How many startups have been birthed as a result of personnel from a former startup?

In his own case, Mr. Moore was an employee of XOR, (Internet technology, Systems, IT) and according to his experience some 23 companies were formed as an off fall of its sale, one of which includes the company he currently works for. This information has spurred the team here at Startup Revolution to wonder if we could put together a data set that would depict the general impact startups have on their communities.

So we decided to begin the process of sourcing information regarding such matters and are now putting together a data set on the long term residual effects of startups; no matter their outcome. Whether they failed or succeeded we want to know the impact startups have.

So we’ve got a favor to ask…we need you to fill out the form below providing us with important information on the number of companies that were spun off as a result of either the sale or closing up of a former employer.

Simply fill out and submit the form below and we’ll start building the data set.

Thanks for all the help!

-The Startup Revolution Team

Startups are tough.  They’re demanding and can ruin relationships if you’re not careful.  Back in 2011 my wife, Annelies, and I were building a startup together in Brazil.  We had just raised a million dollars to scale up the customer acquisition for our daily deal aggregator.  We were on top of our game and about to take over the world (or so we thought).  Long hours at the office, days apart while on the road, and many hours in front of laptops at home were the norm.  We poured everything we had into the startup.  Meanwhile, our two children (now 5 and 3) were as demanding as ever and rightfully deserved more attention – and happier parents.

How to fit in everything?  ”Quality time” with family started to slip to make way for getting just one more task done before starting anew in the morning.  Forget about getting out to have a “date night”.  And dinner discussions focused on resolving business problems; such conversations started to get more intense when we had differing opinions on certain topics.  Things became even more amplified as the company started to run into finance problems…

Our relationship was in trouble and starting to show some serious cracks as the months rolled along.  We co-habitated in the same space, took each other for granted, and sadly our relationship had lost its spark.  Fights started from trivial issues and quickly escalated into days of anger and avoidance.  It became clear that neither of us appreciated the other.

At some point we came across a blog post from Brad and Amy (which would be incorporated into Startup Life) describing Life Dinner.  It was comforting to see that very accomplished couples had grappled with similar issues.  And as we toasted in the New Year of 2012, Annelies and I both made a resolution to each other to adopt our own version, which we call Appreciation Dinner.

Appreciation Dinner works like this:

• Each month each of us will prepare a 3-course meal for the other
• One person is the cook while the other is appreciated
• Once the kids have gone to bed, the cook will serve the appreciated and will describe specific things they appreciate about the appreciated
• Rules: the cook prepares all the food, drinks and also does the dishes.  The appreciated one is pampered.  No cell phones, no email, no TV.
• (By the way, we both love to cook, so this also carves out some time to create and share interesting meals)  

Proudly, we both stuck with our New Years resolution to each other during 2012 and keep up our Appreciation Dinners to this day.  Starting out as very broad appreciations in the beginning (“I appreciate you for being a good mother”), the praise has turned into recognition of very specific events (“I appreciate your support last Thursday when I was stressed”).  The accompanying conversation is very much along the theme of Life Dinner – we have a chance to reconnect in a safe environment and discuss broad life themes, major obstacles, fears, joys, planning for the future, etc.

Through the process we have turned around our relationship for the better and have never been more connected.  We just celebrated our 10 year anniversary this January.  And while the startup itself unfortunately didn’t meet our expectations, our relationship has emerged stronger than ever.  We recently moved back to Colorado, and despite such a stressful life event as moving to another country, our Life Dinner hack gives us a great tool to stay connected and keep the daily stresses in context as we figure out our next professional moves.

Jason Hall is an expert in data driven, online marketing (PPC, SEO, affiliate, email, etc) & consumer website optimization. After working at various startups in Los Angeles, London and Porto Alegre, Brazil over the last 12 years, he has recently returned with his family to the Greater Denver area and is seeking his next challenge. He tweets irregularly at (https://twitter.com/hall_jason).

Halfway through Startup Life, married couple Brad Feld and Amy Batchelor suggest that, “Being in a relationship with an entrepreneur is hard, possibly harder than being an entrepreneur” (p. 78). This hard-learned gem of wisdom is richly conveyed throughout their excellent read.

