital, shared this wonderful tweet that fueled my pen to paper, “A VC who gives no advice adds far more value than one who gives bad advice.”

When Advised (and really, this applies to all advice!)

3H: How, Help, How?

  1. Verify advice/recommendations by asking how to do it
  2. If they can explain how, ask for help
  3. If they ask how you did anything, it’s okay to have that friendly attitude that kind of doesn’t understand what they’re asking. Why they’re asking something they should know how to do. “I’m sorry, I don’t follow, the same way everyone would …”

VCs often network for good reasons. Might be nothing more than that; they’re trying to help.

They might genuinely be interested and wanting to help, to stay connected, but their advice isn’t that great.

They might be fishing for intel.

And let’s be realistic, you and I know, they might have terrible advice.

3H gives you confidence in dealing with any of those possibilities. Let’s explore each by going through them in some detail in reverse order:

Are they fishing?

You feign misunderstanding when they ask HOW YOU ACCOMPLISHED something because they might want to know how for a reason (competitor?). Instead of calling that out, which is awkward, you are completely in the moral right to imply and establish that you know better than the VC, by making it seem so and being confused why they would be asking such a thing of you. In fairness, they should know how to do things valuable to startups… so why are they asking?? Are they fishing? Do they really not know? Are they trying to prove for themselves that you know what you’re talking about?

“I’m sorry, how we did acquire those customers?” in response, for example, tends to cause a reaction that gives you insight to what the inquiry is trying to accomplish.

Help us

After all, you’re there to raise capital, or at least in other ways secure some resources to help you be successful, so when advice is capably followed up with HOW TO do what is being advised, ask for help!

When they can and do tell you HOW to do something, they’re the one with the funds and they obviously have the know-how so in recommending a valid possibility; if truly wanting to help, they can, somehow: recommend a hire, refer to an advisor, or why not even ask for less capital, to do what they’re telling you will work.

How do we do that?

“That’s great advice and of course we’d love to get that done but that’s not my skillset, how do I start and make that work?”

Why ask that besides the obvious reason that you need to know?

They very well may not have a clue. Their advice might be crap, it often is. Having the check dangling, having acquired the funds, or in other ways being successful, absolutely DOES NOT mean that their advice is in fact valid. Don’t let advice sit there for you to then have to figure out how, with what resources, and worse, determine if all that effort is worthwhile, ASK THEM HOW TO DO IT.

If they can’t explain how to do what they’re advising, is the advice that you do something really based in experience?

The 3H – How? If good, Help. And, why are they asking *us* How??

Really rather simply, always remember HOW and ask how-to of every recommendation you receive.

A favorite example to explore together: Too often, Angel Investors and VCs will give the bad and unhelpful advice of “focusing on customers,” and if you’ve had that experience, you know, they’ll usually leave it at that alone, because of course, it sounds right.

But, hol up. As a startup, we don’t have customers; certainly, not many we can talk to…

“Great advice! How do we get more so we can do that?”

If they can’t explain how to get customers for what you’re doing, how valid is advice that such customers are the right focus? When it’s not even clear who the customers are, where to find them, that they’ll agree there is a problem/opportunity, and how to start that conversation… why would focusing on customers be good advice??

Yes, I said it’s often bad and unhelpful advice to focus on customers because you’re not an idiot, you have experience in your industry (I hope), and it’s well known that having an experienced team and understanding the market and competitors, informs best what a solution should be. Anything that meaningfully creates value can be monetized, and “The customers is NOT always right!”

If and when they can indeed explain HOW to get more customers and accomplish what is being advised, it puts the conversation back in that loop of why you’re seeking advice — getting help … such as, asking for some money if they are certain that that focus on customers is good advice.

–

I’m going to continue to provocate, flip conventional wisdom on its head, and focus on flaws in the startup ecosystem (and what you’re doing) more than merely rehashing that things are great. When we know most founders will fail, I find it helpful to explore more of what will help us all avert failure. If that’s meaningful for you, do join us at mediatech.ventures

The Creator Capital of the World

Industry, Insights / Research, Regional Development, Startups, , , , , , , , ,

A significant shift is underway, explored by Kaya Yurieff with The Information, A Reckoning Arrives for Creator Economy Startups, “Two years ago, Dmitry Shapiro and Sean Thielen were so optimistic about the booming creator economy that they pivoted their startup to a new product: a simple tool called Koji that lets influencers more easily link to their online tip jars, merch and other services in their social media bios. Sure, there were already dozens of other startups offering a similar type of product, but that didn’t stop the two men from raising $20 million for their company, GoMeta.”

