How is Baltimore, MD perceived by people in Tech Startup hotbed areas?
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Baltimore tech natives often cite succesful tech startups such as http://Advertising.com, BillMeLater, and Millennial Media (Under Armour is also mentioned but as a succesful non-tech startup), but I wonder if those outside of Baltimore connect these businesses to Baltimore in their minds. Certainly the portrayal of Baltimore in HBO's The Wire plays a unfortunate role. Perhaps, Baltimore is merely perceived as an extension of DC? Particularly interested to learn more about the perception of Baltimore from folks in Silicon Valley.
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Answer:
I drafted this comment back in August, not sure why I didn't post until now. The 4 or 5 people have spoken and I'll agree that the perception of Baltimore being a tech startup hub is no where near that of Silicon Valley (SV), NYC, Boston, etc, but there are a lot of signals right now that show it bubbling up with huge potential and promise. 's point that we're lacking a critical mass of talent is simply wrong which I'll illustrate with some stats below. Before though, I'd like to mention a bit about where Baltimore's been and where we're going. Up until a few months ago when Millenial Media (MM) went public, they were the largest independent mobile advertising company in the world. Second now to public company Google. MM is a spin-off of Baltimore-based http://Advertising.com which was purchased by AOL and is now the HQ to AOL's biggest arm, AOL Advertising. Another one of our bigger tech companies is Bill Me Later, which was acquired by eBay subsidiary PayPal in '08 but still employees over 300 employees here. Black and Decker and Under Armour are here and while they aren't gushy photo-sharing apps they are some of the most innovative companies in the world that are creeping into tech's new verticals, like wearable tech, etc. The city has had one of the bigger runs of success stories from Education tech as well. Sylvan Learning, Laureate International, Moodlerooms (acquired by Blackboard in 2012, still here), Connections Education (acquired by Pearson in 2011 for $400M, still here), Smarterville (Hooked on Phonics, Reading Rainbow) to name a few that are all HQ'd here. These past and present companies have allowed Baltimore to see potential in future growth in the EdTech space and have well-equipped the city with an experienced "startup-minded" workforce, some of which are already heads-down on their 2nd and 3rd ventures. The State of Maryland boasts the #1 school systems in the country (4 years in a row) and with Baltimore city schools falling much shorter than the State average, this has created a perfect petri dish to innovate new technologies and teaching solutions, which can then be supported by the State. This is one of the many reasons there has been a recent surge of interest in starting EdTech companies in the city. Richard Florida just wrote a piece in The Atlantic talking about the change in geography for startups and VC. Baltimore regularly gets coupled with DC as we're only 40 miles apart, much less of a distance than the radius of SV. A lot of the numbers that were cited in the above graphc for "Washington" actually come from the Baltimore region. But overall, the number of investment dollars and invested companies are much larger than that of Austin and Denver/Boulder, which both have a much higher perception than that Washington and Baltimore. I'll explain why that is further down. Florida also mentions the high-rent issues of NYC and SF as reasons why someone wouldn't want to start a company there, which make cities like Baltimore much more attractive to live/work. I've touched briefly on some of the prior/current tech successes of Baltimore and now want to offer some of the reasons people would want to start a company here and why we're seeing a lot of early-adopting investors begin participating in the region. Here are some facts about the Baltimore region and its talent pool: The State has the Highest concentration of engineers and IT professionals in the country. The Baltimore region ranks first in employed PhD scientists and engineers per 100,000 employed workers. Ranks first in mathematical sciences (71), first in biological sciences (398), first in health (63), and third in physical sciences (197) per 100,000 employed workers. Baltimore metro ranks sixth in a Forbes ranking of the best cities for tech jobs, based on growth of science and technology-related employment. Baltimore metro ranks second among metro areas with a population of one million or more in Forbes' ranking of "Best Cities for Minority Entrepreneurs. Baltimore ranks 8th in Forbesâ list of Americaâs Most Wired Cities for internet broadband adoption, the range of internet service providers, and the availability of public wireless hot spots The obvious question, "If the workforce is so big, why aren't there more startups?". It