A recent post by VC (Venture Capital) blogger Fred Wilson reinforces Thomas Friedman’s 2005 book/theory that globalization has completely changed the way we do business, in general, and entrepeneurship, in specific. That, combined with a discussion on a recent KenRadio show (I believe by Thomas Ryan and Ken) reveals much about where our expectations should be in the 21st century.
For those of you not familiar with Friedman’s book (available from Amazon, and from Audible as an audiobook), he takes the position that technology and our new mindset have leveled the playing field so that there is no real difference between countries anymore. It’s a philosophy I first heard expressed in the mid-seventies when Paddy Chayefsky had one of his characters in the film NETWORK proclaim that “There are no more countries of the world. There are only ATT and Exxon and…” [he went on and on from there]
On KenRadio, Ryan and Rutkowski were talking about the dearth of new American ideas in tech startups and discussing whether Americans were being “dumbed down.’ Ryan’s comment was that it wasn’t so much that Americans were getting dumber, as that the rest of the world was getting smarter and Americans were sorta standing still. In my opinion they’re dead on here. As both a teacher and technologist, I can’t say that I have seen my students or the startups in this country to have fallen off in any way. My students at USC are still as challenging, bright and motivated as ever. It’s what keeps me in an industry (education) that forced me to take a huge paycut when I joined it seven years ago.
However, because of that very thing (educators being paid less) as well as government support of education and technology waning, other countries have been able to boost their status quite well.
And this leads me back to the first paragraph of this posting — Fred Wilson’s blog from today entitled “Taking Stock of Tech Startups in Paris.” (Fred’s blog, by the way, is one of the most informative and consistently interesting blogs about venture capitalism around. You should definitely check it out.)
There, Fred talks about a meeting he attended in Paris called Open Coffee in Paris, which is a weekly Thursday get-together of technology business people held every Thursday in Paris (open to everybody, so if you’re in Paris and you’re interested, check out their Facebook page from the link above). He also attended a “speed dating” event for Parisian entrepreneurs. There Wilson met, in his words:
[T]he entrepreneurs I met yesterday were very typical of the people I meet every day in our business. And they are working on exactly the same problems/opportunities that startups in the US are working on.
He then goes on to detail the companies that he talked to at the event. Here is his scorecard, listing the industry they were in, the number of companies in each market space, and whether his own VC company is currently investigating companies in the same space in the US:
Entertainment ratings/reviews – one company – current
Mobile banking – one company – current
P2P lending – one company – current
Interactive/Internet TV – two companies – current
Sentiment analysis/tracking – one company – current
Stock footage – one company – current
Mobile gaming – two companies – current
Mobile RSS – one company – current
iPhone apps – one company – current
Prediction markets – one company – current
Virtual worlds – one company – current
Video ad creation – one company – current
Mobile/web integration – one company – current
Career/Jobs web service –one company – current
Here’s the interesting thing to me about this. Every single one of the categories has stateside equivalents that his VC company is currently investigating. In other words, the industries that we are developing here in the US are not ours alone. They are worldwide industries. Wilson’s conclusion:
Don’t think that the most interesting mobile games or iPhone apps will be built in Silcon Valley or even the US. Some will. Many won’t be.
This is what globalization is all about and it is further evidence that we are in a changing world. Those of us who create content would be foolish to ignore this. I’ve said it before, but it bears repeating. If you think that the ultimate goal for your content is a big screen (cinema) or small screen (television) then your train has already left the station and you’re not on it.
You are going to have to think globally — global stories, global collaborative ventures, global financing, global production and post-production, and global distribution. That’s the train you want to be on if you want to be around and thriving in the year 2020.