Victor Hwang’s 2012 book, "The Rainforest," is one of the origin texts of Buffalo’s startup scene, arguing that a long-term and widespread emphasis on entrepreneurship is necessary for a healthy 21st century city.
Years after the book began circulating in local business and social circles, the man himself came to Buffalo to assess the progress here.
Hwang’s company, Victor & Co., was hired last year by the Ralph C. Wilson Jr. Foundation to take a snapshot of the Western New York startup economy.
The Wilson Foundation has a stake in the conversation – writing grants the last few years to Launch NY, TechBuffalo and Bitwise Industries.
Hwang last year spoke to 20 people in Buffalo’s startup economy, a list that included civic leaders, government officials, investors and other stakeholders (Full disclosure: This reporter was among those interviewed last summer).
“The goal was to get a snapshot of the Western New York entrepreneurial community,” Hwang said. “It was very clear there were certain themes coming up over and over again.”
The report is now publicly available here. Hwang has been engaged to continue the work in Buffalo, hosting conversations with those involved in the study to help turn the study’s conclusions into action.
He said the goal is to begin inviting more people to the table.
“We’re talking now with people we interviewed to start thinking about next steps,” he said. “We’re using the report as a catalyst to drive those conversations. It is starting out very small but over time we hope the whole community can participate.”
Here is how Hwang interprets the results of his “rapid discovery assessment” in Buffalo.
Going well
Hwang said that Buffalo, with its tradition of innovative companies and deep reservoir of college talent, has regained its entrepreneurial chutzpah over the last 15 years or so.
As a cause or result of its self-belief, there are a series of highly engaged leaders in “great places and positions” throughout the entire startup economy.
That’s no pro forma attribute. Hwang said Buffalo stands out in similar-minded communities in the collective energy that business and civic leaders are pouring into entrepreneurship.
The community has built a critical mass of activity around startups, including the number of companies and tech employees and also the amount of capital flowing through those projects.
And lastly, Buffalo’s startup community has begun spinning off high-growth success stories that not only create wealth but also serve as proof points for the entire premise.
“There is a recognition that companies in Western New York can be as big and compete with companies from anywhere in the country,” he said.
Needs work
Entrepreneurs in Buffalo may have invented modern air conditioning and the pacemaker, but a half-century of economic stagnancy has taken its toll. Hwang said that a culture of risk aversion remains in parts of the community.
He also said that for all the interconnection of Buffalo’s startup scene, there are too many important institutions that are not participating and that includes corporations, government entities and colleges.
“There’s a core startup community that is very active and well-connected,” Hwang said. “What’s missing is the next ring of institutions, corporations, government agencies, etc., that are essential for the success of the entrepreneurial ecosystem.”
Hwang pointed out that in other cities, the so-called “Main Street” business world and the high-growth startup world have started to blend together. He said there is room for that convergence to happen more meaningfully in Buffalo.
While funding has increased locally, he said it still comes from a few centralized places, compared to other successful startup cities with a greater breadth of investment sources. More programming, better workforce pipelines and better information-sharing all need to be regional goals, he said.
Hwang said that Buffalo showcases a “critical need for more inclusion and diversity.” While diversity issues are common to many startup communities, Hwang said there are examples in the U.S. of successfully engaging more ethnic and gender diversity in tech.
Buffalo's diversity makes the issue even more urgent.
“There is a huge population of underserved entrepreneurs in the Black and Latino communities who have been left out of entrepreneurial growth,” he said.
Taking a 10-year view of Buffalo’s technology scene, Hwang said it’s clear something meaningful is being created here. He said the key is to take those early notches as encouragement to keep building.
“In business, momentum is critical,” Hwang said. “The goal now is to continue to feed that momentum. There’s a lot to be proud of and a lot more to be done.”
