Regional Transformation – Can Silicon Beach Come Back? Part 2
by Robert C. White Jr. on July 29, 2010
Part Two: How Can We Make Regional Transformation Happen In South Florida?
It clearly seems possible for South Florida to achieve successful regional transformation. We have many, if not all, of the major components of the entrepreneurial ecosystem here in some form, as well as several unique advantages including the presence of substantial potential investment funds and access to Latin America. As discussed in Part One, however, there are a number of key problems in our region that are hindering this process, and these must be resolved before South Florida has a chance to experience fully successful regional transformation. The good news is these problems are fixable, and there are a number of very good people down here who are working hard to fix them. Here are some initial ideas that may help to begin to remedy ten of the most important problem areas:
1. Improve communications at all levels. Break down the “silos” that exist and facilitate free communication at all levels of the technology and entrepreneurial communities. There is no magic way to make this happen, but this situation can improve significantly if all participants in our technology and entrepreneurial communities actively do what they can to break down the communications barriers and cooperate and collaborate. Acknowledge we have a problem here and don’t hesitate to take the first step in breaking down these silos.
2. Develop an entrepreneurial- and technology-based investment focus. Enact programs and processes to communicate with and educate local financing sources to facilitate technology and entrepreneurial opportunities so additional financing becomes available. Encourage successful local entrepreneurs to help finance the next generation of entrepreneurial companies.
3. Develop Additional Angel and Other Early Stage Financing Vehicles. While there has been some progress in this area, we lag significantly behind where we should be. Establishment of more early stage financing vehicles and groups will help to educate angel and other early stage investors regarding our region and will allow technology and entrepreneurial companies to gain further access to the substantial wealth that is present in our region. The money is here, but an education and communications process is clearly needed. Take steps to establish more seed capital and early stage investment funds dedicated to technology and entrepreneurial ventures.
4. Develop substantial relationships with Latin American technology companies and entrepreneurs. This is a unique and valuable advantage to our area. Develop and foster a successful system of relationships and investments with Latin American entrepreneurs, both here and in Latin America.
5. Generate a steady track record of economic successes for technology and entrepreneurial companies. These successes should begin to occur regularly once the other components are in place. Ensure that any successes are well-publicized recognizing it’s very tough to predict when this will happen. This problem will help to fix itself once certain other problems are mitigated or resolved and the technology/entrepreneurial ecosystem really begins to function, but it will probably be awhile before a steady stream of success stories develops.
6. Continue to build on the initial successes of the life sciences and biotechnology sectors in South Florida. Leverage the successful and unique life sciences and biotechnology infrastructure that our region has created. Our life sciences and biotechnology industries have made a great start – it’s time to push to the next level. Foster the development of more “spinoff” technology companies in this sector.
7. Improve the Role of South Florida universities. South Florida’s universities have made substantial progress in recent years in redefining and improving their positions in the technology and entrepreneurial processes. Continue to support this progress as the universities are a critical component of regional transformation. Build and strengthen programs within these universities to stimulate and foster technology research and development, entrepreneurship and the successful commercialization of technologies as well as cooperative ventures and relationships between the universities and entrepreneurs. Devote more focus at the university level to technology commercialization.
8. Continue to integrate state and Federal governments into the regional transformation process. Cooperation among the technology and entrepreneurial communities and State and Federal governments is a crucial component of success. Facilitate more cooperative ventures among all of these parties.
9. Achieve access to out-of-state investment capital. This is a very difficult but important component. We must attract investment capital from other regions such as Silicon Valley. The best way to do this is with a steady stream of successful companies and liquidity events. Encourage those within the technology, entrepreneurial or corporate finance communities by establishing good contacts in other markets to make introductions and foster relationships with capital sources from other areas.
10. Access Our Local Management Talent Pool. Our area has a substantial number of highly talented business executives, many of whom moved here following very successful business careers in a wide variety of industries. Take better advantage of this significant resource. Many of these people are very willing to work with young companies to help them grow and prosper, often on very reasonable terms. We are not taking full advantage of this powerful resource.
These are by no means the only problems that need to be resolved, and none of the fixes will be easy. This summary only scratches the surface of a very complex situation. The achievement of successful regional transformation for South Florida will be very beneficial to our region and its people, but substantial roadblocks will continue to exist. If all of the members of the technology and entrepreneurial communities acknowledge these substantial problems exist and find ways to work together to resolve them, we can still have a great chance to make regional transformation happen in South Florida.
For more information about Robert C. White, Jr., click here.