“Now,” Yurieff adds, “Shapiro and Thielen want out of the creator economy.”

Now, I’ll add, if you’re privy to mediatech as I am, you know that those investors should be questioned, because there were at least 4 “tip” startups based where I live, in Austin, alone, and it was already evident from that that no one was using them, there was no IP to be had, and any other platform in FinTech or payments to creators, could easily add the feature.

Not the best way to start an article praising what I consider the Creator Economy Capital, is it?  I share that though, because it highlights the desperate and tremendous opportunities in media innovation, for creators throughout the world, as countless entrepreneurs are trying to make a difference, often the same difference; we must start reflecting on how and where we are likely to make founders more successful.

There is a reckoning for Creator Economy Startups, you’re likely in the wrong place.

As startups and creative talents incessantly seek new opportunities through innovation, I want you to shift the long-held identity of Austin, Texas from a mere Music Capital, while remaining distinct as a hotspot for startups (well beyond being just another Silicon Valley).  What is Austin?  What is Austin really?   What happens when entrepreneurs and artists converge as they have been, here, to thrive?  The culture of Austin is what makes it ideal to startups and in particular, the ideal place for Creators.  The city is transforming into a beacon, attracting a diverse pool of talents who are seeking opportunities beyond the traditional hubs. This shift denotes a broader movement where barriers are dissolving, and a new wave of creation and collaboration is taking root.

Austin, The Live Music Capital of the World

Austin’s historic legacy as the “Live Music Capital of the World” is rich and vibrant, putting it on the map for music aficionados and artists alike and yet, as long as I’ve been here, it felt lacking in some way. This city, nestled in the heart of Texas, has been a cradle for many celebrated musicians who have left indelible marks in the annals of music history. Icons such as Willie Nelson and Stevie Ray Vaughan have epitomized the city’s spirit, weaving a tapestry of music that resonates with both passion and heritage. 

  • Early Music Scene (19th and early 20th century): Austin’s musical heritage began with the influx of immigrants who brought their musical traditions to the area in the 19th century. German, Czech, and Mexican influences played a significant role in shaping the city’s music culture. Dance halls and saloons featured live music performances, including polka and conjunto music.
  • University of Texas and Jazz Era: The University of Texas at Austin, founded in 1883, brought a diverse student population to the city. In the early 20th century, jazz music became popular, and Austin’s venues started hosting jazz bands. The Victory Grill, a historic venue on the East Side, became a prominent hub for African American jazz musicians during this period.
  • Rise of Country Music: Austin’s country music scene started to gain prominence in the 1930s and 1940s. The city was an essential stop for touring country musicians and became known for its honky-tonk bars and dance halls. Venues like the Broken Spoke, still operational today, became iconic in the country music world.
  • The Armadillo World Headquarters: In the 1970s, the Armadillo World Headquarters played a pivotal role in shaping Austin’s music culture. This music hall and cultural center hosted a wide range of acts, from country and rock to blues and reggae. It attracted a diverse audience and fostered a sense of community among music enthusiasts.
  • Willie Nelson and the Outlaw Movement: Willie Nelson, a Texas native, moved to Austin in the early 1970s. His presence and the emergence of the outlaw country movement helped solidify Austin’s reputation as a hub for innovative and progressive music. The Outlaw Movement challenged the Nashville establishment and brought national attention to Austin’s music scene.
  • Austin City Limits (ACL) Festival: In 2002, the Austin City Limits Festival, inspired by the iconic PBS television show, was launched. This annual event has grown into one of the country’s premier music festivals, attracting top-tier artists and music lovers from around the world.
  • South by Southwest (SXSW): SXSW, an annual music, film, and interactive conference and festival, began in Austin in 1987. It has become a global platform for emerging artists and music industry professionals. SXSW helped Austin cement its status as a music destination.

And yet, Nashville is known as the Music City, while producers and artists alike still make their way to Los Angeles to be discovered.  In fairness, Austin could be the Live Music Capital, an assertion I’m not really challenging; I’m challenging you to explore and appreciate the circumstances such as they are.  