turns out that the majority of those numbers above are buried in government-related jobs in the region. While I don't expect those jobs to go away anytime soon, it does show the potential strength of the workforce if more is done in the region to promote entrepreneurship. We also have the 2nd highest concentration of universities in the US which shows another potential pipeline of workforce. Now, this thread originated because the questioner asked what the perception of Baltimore is and it has nothing to do with anything I've said above. I was just setting the foundation for my argument. The reason the perception is anything but strong is simply due to ignorance. SV, NYC, Boston, Austin, Boulder are all perceived to be startup hubs because they have strategically created strong messaging that tells the world they are all startup hubs. "Silicon Valley" is branding. NYC's recent adoption of the "Digital City" is branding. The cities, the leaders, and the feeders have been working in symphony with each other to put out and broadcast this messaging. Baltimore is beginning to do a much better job of telling its story and broadcast the genuine opportunity one has starting a business here. It's been tough because the loudest voice leaving the city has been TV shows like The Wire and Homicide, and while those are sometimes realities of this city, I'd argue so is the legitimate prospect of success. Since 2007 I've been participating and promoting tech entrepreneurship. A few of those initiatives have been: Technically Baltimore (http://TechnicallyBaltimore.com): an online publication and series of events that is doing a great job telling said stories. http://BaltimoreTech.net (http://BaltimoreTech.net): a directory of people and events in the Baltimore tech community Baltimore Tech Map (http://map.baltimoretech.net): a map of the different startups, services providers, and growth resources in and around the city Betamore (http://Betamore.com): a campus for entrepreneurship and technology that both houses product-focused tech startups and offers a daily lineup of short and long-form educational courses to the community as a way to further develop our workforce. Now open and exceeding our expectations with new memberships and interest. I won't argue about the perception of Baltimore outside our region but I've just provided a sizable footnote and explanation as to what has - or more specifically - hasn't caused that. The environment is incredibly rich to grow a competitive startup hub which is why so many of us are rolling up our sleeves to do just that. I look forward to revisiting this thread in couple years to see how people's perception has changed.
Mike Brenner at Quora Visit the source
Other answers
Disclaimer: I'm moving to Baltimore in about a month, and I have some connections to the area, so I may be biased in favor of it. Of the five major northeastern cities, the other 4 have a well-defined role. New York is the financial center of the country. Washington is the seat of government. Boston is the academic center. Philadelphia is the historic soul of the U.S., because the Society of Friends (Quakers) did more good in defining this country than the Puritans. Baltimore is the smart city that the country hasn't figured out what to do with. That's actually an advantage, because that's much like what the West Coast was (see: Silicon Valley, 1950s-70s) before this Disneyfied venture-capital version of it sprang up. That's where a Maker Culture comes from. On "smart city", there is such a thing as a smart city feel. You get it in Boston, Seattle, Minneapolis. You don't really feel it in New York; the people are plenty intelligent, but they're distracted by finance and real estate. You definitely don't feel it in LA, even though there are enough smart people there. Baltimore, though it has its problems, definitely has the smart city feel. How is Baltimore perceived by "the startup world"? It isn't. It doesn't need to be. Baltimore is fertile ground for a Maker Culture and that's about doing, not perception. Reputation is a lagging indicator and for cities, that lag is about 10 years. Anyway, fuck reputation; it just brings people into a place for the wrong reasons. Austin wasn't really on the radar 5 years ago; but now it's one of the best places for a technologist to spend her 20s. North Carolina is now the epicenter of the Clojure community; 10 years ago, that state was primarily known for SAS. (Don't bother; R's better and free.) Things change. I think the general sense among people who know Baltimore is that something cool is going to happen there. I don't think anyone knows what yet, but that's part of what makes it interesting.
Michael O. Church
Don't be short-sided. Jobs didn't know anything about animation until he went to San Rafael, where the heck is that? There is more than one way to skin a cat. But it does take something special. The key is to build and keep on building. Baltimore is just getting started.
