Strength Begets Strength in Startup Pittsburgh

Much like Detroit, Pittsburgh is an historic industrial city. And like Detroit again, when American manufacturing went into decline, so did the steel city. But Pittsburgh also has a long history as a center of advanced learning; with over fifty major university research departments in the city, focusing on topics from Information Technology to Life Sciences, Robotics, and Physics, the steel city’s new economy is being powered by academic research, and advanced manufacturing.

Despite these assets that prepare this city to be a leader in the next wave of technological innovation, Pittsburgh’s humility makes its people charming but can be one of its economy’s worst enemies. The story of what’s happening here is just not getting out.

Luckily, some success speaks for itself. Carnegie Mellon University spins out the most businesses per research dollar spent than any other university in the country; thirty companies have been started by faculty and students this year alone. Alongside the University of Pittsburgh, and others, the wealth of knowledge here -- seasoned academics, professionals, and young graduates -- provides the expertise to support the youth startup revolution spreading across the country. Pittsburgh is wisely using what already makes it strong.

At the working spaces we visited, and the pitch competition hosted by AlphaLab, we saw well-developed companies, many of which were involved in making and manufacturing tangible things. Pittsburgh’s tech scene is not about software. Positioning itself apart from  Silicon Valley, and not as an imitator, has been Pittsburgh’s strength.

There’s also a human story here. In the midst of their rising success, community members are working hard to make sure that the city’s growth benefits everyone in Pittsburgh.

We met Urban Innovation21, an unparalleled public-private partnership that supports entrepreneurial growth, while also connecting that growth to underserved communities. It’s exciting and inspiring to see the innovation economy being used to revitalize deprived and underrepresented constituencies. 

We also visited StartUptown, an incubator space that is helping Uptown grow from an historically disadvantaged neighborhood to an area known for its community and entrepreneurial culture. By thinking about how growth affects the broader community, and actually using the new economy to make the city better, StartUptown is a crucial piece of Pittsburgh’s future.

If Pittsburgh can tell the story of what’s being built here, it can only help accelerate their growth. And if Pittsburgh can tell the story of how they are using their talents to make their city better for everyone, they might just be able to redefine people’s perceptions of what “tech” means, and what it’s capable of doing.

It’s Morning in Detroit

This week we’re traveling with Steve Case on the Rise of the Rest road trip to celebrate entrepreneurship, in all its forms, across America. Every day we’ll post dispatches from the cities we’ve seen. Stay tuned for updates from Detroit, Pittsburgh, Cincinnati, and Nashville.

Almost a century ago, Detroit was home to the transportation revolution and pioneering entrepreneurs like Henry Ford, but over time the city lost its way. Now this famous city is coming back with a new revolution focused on reimagining the city as the best version of itself: better infrastructure, stronger businesses and tighter communities. This story is one of regeneration, renewal, and rebirth.

We spent the morning touring spaces filled with great talent from Michigan’s universities (and across the country), and bursting with great passion for rebuilding this city. From the M@dison Building to Quicken Loans, DIME (Detroit Institute of Music Education), Detroit Labs and Bizdom, it’s clear how much energy Detroit has for its next incarnation. And then at Shinola -- a local company that produces watches, bicycles, leather goods, and journals -- we saw that the manufacturing heritage that once made Detroit is again making it a world leader.

As recently as 60 years ago, Detroit was one of the top high-growth cities in the nation. Now it has an incredible opportunity to take its heritage, to inspire and retain the skilled individuals that are coming out of Michigan’s universities (Michigan has more engineers per capita than any other state in the nation), and to play leapfrog.

Ironically, one of Detroit’s great strengths is that everyone had given up on it; the stories have been so bad that it’s galvanized America’s interest. The fact that it got so bad here has created a platform for an unusual level of excitement and a boundless sense of possibility.

Had the city not lost 60 percent of its population and gone bankrupt, if Detroit did not have the chance to start again from the beginning, and rebuild from the ground-up, we might have seen a very different city today. Cities like Austin have already been through this sort of rebirth; we know that this looks like.

Today Detroit looks like a very different place. We met with Gov. Dan Snyder, Mayor Mike Duggan, and civic leaders like Dan Gilbert. We toured co-working spaces and met investors and startups that are growing quickly – bringing jobs and excitement to Detroit. People are staying in the area, and moving back to Detroit from San Francisco and New York City to be a part of what’s happening here. The energy is palpable, and the dynamics of Detroit’s story are changing.

Detroit has a long history of innovation, and today we saw a vibrant community working hard to bring that tradition back to life. What remains is the task of bringing the automotive industry back into the fold. The industrial giants have the experience to help build a new Detroit, and this new Detroit has the power to breathe new life into these incumbent industries.

 The future is bright in Motor City. Good morning Detroit! 