Through their own real-life examples, and those of others, Brad and Amy drive home the message that a founder’s spouse or life partner is the true cofounder, the one without whose support and contributions the startup could be dead or might have never been born to begin with. Startup Life is an invaluable resource not only for showing life partners their likely path ahead, but also for opening the eyes of the founders themselves to the stresses their partners are likely to experience.

I appreciate how the book tackles the full range of the entrepreneurial journey, beginning with the initial decision to leap (e.g., when motivated by “not wanting to risk a life in a cubicle”), and culminating with a successful exit. However, their clear-eyed presentation of these events highlights the unexpected challenges that can accompany even the biggest success. For instance, the authors poignantly describe the aftermath of Brad’s successful exit from one of his startups as “the entrepreneur’s equivalent of post-partum depression.” Far from the jubilation we would expect to see, Amy and Brad’s raw reflection offers a sobering, honest view of the dark underbelly of what many expect to be the glorious Promised Land. Along the way, Brad and Amy impart a wide variety of practical lessons and suggestions, such as keeping a weekly digital “Shabbat” in which they are offline each Saturday.

To ensure they have cast a wide net of experience, Brad and Amy pepper the book with anecdotes and insights from others in the entrepreneurial ecosystem. Almost all of the outside write-ups have at least one important insight, but a couple of them are particularly golden. For instance, Keith Smith, founder-CEO of BigDoor in Seattle, provides very personal reflections on how habits he developed within the startup harm his personal life. Reflecting on that broader pattern, he says: “…the fact [is] that many of the skills that entrepreneurs develop to help us survive and ultimately succeed in a startup are in direct opposition to the skills we need to build a long, happy, and stable relationship. Embrace risk. Fail fast. Move even faster. Solve problems quickly, and without waiting for every fact to reveal itself. Multitask well. Shape the world around you to match your vision. … [As a result] I’ve got screwed-up priorities, a well-developed set of exactly the wrong skills, and I come off as being emotionally unavailable.”

Another golden write-up delves into the experiences of two spouses cofounding together – “couplepreneurs,” if you will. (My data has shown that founding teams comprised of friends and/or family tend to be less stable than other teams, emphasizing how founding with those types of people is “playing with fire.” Such teams should devote a lot of attention to developing “firewalls” to protect themselves.) Krista Marks and Brent Milne describe their own firewalls, such as always using each other’s given names at work and nicknames at home, and going out of their way to prove to the rest of their teams that they do not discuss sensitive work issues at home.

More generally, succeeding at founding a startup while founding a family requires cultivating an awareness that startup rhythms are rarely in sync with the rhythms of personal life, and that there are often strong disconnects between the entrepreneur’s psyche and the spouse’s. Two of those disconnects are highlighted in the book by spouse Alexandra Antonioli: divergent perspectives on money (“A person who has always worked a salaried position from 9 to 5 arguably does not view money in the same way as the entrepreneur”) and time (“entrepreneurs like to overbook. … They will be late.”). She calls the latter “the Entrepreneurial Time Zone.”

In addition to highlighting the potential disconnects between the personal and the professional, Brad and Amy also highlight ways in which startup best practices should be imported into a founder’s personal life. For instance, the entrepreneur’s intense focus on the startup’s cash position: “Make sure as a couple you know where you stand, how much money you actually have, what your monthly burn rate is, and how long you can go before you are out of money.” Another bit of overlap with founding teams: “a couple that ‘never fights,’ it’s almost always a sign of avoiding talking about troubled topics and not the result of complete accordance and unity with each other.”

Along the entrepreneurial journey, we get to know a variety of fun tidbits about Brad and Amy. For instance, Brad’s ringtones include – perhaps a bit too tellingly! – “Money” for his VC partners and “Comfortably Numb” for CEOs. Brad’s “14-year-old inner self” has a strong aversion to babies. Even though Brad stresses the importance of having regular Life Dinners with Amy, they’ve had to develop “our fail 12.5 percent of the time rule”: that Amy allows Brad to miss it unexpectedly one out of eight times. And even though Brad had significant assets to protect when they got married, they don’t have a formal prenup. Instead, if the relationship fails, Brad says that Amy gets everything and Brad will start over from scratch.

We’re left with a richer picture of the authors, but also a richer picture of the ways in which the founding journey will challenge the most cherished of our relationships, insights that will hopefully enable us to preserve the professional without imperiling the personal.