Gordon Steen
It really depends on who you are talking to. People from Baltimore move around just like people from other places. I think I have met as many people from Baltimore in the valley as I have in DC, perhaps a few more in New York, and Austin. Since Baltimore is not a top tier city by population, it isn't going to have the same number of alumni as say San Francisco or Manhattan who live in the Bay area. This is changing. Over the last decade, Baltimore has undergone a re-urbanization much like many other cities. They rate of grown in city's urban white collar population has accelerating rapidly. This is supported by efforts by the city, educational institutions (e.g. Johns Hopkins University, University of Maryland Baltimore, University of Baltimore) and the city's economic development community. The Baltimore downtown landscape and surrounding areas have seen rise to sophisticated communities blending business and residential. Alongside all of this, the state of Maryland has been working to pull in engineering and research through state programs as well as higher education research programs. Tech Startup communities are definitely measured in terms of foot traffic, but what they are really measured by is epic startups like Google, Amazon, eBay, PayPal, and others like them. These types of organizations contribute a great deal to the community of entrepreneurs in a place like Baltimore. When these types of companies get big, it inspires people to take their shot. Baltimore has had some big wins in recent years and should see quite a few more. A few of these are Baltimore based, like Bill Me Later (acquired by PayPal), and Webs.com. Some might argue that Webs is a DC based company, but they are not. They are a Maryland based company that is on the rail line connecting Baltimore and DC. The same could be said for Blackboard and Living Social, both DC based companies, but with rails connecting them to Baltimore. As a result, Baltimore acts much like the southern portion of the San Francisco Bay area does - think Cupertino, San Jose, Santa Clara. People often don't differentiate between San Jose or Cupertino and San Francisco City. The same is true of the DC area. This is a brand project for the city or the community. Ultimately, it doesn't matter what people think about the city as much as what the people in the city create and build. And by build, I don't mean communities - there are plenty of those to go around here. San Francisco recruits some of their best engineers out of DC and Baltimore communities. Despite this, Baltimore and DC have professional user communities and groups that rival any of the world's best cities. They just have a more interesting mix of conversations at your local coffee shop (less chatter about VC's and software than you might get in Google's back yard or SF City). Don't mistake the lack of conversations as the absence of them, there are more technology professionals in the Baltimore-Washington area than there are in the SF Bay area. There are also things to do after 10pm in Baltimore, something that is a bit of a challenge in most of the middle/lower bay area towns like Palo Alto and Mountain View. Don't underestimate Baltimore. The Wire was a well produced show, it was created in Baltimore much like a lot of other things including software products and other stuff.
Bob Neelbauer
Sorry to say, they don't perceive of Baltimore or DC for that matter. Of US cities, I hear: SF Bay Area New York Austin LA Probably a tie for Portland/Seattle I hear London more than I hear LA and Berlin probably more than I hear anything in Washington state.
Drew Dillon
Sean - Very interesting question and although I don't meet the profile of the person you want to answer your question - I think I have a unique perspective. As someone that started their Tech career in Baltimore and has spent the last 5 years living in the area but working elsewhere I have pondered this question and generally agree with Drew's answer. I think other smaller cities not mentioned by Drew that are still considered more "Tech Startup"-centric than Baltimore including: Las Vegas, Denver/Boulder, Salt Lake City, Raleigh/Triangle Park. The fundamental question is why? Baltimore has some big successes and great talent but hasn't gotten the props it deserves. Is it too well known for other things (The Wire)? Does it not have the tech-centric universities located in other cities? Does it not have the perceived "extras" of these other cities (outdoor activities, culture, music scene, etc.)? Personally I think it is a combination of all of the above to some extent but am hopeful that groups like the GBTC and others will create a thriving network of Tech Startups in the city.
