Is the 21 Fund Working?

Comment

Comment by Lorraine Ball on June 11, 2010 at 9:18pm

The 21st Century fund was a major supporter of the startup weekend. They have already made a commitment to support at least one more this year, so I think they are starting to get it that our economy will be built on innovative companies of all sizes.

Comment by john blue on June 11, 2010 at 9:40am

Hi Doug,

Thanks for the detailed observations. I think what you personally observed is not what the general public hears/sees.

The name: The fund is titled "Indiana 21st Century Research and Technology Fund" which implies researchy (is that a word?) and technology like stuff, which most people associate with "innovation".

The proposal guidelines: The guideline actually states at the top "The Indiana 21st Century Research and Technology Fund (the “Fund’), ... is open to proposals from all public and private entities for technology-based commercialization activities encompassing science/technology creation, innovation, and transfer intended to have economic impact in Indiana." This sets the tone for "innovation" and that tech/research stuff.

Innovation sounds cool: Everyone uses the word innovation. Unfortunately, innovation is an overused word. The fund needs to look beyond innovation as a criteria for building businesses in Indiana.


Thanks again for the post.
John Blue

Comment by Douglas Karr on June 10, 2010 at 12:59pm

Brennan - great feedback. I think the 21 fund is in a transition phase. They're looking external to Indy for funding opportunities, but they also want to change their image from some kind of 'grant machine' to an organization that can help entrepreneurs. There are a few challenges - like resources. Steve's team is already stretched thin, with 3 less people they had before.

If you asked a business, a politician, or the folks at IEDC what the 21 Fund was, I think you'd get 3 different answers!

I'm a fan of what they're trying to achieve. They're especially needed since banks have all but stopped funding small business (we really need to pressure the Fed on this!) and many businesses require capital to even get started.

Perhaps, given your feedback, the 21 Fund should work on some hybrid model. They could fund innovative technologies, secure funding for some proven high tech businesses - AND force the businesses who utilize the funds to open their doors to other entrepreneurs to help them succeed.

I'm not sure what the right answer is - but this is an initiative that we must pressure our politicians to continue to support.

Comment by R. Brennan Knotts on June 10, 2010 at 12:12am

I really enjoyed this post and your commentary on the 21 Fund, although it has left me confused about what the 21 Fund's mission is - but I think that's the point. Their mission isn't what I thought it was or what most people think it is.

I'd be interested in hearing more about what "education" the 21 Fund is providing. I think the industry of educating entrepreneurs is already oversubscribed. I shudder to think how many productive hours have been wasted teaching a group of "entrepreneurs" the different ways to finance a startup. I say wasted because most people who consume this knowledge will never end up starting a business or are years away from using it.

Financing a startup is just one of those subjects that comes up a lot. There are plenty of others like which corporate entity to choose and how to hire your first employees.

This type of entrepreneur education feels good but it doesn't move the needle. This type of generic education is a Google search away and the doers, the people who start businesses and create value from nothing, don't usually get their entrepreneurship education from sitting in a classroom.

Most of the education someone needs when starting a business is very time sensitive and subject specific. For instance with Pocket Tales, my biggest issue today, June 9th, is redesigning our application UI. We also have a lingering issue of hiring a tech lead, and that is actually a place I think the 21 Fund could really help the state of Indiana.

How can we better match technical talent, whether it's software "technical" or medical "technical," with business talent to form stronger founding teams?

How can we imbue more people in Indiana with the attitude of "screw it, let's do it," instead of training them to sit in classrooms consuming knowledge, further delaying the act of creating until they know all the answers?

As you and I both know Doug, you never know all the answers. You only hope you can find the right answer when you need it, and you don't have the time or the resources to think much beyond today's bottleneck.

Just my two cents about most of the entrepreneur education I see.