{"id":3620,"date":"2012-09-19T01:29:25","date_gmt":"2012-09-19T00:29:25","guid":{"rendered":"https:\/\/visionarymarketing.wordpress.com\/?p=3063"},"modified":"2020-09-21T13:40:17","modified_gmt":"2020-09-21T11:40:17","slug":"rocketspace-s-logan-even-russian-companies-go-to-the-us-to-conquer-the-world-blogbus-2","status":"publish","type":"post","link":"https:\/\/visionarymarketing.com\/en\/2012\/09\/19\/rocketspace-s-logan-even-russian-companies-go-to-the-us-to-conquer-the-world-blogbus-2\/","title":{"rendered":"Rocketspace: even Russian companies go to the US to conquer the world!"},"content":{"rendered":"
\"Rocketspace:<\/a>
Rocketspace’s Duncan Logan “even Russian companies go to the US to conquer the world!”<\/figcaption><\/figure>\n

Duncan Logan, founder of Rocketspace is originally Scottish and moved to San Francisco some time ago. His first venture didn\u2019t work but 20 months ago, he then decided to found <\/em>Rocketspace<\/em>. Rocketspace could be described as \u201coffices as a service\u201d Logan said. He confided to our team of bloggers that he had read the <\/em>Lean Start-up<\/em> and he tested the principles he\u2019d found in the book by creating a fake company and posting an ad on Craigs\u2019 list. He got something like 10 requests by companies in 12 hours. Then he tried again by adding that only tech companies are wanted and he got 15 responses in 12 hours.<\/span><\/em><\/span> That\u2019s how Rocketspace, start-up accelerator in downtown San Francisco, was born. Today, Duncan Logan delivered his vision of why the Valley is the world’s most exciting place for high tech entrepreneurship.\u00a0<\/span><\/em><\/p>\n

Duncan Logan, founder of Rocketspace delivered his 360\u00b0 view of entrepreneurship<\/span><\/em>
\na start-up accelerator in downtown San Francisco<\/strong><\/span>
\n15 companies are hosted by Rocketspace, and there is space for 150 people. According to Logan, this is the largest \u201ctech accelerator\u201d<\/em> in San Francisco. \u201c30% of companies hosted here are from overseas who want to mix with the ecosystem in the Valley. 30 other co-working spaces exist but this one is dedicated to tech companies\u201d Logan added. Spotify was hosted here for instance, but there are also companies at seed money stage.
\n\u201cOverseas companies have too broad offerings\u201d Logan said, \u201cUS companies have narrower offerings and they therefore, they are much more focused; because it\u2019s such a huge country\u201d he said.
\n\"Rocketspace:<\/a>co-working spaces have nothing to do with real-estate<\/strong>
\nWithin about 6 weeks from creation, it dawned on Duncan and his teams that \u201creal estate has nothing to do with co-working, and that it was all about the eco-system. It\u2019s all about speed here, most start-uppers don\u2019t care about privacy\u201d Logan added. As a matter of fact, most of them don\u2019t worry about building a sales team either. ‘The real trend behind Rocketspace Duncan said is that before, you would have to raise a lot more money and spend more time on getting yourselves organised, now you don\u2019t\u201d. So how much would you need to get started? \u201cUnder half a million dollars\u201d he responded \u201cand after 15-16 weeks, they can have large numbers of customers without spending too much money\u201d … that is in case it takes off, but the system is such that investors know what to expect.
\nyoung people don\u2019t want to commute \u2026 nor get into an office<\/strong>
\n\u201cOver here, young people don\u2019t want to commute, they don\u2019t want to own cars, so there has been a real emphasis for young companies to be based in San Francisco [rather than Silicon Valley which is an hour away from the City] and this is why real estate prices doubled in 18 months!\u201d Duncan Logan added. Besides, \u201cthe valley is more about infrastructure start-ups (i.e. cloud computing, storage and servers etc.) whereas \u201cthe City is about young companies\u201d he said.<\/p>\n

\u201cTech founders aren\u2019t very social\u201d <\/span><\/em>
\nMost of the companies here are at \u201cA\u201d stage he said. For most of them, the risk is on the entrepreneurs, VCs are always pushing for more evidence of future success, and when you are a first time founder you have to think about what business can be financed vs. trying to build the most amazing business\u201d Logan said.
\nthe 3 pillars of Rocketspaces\u2019s business<\/strong>
\nNow we hit what was the most interesting part of the meeting. Logan delivered his vision for Rocketspace and described what makes it special. \u201cWe see ourselves as a kind of platform\u201d he said and he described the 3 pillars of Rocketspace\u2019s business:<\/p>\n

