Make no mistake about it. When it comes to entrepreneurial technical talent, Atlanta is losing the talent war on a daily basis.
Buried in an article about booming tech jobs is a mention of Brian Gorby. Brian’s a Georgia Tech grad who was working for Modosports, an Atlanta gaming company that folded due to funding issues, when I met him. He was pretty well versed in Adobe Flash & Flex development, and digging into iPhone development – he had the intellectual curiosity and internal drive that startups need & crave. I was at Xeko Elf Island – we liked Brian a lot, but because of our own funding challenges, couldn’t move fast enough to offer him a job before he was snapped up by Moxie, a prominent marketing agency (and he may or may not have joined us either way). He spent a brief turn after that in consulting, then built up iOS experience at Sapient before his apparent move to San Francisco – he’s now a Senior Mobile Developer at EventBrite, a pretty darn hot startup focused around event registration.
There are MASSIVE startup opportunities right now in the area of mobile and social. Now ask yourself… what hot Atlanta startup should a talented, entrepreneurial iOS developer have joined? Pretty limited options. After a couple of years at EventBrite, a solid senior engineer will probably be well-positioned to start their own company. What comparable opportunity is there in Atlanta?
Let’s look at the criteria many investors apply to startups – Stanford provides a nice framework of team, product, and market. Momentum is often a 4th criteria. Startup uber-incubator YCombinator focuses primarily on team, presumably because if you have a great team that handles feedback well, an investor can help a great team build the right product for the right market. So what is the crisis of conscience in Atlanta? There is NO lack of talent. We have founder-quality talent moving across the country to accept lesser roles than they would have as Silicon Valley natives. Do our investors lack the confidence that they can help companies find the right market and product? Perhaps.
At Xeko, we lost any chance we had of hiring Brian Gorby because our funding was in flux, and no other social gaming startup in Atlanta was ready to hire a developer with all of the right skills at a time when social gaming was a prime market opportunity (mid-2009).
Atlanta startup founders are often faced with the question of “Are you working on the business full time?” For technical founders, this question is a joke. Any technical founder with 2+ years of experience can pull down $80-120k per year, easy. Suggesting they should go for broke before their startup finds product-market fit is insane and makes no sense from an opportunity-cost perspective, especially when they start families and need insurance and the ability to provide for their family in a town where seed-stage cash is scarce. Once a startup finds traction, they should be able to find funding without being disqualified because they still have a day job they want to quit.
This isn’t a small problem. Atlanta has founder-quality entrepreneurs moving across the country to take staff-level jobs because we can’t recognize the OBVIOUS market opportunities. Mobile, social, gaming – HUGE opportunities. How many investor-driven startups are in Atlanta in this space? Do investors believe our teams aren’t equal to the task? Are investors uncertain in their ability to help great teams find the right market and product? Many investors seem to just want financial projections that imply a guarantee of success. That attitude leads to more brain drain. I hope we can do better, and retain more “Brians”.