Five Steps To Build A Startup Ecosystem In Your City

According to a Kauffman Foundation report, in the US,"new businesses account for nearly all net new job creation and almost 20 percent of gross job creation." It's no wonder there is so much hype about emerging startup ecosystems, and so much new focus on supporting startups from governments.

But what often gets lost in all the hype is how sustainable startup ecosystems are actually created.

For example, it pains me every time I see a press release from the government of an area with no startup ecosystem that decides to dump millions into shiny facilities to "spur local startup innovation." More often than not, these initiatives end up providing a great photo opportunity and a hip workspace for local freelancers to code while sitting in beanbags, but little else.

Similarly, I see a lot of government venture funds investing in the best companies in their locales, whether these companies have found product-market fit or not. Not only do these efforts provide improper validation to businesses before they are ready, they are also an egregious waste of taxpayer money.