More Than Just Surf City

Another much deserved re-post from friend and CEO of NextSpace Jeremy Neuner. If you’ve even heard of Santa Cruz, you should read this… in full.

-Sean

More Than Just Surf City
4th August, 2009
written by jeremy neuner

By now, almost everyone in the entire known universe has seen the Huffington Post’s mashup of “Sarah Palin vs. That Crazy Santa Cruz Lady.” Whatever you may think of the former Veep candidate, the young Santa Cruzan in the video—ranting to the city council about pesticides and slavery in an attempt to, um, participate in our local democracy—doesn’t do much to dispel a popular stereotype of Santa Cruz: that ours is a quirky, un-serious town.

I won’t try to deny that Santa Cruz is a quirky place. In fact, I wouldn’t want it any other way. What the rest of the world may see as quirky, most of us Santa Cruzans see as tolerant, welcoming, creative, and innovative. Still, I’m troubled by the possibility that the viral spread of the Huffington Post video is giving our fair seaside town a bad rap. So in the interest of providing a more complete version of the character of Santa Cruz, please take a spin through the following few items:

–In this short video, Greg Gumble (yep, THE Greg Gumble) from “The Economic Report” shows why Santa Cruz is a unique ecosystem that boasts a balanced lifestyle, a history of innovation, a strong entrepreneurial spirit, and a highly educated workforce. These are the exact ingredients for a strong, vibrant economy and we’ve got more than our fair share of those ingredients in Santa Cruz.

–Santa Cruz is loaded with creative designers, scrappy entrepreneurs, and savvy business people. This video, produced and directed by NextSpace member Dusty Nelson, features a who’s who of local educators, engineers, bankers, designers, government officials, and CEOs, all offering their pitch on why Santa Cruz is a great place to work, live, and play. Take 10 minutes and watch the whole thing. It’s an awfully damn impressive piece of filmmaking and showcases some of the world-class talent in this town.

–Speaking of world-class talent, check out this Business Week article about Santa Cruz-based Plantronics and Altec Lansing. Together, these companies racked up six innovation awards at this year’s Consumer Electronics Show. Tens of millions of people all over the world use their award-winning products and every one of those products was designed right here in Santa Cruz.

–What about the money? You need a pile of it to build great companies, not an easy task in these cash-strapped times. But local social networking start-up UserVoice recently landed $800,000 in seed stage capital. AlgaeOMEGA, a bio-fuels company spun out of research at NASA and UC Santa Cruz, received another $800,000. NextSpace member Carmen Kubas led her company, Lightfoot Industries, to a third place finish in a regional venture capital competition. And local heroes 12seconds.tv are luring investors with their new iPhone app and their huge community of users. Want to invest in some of the hottest new companies across a range of industries? Look no further than “quirky” Santa Cruz.

Like any city, Santa Cruz has lots of faces. We’re a surfing town, a tourist town, and a university town. Despite our depiction in the Huffington Post, Santa Cruz is a town that’s building an enviable ecosystem of business, lifestyle, and innovation. What’s our secret? We take ourselves seriously, just not too seriously.

A Slow Process of Revitalizing Santa Cruz

Strongly recommend you take the time to read Tom Honig’s recent opinion piece in the Good Times Santa Cruz entitled A Slow Process of Revitalizing Santa Cruz and check out the document he’s referencing that started out on the back of a napkin… where most great ideas start out IMHO :)

As I said in my introduction to the Envision Santa Cruz event in March, though parts of the existing systems that have been around for generations are failing all around us, I see more opportunity than ever these days. Times of crisis present incredible opportunities for those bold enough to take action and present new paradigms.

Santa Cruz is full of such people in fact and I am so stoked and feel so blessed to be among a community of like minded DOERS who are out there taking bold action, creating new paradigms and at very least TRYING to create a better world for themselves and future generations.

Yet Another Win for Geeks in Santa Cruz

Congratulations to Rich, Marcus, Emily and Scott @UserVoice!

UserVoice Raises Funding, White-Labels User Feedback Facilitator

Expect some more awesome things coming from UserVoice and a few other rock’in statups here in town…

Rack One up for Santa Cruz and 12seconds.tv

I thought it worth throwing out there that bootstrapped www.12seconds.tv, out of Santa Cruz, CA, with 1 full time developer, 1 mostly full time CEO, 1 part time UI Designer and an endless supply of good Karma and Community Capital backing them have managed to surpass the likes www.seesmic.com in unique visitors per month… Seesmic, who has been around for twice as long and landed over $14M in funding.

Yes, Seesmic has “changed their focus” recently by embedding their video player on desktops, but IMHO, I would be freaking pissed if I were an investor in Seesmic and be all over 12seconds.tv right now as this is a simple case study in doing more with less and that the people running your business are far more important than business model.

