ethnicity, different backgrounds, and experiences. Certainly for Aspect, we focus on the best innovation in the category. Having said that, about 40 percent of our portfolio has a woman entrepreneur on the founding team. About 50 percent are immigrants or children of immigrants. Over a third are different ethnic backgrounds. So we have a wide range of entrepreneurs that we’re working with because we’re seeing in some of these new and emerging categories a different type of entrepreneur. Sixty percent-plus are men, but they’re looking for a different perspective. They want a different voice around the table than they’re typically getting.
X: Do you think it’s changed for women, in particular here in the Valley?
JF: It’s continuing to change. There’s a spark of innovation that was really driving a lot of entrepreneurs starting companies, which I think in and of itself has been really exciting. And there’s actually a lot more access to capital to get a company started. So I think that’s part of it. And there’s a lot more support between and among women, to offer ideas, insights, suggestions, encouragement—as well as from a number of men who recognize that not every entrepreneur or successful entrepreneur’s going to look the same as it may have 30, 40 years ago. So I think you’re seeing a lot more change happening.
X: You’re hopeful that it’s not just a short-term change?
JF: Oh, yeah, for sure.
X: Are there are more systematic things that can really make a difference, whether for women or people from a different ethnic background—like mid-level programs to manage people or projects so that they’re ready to be successful at the next level?
JF: A lot of that happens in larger-scale companies. I thought it was interesting the research that Google did that showed that the best performances were around diverse teams, as opposed to identifying one or two rock-star individuals and then building around them. Team formation is a big part of a lot of companies here in the Valley—the more they focus on diverse team building, I think the better outcomes they’re going to see. As a result of that, you’ll have people who are used to leading in different ways and will spin out.
X: Let’s talk about international competition. Do startups have to think internationally from an earlier time, for instance? Do you see more competition coming from areas like China or Israel?
JF: Our companies are doing business in China, Europe, and around the world. So we certainly think that from day one you have to be aware of what else is happening across the globe in your category in order to be sure that you know your solution set is truly novel and driving change. But I don’t know that I’d say that I see more competition. There’s more innovation in those areas, and I think that actually accelerates more innovation in the U.S.—so I don’t view that as a negative. Maybe those companies come here to sell their products and services, so that’s an opportunity for us to work with them.
X: Do you worry about trade sanctions hitting the entrepreneurial world?
JF: It really depends on the spiral. If the administration is putting out tariffs or trying to control trade in a small, narrowly defined area, there will for sure be a reaction from China or Europe or whoever else. If that response and reaction stays in that narrowly defined area, then it won’t necessarily permeate the innovation ecosystem. But if the reactions on both sides start to tip over into broader constraints, then you could put a damper on innovation. That’s a lose, lose, lose for those respective economies and global innovation in general.
Right now it seems to be relatively contained. However, if emotions and ego get involved, all bets are off.
