Ian Hathaway meets MKE startup ecosystem

Last week, NVNG Investment Advisors, along with the MKE Tech Hub Coalition with Godfrey and Khan welcomed author, founder, and investor Ian Hathaway to Milwaukee. Hathaway met with members of the city’s startup ecosystem, including established founders, investors, emerging startups, and those who support the ecosystem for round table discussions on how Milwaukee can advance its current startup ecosystem.

The former TechStars employee co-wrote The Startup Community Way: Evolving an Entrepreneurial Ecosystem with noted startup guru Brad Feld. Hathaway is also co-founder of Far Out Ventures (FOVC Management LLC). The group invests in early-stage software companies in “traditionally overlooked markets.” Far Out Ventures has made 21 investments since it was founded in 2022.

Hathaway’s passion for ecosystem building has a personal element. He grew up in a small town in Ohio where he watched his inventive father struggle due to a lack of access to resources that would support his innovations. The experience left a lasting impression on him, and illustrated how a founder’s physical location impacts the likelihood of success. Today, Hathaway purposefully invests in what he describes as “undercapitalized regions,” with the goal to “democratize access.”

A key message he shared was that ecosystems could be strengthened by emulating aspects of the wildly successful Silicon Valley ecosystem. Hathaway believes that founder-led, cooperative communities that embrace risk have the greatest likelihood to grow into powerful ecosystems.

Hathaway noted that the problems that seem unique to the region, like the competitive rivalry between Milwaukee and Madison, are duplicated across the country, as are the state’s conservative investment practices. He suggests that novice investors may be encouraged to participate in the startup ecosystem by providing opportunities to make small investments, and creating a climate where social capital can be gained by investing in new companies.

He also noted the importance of mentors to the ecosystem. Hathaway broadened the definition of a mentor, moving beyond experienced founders, to include investors, service providers and others who’ve experienced professional success outside of founding a startup business. He stated that serial entrepreneurs and established founders are a necessary part of a strong ecosystem and will participate in the community when the community provides them something of value.

He acknowledges that patience is required to strengthen an ecosystem using these guidelines. He reminded listeners at his roundtable discussion with emerging businesses and investment funds that members need to “tolerate a high degree of waste (of time) to be innovative.” He championed the idea that a synergistic relationship can be found anywhere, but time and effort are needed to find the right combination of personalities and skills.

Finally, Hathaway reminded the aspiring tech hubs that Silicon Valley was not built overnight. He cited the 1957 formation of Fairchild Semiconductor Corporation in Palo Alto as the start of the tech hub. The company was formed by employees of Shockley Semiconductor Laboratory. While known canonically as the “Traitorous Eight,” Hathaway attributes the Fairchild founders’ devotion to innovation, development of new talent and willingness to work in cooperation with other founders as the necessary foundation for Silicon Valley, and the thriving tech hubs that aspire to duplicate the region’s success.

These lessons come at a critical time for Milwaukee. Wisconsin has won the ability to compete for up to $75 million in federal funding to establish a regional technology hub focused on biohealth. Additionally, Wisconsin is working to develop a plan to launch a federally funded Regional Innovation Engine. Developing a thriving startup ecosystem that is collaborative and innovative will certainly be key to the successful execution of those projects, and to the long-term success of the region.