Why SquareSpace Rocks!

I am not a techy.  I am mechanical engineer with a background in material science and its applications in the biotech industry.  My first company Mitos had nothing to do with the Internet.  We were a manufacturing company the build disposable systems for biotech companies.  I say this because since co-founding DreamIt Ventures people assume I am a software engineer.

The truth is this, I understand web and mobile applications well, but have not written a line of code since 9^th grade when it was C+.  I provide this background so that you can understand why I am so amazed with SquareSpace.

A couple of weeks ago a friend of mine put together a site for my new book, We are all Born Entrepreneurs, which is getting ready to release.  When I asked him to make some changes I could tell he was busy, and since I knew he put the site together in SquareSpace and I heard all the rave, I decided to try to make the changes myself. 

SquareSpace Rocks! I watched a 15 minutes video and I truly understand the base framework.  Over the last two hours I have revamped the site entirely.  SquareSpace has truly opened up the market for ordinary people to make very functional website that go beyond a static page.   Widgets are easy to tie in, form and data capture can be included with ease.  The value proposition is awesome.

I hope my friend will not be offended that I changed around his work.

HITTING PRIME TIME: AN ENTREPRENEUR’S DREAM COME TRUE
Two young entrepreneurs landed appearance on ABC’s Shark Tank after a summer with Philadelphia-based start-up accelerator DreamIt Ventures

PHILADELPHIA, PA – Sean Conway and DJ Stephan, founders of Notehall <www.notehall.com> lived every entrepreneur’s dream when they earned a full 22 minutes of airtime on ABC’s Shark Tank in the Fall of 2009, after spending the summer building their business with support from local start-up accelerator DreamIt Ventures (http://www.dreamitventures.com/).

ABC’s Shark Tank is a show that pits entrepreneurs against seasoned investors, or “sharks,” in a no-holds-barred pitch session. Impress the sharks and you get an investment offer on the spot. Fail to impress and you face public embarrassment on national television.

Conway and Stephan had the opportunity to leave the show $90,000 richer, with an investment offer on the table from the real estate mogul Barbara Corcoran, one of the show’s sharks. They’ve since gone on to close a critical round of investment from other sources.

How an unlikely application turned into a TV appearance

Conway and Stephan never planned to be on TV. They were spending their summer at DreamIt Ventures, an intense three-month summer program that’s been running in Philadelphia since 2007, which provides entrepreneurs with startup capital, mentorship, and a tight-knit community of top industry entrepreneurs.

Conway and Stephan credit the DreamIt summer program for refining their business model and the idea of a Notehall.com destination website. 

Originally, they had planned to have a different branded website with a different name for each school.  They also were challenged by the DreamIt partners to validate their assumptions, including their customer acquisition costs and expansion plan.

The DreamIt mentors also inspired them to try to make a big national splash and they were just waiting for the right opportunity. Then they heard about Shark Tank.

One of their peers in the DreamIt program, the founders of the ticket marketplace SeatGeek (www.seatgeek.com), told them that Shark Tank was accepting applications. On a lark, the Notehall team decided to apply.

“At first, all we had to do was send in a picture and a mission statement. It didn’t take long at all. Then we didn’t hear anything for weeks and pretty much forgot about it,” said Conway, Notehall’s CEO.

To their surprise, they received a 15-page application from the show, which made them think they might have a shot at making it.

But they didn’t want to get their hopes up or get distracted from their business. So they put their answers together quickly, including a video of them pitching their company. But the process still wasn’t over - they received a forty-page contract from the show even though they weren’t selected yet.

When came the big news that they were selected they hopped on a flight to L.A. just ten days later to film the show. It would be a full two months before their episode would air.

Two long months of waiting and preparing

Conway and Stephen had been a hit on the show, with three of the sharks fighting over the opportunity to invest in their company. Their segment was so intense and dramatic that ABC would decided to feature it in their ads and trailers for the episode.

But Conway and Stephan couldn’t talk about any of this, even with the people closest to them. “They were pretty adamant about saying, ‘don’t tell friends and family,’” said Stephan, the company’s Chief Marketing Officer.

So the Notehall team focused on preparing for the big day.

“We wanted to push it back as long as possible so that we had all of our operations in order,” said Stephen.

The day the show aired

Once their segment started, Notehall rocketed to the #1 most searched term on Google. Their website buckled under the traffic, which exceeded even their best hopes and their intense preparations. The site went down but they were able to bring it back within 5 minutes.

