Τρίτη 24 Σεπτεμβρίου 2013

What entrepreneurship is all about? My IVLP experience (so far!)

That email arrived unexpectedly.  It was from the US Embassy in Athens, Greece, asking for a meeting. I didn’t have any cooperation with the Embassy so far thus I got a kind of surprised. The meeting took place few days later and it was a very fruitful one. After a short introduction, I was informed about the State Department’s IVLP program and was asked if I would be interested in considering it. “Of course I’m interested in it”, was my immediate reaction, “but, you know, I’m not allowed to go. I don’t have a passport and I can’t have one because of my pending military service duty”.

I have to admit that  the level of surprise on the faces of the people in front of me, made me for the very first time to think that it might be a good idea to finally tick that box which was pending for almost eight years.

After my positive response, I took care of the required documentation and I was informed that I would receive an answer “in few weeks”. Going back to the office that day I was thinking that even if I was not finally selected, perhaps it would be a good idea to take advantage of the legislation for a 45-days-only military service for those who have turned 35 and, at last, get my passport. At the end, being a serial technology entrepreneur for 13 years and missing a visit to the US is probably equal to a Muslim who has never been in Mecca.

I joined the Greek Army as a Signal Corps soldier on March 21st and my last day in the camp was on May 7th. It is such a peculiar coincidence that while I was driving on my way back from the camp, leaving behind an interesting – very short, thank God – military experience I received the call from the US Embassy saying that “you’ve been selected for the IVLP – A New Beginning Program” and “you will be in the US from September 14th to October 5th”.

Frankly, that day could not get any better!

Right the next day, May 8th, I was at the Passport Issuing Authority in Athens applying for my passport. Got so excited to get it three days later – as well as a little bit proud of the passport issuing system that Virtual Trip had delivered few years ago. Just two weeks later I visited London, UK. It was feeling so great to be able to travel out of the Schengen area again!

Time flies much faster that we tend to believe.  September arrived so quickly. I had made the decision to go to the US one week earlier, speaking to the CloudBeat 2013 conference in San Francisco and meeting the tech / innovation community in the SF Bay Area and in Boston. It was just great! I was very excited for finally making it to be there and meeting global leaders in the tech business. Interestingly, I also felt proud of what the startup community has already achieved in Greece and other EU regions, given the huge difference in availability of risk financing  - which in the US is at least 5x more than the EU!

Arriving in Washington DC on Saturday evening September 14th I was ready to meet entrepreneurs from 29 different countries who were also participating to this program. I soon realized that it would be much better than expected! The spectrum of participants is amazingly wide. From France to South Sudan, from Portugal to Burma and Bangladesh, from Greece to Argentina and Thailand as well as from Hungary to Cambodia and Kenya, it is just an amazing mixture of cultures, nations, experiences and lifestyles!

It does get even better though! Not only there’s a hugely wide spectrum of cultures and origins but participating entrepreneurs greatly differ on scale, stage, sector, industry, maturity and a number of other aspects. They are, or probably the look, so very much different!

After two weeks of living, working and traveling with those amazing people, a very surprising feeling has come to the surface. They are all so different. We are all so different. Despite those differences however, either being a successful female serial entrepreneur and investor in France or an early-stage male start-up entrepreneur in Paraguay, you still face the same challenges at business, personal and family level. The challenges are similar simply because they have to do primarily with people and, yes you got it right, people are the same around the Globe regardless of skin color, religion or culture. People can be passionate but still vulnerable. People can be leaders and followers. People can create, but can also destroy. People are sometimes brave, some other times cowards. People are just people.

To be an entrepreneur is to be creative in a financially sustainable model working with other people. You can’t be an entrepreneur working alone. It is your co-founders, your employees, your customers, your investors, your suppliers. It is also your spouse, your partner, your siblings, your kids, your friends. It is all about people. It is all about managing relationships, communication and expectations with the human beings around us that actually define an entrepreneur.

This thought has been strong enough to absorb me for a while. I thought I had got it and that I should focus my energy to managing relations with the people around me. Suddenly, during the “forum” session organized by the Entrepreneurs’ Organization chapter in Denver, Colorado, I realized that I was wrong. We like it or not, it is not managing relationships, communication and expectations with the people around us that actually defines an entrepreneur. It is only about managing the relationship with your own self. Managing your own dreams, vision and expectation. It might sound simple but, trust me, is way the hardest part of the entrepreneurial game.

