What sets the Silicon Valley apart from other clusters? Many other countries have tried to emulate this model, but none have matched California’s ability to host dozens of “unicorns,” not to mention thousands of new startups every year. Why do policies fail to replicate this Californian success? Venture capitalists could very well be the differentiating factor.
There are two main components of a compensation policy: salaries and equity. An equation with only two variables? Should be pretty simple, right? Well, not when you are talking about something as symbolic as money. Let's dig dive and look at the best practices of compensation policy for startups. Starting with equity.
How should you design your compensation policy? As we’ve seen in the first part dedicated to incentives in startups, equity should be the main driver for both founders and early employees, since it rewards risks and performance. The question is to determine what level of equity should be offered to a given candidate.
Young innovative companies are the subject of much interest. Their example reinforces a mythology of innovation that has its classical examples, its specific locations (MIT, the Silicon Valley), its theoreticians (Joseph Schumpeter and the economics of innovation), its heroes (from Edison to Mark Zuckerberg). But behind the scene lies a more complex reality. What does a sociological approach reveal?
The partnership between PSL and ParisTech Review, which gave rise to the Paris Innovation Review, reflects a shared vision: for developed economies, as well as for institutions with a global vocation, innovation is the very key to power. Yet one does not simply decree innovation. Innovation dynamics, on the other hand, can be enabled, by enhancing exchanges between disciplines, between institutions, between cultures, between public and private stakeholders, between researchers and entrepreneurs. An institution like PSL is an exchange enabler. Such is also the vocation of Paris Innovation Review.
The Bay area is not only an economic reality with a level of investments, quantifiable turnover, number of unicorns or tech business stock market. It is also a territory that stages its own history. Stretching over a hundred kilometers, the strip of land running from the North of San Francisco to the South of Jan José can be analyzed as an ice core. Beyond the frantic entrepreneurial energy that runs through it, we could see different architectonic displacements, which keep track of deeper transformations, from Sunnyvale to Cupertino, from Mountain View to Menlo Park, from Palo Alto to San Francisco.
Over 60,000 US Internet startups have been created over the last decade but only 0.14% turned into unicorns i.e. startup companies with a market capitalization over one billion dollars. Who are the serial entrepreneurs who founded them? This winners club covered 84 entities in 2015 – against 39 in 2013. They have a very distinctive profile.
Compared to the evolution of the Maker Movement in Western countries, China has already formed a much larger bottom-up ecosystem, manifesting the ultimate goal of the Maker Movement - democratizing innovation. We call it the New Shanzhai, after the Chinese word for copycat. The question is, what will happen when these two worlds meet together?
Over the decades, corporate venturing has evolved through several phases. Recent initiatives reflect growing interest among large companies to include incubators as a capstone of their corporate venturing. Incubators or not, the challenges remain the same: how to grow intelligence, the life-blood of entrepreneurial environments? How can a corporate parent accelerate innovators' learning? The experiences of prolific inventors and craftsmen suggest an answer: by providing product teams with an artisanal environment that favors play, repetition and patience.
Spain is one of the world's leading nations in biotechnology research, but it lags behind in technology transfer and the creation of new companies. The Spanish government is hoping to bring about a radical change in these statistics. To do so, it is focusing on the Israeli biotech sector, a world leader in creating start-ups, as the inspiration for designing an entrepreneurial and business model based on innovation. Not a bad strategy, but it should not remain unchallenged. Let's have a look.
Since its humble beginnings in 2002, the London technology scene has become a vibrant centre of innovation and entrepreneurship. With its legacy of international industry and diverse population, London is not only an international economic capital, it is also a jumping point to the rest of Europe, Africa and Asia. As a relatively newcomer to the industry, the London tech scene is still eager to prove itself. Its close-knit community attracts start-ups from all over the world, and as recent news indicates, thousands of entrepreneurs, many from the US, are launching their businesses in the British capital.