I simply can’t wait to see what continues to go down in 2009. I strongly feel we’re going to see a dramatic shift in perceptions and in the way business actually gets done from a grassroots level. Specifically, count on those who understand that Business is Personal to start exceeding like never before.

Did You Know?

This is simply remarkable stuff if you stop and think about it.

State of the Santa Cruz Tech Scene - RePost

Yep, another repost, but Jeremy Neuner @jjneuner, CEO of www.nextspace.us, hits it out of the park with this one.  Click on the Title to link to the post itself:

The other day, I spent the morning hanging out with Margaret Rosas, Founder and Chief Strategist at the strategic web consultancy Quiddities. The Santa Cruz Sentinel had just run a story on Margaret and her team (we lovingly call them The Q-Mamas) about how their company—and our town—thrive on collaboration. As we washed coffee cups (a morning ritual at NextSpace), Margaret and I reminisced about the first time we spoke to each other over the phone in October 2007 and how we both lamented the lack of a vibrant, collaborative tech scene here in Santa Cruz. And then we marveled at how far our town and our amazingly innovative tech community have come lately.

So, inspired by my conversation with Margaret, here’s a quick (okay, not so quick!) run-down of what’s happened over the past 18 months regarding the tech scene in Santa Cruz. Please take a look. And if I’ve missed something, please drop a comment and let me know. Meanwhile, I think you’ll be pretty damn impressed with the state of the tech community in Santa Cruz….

Geek Dinners

It all started on November 30, 2007 with the inaugural Santa Cruz Geek Dinner. Local visionaries Margaret Rosas, Sean Tario, and Sol Lipman decided to put a stake in the ground, gather some talented people, and start building a community. One of the attendees, David Beach, predicted that this dinner would be the first of a series of events that would put Santa Cruz back on the tech map.  Beach’s words proved prophetic. Through the Geek Dinners, Beach met Sol Lipman. Together, along with Jakey Knobel, they started 12seconds.tv, the hottest social media start-up on the planet. I think that counts as “putting Santa Cruz back on the tech map.” The Geek Dinners continue to draw dozens of talented Santa Cruzans every month.

Santa Cruz Geeks

Hard on the heels of the Geek Dinners came the Santa Cruz Geeks, a virtual and physical community of local techies. Now over 250 strong, the Geeks form the backbone of the Santa Cruz tech community. Most important, the Geeks prove that this town is chock full of talented, innovative, successful tech professionals who are passionately committed to building great companies in Santa Cruz.

Santa Cruz Design + Innovation Center

January 2008 marked the official launch of the Santa Cruz Design + Innovation Center. Recognizing that Santa Cruz is a hub of world-class design talent, the SCD+IC was formed as an advocacy group to promote that talent to the rest of the world. Over 300 people packed into an auditorium at Plantronics for the SCD+IC’s launch event, proving that the design and technology community in Santa Cruz was hungry for opportunities to organize, network, and collaborate. Aside: Plantronics is one of Santa Cruz’s great home-grown companies. They designed the headset that Neil Armstrong wore on the moon in 1969 and have been designing great products in Santa Cruz ever since. Rockstar/Boy-Genius Darrin Caddes is Plantronics VP of Design and is a huge (and remarkably humble) fixture in the Santa Cruz tech scene.

Santa Cruz New Technology Alliance MeetUp

Another local visionary, Doug Erickson, started the Santa Cruz New Tech Alliance MeetUp in February 2008. Like many of us in Santa Cruz, Doug has deep professional connections in Silicon Valley. But he knew very few of his fellow Santa Cruzans. Yet, he had a pretty strong hunch that there was a community-in-waiting of local techies in this town. So Doug started the New Tech MeetUp. He had three goals: create a monthly networking event for Santa Cruz high tech professionals, increase our exposure to new technologies that would tickle our geek gears, and stimulate beachhead startups. With humble beginnings (39 attendees crammed into the police department’s community room with no Internet access), Doug has grown the MeetUp into an organization nearly 600 strong.

Approval of the Delaware Addition

In July 2008, the Santa Cruz City Council unanimously approved the Delaware Addition project. Designed by local architect Mark Primack and spearheaded by Craig French from Redtree Properties, this 20 acre, LEED-certified, mixed-use, live/work development on the city’s Westside will provide the infrastructure that the next generation of Santa Cruz companies will need. Most important, the approval of Delaware Addition is the first major piece of public policy indicating that this community understands the direction that the local economy is heading: towards smaller, collaborative, environmentally-minded, high-tech businesses.