Once you’ve done this, however, then only sky is the limit – Perhaps, not even sky.

Μαζί τον φάγαμε (;)

Δεν πάει καιρός από τότε που ένας από τους κυρίους υπευθύνους της νέας ελληνικής τραγωδίας με περίσσεια θράσους και αλαζονείας μας πληροφόρησε ότι "μαζί τα φάγαμε". Μας είπε λίγο ως πολύ ότι όση ευθύνη έχει για την κατάρρευση η ολιγαρχική κάστα που διαχειρίστηκε τις τύχες της χώρας την περίοδο που ονομάστηκε "μεταπολίτευση, άλλη τόση έχει και καθένας από εμάς, από τους - κατ'όνομα και μόνο - πολίτες αυτής της Ελλάδας.

Είναι πραγματικά απίστευτο τι αποδοχή βρήκε η προπαγανδιστική αυτή τελειότητα. Πώς κάθε Έλληνας ξαφνικά μπήκε στη θέση του ενόχου, ενόχου για αδικήματα πολύ μεγαλύτερα από εκείνα που όντως του αναλογούν. Σίγουρα ευθύνεται ο Έλληνας που εκχώρησε τις ευθύνες που απορρέουν από την ιδιότητα του Πολίτη και οικιοθελώς - μάλλον - μεταβλήθηκε σε κρατίτη. Σε ένα άβουλο ον που ικανοποιούταν με τη "σιγουριά του δημοσίου" την ώρα που το τρίγωνο της καταστροφής έκανε το πάρτι του.

Δεν είναι όμως έτσι. Για παράδειγμα, ποιοι ευθύνονται για την Μικρασιατική Καταστροφη; Οι οπλίτες, οι ναύτες και οι -λιγοστοί, τότε- αεροπόροι ή μήπως η στρατιωτική και πολιτική ηγεσία της εποχής; Το ίδιο εύρος και βάθος ευθύνης έχει ο αρχιστράτηγος και το ίδιο ο τελευταίος στρατιώτης; Είναι να απορεί κανείς για το με πόση ευκολία προκαλείται η κοινή λογική.

Οι ευθύνες για την νέα ελληνική τραγωδία έχουν όνομα και επώνυμο. Αρχίζουν πρώτα και κύρια με το "Κωνσταντίνος Σημίτης" και πολύ σύντομα ακολουθεί ο "Θεόδωρος Πάγκαλος" και ο "Γεώργιος Παπανδρέου ο Β'". Φυσικά βέβαια δεν είναι λιγότερες οι ευθύνες και του άλλου μιζοκόμματος, προεξάρχοντος του "Κωνσταντίνου Καραμανλή του Β'" και φυσικά ενός εκ των υπουργών του, του "Αντώνη Σαμαρά".

Παράλληλα με τον παραλογισμό του "μαζί τα φάγαμε", γίναμε μάρτυρες ενός ακόμα παραλογισμού, πολύ μεγαλύτερου και πολύ πιο επικίνδυνου. Κάποιοι επέλεξαν να παίξουν με τα πιο επικίνδυνα ένστικτα των ανθρώπων που βρίσκονται σε απόγνωση. Άρχισαν υπόγεια να χρηματοδοτούν και να προβάλλουν τις Καρικατούρες του Θανάτου. Τις είδαμε στα μεγάλα τηλεοπτικά κανάλια και στις κορυφαίες εφημερίες. Είδαμε τις αγιογραφίες τους. Πήγαν να μας πουν ότι οι Καρικατούρες του Θανάτου δεν είναι "και τόσο κακές τελικά". Εξάλλου, "η Ελλάδα δεν χωράει άλλους μετανάστες".

Μετά από χρόνια, όταν αποκαλυφθεί η χρηματοδότηση και το σχέδιο προβολής της Καρικατούρας του Θανάτου θα μείνουν πολλοί άναυδοι.

Ήταν φυσικά θέμα χρόνου να συμβεί το μοιραίο. Μια από τις Καρικατούρες του Θανάτου έκοψε σκληρά και άδικα το νήμα της ζωής ενός συμπολίτη μας. Ξαφνικά, όλοι έμαθαν τις συμβαίνει. Όλα τα κανάλια, οι εφημερίδες, το "πολιτικό" προσωπικό, είδαν το "αληθινό πρόσωπο του φασισμού" και κάνουν ότι περνάει από το χέρι τους να μας προστατέψουν.