Conway grimaced at one of the most talked about moments of the show, when he wagered his stake in the company that they would hit $1 million in revenue within 24 months.

“I regretted it a little afterwards. They used it to make me look like the over-confident entrepreneur,” said Conway.

But that segment and the whole episode was a big hit for ABC. In fact, when ABC aired it for a second time in February, the Notehall website received so much traffic that it was brought to its knees for a second time.

The Aftermath

Notehall has grown considerably in the last few months with some help from the show but also according to plans they laid out before they had applied to Shark Tank.

Notehall was popular in just 3 schools in May, before they joined the DreamIt summer program and appeared on Shark Tank. Now they are used in 24 schools and growing fast.

“We ended up launching at 14 schools in the last semester alone. And we saturated many of these schools in terms of the how many students were active users of our system,” said Conway.

Their team has grown to over 10 people and they are renting their first office space, graduating from the makeshift office in Conway and Stephan’s apartment.

The Notehall team credits their summer experience in DreamIt Ventures for their recent success as much as they credit their appearance on the show.

“DreamIt really is the reason we are where we are right now,” said Stephan. We went into the summer thinking we were going to individualize every site for every school, even with a different name at each school. After about a month or so at DreamIt, and talking to all the mentors, and looking at all the metrics, we realized it wasn’t a good thing to do.”

What’s Next for Notehall

The Notehall team says their next big move is to expand to graduate and professional schools. By the end of the year, any student at any type of school should be able to exchange notes and study guides using the Notehall system.

They are also looking to raise their next round of funding and are starting those conversations now.

Otherwise, they are going to keep applying the formula that’s been working. It’s not easy, they say, but say they know it can work.

“Anytime you’re pioneering a new idea or a new concept, it takes a lot, a lot of education,” said Stephan.

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

What is the Right Question?

Who?

A question that leads to a narrative of a person.

When?

A question that leads to a definitive answers of time.

Where?

A question that leads to a simple recitation of a location.

How?

A question that leads to a presentation on how something was accomplished?

Why?

This question stands out from all others.  It is a question that often leads to more questions than answers.  

When, Where, Who and How are most often facts which can be memorized and recited back.  Answering these questions allows one to repeat what others have learned or done. 

Why… requires a broader thinking, a judgment, an interpretation of facts.  A simple yet critical word which opens the minds and leads us down an infinite number of paths.  It often illustrates the root causes of a problem, uncovers the true need and provides a framework for a path forward.

I have been fortunate to be surrounded by entrepreneurs, and I am convinced that one of the key differences in the way that their minds work is that they seek the answer to this one word sentence. Answering this simple question reveals new market needs which provide entrepreneurs the impetus to start new businesses. These new business are first to market and have staying power as market leaders.  

There is no question that China is in the process of attempting to mimic the entrepreneurial success of the United States.  There have been successes in China’s entrepreneurial community, but most have been entrepreneurs that answered the question how.  How did Google capture the market in the United State, the answer a company called Badu.  How did Facebook so quickly rise to prominence, the answer 17 different companies with the exact features, look and feel of Facebook.

China is throwing enormous sums of money at aspiring entrepreneurs to help them build business from the ground up.  Yet I believe they are attacking the issue at the wrong location.  Money alone can not create great entrepreneurs or startup companies.  

During my time in China, I must have asked the question why over 100 times.  Often the question was asked about the most basic of political or economic issues.  More often than not the answers was “I have never thought about it.”

American culture is rooted in heroes that not only asked the question why, but challenged the status quo once they discovered the answers. Individuals like Henry Ford who asked why the workers had to move to the parts.  Or patriots like Thomas Jefferson who asked why taxation without representation.  We have been blessed with a culture and created an education system that assistants in developing entrepreneurs from birth.  

Until either China’s educational system or culture encourage the question, why, to be asked their entrepreneurial community will be restricted to success stories rooted in the question how.

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

What is the Right Question?

Who?

A question that leads to a narrative of a person.

When?

A question that leads to a definitive answers of time.

Where?

A question that leads to a simple recitation of a location.

How?

A question that leads to a presentation on how something was accomplished?

Why?

This question stands out from all others.  It is a question that often leads to more questions than answers.  

When, Where, Who and How are most often facts which can be memorized and recited back.  Answering these questions allows one to repeat what others have learned or done. 

