After being an entrepreneur for most of my adult life, I’ve now been a part-time angel investor for 5 years and a full-time venture capitalist for the past 9 months.

During that time, I’ve come to appreciate the real value that great venture capitalists provide: amazing informational awareness, comprehensive business networks, providing brand cover for companies so that they can recruit and raise more money effectively, and more.

Still, some VCs do things that I really don’t like. This post is for them.

MassChallenge, a Boston-area nonprofit focused on encouraging innovation, is “convinced that entrepreneurship is the answer” for everything to unemployment to the housing crisis to pollution, in the words of CEO and co-founder John Harthorne.

To put its money where its mouth is, the organization is unleashing a global startup competition with $1 million available in award money. MassChallenge officially launched the contest Wednesday to a standing room-only crowd at the new Fan Pier building on Boston’s waterfront, which will also be the organization’s future home.

From now until June 11, early stage startups from around the world can register for the contest online. Immediately they’ll get access to online training, discounts on services, and access to a network of companies in similar positions. The organization will select 300 semi-finalists for in-person pitches in July.

First mover advantage is great, except when it’s not. If your product is truly innovative, your biggest challenge is likely to be explaining what, exactly, your product is, what its benefits are, and why anyone should buy it. Below are stories of three revolutionary technologies that faced these problems, and lessons for overcoming them.

What is it?

In 1994, Stanford University Credit Union began offering true online banking services to its members. They had the benefit of a tech-savvy customer base; Stanford University was an Internet pioneer, and credit union members (university staff and students) already used email extensively. They were able to make the analogy that it was like ATM banking, with which their customers were already familiar, but over the Internet, instead of at a dedicated machine. The questions from credit union members were practical: would it be secure? Would it be reliable?

But for most people used to traditional banking (writing checks, standing in line to talk with a teller, etc.), “online financial services,” as it was called then, was a bit of a puzzle. Jim Bruene at NetBanker describes the public discussion of online banking as follows:

1994 to 1997: Sounds good, but what is it?
1998 to 1999: All things online are great
2000 to 2002: All things online are over-hyped
2003 to 2006: Is it really secure?
2007 to ???: Protecting the earth and yourself

One of my favourite books on innovation is ‘The Myths of Innovation’ by Scott Berkun. Berkun is a writer and speaker and former programme manager at Microsoft. Here are Scott Berkun’s 10 myths of innovation summed up in a few words:

1. The myth of the epiphany: If many innovations are described as magical moments, the truth is often more complex: hard work is required and the Eureka moment often comes at the end of that process.
2. We understand the history of innovation: Most of the stories we read about innovation aren’t real. Google wasn’t a search engine to start with, nor was Flickr a photo sharing platform. Most innovations are the results of errors, changes and corrections.
3. There is a method for innovation: Despite our attraction to recipes, innovation is essentially a leap into the unknown. method for innovation is an oxymoron.

At a board meeting last week I watched as the young startup CEO delivered bad news. “Our current plan isn’t working. We can’t scale the company. Each sale requires us to handhold the customer and takes way too long to close. But I think I know how to fix it.”

He took a deep breath, looked around the boardroom table and then proceeded to outline a radical reconfiguration of the product line (repackaging the products rather than reengineering them) and a change in sales strategy, focusing on a different customer segment. Some of the junior investors blew a gasket. “We invested in the plan you sold us on.” A few investors suggested he add new product features, others suggested firing the VP of Sales. I noticed that through all of this, the lead VC just sat back and listened.

Finally, when everyone else had their turn, the grey-haired VC turned to the founder and said, “If you do what we tell you to do and fail, we’ll fire you. And if you do what you think is right and you fail, we may also fire you. But at least you’d be executing your plan not ours. Go with your gut and do what you think the market is telling you.  That’s why we invested in you.”  He turned to the other VC’s and added, “That’s why we write the checks and entrepreneurs run the company.”

Ireland’s technology entrepreneurs are hoping for a boost when 60 professional investors with €10 billion at their disposal arrive in Dublin later this month.

The investors, including representatives of some of the biggest venture capital (VC) firms in the world, will visit Ireland as part of a three-day ‘Tech Tour’ covering Ireland and Britain. Executives from the investment arms of large multinational firms will also attend.

The funders will hear investment pitches from 30 Irish and British companies, which were selected last week after a process that attracted applications from about 250 companies.