Είναι μια πραγματικά πολύ βολική κατάσταση για τα μιζοκόμματα. Το τέρας ξύπνησε και κόβει βόλτες στην πόλη. Θα έρθουν τα μιζοκόμματα καβάλα στο άσπρο άλογο, θα εξοντώσουν το τέρας και θα σώσουν την Ελλάδα. Σε λίγο θα πρέπει να ζητήσουμε και συγγνώμη στα μιζοκόμματα που τα κακολογήσαμε και να τα ευχαριστήσουμε για την αυτοθυσία τους.

Να προσπαθήσουμε λοιπόν να βάλουμε τα πράγματα στη θέση τους: Οι Καρικατούρες του Θανάτου δεν είναι τίποτα άλλο παρά οργάνωση εγκληματιών του κοινού ποινικού δικαίου. Δεν χρειάζεται να γίνει τίποτα άλλο με δαύτους παρά να εφαρμοστεί ο νόμος - θα φάνε όλοι τους αρκετά χρόνια φυλακή. Περιέργως όμως εδώ και καιρό ο νόμος δεν εφαρμόζεται και τώρα προβάλεται ως κορυφαία των επιτυχιών η απλή, αυτονόητη εφαρμογή του.

Ταυτόχρονα όμως, στέλνοντας τις Καρικατούρες του Θανάτου στη φυσική τους θέση, δεν πρέπει να ξεχνάμε σε καμία περίπτωση το ποιοι είναι οι υπεύθυνοι τις κατάρρευσης του νέου ελληνικού κράτους, της δυστυχίας που βιώνει ο λαός μας και των δεινών που θα αντιμετωπίσουμε τα επόμενα χρόνια. Όπως είπαμε παραπάνω, οι υπεύθυνοι έχουν όνομα και επώνυμο όπως και τα μιζοκόμματα έχουν όνομα: "ΠαΣοΚ" και "Νέα Δημοκρατία".

Η Ελλάδα έχει ανάγκη την αλήθεια. Η αλήθεια είναι το όχι στη λήθη. Δεν θα ξεχάσουμε λοιπόν και θα προχωρήσουμε μπροστά με μυαλό καθαρό και αυτοπεποίθηση ισχυρή. Θα ανακτήσουμε την ιδιότητα του Πολίτη, θα δημιουργήσουμε Πόλεις, Πολιτισμό. Το χρωστάμε στους χιλιάδες που έχυσαν το αίμα τους για τη χώρα μας, με τελευταίο από αυτούς τον Παύλο Φύσσα, ο οποίος θα εμπνέει για πάντα κάθε ελεύθερο άνθρωπο.

Πέμπτη 5 Σεπτεμβρίου 2013

Thoughts of a European serial start-up entrepreneur before going to the Silicon Valley

Originally posted on http://blog.vtrip.net/?p=244

The Greek experience, the Silicon Paranoia and the need for a European start-up growth model

I launched my first start-up, along with four more co-founders (Periklis Akritidis, Nikos Ventouras, Miltos Vassilakis and Charalampos Gikas) and Critical Publics on September 5th 2000, exactly 13 years ago. Being at the age of 22, I had 9 courses left to complete my Computer Science degree by that time.  When Virtual Trip was founded, it was all about doing “what they do in the US” and “why not doing the same in Crete, Greece” since “we can”.

To put simply, we did it because we could do it. We also did it because we loved doing it. Nothing could motivate us more than responding successfully to challenges. In this context, the challenge of “establishing and running a company” was the greatest one we could ever imagine.

The MoU with Critical Publics was crystal-clear: During the first 12 months they would assign us web development subcontracts of $150,000 at a person-month rate of $3,000. I know that it doesn’t sound as a great deal. However for the five of us, all undergraduate students of computer science, $3,000 was an amount able to cover our personal costs not only for one month but for a couple of quarters. In other words, it was looking as an amazingly high monthly income.

Nothing went as planned, of course. The contracts assigned were not at the amount of $150,000 but “only” $120.000. Also, the corresponding period finally was 15 months, instead of 12. Last, we learned the very hard was what overhead in running a business is as well as that in our lovely country we had to pay “advance payment for next FY taxes” equal to 80% of our first FY corporate tax. But at the end of the day, going strictly according to plans spoils all the fun.

