Editor’s note: John Cambier of IDEA Fund Partners and NC IDEA in Durham is an investor who deals daily with startup entrepreneurs. He offers a counterpoint to a recent post published in ExitEvent and WRAL TechWire that cites a recent report linking unemployment and entrepreneurship. ExitEvent is a news partner of WRAL TechWire.
DURHAM, N.C. - As I read the recent ExitEvent article “With Growing Economy and Entrepreneurial Ecosystem, Is North Carolina Bucking a National Trend?”, I felt the need to respond with some of my own views on the topic.
First, the Kauffman Foundation is great, but the researchers there observe and serve a much broader universe of entrepreneurs than I do as an early stage technology investor. As a result, I find that a good bit of their research and recommendations are tangentially relevant to much of what I see happening within the tech ecosystem, both locally and nationally.
On the topic of business formation, Kauffman’s Entrepreneurial Activity Index expects to see an increase in company formation during a weak economy and a decrease in company formation during a stronger one. When it comes to tech companies, however, I have seen the exact opposite over the last 20 years. Let me explain why.
The full post can be read at ExitEvent.