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Entrepreneurship Provides the Spark for Austin's High-Tech Explosion
by J.B. Bird
Austin may owe its current prosperity to high technology, but the city's entrepreneurs deserve their share of the credit. Behind every high-tech success story, there's an entrepreneur looking to strike gold.
Over the last ten years, Austin has been the second fastest growing city in the country, trailing only Las Vegas, Nevada. High-tech entrepreneurs like UT MBA Peter Zandan, founder and CEO of IntelliQuest, have fueled the fire.
"The more success we have in Austin, the bigger we play on the investment bankers' map," says Kay Hammer, founder and CEO of her own Austin success story, Evolutionary Technologies Inc. Entrepreneurs are vital to a technopolis, says Hammer, since they attract savvy talent looking for big wins. "You create a pool, and once people get used to Austin's great quality of life at lower prices, they're likely to stick around for the next deal."
One measure of a city's entrepreneurship is the presence of venture capital. Over the last two years, a steady influx of venture capital firms have set up shop in Austin. With over 600 software companies, the city abounds in the investors' favorite dish -- small, high-tech start-ups with unlimited growth potential.
As more venture capital flows in, the city's stock continues to rise. Investor David Boucher of Applied Materials notes that after New York, Northern California, and Boston, "Austin may now be the biggest market in terms of financing opportunities."
Austin's established venture capital firms welcome the new arrivals. "I think it's terrific that people have focused on the market and moved resources here," says Joe Aragona, a general partner with the city's oldest firm, Austin Ventures, which has $500 million under management. "We don't view it as competition, but rather as more cooperative resources from investors who are dedicated to helping entrepreneurs build successful companies."
Investors and entrepreneurs cite the city's cooperative spirit as a key to its success. Hammer praises organizations like the Austin Technology Incubator, IC˛, and the Austin Software Council, "where entrepreneurs meet to share ideas and solve common problems, not figure out how to beat their competitors."
Local successes are good news for Austin entrepreneurs, but also for UT business students. "Our students have a wealth of local start-ups where they can work as interns or find jobs when they graduate," says Gary Cadenhead, senior lecturer in entrepreneurship and director of the Business School's MOOT CORP® Program.
Today, Austin's entrepreneurial element cuts across all sectors, with notable entries in multimedia and film. Richard Linklater's cult movie Slacker characterized Austinites as perpetually directionless 20-somethings. Ironically, Linklater parlayed the film into a robust start-up, Austin-based Detour Films, which is now entering production on its fourth major motion picture in five years.
Linklater's success is yet another symbol of Austin's entrepreneurial wealth. The Business School plays a vital role in a city whose greatest resources are human and intellectual.
"In Austin, it's less who you know or what you have, and more what you know," says Tudor. "You can become an equal here very quickly based on your intellectual firepower."
"There's a real synergy between the Business School, the University, and the new Austin high-tech economy," adds Hammer. With Austin now looking like a model for the country's high tech economy, a UT MBA is a great ticket to the future.
For information on specific programs at the McCombs School, consult our contacts page. For media information, contact the Communications Director by phone at 512-471-3314 or by email at CommunicationsDirector@mccombs.utexas.edu.
