There are the right investors out there for every company
T-7
Innovation , Entrepreneurship , and the Global Economy
New York International Interviews Steven E . Sokol , President of the American Council on Germany
TRANSATLANTIC ENTREPRENEUR PARTNERSHIP
In May , Dr . Steven E . Sokol returned to New York to assume the role of President at the American Council on Germany ( ACG ), an independent , non-partisan , non-profit organization dedicated to strengthening transatlantic ties and to providing people on both sides of the Atlantic with a deeper , more nuanced understanding of the world around them . We sat down with Dr . Sokol to discuss innovation , entrepreneurship , and the global economy : all highly relevant topics for this year ’ s Transatlantic Entrepreneur Partnership conference .
In May , you returned to the ACG after five years as the President and CEO of the World Affairs Council of Pittsburgh . How has your worldview changed over the past five years ?
During my time in Pittsburgh I became even more aware of some of the challenges we face domestically and internationally . In Pittsburgh , people love to tell the story of the city ’ s renaissance and to describe the transformation from a city of iron , steel , and coal to a city of “ meds and eds ,” financial services , and energy . But this narrative of structural change – which Germany is all too familiar with if one thinks about the Stukturwandel of the Ruhrgebiet and much of eastern Germany – is only part of the story .
Each day , technology is changing the world we live in , dirupting old economies to create new ones – economies full of opportunities for startups and new business ventures . The digital world of the 21st century and powerful personal technological advances like 3-D printers are ushering in massive changes in how we live and work . This “ maker movement ” of independent inventers , designers , and tinkerers are in a way reminiscent of the cottage industry of 18th century England : the precursor of the factory and the Industrial Revolution . In order to survive – let alone thrive – in an ever-changing world , we will need to develop and hone new creative and innovative skills .
Why do innovation and entrepreneurship matter in a transatlantic context ?
Innovation and entrepreneurship don ’ t just matter in a transatlantic context ; they matter in a global context .
There ’ s no doubt that we live in an increasingly complex and interconnected world , and many of today ’ s challenges know no boundaries . In order to meet those challenges , and in order to compete – and collaborate – globally , people around the world will have to innovate and be entrepreneurial .
One example comes from manufacturing ; over the past decade , much has been made of the shift in manufacturing from the developed world to the emerging economies . The decline of manufacturing jobs in the United States has often been attributed to lower wages in developing countries . But , in recent years China and other developing countries in Asia have sought to attract more sophisticated manufacturing jobs through government investment in education and research – two vehicles that foster innovation . The United States and Europe cannot fall behind in the race to innovate . This July , Günther Oettinger , the EU
From the Gotham Gal Blog :
The Right Investors
Telling people to get the right investors is something that wants , so that advice is not exactly earth shattering . I have been thinking a lot about who is the right investor for each company as they raise funds for the next round as the company begins to grow .
This past week I spent time with many of the companies that I have invested in . One is in the education space . Their vision is one where working with universities and colleges will be essential down the line . It would make a lot of sense to bring in an investor who really knows and understands the education space . They know the players and are fully aware of how the education space works .
I also spent some time with a company in the animation space . They are working on a variety of things and I honestly had no idea the right advice to give but I did know who would . I connected them and it will help the company as they move forward . Their next investor might be well suited if they are in that space .
Another company that plays in several spaces from hard goods to media to product might be best suited to an investor that is not your typical institutional VC .
We are deep in the throes of a time when
Commissioner for Digital Economy and Society spoke at the ACG ’ s American- German Young Leaders Conference in Berlin , where he talked about the fundamental changes to the global economy and the challenges facing Europe and the United States . As digital technologies continue to evolve , he stressed the need to develop a “ digital strategy ” in order to remain competitive globally .
His point highlights the fact that value chains in the United States and across Europe are changing , and those individuals , companies , and countries who are able to be creative , innovative , and entrepreneurial are most likely to adapt ( and thrive ) in this changing environment . When it comes to innovation and entrepreneurship , Germany and the United States have been leaders : think about Germany ’ s Mittelstand , the small and medium-sized enterprises that helped power Germany ’ s “ economic miracle .” Among them were heimliche Gewinner ( hidden champions ) that
so many companies are being built in pretty much every single vertical imaginable . Bringing on an expert ( who is an investor ) in each space is a tremendous asset . Many of the really large VC firms have multiple divisions from biotech to enterprise to commerce and that is great . Yet there are so many investors out there that are arms of large companies in a particular were innovative and entrepreneurial as they eeked out niche markets across Europe and around the world . Think about the sense of self-reliance and the entrepreneurial spirit in the United States , which has long been part of American business culture . But now is not the time to sit back , instead now is when both countries must step up their game and learn from each other .
How can German and American economies work together to provide a thriving ecosystem for entrepreneurs ?
Though it is just one example , through conferences like TEP , which , like the ACG , brings together opinion leaders and decision-makers from a variety of backgrounds and sectors , creating a fora for the interactive exchange of ideas .
Steven E . Sokol is President of the American Council on Germany @ ACG _ USA
BY JOANNE WILSON
There are the right investors out there for every company
space or investors such as myself that can be of help to companies as they navigate the waters of the vertical that they are trying to break into and change .
The good news is that the investor pool has truly expanded and there are the right investors out there for each company . You just have to look for them , and you should .
Joanne Wilson is an angel Investor , blogger , and co-founder , Women ’ s Entrepreneur Festival . @ thegothamgal
“ A Perspective from the ‘ Woman Around Town ’”
9 / 15 @ 8:15 am
A morning fireside chat with Joanne and Stefanie Lemcke , co-founder of NY Intl .
T-7