Austin’s music scene is a melting pot of genres, where traditions meet innovation, nurturing an environment where musicians, creators, can grow and thrive. This legacy is not just confined to the past; it is a living, breathing entity, continually evolving and inspiring newer generations to tread the path of musical exploration.

But is it enough to be the Creator Capital?   Appreciate that it is enough to have the spark of an identity that celebrates the creator, in this case, the musician, and evident in Shapiro and Thielen’s experience, innovation requires problems with which to work.  My partner in Chicago, John Zozzaro, grabbed my attention years ago when he pointed out that Austin has hundreds of non-profits in the music sector, and around 60% of musicians living below the poverty line — why so many non-profit efforts to help if there aren’t problems to solve (and intentions to solve them)?

Los Angeles: The Presumed Creative Capital, But Is It?

While Los Angeles has long been hailed as the world’s creative capital, its crown seems to be wobbling. According to Brian Regienczuk via LinkedIn, the city stands as a beacon of creativity, “There are more artists, writers, filmmakers, actors, dancers, and musicians living and working in LA than any other city at any other time in the history of civilization.”

However, a report from ZDNet questions the longevity of its reign, Andrew Nusca, “A lack of recognition, insufficient government planning and support, lacking K?12 school curriculum in the arts and tightening school district budgets are otherwise detracting from the city’s creative talent pool.”

We know what’s going on with the writers’ strike, and we have to appreciate that things like Spotify and Netflix, Pandora, and even Amazon, in streaming, are not there but from elsewhere, as innovation of the entertainment industry understandably is coming from without rather than within – places determined to fix what Los Angeles won’t, or can’t?  I’ve even surmised frequently that while Silicon Valley broke and forced a change to New York’s news media and advertising industries, it too has failed to solve the new challenges inherent in those.

The escalating costs of living and global competition, as the world goes through the digital transformation that Silicon Valley experienced decades ago, are sparking creators everywhere to thrive while many, as we well know, are leaving California for other horizons; Austin stands as a prominent choice and not just in Music but, perhaps, with that Live Music identity revealing the potential to everything else. 

Austin, A Melting Pot of Creativity

Upon relocating to Austin, I was greeted with more than just melodic strains. A rich WordPress community burgeoned here (careful that link, I wrote it 12 years ago so it’s out of date) here, with bloggers and writers crafting narratives that resonate globally while the infrastructure to do so was being improved upon here. This vibrant convergence of music with tech might be best illuminated in how Warner Music and Maya Arguelles intentionally chose to develop their site on Austin-based WP Engine – not only choosing it but then turning to video to promote the fact.

The creative canvas of Austin is colored with yet more than just words and melodies. 

The city is a living gallery, adorned with intricate murals that tell stories more vivid than a thousand words, with the City of Austin Parks and Recreation Department, Austin Parks Foundation, and the Downtown Austin Alliance, frequently working together to paint the town far more than red.  “Most murals appear suddenly, in places you wouldn’t expect: on a downtown high-rise, against the back side of a coffee shop, in an abandoned alleyway behind a dumpster,” Jackson Prince with The Austinot. “It’s part of Austin’s murals’ mystique and glory. No descriptions, no special lighting, no rules against touching. Which makes me wonder…How did you get up there, frog? Who made you? What are you trying to tell me with those big, kind eyes?”

A haven for the gaming industry, major video game companies have also planted roots in Austin, merging technology with artistry, crafting experiences that transcend boundaries.  I couldn’t be sufficiently grateful to people like Frank Coppersmith, Michael Lubker, and Adam Creighton, for guiding our early days from the perspective of their work in the gaming industry. More important to the premise here, it’s hardly well known that Austin is home to… hang on, I’m going to need another list: 

  • Bioware: A subsidiary of Electronic Arts (EA), has a studio in Austin. They have been involved in the development of various online games, including “Star Wars: The Old Republic.”
  • EA: Not headquarters but yeah, EA employs a lot here.
  • Riot Games: Known for the immensely popular game “League of Legends,” has an office in Austin. While the company’s headquarters are in Los Angeles, they have multiple regional offices, including one in Austin.
  • Certain Affinity: Specialized in multiplayer experiences has worked on titles like “Halo: The Master Chief Collection” and “Call of Duty: Modern Warfare.”
  • Aspyr Media: Aspyr specializes in porting and publishing video games on various platforms, including macOS and Linux. They have worked on bringing popular titles like “Civilization VI” to different platforms.
  • Portalarium: Known for the development of “Shroud of the Avatar,” a fantasy role-playing game, has a studio in Austin.
  • LightBox Interactive: A game development studio that has worked on titles like “Starhawk.” While their main office is in Austin, they also have a presence in California.
  • Bethesda Game Studios: A subsidiary of Microsoft with a studio in Austin. They have been involved in the development of various games, including “Fallout 76.”
  • Enduring Games: Doing a lot of the work for Nintendo Switch and PS5