    \n
  1. access to capital<\/strong>: close relationship with business angels, venture capitalists and Rocketspace have a very good view of deal flow, Logan said. Specially for outside companies, this is essential<\/li>\n
  2. access to talent: <\/strong>MIT, Harvard, Stanford etc. \u201ctalent is one of the overriding factors\u201d Logan said. \u201cWe nurture those relationships in order to bring talent to new start-ups and we can do this for nothing\u201d he said<\/li>\n
  3. access to customers<\/strong>: this is an \u201cenormous growth item for Rocketspace\u201d Logan said. Large companies like IBM or Microsoft are connected to the Office Space and this is what makes it possible for start-ups to connect to that ecosystem. \u201cSmart companies are engaging with start-ups early in the process. They will come in here and they will say \u2018we have a real interest in mobile payments\u2019 for instance and we\u2019ll start to shortlist maybe 4-5 start-ups and this is a very symbiotic way of doing business he said. IBM is working with dozens of start-ups for instance, and Rocketspace is constantly organising demo days and start-ups networking events. \u201cKodak, Blockbusters etc. took a different approach and refused to change the way they worked and they aren\u2019t here anymore\u201d Logan said.<\/li>\n<\/ol>\n

    \u201cThere are probably 250 very exciting companies around the world\u201d Logan said, and we\u2019d like to have them at least for Rocketspace for a year. This is our goal for the next 10 years.
    \nHow do you do networking?<\/strong>
    \nWe have four floors and 2 next door. We do a lot of dinners. \u201cTech founders aren\u2019t very social\u201d Logan said. We have up to 20 people at dinner and we have all the VCs that count at these dinners he said. There are 10 events going on every night on average in San Francisco and there are a lot of opportunities the entrepreneur said.
    \n\u201cWe are not coaching hands-on like an incubator. Obviously it\u2019s all our interest that they succeed. We never publicise who is here. We are fiercely independent. We give 3 contacts for bankers, VCs, partners etc. Rocketspace refuses to take sides.
    \nA lot of this has a lot to do about how companies are getting funding. \u201cVCs are aggressive. They probably see 250 companies before they invest in one. Yet, once they do they are pretty nervous. By the time a start-up is raising money, there will be up to 3-4 VCs competing with one another. So once they are committed they are pretty aggressive. It\u2019s so hard to get in for them\u2026 Yet, for start-ups it can take them months before they can find an investor\u201d Duncan Logan added.
    \nI don\u2019t think there is too much money, but the amount of money required to start a new company has dropped the founder of Rocketspace said.
    \nwhy is Silicon Valley different?<\/strong>
    \nThere are great start-ups in UK, France and other places. But when you are in football you have to be in a environment in which you can rub shoulders with top class teams otherwise you don\u2019t know whether you are good at the game or not. That was Logan\u2019s way of explaining\u00a0 that the premier league is taking place in Silicon Valley, this is where you compare yourself to the best companies. People like Reid Hoffmann (founder of     LinkedIn<\/a>), you understand that they have a different understanding of the world Logan said.
    \nbut there are other reasons why \u2026<\/strong>
    \nScale is the issue, mostly in Europe (where there are many languages spoken and smaller numbers of users who are culturally very fragmented). Indian and Chinese companies can scale Logan said. We see copycat ideas happening in certain places like China and India and \u201cthey can crack America!\u201d he said. You have to be in the sort of size like dropbox, airBnB etc. and India and China can achieve that kind of scale and found multibillion dollar companies\u201d.
    \n\u201cEven Russian companies\u201d he added \u201cwhen\u00a0 they want to conquer the world, come to America!\u201d.
    \nplans to expand to other countries? <\/strong>
    \n\u201cUS immigration laws are ridiculous\u201d Logan said. \u201cWe are tripling our size here in San Francisco but\u00a0 it would make sense to have a Rocketspace in Europe (it could be London or Berlin) and one in Asia\u201d Logan added. Plug and play tech centre\u00a0 (where we are headed to now) were the pioneers he said, but their mentality is very commercial, and there is an obligation to fill the spaces. Roketspace sees themselves as very different from that.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Duncan Logan, founder of Rocketspace is originally Scottish and moved to San Francisco some time ago. His first venture didn\u2019t work but 20 months ago, he then decided to found Rocketspace. Rocketspace could be described as \u201coffices as a service\u201d Logan said. He confided to our team of bloggers that he had read the Lean …<\/p>\n","protected":false},"author":2,"featured_media":3062,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5065],"tags":[4343,4463,4713,4824,4843,4925,4952],"class_list":["post-3620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-duncan-logan","tag-high-tech","tag-office-space","tag-rocketspace","tag-san-francisco","tag-start-ups","tag-tech-accelerator"],"yoast_head":"\nRocketspace: even Russian companies go to the US to conquer the world!<\/title>\n<meta name=\"description\" content=\"Duncan Logan, founder of Rocketspace is originally Scottish and moved to San Francisco some time ago. 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