President Obama and Rise of the Rest Both Highlight Pittsburgh

We were excited to learn that this week the President traveled to Pittsburgh to celebrate innovation with a visit to TechShop -- the firm that helps entrepreneurs and inventors build low-cost prototypes of their creations. Next week, we too will be in Pittsburgh and at TechShop as part of the Rise of the Rest road trip with Steve Case.

Signalling his support for more policies that encourage entrepreneurship, the President announced three executive actions designed to support advanced manufacturing and innovation:

• $5 billion worth of advanced equipment in federal R&D facilities will be made available to innovators and startups to develop new technologies and launch new inventions. For example, entrepreneurs may be able to access NASA’s National Center for Advanced Manufacturing to produce the high-strength, defect-free joints required for cutting-edge aeronautics, and DOE’s Manufacturing Demonstration Facility at Oak Ridge National Laboratory for collaborative projects in additive manufacturing, composites and carbon fiber, and other leading clean energy technologies.
• Five Federal agencies will invest more than $150 million in research to support the Materials Genome Initiative, increasing the Administration’s investment in the manufacturing of game-changing advanced materials. The aim of the The Materials Genome Initiative is to cut in half the time it takes to develop novel materials that can fuel advanced manufacturing and bolster the 21st century American economy.
• In response to the President’s call to action, more than 90 Mayors and local leaders have committed to the ‘Mayors Maker Challenge’. The promise is to expand access to physical locations and new manufacturing and prototyping equipment, support manufacturing entrepreneurship, and inspire young people to pursue careers in manufacturing and engineering.

Just as the President and leaders across the country are recognizing “makers”, and the importance of supporting entrepreneurship, we can’t wait to celebrate what’s being built right here in America. Check out our infographic here!

Watch Steve Case tell the story of what we’re doing and join us in Detroit, Pittsburgh, Cincinnati, and Nashville, June 24-27.

There Are Lessons To Be Learned Outside Silicon Valley

Skip Newberry, President of the Technology Association of Oregon, co-authored this post.

When asked for a general perception of what the startup community looks like, all too often people will volunteer information about bespectacled youths wandering around Silicon Valley with bundles of money, wearing ironic t-shirts, sipping single-origin coffee, and creating apps for you to while away time on your commute. It is, in a sense, the same type of reaction to the Portlandia phenomenon. Neither of these characterizations is entirely false–to be fair there is a lot of bird-related art throughout the Rose City–but there is a truth behind both perceptions: a new birth of economic growth and prosperity that cuts across traditional socio-economic lines that can be an enormous force for good in our communities.

Earlier this year, Engine teamed up with the Technology Association of Oregon to tell the story of Portland’s startup community. It’s the first part of the Startup Cities series that will profile more underrepresented communities around the country where startups are taking root and presenting new avenues for cities to capitalize on the innovation of its citizens to benefit the community as a the whole.

Portland was chosen as the pilot first because the city’s long history of entrepreneurship has translated very quickly into a supportive, thriving and prosperous startup community. The technology industry in the Portland Metro Area was the fastest growing in the country during the past ten years. In this same time period, the Portland Metro Area climbed to 9th in the country for startup density, and is attracting increasing levels of talent from Seattle, San Francisco, New York, Los Angeles, and Denver. Large companies such as ebay, Salesforce.com, Walmart Labs, SquareSpace, and Airbnb are also taking notice and expanding into the area.

And we know from Engine’s research that community benefits extend beyond the high wage tech jobs created. For every person a technology startup hires, 4.3 additional jobs are created in the local non-tradable sector. That’s everything from bakers to bankers, plumbers, and lawyers. Within Portland’s thriving startup community, these effects are visible and powerful.

But even more importantly, the community in Portland knows that to succeed everyone must work together. Serial entrepreneurs are becoming angel investors, helping entrepreneurs new to the scene jump in with both feet and grow products into businesses, and creating staying power that will help Portland succeed for years to come.

While no two entrepreneurial communities are alike, and replication of success stories can be a fool’s errand, the lessons of togetherness and support are ones on which Portland can lead, ones they can export, and in doing so become a leading community.

And Portland is just the first stop. It’s important that we start to look at the technology industry everywhere it exists to build a fuller picture of the community that is fast becoming the American electorate at large.

Engine Joins Steve Case's Rise of the Rest Road Tour Team

For four days in June, we’ll be joining Steve Case, Revolution, and Up Global to celebrate entrepreneurship across the country, showcasing startups and entrepreneurs in Detroit, Pittsburgh, Cincinnati and Nashville.

From our recent research, we know that the growth in high-tech startups is not simply a “tech center” phenomenon. In fact, high-tech startups are being founded across the country, fueling local and national economic growth.

“I have always believed in the power of entrepreneurship to change the world,” said Steve Case.  “This four-day journey will shine a spotlight America’s best and brightest, wherever they reside, to demonstrate that great ideas and great companies can come from anywhere.”