Dear Colleagues:

The Directorate for Engineering’s Division of Industrial Innovation and Partnerships (IIP) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs invites all active SBIR/STTR Phase II grantees to participate in the Technology Enhancement for Commercial Partnerships (TECP) program, a new supplemental funding opportunity. TECP supplements to SBIR/STTR grantees are intended to pave the way for partnerships between strategic corporate partners and investors and SBIR/STTR companies as a means to increase the potential for SBIR/STTR grantees to commercialize successfully their technology. Partnerships are recognized as a critical success factor for commercializing technology developed by small business. Potential partners, however, frequently demand technical specifications and require proof-of-concept data as a prerequisite for partnership that is beyond the scope of the Phase II project objectives. This supplemental funding will enable small businesses to conduct additional research to meet the requirements of a corporate partner that could lead to commercial products and services and a successful partnership. This supplemental funding program is intended to challenge small businesses to begin to develop an outward focus and to more rigorously evaluate their strategic business and commercialization options. It is anticipated that this research will not only benefit the small business enterprise but also provide a mechanism for large and mid-sized corporations and investors to have input into the commercial development of new technology, products and services.

Overview of Work to Be Accomplished

The Technology Enhancement for Commercial Partnerships Program will award research supplements to active SBIR/STTR Phase II grantees that are currently conducting research projects.  This supplement opportunity is intended to provide funding for additional research that goes beyond the Phase II project’s objectives to meet the technical specifications or additional proof-of-concept requirements of the potential commercialization partner.  It is anticipated that the additional research will enhance the commercial potential of the technology and lead to partnerships with industrial partners and venture and angel investors.

NAPLES - The "Era of the Entrepreneur" continues in Collier County with a local technology, computer and home theater firm, Byte Shop, receiving a $250,000 Economic Gardening Loan. The loan is part of the local Economic Gardening outreach program. The Economic Development Council of Collier County designed the program to encourage local business growth.

The Byte Shop recently expanded into a new location at the Mercato using funds it received from the Economic Gardening Loan and will be celebrating by having a grand opening celebration and ribbon cutting ceremony at its new location at 9118 Strada Place, Suite 8105, Naples, FL on Tuesday, April 13, 2010, at 11:00 a.m. - 2:00 p.m. EDC investors, media and general public are invited to attend.

The Byte Shop applied for the loan after an EDC Business Relationship Manager, Brooke Gabrielsen, reached out to the company. While conducting a typical business questionnaire, Brooke learned of the Byte Shop's proposed expansion and subsequent funding needs. The EDC guided the Byte Shop's local owners through the Economic Gardening Business Loan Program (EGBLP) application process which is administered by the Black Business Investment Fund (BBIF) for the State of Florida. BBIF and EDC representatives will be participating in the grand opening and ribbon cutting on Tuesday.

While there aren't nearly enough, there are several incubator programs out there for startups in most of the major cities with thriving startup cultures. These programs provide early-stage companies with funding, mentoring, and workspace among other aid, but there are very few programs that help college students looking for internships in the startup space to get connected with the companies that need their help. One incubator program, StartupRoots, is looking to change this trend with a brand new program aimed at brining students and startups together, and they're starting in startup mecca: Silicon Valley.

WASHINGTON - The U.S. Commerce Department’s Economic Development Administration (EDA) today announced $875,624 in grants in the State of Georgia to boost competitiveness and create jobs.

“Economic recovery and growth are top priorities for the Obama Administration,” said U.S. Assistant Secretary of Commerce for Economic Development John R. Fernandez. “These EDA grants will boost Georgia’s competitiveness and create jobs by supporting economic development projects that increase private investment, boost workforce training opportunities and spur innovation and entrepreneurship.”

The investments include:

• $128,124 to the Town of Thunderbolt to make water system improvements needed to support business expansion plans and serve future business development. The project is expected to create 38 jobs and generate $7 million in private investment, according to grantee estimates.

Controversial and high-profile greentech venture investor Vinod Khosla says the hype around — and government support for — batteries has distorted the green car market, leading to few investors focusing on innovation for the traditional internal combustion engine. Technology designed to make internal combustion engine vehicles more efficient can be implemented with much less cost (“hundreds of dollars” in some cases, said Khosla) compared to developing an all-electric vehicle. And innovative tweaks to the systems and components in gas and diesel powered cars can have a significant impact on fuel consumption and emissions, boosting mileage by as much as 30-50 percent, said Khosla. He made the comments at the Fortune Brainstorm Green conference on Tuesday. (Khosla will also be speaking at our Green:Net conference on April 29 in San Francisco).

A pilot scheme which pays new entrepreneurs to learn from experienced businesspeople in other European countries will be expanded and put on a permanent footing, according to EU officials.

The European Commission will ask the Parliament to earmark a substantially increased budget for the fledgling Erasmus for Young Entrepreneurs programme by the end of 2011, with officials suggesting that a "tenfold" expansion of the scheme would be needed to help it boost cross-border entrepreneurship.

A meeting in Brussels, hosted by the Commission, revealed a range of teething problems but reinforced the EU executive's commitment to pushing for additional funds.

