Spoilt

I was recently introduced to a young technology entrepreneur here in Australia. I meet people like this almost daily.

She is working very hard on a new internet business that makes no sense from a technology or market view. However she has character and determination and could, in the right environment, have a shot at becoming a successful tech entrepreneur.

But here in Australia she doesn’t get the feedback she needs to make that transition. In fact she has micro-investors that like her business as it is and tell her so. Her board is a bunch of people that have never been serious investors or entrepreneurs.

She plans on doggedly sticking to the path dreamt up from ignorance some time back. She is guaranteed to succeed in building a very small business. Or not.

In Silicon Valley if, as a young entrepreneur. you have the right character investors don’t put money into your company when you first approach them. But they will introduce you to experienced mentors that will slowly (and hopefully) educate you, help you find a big problem to work on, and then get you surrounded by the right technical and marketing people, After a while you will return to the same investors and get serious funding.

What investors love is the right human capital – the rare ones that have the energy, intelligence, and the drive to succeed at founding and running start-ups. So the rest of the experienced community (that have been there, done that, but the energy is gone) have set themselves up to work through these young people. So long as they listen, and know who to listen to.

The difference between Silicon Valley and anywhere else is that Silicon Valley has a large pool of deeply experienced investors and entrepreneurs that can mentor young entrepreneurial talent. And when that talent is sufficiently educated the VC’s will invest heavily in it.

Here in Australia the odd young entrepreneur that has talent, drive and ambition and that doesn’t go to Silicon Valley gets spoiled by inexperienced investors and mentors. It’s very sad to watch.