The local Arizona startup community has a lot to be proud of. We are seeing record levels of funding, successful exits, and acquisitions. The quantity and quality of startups is going up. More important, successful founders are staying in the state and creating new funds, launching studios, and starting their second or third companies. On top of that, new expatriates from Silicon Valley or Southern California introduce themselves to the community almost every week.
Congratulations, we are no longer an awkward teenager. Our innovation ecosystem is entering adulthood. Not only does that mean better businesses and outcomes, it also means we can decide what our community looks like. We can set goals about what defines and differentiates us. A few years ago, the community decided we didn't want to be like Silicon Valley, and we didn't want to be the next Austin or emulate Boston. We wanted to be more than different – we wanted to be better.
But what does that look like?
To help answer that question and start the conversation, I took a very unscientific poll of people I know who are founders, mentors, service providers, and investors. I asked them to provide three characteristics they wanted to see in Arizona's future startup culture. As you would imagine, their answers were all over the place and reflected their interests and past experiences. But, if you look closely, three characteristics showed up over and over again. And I have to say, I agree with and would be proud to help grow an ecosystem that exhibited all three.
Characteristic 1: Focused on results
The most consistent response was that we needed to be successful. Not at all costs, like some other ecosystems. But we can't achieve what we want to achieve if the community does not produce strong companies that grow and succeed. An early mistake we made was to support great ideas and good intentions more than solid results. If we want to grow and achieve other things, we must hit the numbers.
Characteristic 2: Diverse
Variety in technologies and industry verticals along with diversity in founder background, gender and ethnicity also floated to the top. Diversity in the type of companies we grow provides more stability and opportunity and might even produce some synergy. More important, different types of founders bring different ways of thinking and solving problems to the table. The last thing we want is an army of Patagonia vest-clad tech-bros boasting about how smart they are. A community that doesn't look the same and thinks differently can innovate better and is simply more enjoyable to be a part of.
Characteristic 3: Collaborative
If you ask anyone who has been a part of our startup scene for any time what sets us apart from other locations, most will tell you how eager everyone is here to help each other and work together. Keeping that collaborative mindset is even more critical as we grow and see success. It helps companies overcome obstacles and grow faster and attracts the best and brightest from other locations. Who wouldn't want to be part of a community that stresses working together over competition?
We could let market forces and happenstance dictate how we grow and evolve. Or we could decide what our goals are and work consciously to achieve them. Now is the time to have a dialog and figure out if these three defining characteristics are what you want to see or if there are other qualities we want to focus on. Let's make the discussion part of our regular interaction and build a consensus.
If we do want to be a diverse, cooperative community focused on results, we need to be intentional about it. Apathy, greed, and fear can quickly derail us. I don't know about you, but I can't wait to get where we are going and learn what characteristics end up defining our startup community.
Eric Miller, a regular contributor to the Business Journal, is co-owner of Tempe-based PADT Inc. Reach him at eric.miller@padtinc.com