Why… requires a broader thinking, a judgment, an interpretation of facts.  A simple yet critical word which opens the minds and leads us down an infinite number of paths.  It often illustrates the root causes of a problem, uncovers the true need and provides a framework for a path forward.

I have been fortunate to be surrounded by entrepreneurs, and I am convinced that one of the key differences in the way that their minds work is that they seek the answer to this one word sentence. Answering this simple question reveals new market needs which provide entrepreneurs the impetus to start new businesses. These new business are first to market and have staying power as market leaders.  

There is no question that China is in the process of attempting to mimic the entrepreneurial success of the United States.  There have been successes in China’s entrepreneurial community, but most have been entrepreneurs that answered the question how.  How did Google capture the market in the United State, the answer a company called Badu.  How did Facebook so quickly rise to prominence, the answer 17 different companies with the exact features, look and feel of Facebook.

China is throwing enormous sums of money at aspiring entrepreneurs to help them build business from the ground up.  Yet I believe they are attacking the issue at the wrong location.  Money alone can not create great entrepreneurs or startup companies.  

During my time in China, I must have asked the question why over 100 times.  Often the question was asked about the most basic of political or economic issues.  More often than not the answers was “I have never thought about it.”

American culture is rooted in heroes that not only asked the question why, but challenged the status quo once they discovered the answers. Individuals like Henry Ford who asked why the workers had to move to the parts.  Or patriots like Thomas Jefferson who asked why taxation without representation.  We have been blessed with a culture and created an education system that assistants in developing entrepreneurs from birth.  

Until either China’s educational system or culture encourage the question, why, to be asked their entrepreneurial community will be restricted to success stories rooted in the question how.

The following is one of a series of blog post that were written while I was in China in the spring of 2009 as part of my Eisenhower Fellowship. If you have interest in China’s culture I think you will enjoy this series.

The New Resource

In the pre-industrial era, the act of boarding a small boat that was packed with hundreds of people and setting off across the sea in hopes of arriving in America was a tremendously dangerous task that required great risk, tolerance and sacrifice. These daring journeys required men, woman and children to live in small cots and hammocks packed together to maximize space during the long voyage. Food turned moldy and sour and water became foul and undrinkable. The discomforts were nothing compared to the risks of survival. Childbirth, disease and death in these tiny quarters were commonplace. Storms and pirates also claimed many ships during this journey that would typically take over six weeks.

On arrival, it was understood that America was not the place to go if you wanted an easy life. America was a difficult environment that often required hard manual labor to survive. The newly arrived were not asked who they were, but what they could do.  For those willing to work, the opportunities were endless.  The federal and local governments of the day provided access to what is now called the American Dream, by providing incentives to invest in cheap, fertile land in the west.

Between 1820 and 1920, 33 million immigrants arrived on the shores of America.  They viewed this journey as a calculated risk in search of a better life for themselves and their families.

Likewise, those who were happy with their lives or simply unwilling to take a great risk remained in their respective countries. As a result, compared to other nations in the world, America emerged as a country filled with a disproportionate number of calculated risk-takers. This culture has been reinforced as those who are not comfortable with calculated risk-taking typically fail to flourish in the American culture. What has emerged is a society that admires hard work and calculated risk-taking by those with a passion and purpose to excel.  This is a key ingredient to our success as a society.

Standing in the Matrix Ventures board room on the 27 floor in downtown Beijing, one can see massive buildings and new construction as far as the eye can see through the hazy Beijing air.

As we sit down to speak with our host for the day, Mark, it is clear that no interpreter is needed.  A brief introduction revels that Mark was born in California.  His parents had emigrated from China to the United States well before his birth.  Growing up in San Francisco Mark never learned a single word of Chinese.  After attending Stanford he held a couple of jobs in early stage businesses and one with a small boutique venture capital firm.  About 3 years ago he took a step back and tried to look at the world objectively. At the age of 26 his goal was to determine the best path forward which would provide him the greatest opportunity.

After an honest reflection of his situation he decided to leave the bay area where he was born, raise and worked his entire life (in fact, he had always lived in a 5 mile radius). His journey would land him at a University in Beijing were he quickly learned the basics of the Chinese language.  His American education provided him unlimited opportunities in this developing land with an endless need for well educated individuals with strong experience.