This is a re-post from Noam’s blog at noamwasserman.com

Noam Wasserman is a professor at Harvard Business School. For more than a decade, his research has focused on founders’ early decisions that can make or break the startup and its team. At HBS, he developed and teaches an MBA elective, “Founders’ Dilemmas,” for which he was awarded the HBS Faculty Teaching Award and the Academy of Management’s 2010 Innovation in Pedagogy Award. In 2011, the course was also named one of the top entrepreneurship courses in the country by Inc. magazine.

Four years ago I emailed Brad Feld after hearing him on This Week In Startups. To my surprise I got a call from him no more than 10 minutes later. I asked him how to build up the Phoenix startup community.

His advice then:

1. Start hosting meetups and groups… and keep doing them even if only two people show up.

2. Start showing progress. People pay attention to growth.

Four years later… after reading Startup Communities: Building an Entrepreneurial Ecosystem in Your City…

…We launched Assemble Arizona this morning! It’s a group of my friends who came together with the purpose of uniting Arizona’s Creatives. We use “creatives” instead of startups for a specific reason. We want people who are entrepreneurial, who may not know it yet, to have an opportunity to be involved.

I’ve read all of Brad’s books, and he espoused the pillars of a startup community: Entrepreneurs, Government, Investors, Mentors, Universities. We modeled Assemble Arizona after the Boulder Thesis.

…But I added another element. I liked the idea of entrepreneurial led ecosystems, because we are the ones fighting in the trenches. But my experience in Phoenix showed me that we typically fought battles alone. We were trying to build our own startups alone; in silos. Why couldn’t we collaborate and help one another?

I grabbed a group of my friends and presented the idea of helping one another. I started small with asking for amplification. I literally asked 3 of my friends if they would start “liking” Facebook posts and Favoriting & Retweeting my messages on Twitter. And I would do the same for them. This collaboration took 30 seconds of time, but has proved beneficial for all of us. We made a commitment to one another that anything that needed amplification (events, meetups, launches, promotions), we would work together to amplify. Even if it seemed to have no benefit to our own interest. We were friends helping friends.

This mentality grew as everyone involved received beneficial results. We started getting more conversations on threads and our Twitter followers increased. We added more people to the coalition. We started growing a community of entrepreneurs supporting one another. That community became a weekly meeting to share experiences and problems. Those meetings turned formal and into Assemble Arizona.

We want to share what we have experienced with others.

If the pie keeps expanding, we all win. The market is big enough for all of us to win. We don’t need to compete as startups. ALL startups should be uniting to compete against incumbents. The Googles, Apples, IBM’s, GM’s, and the old businesses that are desperately trying to hold their position. They are competing against us as startups, so why don’t we unite to compete against them?

David vs. Goliath… but what if there are 20 Davids fighting against one Goliath. I’ll take 20 Davids any day!

So put us on our radar. Get involved with us. We want to hear what you’re doing and what works and doesn’t work for your community. We are inclusive to everyone.

We do physical and virtual meetings every Sunday at 3pm (Arizona Time).

We’re looking forward to showing you what Arizona is up to!

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N/A

RokkMiami Book Signing Event With Brad Feld
When: Monday, April 29th, 2013 @ 4-5pm
Where: The LightBox in Miami
Description: The event is largely based on Brad Feld’s (Renowned Author and Investor) book: Startup Communities. Brad will be present at the event to mentor, facilitate and help drive the delivery of the road map  The community will be represented by a large group of real entrepreneurs, members from the investment community, academia, government, foundations and corporations that are interested in making Miami a place for innovation and business creation.

The winners of the Feld KC FiberHouse competition, that I’ve done in conjunction with the Kauffman Foundation, is a company called Handprint!

Handprint is working on some amazing 3D printing and editing technology. We had plenty of applications for the competition – many of them very interesting – but Handprint really captured our imagination.

As winners of the competition, they’ll get to live in the house rent free for a year. I’ll pay for Google Fiber and the house; they cover their own expenses. There are no strings attached – I don’t get any equity and there are no downstream obligations for them.

Google Fiber was installed last week so when they move in they’ll immediately have access to 1 gigibit Internet.

As I’ve mentioned before, I’m doing this as an experiment around Startup Communities. I’m fascinated about what is going on in Kansas City around Google Fiber and rather than observe, I decided to participate.

