4 Things We Learned at Innovation Economy Day

On the final full day of Challenge Festival, we released Innovation That Matters, an in-depth report that aims to provide new perspective around a single question: What can cities do to unleash the power of startups in entrenched industry.
The panels throughout the day addressed particular challenges and solutions identified in the report, taking our conclusions off the page and into real life.
Let’s dive into what we learned on Friday:
1. The answer to the question, “Disrupt or partner?” isn’t an either-or. It’s both-and.
Attendees keyed in quickly to what has become a particular theme throughout the entire week: Startups should aim to sell not just products, but real solutions for industry needs.
communicating your idea in a way that others see you as problem solver is important for #startups @@stefcutter #1776challenge
— Galina Fedorova (@galinafed) May 15, 2015
“Startups should be prepared to present and communicate the problem that they are solving to their audiences” @stefcutter #1776Challenge
— Aveya Creative (@aveyacreative) May 15, 2015
Panelist Rob Ruyak also offered keen insight, explaining that entrepreneurs who want to partner with industry leaders or with government need to ask, “Who should I talk to in order to make something happen?” Once that connection is made, they need to do two things: 1) execute and 2) find advocates within the organization.
.@BoozAllen‘s Rob Ruyak: “Startups need advocates who see shared value when partnering.” We love that BAH can be an advocate! #1776Challenge
— 1776 (@1776) May 15, 2015
@BoozAllen #StrategicVentures the key to working with startups is #piloting #prototyping #testing partnerships #1776Challenge
— Lili (@LilibethGangas) May 15, 2015
2. The startup movement has incredible momentum among Millennials.
“Connectivity is the most important measure of the success of an entrepreneurial ecosystem.” –@Jortmans #1776Challenge
— USChamber Foundation (@USCCFoundation) May 15, 2015
The latest shift toward entrepreneurship is social in nature, said Jonathan Ortmans, Global Entrepreneurship Network President. In his fireside chat with 1776 Co-CEO Donna Harris, Ortmans emphasized that entrepreneurs around the world don’t just want their companies to do “well”; they also want to do good.
“Everyone wants to do good and do well.” –@jortmans #1776challenge @1776 @dharrisindc
— Economic Innovation (@InnovateEconomy) May 15, 2015
Social responsibility is “in the DNA” of most entrepreneurs today. “Everyone wants to do good and do well.” – @Jortmans #1776Challenge
— USChamber Foundation (@USCCFoundation) May 15, 2015
That’s a very Millennial mindset, Ortmans said, highlighting the importance of entrepreneurs on a global stage. When GEN hosted its annual conference in Moscow, Russa, more than 150 countries sent a delegate; by contrast, only around 90 countries were represented at the Sochi Olympics. And when you break it down, the collective community of entrepreneurs has more impact globally than many presidents and heads of state do. His final piece of advice?
“@robolearn: Ortmans advice on where to find innovation – Don’t look to the “tucked shirts” – rather “untucked shirts”. #1776Challenge”
— Junaid Ahmed (@superjunaid) May 15, 2015
3. Cities need to “unlock hidden capital” in order to spur ecosystem growth.
Building on the theme of the previous chat—the momentum of entrepreneurship—this panel focused on how entrepreneurs can find new ways to access a region’s capital, outside of traditional VC firms.
.@rossbaird: “75% of capital is deployed to CA, MA & NY.” We’re unlocking capital for everyone else. #1776Challenge pic.twitter.com/jHGtgIOqIK
— Village Capital (@villagecapital) May 15, 2015
“In next wave of entrepreneurship, revenue from strategic partnerships will be more important than fundraising.” @rossbaird #1776Challenge
— 1776 (@1776) May 15, 2015
@pennyleedc on unlocking hidden capital to startups – look at every investment in strategic ways- how can this $ help me #1776Challenge
— Lili (@LilibethGangas) May 15, 2015
“Capital + Connections” unlocking hidden capital taps local resources @wealthfactory_ #1776Challenge @1776
— Economic Innovation (@InnovateEconomy) May 15, 2015
And the discussion wasn’t limited to just startups either. Panelists also offered ideas for cities and local governments to get involved.
Civic leaders should identify and elevate regional winners #startups and make them visible to large #VC hubs. @eburfield #1776challenge
— Galina Fedorova (@galinafed) May 15, 2015
What in particular are investors looking for? High-growth companies.
.@eburfield: we look for high growth business models, not nec tech per say @1776 #1776Challenge
— Kat (@katfaley) May 15, 2015
And although they don’t have to be tech companies per se, Burfield says, it’s rare that high-growth businesses aren’t leveraging tech in some way.
4. Government can support entrepreneurship, but entrepreneurs themselves must lead.
The key takeaway from the day’s final panel, which focused on international entrepreneurship, was that a global entrepreneurial ecosystem is possible—if communities around the world can connect and change perceptions of what it meals to “fail” culturally. In countries—like Japan and Mexico—a “failure-is-not-an-option” mindset still prevails.
How will that mindset change occur? When entrepreneurs try and fail—and then try again, and succeed. Moreover, it will occur when governments provide space for innovators from within.
Global community of entrepreneurs need to be led by entrepreneurs and governments need to be supportive. #1776Challenge @1776dc
— Saori Imaizumi (@simaizumi) May 15, 2015
.@geraldide “Need to provide space for innovation w/in govt., recognize & lift up those leaders” @gmfus #GMFUrban #1776Challenge
— Alissa Akins (@AlissaAkins) May 15, 2015
Panelists also highlighted the need for a global startup network, like 1776’s Startup Federation, that helps entrepreneurs identify opportunities to parter and collaborate, or even make an exit.
Dantus: value in joining Startup Federation is in collaboration, validation, & possible exit strategies @1776 #1776Challenge
— Kat (@katfaley) May 15, 2015