The need for knowledgeable talent is so well recognized by the Chinese government that several plans are in place to attract the world’s top talent.  The most compelling program is the one designed to attracted entrepreneurs.  In short, the plan provides aspiring entrepreneurs who have degrees from western universities the following incentives to start a business in one of the country’s 54 high tech parks:

1) A subsidy of 1 million RMB ($150,000 USD) to start a business.  They take no equity; it does not need to be paid back.

2) Several other financing options by local governments which could provide loans for up to an additional 1 million RMB. Loans are typically guaranteed by the company not the individual.

3) Tax abatement – zero taxes in years 0-3, 17.5% taxes in years 4-7

4) Basically free rent at the industrial parks which have every imaginable resource an entrepreneur would need.

5) Assistance in finding local talent.

6) Guaranteed employment for one’s spouse.

The program also offers many other small benefits.

Mark’s migration in itself would not be significant, if I had not met over 10 ex-patriots in the past week, all educated in the United States, who told me similar stories.  Like electricity that follows the path of least resistance, talent tends to follow the path of opportunity.

The governments of the past have competed over real estate and natural resource. Today, there is a quiet unknown battle brewing to attract and maintain the most valuable resource in the world: Knowledge.

There is significant debate taking place about the future of our country, and the role of government. This healthy debate is focusing more and more on our national debt – by Republicans and Democrats alike. At the top of the list is “Where are the jobs?” As an Eisenhower Fellow, I was fortunate to have an opportunity to study economic development and job-creation across the globe. As an entrepreneur who built a business from the ground up, I learned important lessons how the policies and decisions of our elected officials affect the economy and one’s ability to create jobs.

Let’s simplify this issue. Jobs come from economic growth. Economic growth comes from increased productivity. Increased productivity comes from innovation. Since jobs come from innovation, the real question is how do we stimulate innovation? Once this becomes our focus, the argument becomes much clearer.

Reading the front pages of the business sections, you would think that GE and Exxon run our economy. While these large organizations certainly play an important role, the U.S. Census Bureau clearly indicates that the bulk of new jobs are created by firms with less than 20 employees. From 1990 to 2003, small firms (fewer than 20 employees) accounted for 79.5% of new net jobs.

Not only are small businesses generating jobs at an amazing rate, they are a powerful source of innovation and patent activity. Small firms’ patents tend to be more significant than the patents of large firms, outperforming them in a number of key metrics, including growth, citation impact, patent originality and patent generality. The metrics have been validated and shown to correlate with increases in sales, profits, stock prices, inventor awards and other positive outcomes. This suggests that, in general, patents of small firms are likely to be more technologically significant than those of large firms. This fact is even more remarkable when R&D budgets are taken into account. Small high-tech businesses generate five times more patents per R&D dollar than large businesses.

In order to rejuvenate our regional and national economy, it is critical that we nurture, attract and maintain innovative small companies. This can be accomplished by creating an environment that encourages calculated risk taking and provides economic incentives that will attract innovators. If you were going to start a business, would you pick Pennsylvania who has a combined tax rate approaching 50% and capital gains of 15%, or Ireland who has a tax rate of 12.5%, or Singapore who has 0% capital gains?

While the national tax rates are a macro issue that can only be addressed by Congress, I believe there are a number of things we can do locally to ensure that our region is competitive in this global environment.

1) It is critical that we nurture, recruit and maintain the best talent. We arguably have the best university system in the world right here in southeast Pennsylvania. We need to create economic incentives that reward people for staying in our region and creating jobs. One idea by Bob Adelson of Osage Ventures is tax incentives for excess properties that could be used to provide low-cost housing for individuals starting companies in the region. Another idea is to utilize student loan reductions to provide motivation for young entrepreneurs to start their companies in Pennsylvania.

2) We must develop partnerships with other regions from Tel Aviv to Singapore that ensure we are the landing ground for technology companies, while at the same time provide our small business community access to global markets.

3) We need to ensure that there are ample investment dollars accessible to small businesses and technology start-ups. Singapore has a proven model that allows Angel Investors to double their capital by providing matched state funds to companies creating jobs in the country.

4) We need to incentivize our local universities and colleges to spin off job-creating companies. Studies show that local colleges and universities receive over $940 million in funding for research and development from the local, state and federal governments. It is vital that these funds target job-creation strategies, such as technology-transfer out of the universities and into private industries.

These are only a few suggestions on how we can create a regional economic development plan, and individuals from both sides of the aisle have many more. Regardless of party, we can all agree that we need policies that will support innovative, job-creating companies to build a brighter future for our region and our nation.