Freelance Camp

For a long time, the Santa Cruz tech scene has been famously decentralized. Many Santa Cruzans work as consultants, independent contractors, or telecommuters for larger companies in Silicon Valley and throughout the rest of the world. But independents lack opportunities for community, collaboration, and connection. So Shane Pearlman and Peter Chester (they run a company called, you guessed it, Shane & Peter, Inc.) decided to herd the cats. In August 2008, they hosted Freelance Camp for over 125 freelancers and independent consultants. This barcamp-style unconference provided yet another community-building opportunity as local freelancers shared ideas on how to run a one-person shop. Even better, Freelance Camp has become a home-grown national phenomenon, with similar conferences popping up in places like Miami, Houston, and Austin. Hey, just one more step in putting Santa Cruz back on the tech map.

Digital Media Factory

Santa Cruz is building a new digital information industry. And Marty Collins, CEO of the Digital Media Factory and thirty-year industry veteran, is leading the charge. In Marty’s words, “the Digital Media Factory is a multi-business facility for the design, development, production, replication, management, and distribution of digital information products.” In my words, DMF is pure genius. Why? Because Marty believes in community. He’s gathered over a dozen digital media businesses under one roof to share resources, talent, and opportunities. Even more important, Marty is leveraging the immense talent pool at UC Santa Cruz. He’s developed partnerships with UC Santa Cruz’s Digital Arts and New Media program, as well as the UCSC Baskin School of Engineering. Which brings me to…..

UC Santa Cruz/City of Santa Cruz Legal Settlement

Universities are amazing repositories of talents, ideas, and innovations. From an economic perspective, universities are fertile ground for new companies that can boost the economies of their host cities. Heck, Silicon Valley was practically built by Stanford spin-outs. Why can’t that phenomenon happen with UC Santa Cruz and the City of Santa Cruz? It can. And it will, especially now that the UCSC and the City have stopped suing the bejeezus out of each other over UCSC’s long-range development plan. The legal settlement, announced in August 2008, marks the beginning of what I call “The Great Thaw.” It’s high time for the UCSC to show some leadership in using its pool of talent to help build local business and the local economy. And it’s even higher time for the citizens of Santa Cruz to recognize that UCSC is a tremendous asset to the community, rather than a liability. I’m incredibly optimistic.

NextSpace Grand Opening

Amidst all of this excitement, NextSpace Coworking + Innovation, Inc. officially opened its doors on October 1, 2008. We started with a handful of true-believing early adopters.  But in six short months, our community of innovators has grown to over 100 strong.  What’s happening at NextSpace?  A lot.  Take a look at this post on The NextSpace Effect for a quick rundown. Mostly, I want to acknowledge that NextSpace would not be possible without the vision, passion, and hard work of all of the people mentioned in this post.

Radio Engage

New media? Old media? The smart ladies at Quiddities think you can have both.  They received a Knight News Challenge grant from the John S. and James L. Knight Foundation to fund their new project Radio Engage.  In their words, Radio Engage is a platform allowing public radio stations to create a web presence that will draw their local community in and invite them to participate through social media.  In my words, Radio Engage will totally revolutionize how public radio stations interact with their listeners.  Quiddities teamed up with Santa Cruz’s own KUSP as a test platform for Radio Engage.  As part of the project, Quiddities hosted Public Media Camp in November 2008, bringing  public media and social media experts from around the country to Santa Cruz to discuss the future of public radio.  Are you catching the themes that we’re building here: high tech, collaborative, community-based business and innovation.

Pilot Project for Innovation and Entrepreneurship

Remember how I said a minute ago that I was incredibly optimistic about the emerging relationship between the City of Santa Cruz and UC Santa Cruz? Here’s the first proof point: The Pilot Project for Innovation and Entrepreneurship. Hatched in December 2008 by Bonnie Lipscomb (City of Santa Cruz Director of Economic Development) and Nirvikar Singh (Special Assistant to the Chancellor at UCSC), PPIE brings together undergraduate business teams from UCSC with local business mentors. The first round of projects focused on bicycles and other forms of alternative transportation, a perfect fit for the tech-savvy, sustainability-focused crowd in Santa Cruz.

Launch of CruzBusiness.com

Peter Koht, the economic development coordinator for the City of Santa Cruz, is a man on a mission. Peter knew that the City offered plenty of economic development resources, but those resources were often disparate and hard to find. Seemingly overnight, Peter launched CruzBusiness.com, an interactive, community-based portal for information about starting and sustaining a business in Santa Cruz. Peter’s work is an important step in accomplishing his—and the City’s—mission of recruiting, attracting, and retaining great businesses in Santa Cruz.

The Envision Santa Cruz Summit

In March 2009, Sean Tario (man, that guy is everywhere!) hosted the first Envision Santa Cruz Summit at the UCSC University Center. Sean’s objectives for the Summit were to assemble thought leaders in local entrepreneurship and economic development, to celebrate the amazing companies and resources in Santa Cruz, and to inspire Santa Cruzans to take a more active role in building their local economy. Over 150 people showed up to discuss the economic future of our community. Decades from now, when someone writes a book about the economic history of Santa Cruz, Sean’s summit will definitely be one of the highlights.