We did have fun, really great fun, enough to make us overcome barriers, one after the other. We also had the privilege to work with a dozen of the largest customers that we could ever get in Greece – as subcontractors to Critical Publics most of the times. 

Then the crisis started. The Greek IT market has been in crisis long before the national economy. It actually never recovered the Greek stock-market bubble explosion in 2002. In 2003 we got a velvet divorce with Critical Publics and then shortly after that I got one more velvet divorce with my co-founders. I will ever be grateful to my vtrip co-founders and to Critical Publics for making this journey happen. Without them, vtrip would not be here. Being super frank however, I have to say that I never had a single second thought in my decision to move forward, even when I was left completely alone, sometime in Q2/2003. 

Going global has been in our mind from the very beginning. That was thanks to Critical Publics strategy. Our web sites and marketing material was in English-only. Working language was English. We knew that scaling of our business could only happen with international projects. We even worked in international projects, a streaming video portal in Turkey (!), as early as in December 2000. 

However, we soon realized a very important aspect of international business in our sector: Going global requires products. Services do not scale. So, in 2003 we started thinking of the products that would take us around the Globe. On the other hand, in order to create products you need to work for a significant amount of time without having any revenues, thus you need investment. Being practically impossible to raise risk capital in Greece in 2003, the concept behind our “entrepreneurial ecosystem” was born as a response to an extreme necessity. 

Trying in learning is second to none. Knowledge is hidden in failure. We’ve failed repeatedly and notoriously. Fortunately, that has made us learn a lot and, guess what, we’re still alive. Numerous mistakes have been made, none of them was proven fatal. From the “IT Center” stores to the “StudyBox” portal, we’ve lost hundreds of thousands of dollars in our corporate venturing projects as well as terrible amounts of time and energy. However, knowledge gained from those ventures let us succeed in others, like eFront e-Learning and AbZorba Games.

The Silicon Valley model is about failing fast. I don’t believe in failing fast, hence I don’t believe in the Silicon Valley model. Failing fast basically means many things. First of all, it means that there’s practically unlimited investment capital around. There’s nothing unlimited on Earth however, besides human’s stupidity. This discussion about “unlimited” investment capacity reminds me of the “unsinkable Titanic”, now resting at the bottom of the Atlantic. Second, failing fast means that the entrepreneur is somewhat disconnected from the fate of her/his own creation. Third and most important, it is similar to being in the lab and running from one experiment to the other without giving the time to study the results. What is the meaning of doing many experiments if you don’t devote the time necessary to learn our of the results of each one of them?

The approach was simple: We invest in teams already working in our organization, committed to work together in a specific sector (i.e. mobile apps & services) and ready to take as many iterations as necessary till success finally arrive. Appropriate re-adjustments will of course take place in each & every iteration, since more knowledge will be uncovered in each round. The path from high-quality mobile video streaming over GPRS networks in 2005 to mobile social games in 2011 may sound awkward; however it’s nothing but the real story behind one of our greatest successes so far.

Our journey has been anything but easy. We leveraged earnings from services business, subsidies and debt financing to fund ten different corporate ventures. The overhead behind this operation was proven tremendously high. Imagine that we had created a services team of 60 people just for funding an R&D team of 12. In this context we’ve delivered some of the most complex and demanding software engineering projects ever taken place in Greece, like the passport issuing system. However, as the VC industry practically did not exist in 2003 in Greece, we had no other choice – not taking our chances, not moving forward, has never been considered as an option. 

Guess what: It seems to be working. Despite confirming the law of project management in that everything will take more time and cost larger amount than planned, we have made it. We have managed to fund ten companies, have already two start performers and four more companies with reasonably good chances. We have also created an incubator to support all those independent companies, we keep running our first services business, which also serves as a preferred beta tester of our companies new products, as well as we have invested in a leading co-working space for having premium access to new teams and fresh ideas. Of course, there’s one last step still missing: Either to exit from a venture or to somehow realize the return on the investment. We can reasonably hope that this moment is not far away and certainly claiming that is not the reason for being called “criminally optimistic” by me colleagues.

