Hope many remembered Mr.D from N.Y and his ‘s last visit and here is the Recipe for MaduraiStartups Success and how the co-working space fits in the recipe….
His Recipe as Case study
However, four critical advances over the past decade (cloud, accelerators, Lean, and Angels) not only changed the math for tech investing but made regional tech clusters possible.
• The cloud, open-source development tools and web 2.0 as a distribution channel have vastly reduced the amount of capital a startup needs at the early stage when the risk is greatest. (Startups still need capital to scale once they find good product-market fit and a repeatable-scalable business model.)
• Accelerators, which became mechanisms for focused entrepreneurship mentoring and delivery of best practices to startups. This was valuable to startups in the Valley and has been vital to startups in regions where the ecosystem is less developed.
• The Lean Movement, led by Steve Blank (and others,) created a set of methodologies that ushered in the era of Evidence Based Entrepreneurship. This has changed the way entrepreneurs think about building their startups and how investors should look at them.
• Angels & Crowdfunding: Coincident with the capital efficient movement came the current wave of angel investors, this time armed with the ability to collectively fund startups to the point of meaningful value creation on modest amounts of capital. Sites like AngelList have only amplified the collective reach of individual and grouped angel investors.
• This document focuses mainly on the accelerator part of the recipe
An accelerator is typically not a open system where the founder/co-founders can get support but a closed system when only the chosen set of founders would get the support needed. However this creates limitations in an ecosystem in its infancy, i.e. how do you choose. Do you choose based on founder or team or idea.
Delaying the decision making in investing in a team until you get enough data on the investment level of the startup makes better investment sense.
The intent is to use the co-working space as a wide funnel to get prospects into the system and support those prospects using a combination of Lean Startup/Customer Development + Evidence based Entrepreneurship.
Typical graduation from co-working space to accelerator as the users graduate from the investment levels from 1 to 9 of the investment readiness level. The investment readiness levels are based on the lean launchpad/customer development process. This provides investors with a data based decision making process.
Key parts of the recipe that are missing in Madurai As on Dec 2015,now (Mar 2017)almost we got all..
Co-working space that is open to all night & day
Keeping the co-working space open to all is key to keep the flow of committed and persistent entrepreneurs.
Support material for the customer development process and the Business canvas in Tamil (This includes the courses and workshops that support the prospective entrepreneur using the language of choice (Tamil), the key course that needs to be in Tamil is the “Lean Launchpad/Customer Development Process”,
this is also key so that the flow of prospects is kept up and it does not move to an English only environment which can be toxic to the growth of the local entrepreneur in Madurai and the nearby towns.
One of the questions about the co-working space was , Is there a demand for it ? How much is it ? How do we quantize it?
Capturing inbound traffic for Madurai and the co-working space
The traffic that comes to a community based co-working space is typically from the local city, other smaller towns around that city and inbound traffic from expatriates or the diaspora.The existing data appears to support the fact that cities that do not yet have an established startup ecosystem benefit more from the diaspora and the personal contacts that they bring to the ecosystem.