TAMPA— Nearly every city across the U.S. is trying to cultivate a culture where entrepreneurs and startups can thrive. But what truly creates a robust startup ecosystem?
UP Global certainly knows a thing or two about this topic, given that the Seattle-based non-profit has more than 7,000 entrepreneurially-minded volunteers in 125 cities around the world singularly focused on helping startups get off the ground. In a research paper last September, UP Global boiled down the attributes into five key areas:
- Talent
- Density
- Culture
- Capital
- Regulatory Environment
With those factors in mind, UP Global’s Dave Parker took the stage at Tampa Bay Startup Week on Wednesday to talk about the Tampa Bay region and where things are working, and where they could improve. Joining him were Tampa attorney Brian Willis, Absolute Mobile Solutions president Alfred Goldberg, accelerator operator Pete Sessa and marketer Ryan Sullivan. Here’s what they had to say on each of the five attributes:
TALENT
Tampa Mayor Bob Buckhorn earlier in the week noted that he didn’t want his daughters to leave Tampa for a job in Austin or some other city. At least according to the panelists, more opportunities are arising for those who grow up in the Tampa region or come here to attend school. “I see a lot more people coming to Tampa and staying here, and wanting to live here,” said Pete Sessa, a transplant from New York who recently opened a new business incubator in Tampa.
Brian Willis, a Tampa native and attorney at Shumaker, Loop & Kendrick, said the 2008 recession had a dramatic impact on the city. “It froze a lot of people here,” said Willis. “Up until then, there had been a lot of suction out of the area.” Once the economy hit rock bottom, the talent drain started to subside. “People who would have left, stayed here and built things,” said Willis, adding that the region just now is starting to see the benefits of that entrepreneurial energy. “We are just starting to hit our stride.”
Even so, Willis said that those with a PhD in an established field may struggle to find work at an established company.
Goldberg, who grew up in Tampa, pointedly noted that there’s a global shortage of talent. And Tampa is no different from other cities when it comes to finding great engineers or developers. “If the question is, do we have enough talent here? I would say no,” said Goldberg, adding that the traditional educational institutions aren’t doing enough to train the next generation of workers.
DENSITY
Goldberg said the region has always struggled with this issue, given the sprawling communities separated by a big bay. (See earlier story: Isolated on the bay: Tampa and St. Pete struggle to bridge historical divide). The communities are just not tightly aligned, with Goldberg joking that there’s a bridge with sea monsters on the other end of the bay. He called the density issue one which has been historically difficult in Tampa, and that there is so much going on in different areas — from Ybor City to USF to St. Pete — that it is challenging for everyone to get on the same page. The lack of a strong regional transit system also hurts, he said.
Willis said that the lack of transportation also hurts with the talent question, since many young people do not “want to be chained to their car.” Part of the issue, as Willis sees it, is that Tampa’s old economy and Tampa’s new economy have not met yet.
“There is still money and finance and real estate development going on here and then there are growing incubator spaces and innovation districts, and people are trying to do these things … but too often people try to build the building before they have the stuff to go in the building,” he said. “The old and new economies of Tampa need to learn from one another.” Once that happens, the city’s density will improve.
CULTURE
In order for startup hubs to take root, failure must not be worn as a Scarlet Letter. But that culture of risk-taking and failure does not quite exist in Tampa Bay. “It is tough to lose money in this town,” said Willis. He added that the old-economy and new-economy mindset have not yet met on this issue, either. While people have lost money in real estate for decades in Tampa, many look at those investments as something tangible. “There is a psychological barrier that we have to get over, and we have to be more accepting of failure,” Willis said.
Sessa agreed, noting that the aversion to risk in Tampa is “a little over the top.” He also added that Tampa lacks a “sense of urgency” — the idea that someone needs to build a company and do it fast. Saying it may be a “southern thing,” Sessa noted that there’s a bit more laid back nature to building and creating startups. In Seattle and San Francisco, he said that urgency is part of the culture.
CAPITAL
Access to capital is usually the No. 1 pain point that entrepreneurs cite about their communities, and Tampa is no different. Tampa Mayor Bob Buckhorn even mentioned it in my interview with him earlier this week.
All of the panelists agreed that there’s plenty of money floating around Tampa, for specific types of industry (real estate being one). In order to open those pocket books up even more in a diverse set of businesses area, they said it will take more education on angel investment and what it means. Sullivan, the organizer of Tampa Bay Startup Week, said that the community needs to come together in order to better understand the opportunities available. “We need to get the investment community open to funding these opportunities,” he said.
Sessa agreed, noting that many in the investment community had no idea that Startup Week was taking place this week.
Willis added that a new generation of angel investor needs to emerge, noting that there are mid-career professionals in their thirties who are funding companies in places like Seattle and San Francisco. “There is a career path on the investing side that needs to be developed here,” said Willis, adding that a 35-year-old needs to be able to make his or her career funding new startup ventures.
REGULATORY ENVIRONMENT
Tampa Mayor Bob Buckhorn again got props here, as he has all week. “He really means it,” said Goldberg, referring to the mayor’s efforts to boost entrepreneurship and promote a new culture of startups. Sullivan agreed, saying government officials are “reaching out” and trying to get involved.
Editor’s Note: GeekWire has partnered with UP Global and Chase to cover four Startup Week events around the country, starting with the Tampa Bay Startup Week from Feb. 2-6. GeekWire will be filing daily reports from this emerging startup hub this week.
