CAJ7#U.S. stealing German brains?

The goal of the German Silicon Valley Accelerator is to find the best German ideas in the field of technology, make them internationally known so they can start their own business in the Silicon Valley in San Francisco, U.S.

I know, I wrote about this goal in my last two posts and you already know that. But think about this goal. Germans like Dirk Kanngieser who is the co-founder and CEO of GSVA, put a lot of effort into finding German brains who were educated by Germans, whose education was supported by the German Government and whose idea could bring a huge boom to the German economy and therefore create hundreds of thousands workplaces. They spend a lot of money on the selection of these brains and once they found the best idea they send it to the United States. They do not use it in German or in any other European country. No, they send them to the United States and weaken the international competitive power of Germany.

So where is the sense in sending the best German engineers to the United States instead of using their knowledge in Germany?

The German public-service television broadcaster ZDF (Zweites Deutsches Fernsehen – Second German Television) discussed this problem on one of its official blogs. They also see the problem that a “brain-drain” could occur in this situation. Also Kanngieser himself claimed that he knows the danger that German engineers simply stay in California once they are successful. He knows that in individual cases they have to accept this fact. In most cases, however, Kanngieser knows that Germany can only benefit from the program GSVA. In the field of technology, most people tend to come back to Germany. There are logical reasons for this. First of all, Germans are known as the one of the leaders in the field of technology and although you might find some Germans overseas, it is the easiest way to find Germans in Germany. Moreover German engineers are cheaper than engineers in the Silicon Valley (good engineers might be used to very high salaries of big and successful companies – see CAJ#4). Moreover Kanngieser points out that social factors like friends and family make German engineers come back to Germany. For most people these social factors are more important for a successful start-up than the rational advantages the Silicon Valley offers.

To put it in a nutshell, Kanngieser of course wants to avoid a brain drain from Germany to California. He wants the young German entrepreneurs to go to the Silicon Valley, gain new experience, benefit from the technological surrounding and then come back to Germany and let Germany benefit from the Silicon Valley.

And if, in some individual cases, German brains stay in the United States then Kanngieser at least hopes that there will be some manufacturing bases in Germany.

CAJ#6_Want to apply? All you need to have...

Maybe my last post about the German Silicon Valley Acceleration and the benefits you gain from participating in the program convinced you and you now want to join the program. Unfortunately, you are a bit late as you missed the application deadline on March 15. You could start, however, working on your idea for next year. If you really do so, make sure you know the most important selection criteria. Here are the most important ones:

As GSVA is investing significant time and resources into program participants, the Steering Committee’s role is to select the most promising companies of all applicants. It does so by focusing on the following areas:

Overall concept: Does the company address a clear and large market need with an innovative solution?

Market opportunity: Is the market size and opportunity large enough to make this a compelling business? Remember: GSVA is striving to support the creation of the next global category leader.

Competitive landscape: Are there significant or dominant competitors? Has the company constructed strong differentiation and/or barriers to entry?

Product execution: How much work from concept to current status? Smart engineering, good use of technology. Degree of product/market fit.

Business execution: Partner deals. Customers. Distribution. A clear go-to-market strategy being executed and proven traction.

Team: The right combination of dedicated individuals with the required experience and skills. Are team members “knowers” or “learners”? Are they open to questioning their ideas and brave enough to try new behaviors that will enable them to be successful?

Business model: Revenue streams or customer acquisition model is determined. Will it work in the U.S. market?

Entrepreneurial mindset: Will the company be able to develop a Silicon Valley-like mindset and entrepreneurial culture? Will they discover the critical success factors for their company?

Program relevance: Does the company have a clear perspective on how it will benefit from the GSVA program, i.e. has it identified specific U.S. customers or a U.S. customer group? Does the company have the potential to become a global category leader?

To sum it up your idea needs offer an innovative solution for a problem of a global market, you should be the first to come up with this idea, you should already have improved your first concept to show how efficient you use technology, you should already have partners who support you and your idea, your team should be experienced but still show willingness to learn, your idea should meet the needs of the United States….

Seems like simply having an idea is not enough :)

CAJ#5_The German Silicon Valley Accelerator

The German Silicon Valley Accelerator (GSVA) supports German tech startups to accelerate their growth and to become global category leaders. Selected startups participate in a three to six months training program in the heart of Silicon Valley. The goal is to support the young entrepreneurs in their first steps to becoming internationally recognized and successful companies. 

Through this program young people with great ideas have the opportunity work in the dynamic and competitive international environment and to dive into the spirit that makes the Silicon Valley the world’s premier center for innovation and startup success. As part of the program, founders develop a U.S. go-to-market strategy, make initial customer contacts, and continue to engage and build relevant networks. The founders also gain an understanding of possible financing options for their venture and potentially receive introductions to business angels and venture capital investors.

This sounds already really great, ha? Here are some more benefits you can gain from participating in the GSVA program:

Silicon Valley Culture: Understand the U.S. startup and business culture and leverage the resources and support infrastructure unique only to Silicon Valley.
Go-to-Market: by developing a go-to-market strategy and business plan for the U.S. you can understand the importance of corporate partners as a channel for market validation. With this program you learn how to successfully approach possible partners and how to close a deal.
Mentoring: This is the key word of this program. Being mentored by experienced entrepreneurs and investors means that your thinking is challenged, hurdles are discussed and new opportunities arise.

Presentation: You can adapt your communication and presentation style to Silicon Valley expectations. By having the right presentation skills you can convince customers, investors and potential team members more easily.
Experience: Even if the worst case scenario becomes reality and your company does not fit in the Silicon Valley’s expectation at all, you still had the experience of living and working there. You could use this experience for your next idea or to improve your first idea.

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