It’s invariably the unseen stories, the hidden, off the beaten track, unprepared accounts that evade our attention, but seem to be an indication of the bigger matters. Like how an Iranian businessman didn’t hesitate a second to invest in an Israeli startup founded by former Israeli defense military personnel. It’s an investment that’s emblematic of a better future - and in a world of political strife, this investment means more.
There are well over 2000 business incubators in the world, many of which are in the United States, and many of which are non-profits. Some like the much publicized Y Combinator and 500 Startups are much sought after by startups due to their big reputations and successful track record.
Business incubators have been around since the 1980s, but in those days they were primarily places that gave free office space and little of anything else. Since then, incubators have been going through an evolution, and some have changed into ‘business accelerators’. These accelerators still provide free office space, but they also invest up to $100,000 in young startups and nurture them into more mature businesses.
One such accelerator is located in Sunnyvale, Ca where I, along with twenty other startups, are taking an intense three month program to move our businesses to the next level.
The Plug and Play business accelerator is more plug and less play. It’s a startup engine. It’s the machine shop for high performance parts and formula entrepreneurship. The whole building is devoted to Mario Andretti’s belief that, “If things seem under control, you’re just not going fast enough.”
This place doesn’t just take on innovation — it competes with it. Its leaders have their foot on the gas and their eyes on the gauges. If something isn’t working well - change it, test it, and try it again until it works. This is how great companies are built – and we vastly underestimate the importance of these types of environments.
Saeed Amidi is the owner of Plug and Play and its Chief Designer. He calls Plug and Play, “Silicon Valley in a Box” – but the truth is, it’s more of a network of boxes. Each box leads to more boxes which open up into opportunities and funding. “90% of our value is through our connections. We will help startups with funding, help them acquire more customers, and help fine tune their business until it meets customer demand,” Amidi told me.
Amidi isn’t satisfied with helping local Silicon Valley companies, he’s made it his mission to bring Silicon Valley to the world. He’s taken his race track and expanded it by creating a circuit that extends around the world. “We’re helping startups in underserved communities like San Diego, Singapore, and Berlin and connecting them to Silicon Valley,” Amidi explained.
Over 300 companies are involved in the Plug and Play accelerator program at any one point in time. Some stay there for years others just for months. He also hosts students from top universities like Babson, Carnegie Mellon, Cornell and the Darden School of Business are also in the program, so that Amidi can keep close tabs on the up and coming entrepreneurial stars.
If Amidi is the Chief Designer, then Alireza Masrour is his Chief Engineer. He believes that driving a business fast isn't about the straights, it's about the bends. His philosophy is the more you prepare, practice, test and learn, the better your odds at success and ultimately, your exit. His primary goal is to prepare the startup for accelerated growth and a pole position in the industry.
Both Masrour and Amidi take a special interest in their startups. Like Vioozer, an Israeli company started by former Israeli military personnel. What makes this situation remarkable, and what I alluded to in the opening, is that Iranian born Masrour and Amidi are invested in and helping to grow an Israeli born business. Just pause and take that in. Where else in the world could this happen?
But that’s what Plug and Play is about. Walking around its headquarters you quickly realize that you are walking in the United Nations of startups. It’s not American, it’s not Iranian, it’s global. If you often wonder as I do, what the future of entrepreneurship looks like, it can be found at Plug and Play.
The Future: Accelerated Verticals
According to Amidi, future accelerators will become much more niche and serve verticals for which it can help the entrepreneur with specialized help. The concept is not new, there are already several vertical incubators and accelerators, but Plug and Play is trying to innovate here as well.
“We’re providing guidance from corporate partners like Pepsi, P&G, Sears, Lowes,
As I am finishing up my time in the program, I’m struck by how well people from different cultures, backgrounds and skills can come together to create business value. With common cause, it's really easy to for people to work together. Amidi told me that most of the startups at Plug and Play are started by immigrants. And because of that, President Obama made a special trip to Plug and Play to see it in action.
Perhaps Obama understands that in order for the US and the world to thrive in the future, we need engines of growth and innovation. We need more business solutions to real social problems. We need people from diverse cultures to create strong business relationships because creating those bonds fosters political good will. And more of that is a good thing.
That’s the future accelerator.