“We’re so excited to hit the road and report back on a story that demands more attention: some of the most exciting things happening in tech are happening far from San Francisco and New York City,” said Julie Samuels, Executive Director of Engine. “And it’s these young startups -- growing in these cities across the country -- that will create the jobs the next generation relies on.”

We will be joined along the way by nationally recognized entrepreneurs and civic leaders to celebrate the progress of the startup economy. Steve will also personally invest in each city’s startup community by hosting a series of pitch competitions - one winner in each city will earn a $100,000 investment in their company.

Each stop along the route will feature:

• Visits to local startups, accelerators and incubators
• Fireside chats featuring Steve Case and other entrepreneurial luminaries in a candid conversation about the local startup ecosystem
• Local startups pitching a panel of all-star judges, with $100K investment at stake
• Celebration and networking for local entrepreneurs

We hope to see you on the road!

More information on the Rise of the Rest road tour, including times and locations for specific events in each city, is available at www.riseoftherest.com and by following #riseofrest on Twitter and Instagram.

Give Congress a Second Chance

This post is by Ted Henderson, Founder of Capitol Bells.

A congressional approval rating hovering around 13 percent suggests a failure to engage the public in the legislative process, but technology can provide a solution by giving citizens and politicians a new way to interact. Representatives need to know what we think in order to represent us.

Public engagement means sharing your voice with your community and elected leaders. Unfortunately, it’s not as easy as pulling your elected official aside and telling them what you think. But what if it was that easy? What if there was a way to communicate with your community and your elected officials right from your laptop or smartphone?

The primary means for public engagement with Congress has been calling, emailing, or writing letters. But the volume of constituent mail has exploded in recent years. Over 10,000 advocacy organizations now direct millions of e-mail form letters to congressional offices, and as a result the value of each voice has been devalued.

Social media and crowdsourcing technologies provide new channels for engagement and direct communication with the political and social decision makers. Anyone can share their positions on specific bills through social networks, connect with communities, and amplified their voices.

Capitol Bells quantifies the voices behind a certain position, then uses those tallies to score politicians on how well they are representing. For instance, a user interested in immigration reform can use CapitolBells.com to express their support for H.R. 15 -- the House’s comprehensive immigration reform legislation. By creating and sharing a “Motion” with friends, this user can explain why the bill is important, try to collect more support,  and push her Congressman to cosponsor H.R. 15.

Hundreds of Members of Congress and thousands of congressional staffers already use Capitol Bells to promote their own legislation. Congresswoman Grace Meng wrote in support of H.R. 15:“It is well past time to fix our dysfunctional immigration system that has hurt too many people for far too long. The American people will not accept any more excuses. The time for CIR must be now.” Every time a constituent agrees with her position on the platform, Ms. Meng’s overall score as a Representative goes up.

Congressional approval ratings may be low, but our opportunity to engage with Congress has never been higher. With social media, and tools like Capitol Bells, lawmakers have a chance to take our voices into account like never before. Let’s give Congress a second chance to represent us.

Watch Ted's Startup Speak video:

Startups Speak: Ted Henderson on Vimeo.

In the Internet Revolution, We Can’t Afford to Leave Part of the Country Behind

This piece originally appeared in VentureBeat

Too many communities have been left behind as the Internet revolution marches on. In much of the country, communication, access to information, and business are powered by the Internet. But in areas underserved by broadband networks – where it might also be too expensive to own a personal computer – adults who went to school too long ago and have not pursued re-skilling programs, and students who do not have Internet access at home or at school, are in danger of never catching-up.

Efforts originating in the public and private sectors are trying to change this narrative, but we need to do more. The President’s ConnectED plan to reform E-Rate aims to connect 99 percent of classrooms and libraries within five years. As I’ve argued before, this program is essential for educational equality, and equality of opportunity post high-school, and it needs broader support.

On the private side, the Red Hook Initiative (in Red Hook, Brooklyn) has installed free WiFi routers at churches, schools, and other community spaces. With a complimentary program in local schools focused on leadership, employment skills, and STEM training, the initiative has empowered the community to develop services in the present, and students are also better prepared for their futures in the modern economy. With support from local and state governments, successful programs like this could be rolled out to more places where they are needed.

One model for public-private partnerships worth following is what Etsy is doing in the post-industrial community of Rockford, Illinois (at the request of the town’s mayor, Larry Morrissey), and underemployed communities in New York City. Working with local groups, Etsy has a “craft entrepreneurship” program to teach basic business and computer literacy by boosting existing craft and manufacturing skills.

According to Etsy’s site, “many low-income groups have long had craft and manufacturing skills, but are unsure of how to unlock the potential of these skills for income and wellbeing in this day and age.”