Position: CEO of a breakthrough idea/company

Hours: 60-90 hours per week

Reports to: Board of Directors: 3-5 people who are great and supportive but will also drive you nuts because the whole reason you quit your job to start a company was to not have a boss and now you have 3-5 bosses. Technically speaking, they also could possibly hire in your replacement. (Hey, they’re not your friends; nor are they even the shareholders’ friends; their legal obligation is to consider the best interests of the company as a whole). For the high growth route, a Board is totally worth it because the right Board of Directors extends your reach and knowledge immeasurably.

Company Description: Acme Startup is a totally new, breakthrough idea that will grow to $50 million or more in revenues and will fundamentally change the industry in question. It will be in its industry what Southwest was to airlines, Starbucks was to coffee, Facebook was to social networking, and Amgen is to therapeutics.

(Get JUMPSTART Logo)

Dow Chemical says it is ready for its thin-film solar roofing shingles to go on sale next year — one of the first technologies to make solar panels and roofs one and the same, and a step toward increasing the affordability and physical appeal of going solar for residential consumers.

Dubbed the “Powerhouse” line, the shingles do for rooftop solar what Apple has done for mobile phones: make functional look sexy.

But not so fast. The shingles are still being put through rigorous tests. Dow wants to ensure that the shingles it churns out can live up to the 25-year warranty it plans to offer (standard for the roofing industry). The shingles themselves are pretty pricey, covering 4 square feet and carrying a price tag of $40 each after government subsidies.

I just watched a video from one of the TED conferences that left me stunned in amazement. The subject was the architecture of a theater, and the video illustrated a different way for designers work with clients. The video suggested something to me that high tech could badly use: meaningful, solution-oriented innovation, and not just better technology. What the industry needs is a manifesto — a call to action for people to work together as designers, coders, and customers.

Joshua Prince-Ramus, principal of the architectural firm REX, believes that his profession essentially went off the rails over the last five decades. Design and construction became far more complex and, as in all areas of life, litigation increased. Architects faced potential liability, and so they stepped back from execution and redefined their roles as pure creation, “as if you could actually create without knowing how to execute, and as if you could actually execute without knowing how to create.” Architecture became the process of “genius” and its product was the sketch, with execution — bringing the concept to life — an activity unworthy of the designer.

Australia’s $31 billion creative economy is powering ahead, making a real contribution to the nation’s economic performance and flexibility, according to a new report.

The Creative Economy Report Card was released today by the ARC Centre for Excellence for Creative Industries and Innovation (CCI) and is the first in a regular series analyzing the dynamics and contribution of the creative sector – one of the fastest growing elements in the overall economy over the past two decades.

“The creative sector is one of the driving forces of post-industrial society. It is now recognized around the world as a key element in national economic performance, employment, education and creativity. It has come into even greater prominence in the UK, for example, as the financial sector has suffered such a huge downturn” says CCI director Professor Stuart Cunningham.

I like talking about failure because I do it a lot. I also like talking about failure because it helps me understand what needs to change in order to succeed. As Thomas Alvin Edison said, "I have not failed. I've just found 10,000 ways that won't work." As a region we don't talk about failure enough – it's like our crazy aunt kept hidden in the attic. Sometimes we are too quick to pounce on failure, giving it a bad rap. But we have to keep in mind that most successes are born of early failures. As any successful entrepreneur or innovator will tell you, failing, especially forward, is a great, healthy and necessary thing (at least that's what I keep telling myself every time I fail).

So here is my list of Pittsburgh's five biggest regional failures – all of which have led, in one form or another, to success!

April 14, 2010 —
The America COMPETES Act is up for reauthorization, and that's a good thing. Or at least, it’s a good thing if Congress seizes the opportunity to both invest and innovate as it extends one of the nation's most critical vehicles for keeping the nation competitive.

Passed in 2007, in part in response to the National Academies' report Rising Above the Gathering Storm, the act remains a signal authorization of critical programs and funding focused on science, technology, science education, and research and development (R&D).

Through its first authorization the act has sustained important initiatives in the Department of Energy (DOE) Office of Science, the National Science Foundation (NSF), and the National Institute of Standards and Technology. Among those needed initiatives have been major efforts to increase the nation's research investments; strengthen science, technology, engineering, and mathematics (STEM) education from grade school to grad school; and construct a true technology innovation and commercialization infrastructure.

This time around, Gates will be conducting the college tour not for Microsoft but for the Bill & Melinda Gates Foundation, and speaking not just about technology but about the broader issues facing the globe.

Writing about this Morgan Stanley chart on his blog, mega-VC Fred Wilson writes:

"Even though I've been saying for years that social networking will one day usurp email, it's a bit shocking to see that it has.

There are some caveats. My kids use Facebook as their primary inbox (they also use gmail). So some of what they do on Facebook is actually email.

But even so, it looks like email's reign as the king of communication is ending and social networking is now supreme."