And film, it’s here in Austin that people like Chris Debiac, founder of the Texas Media Association, and Jennifer Hutchins, who runs Austin Entertainment Business, are leading not just Austin’s film industry but the future of Texas Film.  Debiac, who recently has headlines reading, “Ex Californian Says Texas Must Do More To Attract The Film Projects,” sounds similar to how the Austin Business Journal positioned me a half dozen years ago, “Paul O’Brien is determined to turn Austin into the Hollywood of media-tech”

In less than a month, Dennis Quaid, native Texan, joins Matthew McConaughey, Owen Wilson, Woody Harrelson, and other Texas actors in the #goodfortexas promotion, joining Debiac at the “Why Texas” Summit in (alas, not Austin), Arlington, Texas.  There, increasing the pressure to increase and celebrate Texas film production.

Here’s the thing, the loosely concerted effort is working…

Austin, Comedy Capital of the World

Austin has experienced a remarkable surge in its comedy scene, reshaping its creative landscape once again. Esteemed figures in the comedy sphere such as Raza Jafri and Andre Ricks have taken the initiative to open spaces that offer diverse lineups catering to different groups including the LGBTQ+ community. The East Austin Comedy Club, comes to mind in evidence; a splendid venue housed in a rugged building, epitomizes this new wave, resonating a vintage lounge vibe that embraces everyone with open arms. 

“Embracing everyone with open arms,” hopefully you noticed my highlight above of immigrants, in recognition of all the musicians who moved to Austin in the early 20th century.  Again, reflected in what *made* California thrive, what makes Austin next should be assessed through the immigration – change makers who bring culture, ideas, and communities from their experiences elsewhere in the United States or beyond.

“Joe Rogan began singing the praises of Austin and discussing creating a comedy scene like New York and Los Angeles,” shared Lorena Reyna and Chris Orozco, owners of Austin’s newest Rozco’s Comedy Club, “One of the hallmarks of those scenes is being able to do several spots per night and really test out your material in front of different audiences. We felt that there was space for a smaller venue that offered an elevated experience that was completely focused on comedy. That way comedians aren’t having to get stage time at a brewery.”

Lorena and Chris, natives of Austin, embraced that immigration just as those who made a difference have before, “For years, Austin was known as the Live Music Capital of the World. Many of those venues closed during the pandemic but they left behind an audience hungry for live entertainment. Comedy fills that gap. There’s also a natural partnership with comedy and music that our venue and others are incorporating.”


“While most comics found themselves in a purgatory of Zoom shows during the pandemic, L.A. stand-ups, including Rogan, began dipping their toes into Austin. Although Texas had looser restrictions on live events, many native Austin comedians stayed home to prevent the spread of COVID. The caution of locals opened up a lane for those in L.A. and New York. Stand-ups began flying to perform at old-school Austin venues such as Cap City Comedy Club (which opened as the Laff Stop in 1986 before changing its name a decade later), the Velveeta Room (opened in 1988) and historically music-only venues like Antone’s (opened in 1975) and Vulcan Gas Company (opened in 1967).”

– Nate Jackson with LA Times

An impressive feature of this blooming scene is the inclusivity and participation it encourages. Comedy clubs are fostering an environment where comics have a say in their work environment and can work fluidly across different platforms, crafting a cohesive and cooperative community.

In the latest prospect of revitalizing what’s become known in downtown Austin as “dirty sixth,” glowing neon lights now light the marquee of the Comedy Mothership, where Rogan’s praises became intentions, and add to the immigration of creator culture to Austin.  Bringing a taste of LA whether we like it or not, the sign shines on the city like a nightclub in the heart of the city where UT students collide with SXSW crowds.

As you stroll down the lively streets of Austin, you might stumble upon the vibrant and more accessible Sunset Strip Comedy Club, a venue that attempts to revive the magnetic spirit of the ’80s Hollywood, where comedians and rock stars rose to fame in harmony. This establishment, which found a home in the former music venue the Parish, pays homage to a golden era while embracing the new wave of comedy, becoming a testament to Austin’s resilient spirit and aptitude to change – critical aspects of a culture wherein entrepreneurs thrive, and startups emerge.