In this program, the idea of unlocking existing skills for “this day and age” is the key. While a third of Etsy sellers use the income from selling their handmade goods to cover some household expenses, and 20 percent use the money to boost their savings, this program isn’t fully about money, and it’s not about Etsy either; it’s about bringing more people into the Internet economy and empowering communities to use the Internet as a platform to better themselves and their families.

People are learning how to run a business -- even just a small one -- with marketing, photography, pricing, and growth strategy lessons; they are making the most of their existing skills; and when the course is complete they are left with an Etsy store that might just provide the supplemental income to push their family over the poverty line.

But the primary and enduring benefit of this program, and others like it, is access to the Internet economy and the pride that comes with being able to do a little more than you could yesterday. Essential connectivity and basic education lay the foundation for individuals to retake control of their careers. First it’s an Etsy store, but then maybe it’s SideCar, UberX and finally a brand new startup business.. For the wellness of our economy, and our society, more communities need access to high-speed broadband and the knowledge that will help them harness the power of the Internet. Tech should support ConnectED and then work with government to ensure universal access.

Image Credit: spirit of america/Shutterstock

Let’s Look Up From the ‘Google Bus’ and Focus on Solving Real Problems

This post was originally published in VentureBeat

In the Bay Area and across the country, Google’s private buses have become the proxy for important conversations about affordable housing, public transportation, and income inequality.

And whether we like it or not, the tech community has become the face of a city where so many workers cannot afford to live where they work.

It’s important that here in San Francisco we have hard conversations about the city’s future, and at the same time are careful not to demonize the people who ride the Google buses (and Facebook buses and Apple buses and Genentech buses); they are the young engineers and future entrepreneurs who are going to be best equipped to fix our problems. Right now, I fear we are turning them into the enemy.

As workers without high-tech skills are forced out of the job market, and traditional manufacturing jobs continue to evaporate, the entire country will need to confront the hard realities that San Francisco faces right now. And there is no one I would prefer to be leading us as we attack these issues than the type of engineers who invented the internet, came up with the algorithms that bring you search, learned how to 3D-print human organs, and created a single product that’s used by more than 500 million people worldwide to connect with each other.

Many of these entrepreneurs and engineers began their careers at large tech companies and went on build important products and tools. Roy Gilbert, for example, left Google to run Grockit, an online collaborative educational tool to help students prepare for standardized exams. Or Jack Dorsey, who left Twitter to build Square, a tool that enables small businesses across the country to process credit cards at far lower costs than the traditional services. Or Sebastian Thrun, who left the top-secret Google X project (where he built self-driving cars) to start the online education service Udacity. And of course we cannot forget the individuals who left Apple to make movies that have entertained millions at Pixar.

Here’s the thing: Entrepreneurs like these are the most optimistic group of people I’ve ever met. They believe that by creating, distributing, and sharing, they can make the world a better place. I think they can too. We have just seen the beginning of the promise of technology: its power to connect the world, harness information, and empower individuals still exists beyond what many of us can comprehend.

But when we lay the blame on Google buses, we take young engineers and future entrepreneurs and hold them responsible. We, as a society, make them “others” and not “us.” We teach them that they are the problem, instead of the solution.

This is not to let the tech community off the hook. Tech workers need to plug in and get involved with local politics and community efforts. They should volunteer their time and expertise to improve where they live, and join groups like sf.citi. They should organize and join hackathons that solve local problems. They should invest in the community’s interests, like public schools.

At a company level, more businesses should join Google and Linkedin to offer their employees paid time to volunteer, and they should encourage those employees to use that time locally.

In San Francisco, there’s talk of doubling the size of subsidized housing, legalizing currently illegal in-law units, improving light rail service, and making much-needed improvement to local municipal public transportation. Some of these ideas are better than others. But if we’re going to achieve anything, we need to get off the Google bus and start talking about the kind of solutions that will really fix the serious problems our city–and the nation–faces.

Image Credit: Chris Martin/Flickr

Engine Discovers Tech Cities Across America

This year, Engine is hitting the road to tell the stories of entrepreneurial communities in cities and towns all across America. With a video series, produced by our own Daniel Schwartzbaum, we’ll shine a light on founders and entrepreneurs, asking them why they do what they do, and what it is about their community that gives them the support they need.

We chose Portland for a our pilot project -- just a short flight from our home here in San Francisco, but light years away in terms of community building. What we found was a collaborative atmosphere where founders, capital investors, city and state government, and other local organizations came together to build, with intention and thoughtfulness, a community that feeds on the boundless energy of its proponents.

With the generous support of the Technology Association of Oregon, and their President, Skip Newberry, we have started to put together the film on what we found.

Here is just a taste: the preview trailer we produced for TAO’s office opening party last week. The full episode will be out soon. During the rest of this year, we want to discover more tech cities around the country -- let us know if you and your community want to be involved. We can't wait to hear your story.