Saturday, August 01, 2009

Janis Machala - you suffering from the heat? 

Janis Machala was quoted the other day saying that "The Northwest lifestyle is so laid-back that it discourages the kind of all-consuming passion and drive found in the leading entrepreneurs of the Bay Area."

I know Janis, and respect all she's done to help me, and other Seattle startups.

But, I respectfully disagree with her on this one -- think maybe she's spending way too much time with the wrong types of startups in town; like the kinds of startups that would hire recruiting and strategy consultants to help them do the work that they should be doing themselves, with their own sweat equity.

I wanted to check out Janis' response to her quote on twitter or her blog (who designed that site/blog, by the way? what kind of effort are you putting forward, Paladin?), but her last update was in 2008. Maybe she'll send a press release. Shame on you, Janis -- you're making me put in a few more minutes on a Saturday responding to a silly quote, when I should be at my massage.

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Comments:
Hey Dave,

I completely agree with your article and recently had a similar discussion/argument with one of the members of the equity group that helped launch my company. This investor was a NY transplant and believes that successful entrepreneurship is built on passion first and foremost and questioned my passion for my business.

I quit a good paying job at MSFT and work the insane days of a start-up at the expense of family, finances and leisure. I did it because I believe my business has the right strategy to be successful - and it's working. So just because I don't self-promote as much as some would like, doesn't mean I'm not passionate about what I'm doing. Promoting the business is important and has its place, but given the choice I'd rather focus on executing on business needs.

As someone who grew up here, I have never agreed with the 'laid-back' description of the NW. We come from a history of hard working, physical professions like logging and fishing. These aren't laid-back people, but they are people who believe actions should speak louder than words and I think those values persist today.

In my opinion, too much blind passion is dangerous - when the entrepreneur�s belief in the business far outstrips their situation they will consume all resources available throwing them into a broken business model, when they should be conserving resources and adjusting their strategy.

So while Janis and others are spending their time being 'passionate,' I and the rest of the NW entrepreneurs will be building successful companies.

Thanks for the great blog,
Justin
 
Very funny post, Dave. I worked with Paladin, and Janis, a couple years ago with my second start-up Novel Games.

Janis was extremely helpful, as you pointed out several times. We did not end up engaging her firm, mainly in relation to your point that we didn't have the resources to, and our ultimate success could not rely on her companies services so early on. That said, she made so many invaluable introductions that helped change the game for us, and for that I praise her.

I do, however, agree with your frustration over her statements she made. Specifically this one: �If Microsoft had been in Silicon Valley, it would have been completely different. When people leave Microsoft, they generally retire or take another safe job. They don�t create entrepreneurs."

It is surprising to hear this from Janis of all people. There are hundreds of successful ex-Microsoft entrepreneurs. She does have a point about the Northwest being more laid-back in general, but if you just focus on entrepreneurs per capita for both regions, I think it is pretty even. Especially if you control for startups that have no chance of success given all the resources in the world.

If what she claims is true, then for every single overly passionate entrepreneur in Silicon Valley starting the next big thing, we have a practical citizen who decided not to enter the game. It could be related to the fact that we are the smartest city in the world (according to the U.S. Census Bureau) and our residents are more self aware. Maybe there is sun-soaked illusion bias at play.

Also, it is probably important to control for not only the sheer population difference, but also the fact that between LA and Silicon Valley, you have dozens of top ranked research schools. We only have one or two on that level, I think.

Thanks for the post! I'd like to hear from someone who has some data to really understand the difference. Glenn Kelman would probably have a good perspective on it. Here is a great article he wrote about entrepreneurs: http://www.techcrunch.com/2007/11/14/entrepreneur-20/

And specifically, the link to the research backing up his article about the luck vs. skill in entrepreneurship (A must read!): http://www.people.hbs.edu/dscharfstein/Serial_Entrepreneur_July_06.pdf

Salar
 
Very funny post, Dave. I worked with Paladin, and Janis, a couple years ago with my second start-up Novel Games.

Janis was extremely helpful, as you pointed out several times. We did not end up engaging her firm, mainly in relation to your point that we didn't have the resources to, and our ultimate success could not rely on her companies services so early on. That said, she made so many invaluable introductions that helped change the game for us, and for that I praise her.

I do, however, agree with your frustration over her statements she made. Specifically this one: �If Microsoft had been in Silicon Valley, it would have been completely different. When people leave Microsoft, they generally retire or take another safe job. They don�t create entrepreneurs."

It is surprising to hear this from Janis of all people. There are hundreds of successful ex-Microsoft entrepreneurs. She does have a point about the Northwest being more laid-back in general, but if you just focus on entrepreneurs per capita for both regions, I think it is pretty even. Especially if you control for startups that have no chance of success given all the resources in the world.

If what she claims is true, then for every single overly passionate entrepreneur in Silicon Valley starting the next big thing, we have a practical citizen who decided not to enter the game. It could be related to the fact that we are the smartest city in the world (according to the U.S. Census Bureau) and our residents are more self aware. Maybe there is sun-soaked illusion bias at play.

Also, it is probably important to control for not only the sheer population difference, but also the fact that between LA and Silicon Valley, you have dozens of top ranked research schools. We only have one or two on that level, I think.

Thanks for the post! I'd like to hear from someone who has some data to really understand the difference. Glenn Kelman would probably have a good perspective on it. Here is a great article he wrote about entrepreneurs.

And specifically, the link to the research backing up his article about the luck vs. skill in entrepreneurship (A must read!):

Salar
 
Not to mention the 2nd post on her blog is called "Why Seattle's So Great for Entrepreneurship"
 
Thanks first off to Salar for referring me to this article.

I just got back from San Francisco and I think I know where Janis is coming from, but think her perception is aimed at the wrong diagnosis.

First of the Puget Sound region (Mainly King County) has the highest Entrepreneur turnover rate than any city in the USA. I covered the 38th Annual Economic Forecast Conference 2010 a few weeks ago where it was stated that the Puget Sound region in the last decade has created more jobs than any other region in the USA. (Check the videos at http://www.enterpriseseattle.org/38th-Economic-Forecast.html)

That said, I feel the difference when I socialize with the Bay area entre crowd and the SEA entre crowds. In the Bay area people are more aggressive with the way they market and talk about what they are doing. In Seattle they are more passive. Talking to people in the Bay area I walk away thinking wow these people must work so hard and long to create what they told me they've created. If you look behind the curtain though I have found a lot of their marketing to be them marketing their vision of what they want their company to be, not what it currently is. In SEA people do this but less of it. They seems to brag and market themselves less. This isn't to say that the Bay entre's are liars or fakes though. I think they do an AMAZING job selling their product/service/selves. Even so well that SEA people could learn from it. That said, there is also a lot of fluff behind the aggressive sales and marketing. That is where they could learn to step back and wait more to push it like the entre's in SEA do, sometimes to a fault.

That's atleast part of the reason I see a difference. I think population, weather, the geographic companies and industry cultures also have an impact on the tones and attitudes of each region, among other forces. Hollywood being right in the vicinity will obviously have an impact as well.
 
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