Cities with struggling economies will get an infusion of young energy later this year when 50 aspiring entrepreneurs begin two-year apprenticeships in Detroit, New Orleans, and Providence, R.I. The new idea is called Venture for America, but an apt tagline might be The Charlie Plan.
When Charlie Kroll was an undergraduate at Brown University, he had his sights set on a banking career. He shifted gears after a coveted internship fell through. Before graduation, Kroll started his own web development business from his apartment in Providence. His fledgling company struggled through the typical startup challenges, but eventually took off when Kroll and his team developed software for financial institutions. Andera, now a decade old, recently moved to larger quarters in Providence to house its staff of 85.
Andrew Yang, a lawyer turned entrepreneur, heard this success story a few years back when he shared a panel discussion with Kroll. Yang started wondering what might happen if more young graduates went the entrepreneurial route instead of heading into banking, consulting, or graduate school. “What if we had more of our best and brightest trying to become Charlie? What if they didn’t have to walk through fire to succeed? If we can have enough people creating 85 new jobs in our cities as opposed to becoming professional service providers,” Yang thought, “we’ll all be in better shape—individuals, society, the economy, the country.” Yang found himself with the time and resources to further investigate these what-ifs when Manhattan GMAT, a test preparation company of which he was CEO, was acquired by Kaplan.
Before launching Venture for America as a nonprofit in early 2011, with $500,000 in private donations, Yang talked with startups in several smaller cities to make sure there was demand for his idea. Despite depressed local economies, he found “phenomenal entrepreneurs” eager for the fresh talent he offered, especially at the below-market salaries they could afford. Yang already knew there was a ready supply of talent. He had met hundreds of 20-somethings during his years in the test prep business. “They’re interested in helping run, start, and build a company,” he says, “but they don’t know how to go about it.”
Venture for America will give them a chance to find out through hands-on experiences rather than textbooks or lectures. The first class of fellows, selected from an applicant pool of more than 500, will start with a boot camp in the summer of 2012 to learn practical business lessons. Then it’s off to spend two years at the elbow of entrepreneurs in locales where the rents are low but unemployment is high. Fellows will earn about $35,000 annually, plus benefits, and get a chance to land $100,000 in seed funding for their own venture at the end of the two years. Loosely modeled on Teach for America, Venture for America also will provide ongoing professional development throughout the fellowship.
Participating employers range from a renewable energy startup in Providence to an independent music licensing enterprise in New Orleans. In Detroit, several companies that are part of a new business hub will all take on fellows. The arrangement gives companies “access to top-tier talent with a fresh perspective at a very attractive price point,” says Josh Linkner, CEO and managing partner of Detroit Venture Partners. In return, Linkner adds, the fellows can expect “an opportunity to really understand the world of entrepreneurship from the inside. Even if they go back to big industry, they will have learned the nimbleness of startup life. If they continue to think like an entrepreneur throughout their career, it can have a significant impact on society.”
Yang hopes fellows will put down roots in the cities where they are assigned. “These are fantastic places to spend time and build a business,” he says. “Long term, we want people to innovate and create opportunities for themselves and others.”
Fellows also will come away from the experience with a strong network, including an A-list of entrepreneurs who have agreed to make themselves available as mentors and role models. First to sign on was Charlie Kroll.
Read more stories by Suzie Boss.