Comments on: Where Failure is an Option: San Diego’s Startup Culture as a Bay Area Annex

By: Dennis Clerke

Dennis Clerke — Mon, 30 Nov 2009 16:09:56 +0000

In the past two years at DaggerBoard Advisors(an advisory firm for emerging software companies), we have seen a real change in the So. CA technology landscape. San Diego’s software community has become much more concentrated at the early stage. Many of which are funded by friends & family and are still finalizing the fundamental business model. Connect, EvoNexus and others play a valuable role in helping companies at this stage.

However after the early stage, there is a gap with limited local venture capital, few alliances and sparse talent. Inevitably, once the business model is defined and the firm starts to emerge, the companies spend a lot of time in Silicon Valley getting Venture funding, establishing technology alliances and recruiting teams. Many get acquired at a young age or establish affiliate offices in the Bay Area and the San Diego founding location becomes a satellite.

The good news is that San Diego has a solid foundation of early stage resources and entrepreneurial activity, but the bad news is that it’s a short runway without a lot of flights to San Jose…

By: Bruce V. Bigelow

Bruce V. Bigelow — Mon, 30 Nov 2009 02:04:27 +0000

Northern California is simply far more robust when it comes to moving promising R&D to commercial applications. Silicon Valley has by far the biggest concentration of venture capital, and the most VC investments quarter after quarter. I agree that the UC funding crisis poses a huge threat to the innovation economy—but I don’t think that threat has materialized yet (perhaps because UC San Diego, for example, has borrowed heavily to keep the wolf at bay).

By: JB

JB — Mon, 30 Nov 2009 01:50:08 +0000

I don’t think you can separate the VC ‘xconomy’ out of the actual, real economy. They are related.

San Diego (and California in general) economy is declining rapidly and profoundly. For example the research apparatus mentioned above as a competitive advantage, must be in jeopardy currently with the state gutting and permanently cutting higher education.

By: Bruce V. Bigelow

Bruce V. Bigelow — Mon, 30 Nov 2009 01:22:55 +0000

All valid observations Julie, and thanks. It seems to me that building and maintaining a critical mass in various tech sectors is a key factor in sustaining a startup culture. It’s clear that San Diego has successfully maintained its critical mass in biotech. On the other hand, the bench doesn’t seem to be as deep as it once was in the networking technology sector and perhaps in Internet/web-based technologies. And then there’s the local VC issue.

By: Julie Meier Wright

Julie Meier Wright — Sun, 29 Nov 2009 05:38:18 +0000

Those that seek to emulate San Diego are focused on our incomparable research base — a diverse and densely concentrated powerhouse of knowledge. We do a good job of moving research into the private sector and potential commercialization. Mike Krenn does a great job of summarizing San Diego’s challenges. Some of our local organizations such as Biocom are doing a great job addressing the issue of capital. We also have our first real incubator, EvoNexus, thanks to Rory Moore at CommNexus. But at the end of the day it’s about accessing money to take a great idea to commercial success. And continuing to create awareness and “buzz” about San Diego as an innovation economy.