The inception of Sunset Strip is a testament to Austin’s burgeoning potential as the new epicenter for comedy. Co-founded by Anthony Hashem and the late Adam Hartle, the club navigated through tragedy and transformation, emerging as a beacon of hope and laughter in the Austin comedy scene. The collaboration with Brian Redban, a figure intricately connected with the Joe Rogan Experience, propelled the club to new heights, embodying the spirit of collaboration and community that Austin now represents.

Let me pause here to highlight something… controversial people?  Yes, that’s in large part my point in recognizing Austin as I am.  Creativity thrives in controversy and entrepreneurship requires risk tolerance and disruption – none of which is possible if that controversy and disruption isn’t embraced whether for inspiration, provocation, or yeah, laughter.

“Comedy is what connects society together. The ability to poke fun at the issues of the day is the common ground. No matter how controversial the topic may be, a good joke opens your eyes to a different point of view,” remarked my friends at Rozco’s. “Comedians taking the risk to find the funny out of those controversial subjects is a risk worth taking. The right joke at the right time brings people together whether they want it to or not. Laughter is involuntary.”

And it is among that immigration, that controversy, the fun, the risks, and the different points of view, that our economy fuels change by inspiring entrepreneurs to do the same.  Ironic perhaps, that we solve problems and find unity by embracing our differences and disagreements rather than alienating or dividing ourselves over what makes the world so rich.

“Comedy is all about grit and determination,” continue Lorena and Chris (sound familiar startup founders?). “You have to stay consistent and be very focused. You have to pivot when things are not working out. Comedians are tiny companies doing it all to make it and to be in position to take advantage of opportunities. You have to show up every day and not get discouraged. The comedy scene in Austin in particular feels very supportive and encouraging. Comedians are cooperating and putting each other on shows they produce.”

Comedians being tiny companies sounds exactly like what John Zozzaro says about musicians, “you’re either running a business or it’s just a hobby.”  And his observation is what drove us to start MediaTech Ventures, through Austin, to change a Live Music Capital full of non-profits trying to help, into a hub of innovation for media, recognizing that entrepreneurs and artists alike need to learn how to start ventures.  And the experience of creators in media is exactly parallel to what it takes to be a successful startup.  It’s the creator culture of Austin, the history and the risks taken, that have evolved Austin from a tech capable city to an entrepreneurial startup hub.

South Austin Comedy Club, another significant addition to the Austin comedy circuit, has become a vibrant hub, harboring the artistry of seasoned and budding comedians alike. Arielle Isaac Norman, a prominent comedian, encapsulates the sentiments of many when she expresses the bittersweet evolution of Austin, a place witnessing an amalgamation of new talents mingling with the locals, shared with LA Times editor Nate Jackson, “I know people are complaining about a lot of California people coming here, but our city is becoming hotter — so you win some, you lose some. What are you gonna do?” Again, exactly paralleling the shift of attention and people from Silicon Valley.   Amidst the boom, many local comedians have felt that same sense of estrangement, like Taylor Dowdy, who has been a part of the Austin comedy scene for nearly a decade. “I pushed back against it a little bit,” share Dowdy, who is also general manager at the 6th street club, Velveeta Room, with the Times, “I’d been doing comedy in this town for eight years, and for a while, I felt like a stranger in my own town. At the same time, what else could you ask for really?”   While to the south is new, we can look north for that sense of Austin’s history in comedy, the city’s 30+ year epicenter took their shows to the Domain; Cap City Comedy Club simultaneously reminding us of Austin’s history and the fact that a vibrant city means things change and grow.

As Austin stands on the cusp of a new era, I have hope that this influx of fresh perspectives and talents will cement Austin’s position not just as the Live Music Capital nor merely a hot spot for comedy enthusiasts but that Austinites see all of this for what it is – that our emergence as the tech hub or startup hotspot that cause angst for many, is merely a positive aspect of the fact that we’re leading the way for the Creator Economy; of which, among writers, artists, actors, musicians, and comedians, we find the entrepreneurs and technology professionals determined to improve the economy for and because of those very people. 