An archaic piece of legislation in Greece makes military services compulsory. Military service duration has been recently significantly reduced to nine (9) months, only. Yes, you’ve read correctly, it’s 9 months. When Virtual Trip was established, it used to be 21. Obviously I couldn’t leave my company and go to the army. When my studying-extension expired on Dec 31st 2005, I could not renew my passport any more, which in turn meant no traveling out of the Schengen-treaty area. Those 8 years felt like centuries. When turning 35 you have the option to serve 45 days only and then pay a fine for the pending 7.5 months. This is what I did this year. From March 21st to May 7th I served as a Signal Soldier in the Hellenic Army – Land Forces. On May 8th I applied for my passport and got it few days later. At last, the road was open.

I love basketball, like most Greeks do. I have dreamt of a basketball game that never took place – and unfortunately never will – between the original USA “dream team” and the unified Yugoslavia team – yes, that unprecedented, unique, superb team of Petrovic, Kukoc, Danilovic, Radja and Divac. I know that in this fictional game the “dream team” would probably still win, however that amazing Yugoslavian team was the only one on Earth who could play against them with real winning chances. Unfortunately, geopolitical decisions before the 1992 Barcelona Olympics did not let this game happen, leaving a bitter taste to the European basketball fans. 

In a similar way, having launched my first start-up at the age of 22 and being a serial entrepreneur and investor ever since, I’m about to go to the Silicon Valley and speak to a great event, CloudBeat 2013 by VentureBeat, feeling like a 36 years old European basketball player going to the NBA for a tournament of friendly games. “You work double for achieving half, because of the numerous barriers and obstacles”, a mentor from the USA had told me, “and that’s quite amazing”. 

Two weeks ago I was informed that one of our AbZorba Games titles topped the USA Apple Store in the “social casino” games, being No4 in card games and No75 in games. Moreover, it’s even more excited that today AbZorba Games will break the threshold of 2 millions downloads, most of them in the US. This is a small victory for our Athens-based team, a small victory of huge importance though. A proof of concept that being No1 in the World, even in a relatively narrow space such as social casino games, is possible indeed – without having to be physically in the Silicon Valley nor having received tons of capital from institutional investors. Who knows, Yugoslavia may had some real chances to make a great surprise!

Hersonissos is a popular tourist destination in the island of Crete, Greece, almost 30 km from the city of Heraklion where Virtual Trip was created. I remember going there in the late 90s and seen a fast-food called “McDelis”, having exactly the same colors and similar logo to the famous international brand “McDonald’s”. I remember that first it looked ridiculous and then it made me feel sad. Life is too short for not being authentic, for having a copied identity. Cretan Mediterranean diet is supposed to be one of the healthiest in the World, if not the healthiest. How does it make sense to be in the food business in Crete and prefer copying McDonald’s instead of creating your own, authentic brand, taking advantage of the Region’s symbolic capital? It absolutely makes no sense at all, likewise it makes no sense to try to become the “Silicon Valley of Europe” like many European Regions claim to be. They simply follow the “McDelis” way.

I’m going to the Silicon Valley on Sunday aiming to listen, to meet interesting people, to make new friends and to learn. I dream of building bridges between the Silicon Valley and Europe. I dream of a bidirectional flow of people, ideas, companies and capital. My vision is neither creating one more “Silicon Valley of Europe” nor of course to migrate to the Silicon Valley. My vision is to help in creating a European innovation ecosystem to be a proper peer to the Silicon Valley innovation ecosystem, positioned more to complement than to compete with it. 

Some important steps to this direction have already been made in London and Berlin. However, both of those cities have to realize the need for authenticity in the ecosystems they grow. Simply because authenticity is valuable and irreplaceable, because at the end of the day Europe does deserve and authentic start-up growth model.

The European start-up growth model should be all about sustainability. Sustainability in terms of financing, in terms of expectations and in terms of sector focus. Moreover, we have to make sure that start-up growth does return to the society, preserving the European quality of life as well as it does not lead to overconcentration of wealth, securing a well balanced society.

My first visit to the USA will have a duration of 28 days. Going there 13 years after starting – and still running – Virtual Trip feels just great. Being proud of what we’ve already achieved, I go there aiming to use our competitive advantage to the maximum: Learn fast, learn well. Last, I will always remember that Toni Kukoc was charismatic because of being better in passing than in scoring. So, I will try to do the same.

Ως τη Νίκη, Πάντοτε, Μιχάλη Χαραλαμπίδη

Αγαπημένε Δάσκαλε Μιχάλη Χαραλαμπίδη, Ήταν Ιούνιος του 1996, διάβαζα μαθηματικά για τις πανελλήνιες εξετάσεις της επόμενης μέρας. Στιγμή ιερ...