Thanks to Ben Barreth for inspiring this project with his Homes for Hackers discussion with me when we met atThinc Iowa. And thanks for Lesa Mitchell at Kauffman Foundation for all of her support. Both Ben and Lesa have done all the hard work on this project – I’m deeply appreciative of their help. Also, thanks to Scott Case of Startup America for helping judge the competition.

A huge congrats to the Handprint team which consists of Mike Demarais, Alexa Nguyen, Jack Franzen, and Derek Caneja. I look forward to getting to know you better over the next year. Welcome to the Fiberhood!

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Celebrating the Small Things is the fifth and final post in a five part series called ”Enjoying the Ride.” Comparing a start-up to surfing, this is a simple guide to turn your grueling start-up battle into a more soul fulfilling experience by helping you battle the sets and pick the right waves so you can enjoy the ride.

“When you overcome the fear and all the elements that are working against you and ride one of those waves, there is a feeling of gratification and accomplishment that is beyond words.” ~ Greg Long (big wave surfer)

Beating your numbers feels good. It’s such a binary understanding that everyone, from employee to investor, can grasp. And your success against your own predictions is the industry’s way of saying “this company is killing it” or worse, “they are struggling.”

But should it be?

I spent a lot of time at Contour feeling the joy of beating, and the pain of missing, our own numbers. People got worked up at the end of every quarter based on our performance, when the only number that really mattered was how much cash was in the bank. Having to explain lower than expected numbers is never a fun conversation, but for the rest of the organization it meant they had nothing to celebrate. All the work they did went for nothing because outside of the sales team they had minimal impact on the numbers. Most people don’t have a budget and they don’t sell, which means they have an indirect impact on the financial results.

The elation or disappointment around the quarterly numbers was masking the real question.

Are we getting better?

Building a great company or being an amazing surfer isn’t like playing a team sport. There is no trophy you walk away with or a championship you can try for again if you lose. There isn’t a fixed time you play or rules that define how the game is played. It’s an ever changing quest that has no timeline and no clear definition of victory. And the only thing that tells you if you are improving is how you feel.

When you talk to people who have surfed their whole lives they don’t talk about the wins they had or the expectations they beat. They describe beautiful pictures about the journey, about the moments they remember with their friends, about the conditions on a particular day, about the power of the wave under their board, about the near misses, or about how surfing fills their soul. Getting better is a life quest, while improving is a confidence you gain wave by wave, set by set, session by session. It can’t be measured, but it can be felt.

Now that my time is over with Contour I don’t always remember the quarterly numbers or how we did against our own expectations. I don’t remember what our annual objectives were or what we talked about at every board meeting. What I do remember are the too few times we celebrated the journey. I remember the happy hours, the company parties, the lunches to welcome a new employee. I remember our product launches and the excitement when great reviews got emailed around the office. I remember the company pride people shared attending events and trade shows. A list of things I remember that rarely had anything to do with our numbers.

Yes, numbers are important and you will never get away from quarterly projections or investor expectations. As long as you are building a growth company your success will be measured by how “up and to the right” you are. Beyond the numbers proving frequent employee reviews, clear quarterly objectives, a consistent vision, and values, they help in keeping your whole team on the same page.

But even if you do all of this, which is expected, people will still wonder if you’re getting better. Seeing numbers on a chart or passing out a few beers at a company meeting isn’t memorable. It’s what everyone does.

What’s memorable are the things you celebrate. It’s the small ways you make people feel appreciated or the small ways you help people feel the wave of momentum the company is creating. Helping people feel the journey is a critical part of your job and something most entrepreneurs overlook. Because most of us are intrinsically motivated, celebrating before our life’s work is done doesn’t make much sense, something I often struggled with.

But to everyone else it matters. And when your time is done and the company is gone, it’s one of the few things you will take with you.

Celebrate the People
We all need recognition. This may be hard for entrepreneurs to believe and it may even drive you nuts that people need positive confirmation of the work they are doing, but get over it. If you want to lead people you have to keep them inspired for a very long time, doing their best work.

