It’s Time to Start Networking for Real

While Scott Kirsner and my fellow Xconomist Tim Rowe both recently have commented on the benefits of mixing and mingling in Kendall Square, we have a more basic problem that won’t be solved by just rubbing shoulders. Chalk it up to Yankee stoicism; our long, dark winter; or our independent sectors of software, communications, medical devices, interactive media, financial services, health care, and finance. Whatever the cause, you probably haven’t heard of “Northern Hospitality” for a reason. Simply put, we just don’t talk with each other like people do in other parts of the country, and changing will help entrepreneurs.

Starting a new company is hard. We talk a lot about entrepreneurship and innovation in the technology community, but that’s not really the entrepreneur’s chief mission. Big companies innovate and create things. Mature small companies do, too. What makes entrepreneurs unique is coupling that with creating a new organization, which means creating something out of nothing.

To do that, they need to find those rare people who are willing to take the risk with them, and who share the dream and want to solve the same types of problems. These include co-founders, employees, lawyers, distributions partners, suppliers, and most importantly, customers.

Finding all those people takes time and energy. It can be hit or miss, and it’s mostly miss. Unfortunately for entrepreneurs, the biggest expense usually is time, which also is usually in fairly short supply. With a little effort from the rest of us, we can help entrepreneurs cut these costs dramatically and help build an even more vibrant technology community here in Boston.

Last year, Bill Warner (another Xconomist) and I collaborated with the Mass Technology Leadership Council to launch Innovation 2008, an “unConference.” Unlike traditional conferences with lots of speakers and little networking, this new model of conference is mostly structured networking that delivers content based on participants’ interests rather than a pre-planned rigid agenda. The attendees create the sessions themselves, allowing people with shared interests to find each other efficiently, and then they spend an hour at a time sharing their expertise, asking questions, discussing critical issues, and getting to know each other. It was a huge hit, particularly by breaking down traditional barriers between old and young, investors and entrepreneurs, and people in different sectors because everyone had something to offer.

This year, we are turning that event, which will be held on October 1, into the kick-off for a year-long platform. We will ask particular participants to become “connectors,” and for the next 12 months, they will try to be the quick “answer man/woman” who entrepreneurs can contact with the simple question: “Who do you think would be the right person to help me with __________?” Connectors either make an introduction and get out of the way, or refer the request to another connector who might have a better answer.

A select group of entrepreneurs from the unConference also will be invited to join a

Author: James Geshwiler

As Managing Director of CommonAngels Ventures, James runs one of the first formal venture capital investing networks and the largest in the Northeast. He joined CommonAngels in 1999 when it was an informal group of private investors, and since that time has grown it into a structured network that has invested $44 million from individual investors and two $10 million co-investment funds in 39 companies and worked with them through over 100 rounds of financing totaling over $270 million. James also was the founding chairman of the Angel Capital Association, the professional alliance of angel groups that has grown from 46 groups as charter members to now over 125, representing over 5,000 investors. He also was the founding chairman of ACA's sister organization, the Angel Capital Education Foundation, in partnership with the Kauffman Foundation. AECF works with angel investors, venture capitalists, academic leaders and entrepreneurs around the country to provide research and educational programs on angel investing. He is a contributing author to Cutting-Edge Practices in American Angel Investing, published in October 2003 by Darden Business Publishing of the University of Virginia, has written papers and various articles on angel investment processes, and regularly speaks on entrepreneurship and private investing. He holds a bachelor's degree with highest honors from the Liberal Arts Honors Program at the University of Texas at Austin, a master's degree in political science from UCLA, and an MBA from MIT's Sloan School of Management. James also is an avid rower and a member of Cambridge Boat Club. [Editor's note: CommonAngels is the lead investor in Xconomy.]