Startupism

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Email: ylerner@013.net.il Blog (Heb.): www.ylerner.com
3 August 2014
STARTUPISM
Even for me the things are still not sufficiently crystallized. My impressions based on various events, random meetings and my observations of social networks.
The bottom line - a culture is developing, bearing the trappings of religious community, with entrance criteria that will become prerequisite conditions for anyone who wants to find employment in the business sector. I intentionally choose image of a religious community in view of the many parallels, such as ceremonies, rituals and "Rabbis" together with the demand for total devotion to obligatory behavior of community.
I choose to call this culture "startupism" since this has developed around the impressive increase in the number of start-up companies.
Before I try to describe this culture, I would like to explain why believe it is very important that people in their twenties and thirties should be fully aware of this culture/religion. Contrary to what was common until recently, there are now increasing signs that start-ups will create the first workplace for many people seeking to enter workforce in coming years. This forecast is based on two main developments:
A. Automating processes, reducing the need for large established companies to recruit new employees.
B. Large companies are choosing to regenerate primarily by buying new companies that develop and offer innovative products. This choice is cheaper for them and it helps maintain stability needed for regular work processes.
Following these developments the number of employment seekers will grow and they have three main options:
A. To try to find employment in areas other than those which their education and skills initially prepared them for..

B. To join an existing startup. Prospects here are very dependent on the unique needs of the start-up
C. To start their own business.
Those who want to start their own business, either willingly or because they have no other choice, will find very fast that they are required to adopt behavior and rules completely different from what they knew before.
On the face of it, nothing is new. Starting a new business has always involved considerable uncertainty that forces the founder to adapt tools and work norms new conditions. In recent years, many institutionalized frameworks try to prepare new entrepreneurs to adapt new conditions. Even I myself am part of this process as teach a semester course called "Entrepreneurship and Intellectual Property" for students of all faculties at the Technion. The emphasis in my course, as is common in most courses around the world, is on finding relevant customers, adapting concepts to market needs, determining the initial target audience etc.
Now back to Startupism.
I'll start with a short story. A few days ago I attended "show" of over 10 new start-ups that operate within one accelerator. As such, they work together in setting that hosts them for several months, allowing them the appropriate conditions that are necessary for the first steps of commercializing an idea. The number accelerators is rising steadily. It estimated that today there are about 20 of them in Israel, hosting more than 200 start-ups in each cycle, lasting several months. At the end of the cycle, start-up companies try to raise the money needed for next steps. They start a fundraising campaign which is significant part of the life all startup.
(Note - I do not specify the name of accelerator because issue that would like to address is unrelated to a certain place or an institute).
The event I went to was supposed be a rehearsal for the "real thing", which is show or demo day for potential investors. The presenters took to the stage, one by one, and

presented their projects. Each enterprise had 5 minutes to introduce itself, impress potential investors, and motivate them to look for more information meet with their staff.
After the third or fourth presentation I realized was watching same show in ten different variations. It was not just the structure and order of PowerPoint presentations. All exhibitors, without exception, stood exactly on the same spot stage. One could draw a circle with diameter of 60 cm and all were in it. Everyone's facial expressions, tone of voices, and the "music" seemed sounded almost identical.. It was clear that they were responding to the guidance of a director who had given everyone same instructions.
On the face of it, this contrasts sharply with what might be expected for early stage ventures. The basic advice is to be creative and try break away from conventional thinking and to offer something new, maybe that even potential customers are not aware yet for the need of it, and so on. One could ask how come in order to get money, the entrepreneur should work according to a set "one size fits all" formula which applies to every entrepreneur like him.
Anyone following this field should not be surprised. He or she will find that start-ups are operating within a very homogeneous work environment that requires clear rules of conduct. The burden created by this environment is increasing, and it followed the demand to adapt its unique conditions. The increased burden is due the increase in the rising number of entrepreneurs, which drags along all those who try to take advantage of the emerging opportunities. Among these we can find investors, consultants and organizers of various events, who offer their services to entrepreneurs who are seeking advice, assistance, and especially money.
The most striking thing, in this process, is the number of "meet-ups" and events that developers are required to go to, hoping get lucky and meet appropriate contacts. I follow the startup company of friends, which is in a relatively advanced state with high hopes, and I cannot but be impressed by the number of meetings, exhibitions, competitions in Israel and abroad that they travel to. Equally I follow some relevant

communities in Facebook as, for example, a community called Start-Up Stadium that has over 35 thousand followers. You are invited to visit their page to get an impression of the events there.
Is this not just the famous networking that is considered as a must for success? I wish to argue that it is something different. It Startupism. It is not quite making contacts. not only the ability to present (and this is an opportunity return to the model that I made at the beginning of previous school year). In order to succeed here, you need understand how the whole method works, be prepared to knock on doors of "religious teachers", to adopt codes of conduct, appropriate speech, and be ready to go Temples (location changes, the essence remains), time after time, until your prayer is answered.
Every management challenge and every new initiative requires a good knowledge of the environment in which it operates, and requires understanding the key success factors. Startupism presents a different challenge. It stems from the fact that it is competition about raising money, outside of the monetary system. This is a system investors who take a great risk without securing their investment. The relatively small number of these investors, compared with the significantly increased numbers of investment seekers, creates fierce competition of a unique nature. It is no longer product against product, or service against a competing service. The competition is of an idea another idea, a link against a link, and presentation presentation.
And to contain this entire chase, the culture of "startupism" has developed. Only someone who knows the rules, conferences, books, general play, and its "rabbis", can take the first steps that will enable him to translate his ideas into reality.
After the publication of first version this article I received a comment from friend who cares very much for his privacy, so I will introduce him as one of the first entrepreneurs in Israel. He established a successful startup and he is very involved the venture capital scene of Israel. Here are his words:
You're a hundred percent right, but it is here to stay. My personal experience shows that successful ventures are not created by the various accelerators and incubators (which are, by the way, machines that generate management fees or deal flows more than they are

altruistically designed support tools). Nor are successful ventures created by entrepreneurship conferences of the leading groups in the economy and business sectors. The purpose of the various "entrepreneurship year" awards is to attract frustrated entrepreneurs, as well getting fools who believe in mystic contributors to pay for a following conference, by using success stories of entrepreneurs or ventures that almost always succeeded very differently from the methods recommended there. As far as I recall - Mobileye or Waze were not presented in an accelerator.

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