Abraham Maslow, a psychologist who created Maslow’s Hierarchy of Needs, explains why esteem, to be valued and respected, is one of our basic human needs. What Maslow goes on to say is that there are two types of esteem. The first is the desire for personal achievement, adequacy, mastery, and competence, which gives us self confidence and ultimately personal freedom. The second is the desire for reputation, respect from other people, which includes status, dominance, recognition, attention, importance, and appreciation.

Knowing people need some form of recognition, doesn’t mean you have to run around congratulating everyone, nor does it mean you have to call everyone out publicly at a company meeting. Not everyone wants public recognition for their work and it’s not your job to do all the congratulating. Instead your job is to create a culture that helps people appreciate one another.

I have found two areas to focus on. The first is creating an environment where people can do their best work. One of the reasons people join a start-up is to have an impact and they can’t do that if they are unable to make decisions on their own. Too often at Contour plans were passed down to people instead of being built with the team from the ground up. By the time people got their assignment it was just that, an assignment. The best example I have found is Valve, a software company based here in Bellevue, Washington. Their employee handbook is a must read and from it you can see that their entire premise is to create a place where people can do their best work.

The second area is to appreciate people in small ways. From the time they join the company to the time they leave, you want to celebrate their accomplishments along the way. Ideas on how to do this:

• Make their first day amazing. Before they show up have a computer ready, desk arranged, people available to help them, and everyone in the company knowing what their role is. If someone’s first day is disorganized it makes them feel undervalued from the second they arrive.
• Anniversaries are like birthdays, don’t miss them. People spending a year or multiple years at the company is a big deal.
• Give them the tools they need. It doesn’t mean everyone gets Mac screens, but before you hire people make sure you can afford the tools they need, otherwise they become frustrated they can’t do their job and instead of concentrating on the work they are wasting time with equipment that doesn’t work.
• Constantly give feedback! It’s easy to get lazy and put off annual reviews, but don’t. And don’t put off telling people you thought they did a good job or you thought their work was great. A simple “thank you” or “congratulations” in person (not on email) goes a long way.
• Buy people food. Eating is a great way to put down the laptop and say thank you.

Keep it fresh. However you celebrate people, be creative about it and don’t make it a pattern or people will assume you are just doing it to check off a box.

Celebrate the Company
You probably aren’t building Rome, but you are building a company and building a great one takes an army of people. I’m not just talking about the employees. It takes investors, customers, lawyers, partners, family members, vendors, etc. to make the journey a success. The reality is that most of the people involved in your company won’t retire in luxury from their involvement. The odds of success are so minute that most of them will walk away with nothing more than the memories of the journey.

As the leader, it’s your job to make everyone feel involved. No different than celebrating the people, you have to come up with ways for people to follow the journey, brag about your success, and create a deeper relationship with the company.

But what items do you celebrate?

The first way is to create public events everyone can attend. I still have goose bumps from standing on stage at my firstZumiez 100K. Despite being a public company Zumiez, an action sports retailer, puts on an annual two-day event that celebrates everyone involved with the brand. The founder and CEO get on stage to talk about the company, the successes for the year, and what is in store for next year.  All of the Zumiez employees are dressed in ridiculously awesome costumes and the top 10 sales people are rewarded with public recognition and massive gifts. The founder of every brand is invited to go on stage in front of thousands of people to personally say thank you. Athletes are invited on stage to give their own shout-out and engage with the employees. And everyone mingles together in a massive after-party.

Granted, a start-up can’t afford this. But then again, Zumiez has been doing this since they started some 35 years ago and I’m sure the initial event was not nearly the spectacle it is now. They have alway believed that everyone should be involved in the success of the company.

The second way is to celebrate small wins on a daily basis that go beyond your numbers. Items that are consistent with the company values is a great way to constantly remind people what is important. Just remember to be selective about which events are worth sharing outside of the company or you risk inundating people with victories that are hard to grasp if they aren’t living the battle with you everyday. Some ideas include:

• Document the journey. You are creating history and you can’t remember it without pictures, videos, and documents of what happened. It’s great material to pass on to people who weren’t there.
• Decorate the office with accomplishments. Putting up press clippings or customer quotes is a great way to remind people of the company success.
• Collect and pass around positive reviews. Third party acknowledgements are great bragging rights, especially from end customers and editors.
• Customer wins. Getting new customers is motivating, but just remember to let people know if you lose a customer too. No one likes to be bragging about your awesome new customer to find out down the road from someone else they are no longer a customer.
• Completing projects. Yes, product announcements are the easiest, but even celebrating the completion of small projects is important.
• Sharing prototypes. People love to see the new ideas being worked on so sharing visual work as it’s being completed is incredibly motivating.
• Successful events are filled with photos and stories people who didn’t attend would love to know about.
• Marketing campaigns, especially successful ones that move the needle are visual and help people grasp the message we are sharing with the world.
• Happy hour (yes, cliche) is still a great way for people to connect and share the projects they are working on.