Girls in Tech

The latest group on the scene is the Santa Cruz chapter of Girls in Tech.  Founded by Seana Sullivan and Victoria Crimmins, this group focuses on “engagement, education and empowerment of like-minded, professional, intelligent and influential women in technology.”  Their first event brought author and journalist Sarah Lacy to town. More important, this group provides a much-needed acknowledgement and celebration of the critical contributions that women make to our local tech scene.

UC Santa Cruz Business Plan Competition

Right now, as I type, as you read, 16 business teams from UCSC are going head-to-head in the first-ever UCSC Business Plan Competition. The semi-finals are on April 17, 2009, and the finals are in late May 2009. Local investors, bankers, and business leaders are judging the competition. Remember how I said a minute ago that I was incredibly optimistic about the emerging relationship between the City of Santa Cruz and UC Santa Cruz? The UCSC Business Plan Competition is proof point #2. Stay tuned….

Right, so, that’s the low-down. This has been a long post, mostly because so many cool things are happening in Santa Cruz around high tech, entrepreneurship, sustainability, and community-based economies. We’ve come a long way as a community in the past 18 months. So where are we now?  I think the best benchmark is the number of companies that have started up or are ready to scale here in Santa Cruz.  Here’s a quick list of just a handful:  12seconds, UserVoice, Pergamum Systems, ProductOps, Intuvo, RideSpring, ZoomPool, Verdafero, Zazengo, Studio Cruz, and Digital Media Factory.  Not too shabby for this beautiful, brilliant, creative, innovative little seaside town.

As I said at the top, please comment if I’ve missed something in this lengthy round-up. Meanwhile, what’s next? I have some ideas. What are yours?

Thoughts on “Can Governments Create Entrepreneurial and Innovation Hubs?”

@alexlavidge just directed me to Taylor Davidson’s (aka @tdavidson) insightful post on the topic of how/if governments can go about aiding the process of creating Entrepreneurial and Innovation hubs.  Definitely worth checking out…

Can Governments Create Entrepreneurial and Innovation Hubs?

Personal, I’m yet to see a government program other than the Central Coast Small Business Development Center provide anything substantial when it comes to aiding, encouraging and promoting entrepreneurs to take their ideas and manifest them into sustainable businesses.  I’m even willing to bet that not all SBDCs in California are nearly as effective as the local chapter, as we just so happen to have 2 of the most dynamic people on the Peninsula running and involved with the program who are extremely passionate about what they do and why they do it.  Specifically, Teresa Thomae and Keith Holtaway.

The successful incubator InNOVAcorp in Halifax Nova Scotia also appears to have developed a very beneficial symbiotic relationship between public and private interests, in that a % of their operating expenses and Fund is provided by the government…  but again, this is primarily a result of its founder and CEO Dan MacDonald who simply embodies the entrepreneurial spirit and continuously encourages and supports others looking to create and innovate.

I guess my conclusions then would be that regardless of the program any given government may launch to help create entrepreneurial and innovation hubs, at the end of the day its the people they chose to operate and manage the programs that will largely determine its success or failure.  Clearly some programs may be destined to fail from the onset, but I would bet there’s a direct correlation between the success/failure of any given program and if the people involved with creating, managing and organizing the program itself actually have experience as a SUCCESSFUL entrepreneur in their own right… or at very least having experience successfully innovating or creating anything original themselves.

Anywho, more food for thought on the topic at hand… back to further developing the entrepreneurial and innovation hub we have here in Santa Cruz :)

Sean

Major Internet and Mobile Phone Outage in Santa Cruz and South Bay

Having just spent a few years in the datacenter infrastructure space I can’t help but comment on the recent internet and mobile phone outage effecting Santa Cruz and the South Bay all day.  What has been said all day from news sources is that 4 pairs of fiber were cut from a single carrier (AT&T) on a single route in a single location in the south bay.

IMHO, this  alone SHOULD NOT have caused the outage that occurred. Other cuts must have been made in at least 1 other, if not multiple locations to have caused the outage that occurred.

This being said, the unfortunately reality is the internet is nowhere near as “redundant” or secure as we would like to believe it is.  A pissed off employee within a datacenter or a freak incident with a large cooling system within a datacenter can cause massive outages, and does more often than most people even realize.

Highly recommend those who are reliant on the internet and/or their phone for their day to day income become as informed as possible as to the infrastructure and systems that allow them to do what they do.  Wikipedia in fact is a great resource:

http://en.wikipedia.org/wiki/Datacenter

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Internet_transit

http://en.wikipedia.org/wiki/Internet_Service_Providers

This being said, as we’re all reliant on water and power, the same exact comments go for being engaged and informed about your local electrical grids and water distribution systems!

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