A couple of weeks ago, CNN broadcast the fourth episode of Black in America, its ongoing series on the black experience in modern times. This episode was of particular interest to me because of its focus on the opportunities available to African-American technology entrepreneurs in their quest to invade The New Promised Land - Silicon Valley and the race issue involved. The show was centered around the founding of the NewMe Accelerator; the first start-up accelerator in Silicon Valley that is strictly for businesses that are founded by the underrepresented in technology. I am one of those underrepresented technology entrepreneurs.
First and foremost, I'd like to applaud and congratulate NewMe's founders, Angela Benton and Wayne Sutton for their courage, foresight and initiative. These two are Silicon Valley "outsiders" who've opened the floodgates of opportunity for minorities in tech. Over the years, there have been minorities who've futilely ventured west in search of simply the opportunity for fame and fortune, but six years after Y Combinator's launch in 2005, an accelerator specifically for the under-served in Silicon Valley was long overdue. Now we have one.
Is there a problem with race in Silicon Valley? I believe so. I've heard people say there aren't enough black tech entrepreneurs, the only color that matters is (money) green, etc., etc. Yet my story rings to the contrary.
I ventured west after struggling with my start-up in the Washington, DC metro area for four years, beginning in 2003. For those who don't know, D.C. has been a terrible place to launch a start-up after the dot-com bust. There's a plethora of talent in the nation's capital (well respected universities in the region and some excellent programmers), however the pervasive mindset is focused on obtaining your top-secret clearance and starting or working for a company that bids on consulting contracts with the government. They call them "Beltway Bandits". Additionally, the venture capital community is not friendly toward seed and early stage ventures.
LaunchBox Digital launched an incubator in DC back in 2007. They've since relocated to Research Triangle Park in North Carolina. Follow their lead and move to a tech hub. DC is not the place for a start-up. But, I digress.
My co-founder and I parted ways after the first year. He hadn't invested any real money, just sweat equity, was living with me for free and, honestly, was a self-taught programmer in way over his head. I spent entirely too much time explaining technical concepts to him like lazy instantiation. Eventually, I had to kick him out.
A Java development offer took me to Silicon Valley in 2007. I decided to use the opportunity to raise money for my company. Years earlier, I'd sold my townhouse to reduce expenses and eventually I'd depleted my savings all in a effort to follow my passion and secure a better future for me and my family. When I landed at the San Francisco International Airport, I had a business plan that was initially written by Funding Post in 2003 and revised/refined over 4 years, working software which by that time I'd received a licensing offer for from a larger software vendor in the market I was targeting and Clarence Wooten - the only African-American dot-com millionaire I'm aware of - as my business adviser.
Clarence and I first met at a Washington Wizards basketball game in 2001. After selling his start-up, ImageCafe, in 1999 he'd become a celebrity in the DC tech scene. I recognized him, introduced myself and told him I had some ideas I'd like to run by him. He told me to stop by his office. At the time, I was living the life as an independent Java consultant on enterprise projects for clients like Deutsche Bank (Manhattan), Fannie Mae (DC Metro) and Freddie Mac (DC Metro)...at $95/hr, so it would be a couple of years before I stopped by the office. Fortunately, he recognized me.
When Clarence and I finally did reconnect, my co-founder and I had been at it for several months. The first thing I said to Clarence was, "I want to tell you I have the utmost respect for what you accomplished, because this is not an easy task." As he walked around from behind his desk to greet me he replied, "It's a MONUMENTAL task. And, people just don't understand unless they've been through it." Truer words have never been spoken. He had recently co-founded Wirespan Communications, Inc.
Now in Palo Alto, my business plan included the concept and financials for three products targeting the same market. Two of the products were B2B and one was B2C; MULTIPLE REVENUE STREAMS.
I'd been pounding the pavement from New York to Chicago to San Francisco at industry trade shows the past four years, and had connections with established industry vendors for multiple routes to market. One technology vendor had made me a licensing offer of a few hundred thousand dollars plus royalties for our flagship product. A couple of years after that, in 2006, another technology vendor had invited me to interview for their CTO position.
The business plan had been reviewed by my accounting firm: I'm dressed in a suit. I've looked at these issues from all angles. The tech was cutting-edge at the time; tablet-pc's, Adobe Flex/Air, Ruby on Rails. This was Silicon Valley. I'm a developer. I know my stuff. I was referred by a dot-com millionaire. I'm articulate and like-able. Funding was a formality. Or, so I thought.
The truth is, race is an issue in Silicon Valley, a big issue and not only with the majority, but also with elitist minorities in power. I was an African-American software entrepreneur in The New Promised Land with working software, references and a business plan showing a lot of green. I've been following the tech industry since being hired by America Online, prior to graduation in '96, and have never heard of an entrepreneur looking to launch three products for the same market. Oddly enough, I was told to focus on only one product. A Caucasian or Asian coming to the table with what I had would've had millions in funding in less than 30 days. I returned to the D.C. metro area without funding. Promises broken.
However, I'm a true entrepreneur. It's a monumental task, persistence is key and when you're onto something, you feel it in your gut. I continued developing the second product; an instructional app with streaming video on the wireless tablet. I signed on a partner I'd been targeting for years; one who made a significant investment, had industry knowledge and substantial connections - amazing how when you add video to something, suddenly everyone gets it. I hired a developer that I met while he was presenting at the DC Area Flex User's Group. And, I headed back west a year later, with two software products to demonstrate, looking to speak to different people. I'd also added three additional products to the business plan, making it a total of six for the same industry. Oh...and I had my new co-founder schedule a meeting with Ted Leonsis back in the D.C. area for when I returned. But, when I returned, all hell broke loose; jealousy, greed, deception, betrayal, intimidation...The Pirates of Silicon Valley.
Race is definitely an issue in The New Promised Land.
UPDATE 12/2/11
Since I began writing this post, there's been a significant resurgence in the D.C. tech scene: STEVE CASE, TED LEONSIS CREATE $450 MILLION FUND TO AID DC STARTUPS