In this vibrant and evolving milieu, artists from varied backgrounds are converging to create a space of mutual respect and creativity. Caitlin Benson, a new entrant in the city, highlights the reciprocity that the city offers, a place where creators are not just takers but contributors to a culture that is warm, welcoming, and ever evolving.  She too shared with Nate Jackson a sentiment that sounds like what I’ve said on behalf of our startup community, “I think a lot of people who moved to Austin are those people from L.A. who were giving and giving without any reciprocation.  We didn’t come to this town to be takers. We came to this town to give people a taste of what we do well, and the reception has been overwhelming.”

From ACL Live on Willie Nelson Blvd, where I’ve seen Blondie, Kenny Chesney (and Matthew McConaughey), and New Order, I now catch Tony Hinchcliffe and Brian Redban, Joe Rogan when he drops in to say hello, William Montgomery, David Lucas, Michael Lehrer, and Hans Kim.  Kill Tony has too found a home in Austin; and it’s from those ACL seats that the parallels I mentioned really occurred to me… music, thanks to the Kill Tony Band, livestreaming a podcast, because America wants to laugh and Austin loves the weird, where everyone has a chance to get on stage for 1 minute – exactly what we teach startup founders to limit the pitch of their venture to, when seeking to effectively reach people and change the world.

An amusing discovery tying even more together?  Tony Hinchcliffe’s website is also built on WordPress, hosted by Pressable; again alas, not based in Austin, but right down the road in San Antonio.

Before I wrap, one more observation that is critical to appreciating all of this; how media technology makes this article possible, makes your engagement possible, and serves as a catalyst for this awakening of comedy. I did mention that involved are some controversial characters and it’s notable that Hinchcliffe was canceled in 2021, ironically, given Hans Kim being a regular, for choice words at Austin’s Vulcan Gas Company. Still, Tony is arguably the one who started the migration from LA, getting Redban (Sunset Strip and co-host/producer of Kill Tony and initial Joe Rogan producer) and then Rogan to Austin. Through what medium? podcasting; and here in Austin…

Rogan, with his extensive experience in broadcast (MMA), podcasting, and comedy, is helping the comedy industry rethink the economics of comedy and the venues that serve them; something the music industry desperately needs to do. And precisely how we work and think as entrepreneurs and in startups.

Austin, Texas, Creator Capital of the World

Instead of, or rather, in addition to our incubators teaching founders how to start companies in media, and convincingly pitch in a minute, perhaps we should launch the Kill Tony Incubator working with comedians, as well as the musicians and other artists, to learn what Rozcos’ Lorena and Chris shared, that you have to build a business, or it’s just a hobby.

Amongst this growth and change, the Austin scene hasn’t lost sight of the significance and importance of its roots in music, doing just that.  Huston-Tillotson, this week, launched a music business education program, the first of its kind in Austin, “Music Business Foundations,” led by Philip Payne, a local musician-turned-music manager.  Meanwhile, UT Austin, as though our minds were all wired to move us in the same direction, announced that Texas-based musician and artist Darden Smith has been named the first recipient of the new songwriter in residence program as the University looks to become an “incubator of new music.”  Even beyond but nearby, Texas State, in San Marcos, has shifted from mere Innovation, with our media aptly named, Future Maker Studios program, while in College Station, near Texas A&M, the incubator/accelerator for entrepreneurs isn’t a tech hub, but the new “DesignSpark.”

All this because Texas, despite what the news media or partisan politics often portrays, is incredibly diverse, immensely accepting, incredibly creative, and embracing the critical role of creators in the future of our economy. As such, it’s Austin, the Creator Capital of the World, inspiring everyone to take a chance.

I made the Portage, Michigan, local news not long ago, where I grew up, because of how I grew up.  What struck me was the photo they shared, from High School; reminding me of why I moved to Austin, that it’s the weird, the misfits, the artists, creators, and the performers who are drawn to Texas now, just as it was the misfits, artists, and creators drawn to California in the 20th century. We know what that creative immigration to California did for the entertainment and startup communities of the west coast; expect the same now in Texas.

With so much, you might ask when we’re running our next startup incubator cohort for founders in Austin, and that, my friends, depends on you.  With the demand upon what we do for other cities, to help them develop startup ecosystems, and how much we do around SXSW, Austin is rather more our inspiration and home to much of the team, than where we’re able to even work as much as we’d like.   If you want to capitalize on or support the future of Austin’s creative economy, let me know!  I need you to help me keep up with how incredible Austin continues to be.