It means a whole lot more when the whole company takes time out of their busy day to enjoy the milestones, especially if the celebrations are during working hours and outside of the office. And don’t forget to invite significant others, they are quietly the most important aspect of employee success.

Conclusion
Building greatness is hard and there may be a lot of days when you feel like you are going backwards instead of forwards. But that is part of the journey and helping people appreciate the ride is one of your most important jobs.

Yes, company updates give people the information they need, but feeling the momentum is even more important. Especially in the volatile world of startups, people need to hear, see, and touch success over and over and over again. It creates a wave of momentum that can overcome the setbacks you face along the way.

Get out from behind your laptop and help people enjoy the ride. Because when it’s over, your memories will be all you have to look back on.

My Purpose
I am an entrepreneur. A creator. A builder. I want to build companies that make the world a better place, one product at a time. I have come to believe that if you let life unfold itself, you will experience it like never before.

Contour
My first start-up and therefore my first love. I co-founded Contour in a garage almost ten years ago and was fortunate enough to have lead the company from inception to a multi-million dollar business with hundreds of thousands of customers around the world. I am most proud of the award winning products we create, which are thoughtfully designed and incredibly easy to use. Contour.com

Contact Me
marc.barros@gmail.com
@marcbarros

Related articles

• Part 1 of Enjoying the Ride: Being Physically Prepared
• Part II of Enjoying the Ride: Staying Mentally Fresh
• Part III of Enjoying The Ride:Doing Less is Harder than Doing More
• Part 4 Of Enjoying The Ride: It’s Not All About You

Register

NJ Tech Meetup #35 With Brad Feld
When: Monday, April 15th, 2013 @ 6:45pm
Where: Howe Center – Stevens Institute of Technology Bissinger Room (4th Floor), 8th/Hudson – walk up River St to 6th St., then up Wittpen Walk to Howe Building Hoboken, NJ
Description:The Boulder Thesis: Four Principles for Startup Communities. How communities attract and support innovative startups is a hot question in today’s economic climate – and Brad Feld has some answers. In his new book, Startup Communities, the cofounder of Foundry Group and TechStars boils down 20 years of experience working with entrepreneurs and building a vibrant startup ecosystem into four essentials that will work anywhere in the world.

    Register

Meet The Innovators: With Brad Feld and Alessandro Piol 
When: Tues, April 16th, 2013 @ 6:30pm
Where:  SoHo Apple Store, 103 Prince Street, New York, NY 10012
Description: An Apple A Month…..Women Innovate Mobile’s Meet The Innovatorsmonthly conversation series started in January with a discussion on Social TV and continues on Tuesday, April 16 with a conversation on entrepreneurial communities venture funding and more with Brad Feld, Managing Director, Foundry Group and Co-Founder, TechStars and Alessandro Piol, Co-Founder of Vedanta Capital.

Read More

Last December Brad spoke at Cross Campus about Startup Communities and they took some great footage of the event…

What is Cross Campus you ask?

Well, “Cross Campus is an engine of creativity and innovation, housed at our state of the art 11,000 square foot space at 820 Broadway in the heart of Santa Monica.  Our goal is to inspire creative collisions through space design, learning platforms, and extraordinary events, fostering member-driven collaboration that ultimately leads to game changing ideas and enterprises.

As a member of Cross Campus, you are part of a select community of doers.  You enjoy a work-space that is designed to inspire and built to support the needs of entrepreneurs who aim high.  Our classes & events give you the opportunity to participate in a dynamic learning experience that goes far beyond the norm.”

Pretty much sums it up.

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• @TechnoriLA ‘s amazing pitch night w/@NoahKagan @CodewarsDojo @artkiveapp @adoptt & more. My #startup review.