Matt McLaughlin
I worked for http://Advertising.com in Baltimore for 3 years and have worked for startups in the Bay Area for the past two years. Baltimore is nowhere close to being a startup hub. In Silicon Valley, it's seen as an interesting place to come from, along the lines of "how the fuck did you make it out of that place." It's that place you tell people you're from, because it makes you look cool, but then you stop talking about it because nobody gives a flying fuck. This has nothing to do with perception. Baltimore is solidly in the bush leagues when it comes to startups. When you have to include Underarmor... excuse me Underarmour... in a discussion about tech startups, you know you're grasping at straws. To put it bluntly, Baltimore fundamentally lacks the two necessary ingredients for producing a large number of exceptional tech startups: 1. A critical mass of talent Talent attracts talent. Talent appreciates talent. This defect cascades into a number of problems. Baltimore lacks a culture that values creativity and intelligence. In fact, I find Baltimore has a culture that fears creativity and intelligence, which is typical of most small American cities. Talent is not rewarded appropriately in Baltimore, both in terms of salary and status. Developers, designers, and even product managers are not the leaders here. Sales calls the shots, mostly because of a lack of investment (see 2.) Compounding the lack of investment, there's no talent run-off. There's no Google or Microsoft or Goldman Sachs that churns through doe-eyed Ivy League grads and spits out disgruntled wunderkinds that want to "change the world." http://Advertising.com kind of functions as this role, but it's clearly not enough to create a startup hub. There are also no great universities around Baltimore. Boston and Pittsburgh aren't exactly great startup hubs, but at least they can bamboozle some MIT and CMU grads into sticking around. Baltimore has JHU, which is tier 2 at best. Ask yourself this: if I were a top-grade software engineer, capable of leading a small team of people who will make a billion dollars out of thin air, why would I ever work in Baltimore? 2. Investors Nobody is looking for startups in Baltimore. Being a startup in Baltimore is like being the world's best runningback, except you go to Carnegie Mellon. Because of this, Baltimore startups are money-hungry, which sounds gangster as shit, but mostly results in problems. You're not able to scale as quickly and corner markets like a boss. You're less likely to pay the exorbitant salaries necessary for procuring talent. You are slaves to your customers. You almost certainly cannot make consumer plays. Most importantly, Baltimore startups are unable to take big risks. Facebook was cashflow negative until recently. How long can you stay cashflow negative as a startup in Baltimore? So yeah... I don't want to shit on Baltimore too much, because I do actually love the place. It's just not a profitable place to work for the best engineers, designers, and product managers. But hey... if you're a 10x drug dealer, Baltimore can be your Hypodermic Valley.
Jieren Chen
I heard a comment at our tech meetup tonight from a DC techie that Baltimore seems full of 1-5 person companies that make some noise but seem to lack real traction in the marketplace. I kind of agree. I know some distinct wins, Mindgrub included and too many DOD contractors, Millenial, Videology, Barcode, BillMeLater, Sylvan, etc., but think we need to focus on getting the myriad of 1-5 person, currently self-funded companies,to the next level. At the end of the day we are just at the second generation of tech companies whereas SF, NYC are at generation 4+ because their ecosystem is more mature - there are more exits and more investments. We do have some great schools (UMBC is the 4 year up and coming tech school in the US), but need to grow our ecosystem so our talent doesn't go hide out at Fort Meade, commute/move to DC, or move out of dodge alltogether to play in the bigger ponds. Our reduced cost of living and local talent should be a differentiator. Maybe all we need is for city taxes to come down, government to take more interest, attract more outside investment, retain our talent, and speed the whole cycle up.
Todd Marks
Brutal, but so true. Baltimore just isn't on the tech radar, that simple. Example - this past March we made it to the final selection of the Microsoft / TechStars Accelerator Program for the Kinect. They required in-person interviews for the top 25 (down from hundreds, maybe thousands of applicants worldwide). They required the CEO/founders of the 25 firms to meet in one of 6 cities: Seattle, LA, Boston, Montreal, and Paris. So obviously I flew to Boston for my meeting, not too bad. I asked the guys - what do you know about the tech scene in Baltimore? He confirmed - its not on our radar, we never think of Baltimore for technology. End of story. As the founder and CEO of a 17-year old tech company in Baltimore, and perhaps the national leader in our technology field, and working very hard to spin out a new super cool high tech consumer-oriented business around 3D Scanning and 3D Printing - two of the hottest topics on the latest Gartner Hype Curve (see below), I too wish Baltimore had more talent, more financial resources, and frankly more respect, for those of us here now that are killing themselves everyday to maintain, much less grow, our businesses and number of employees, in a city that simply doesn't know much about technology in the first place. End of story.
Michael Raphael
I grew up in Baltimore and have worked in startups most of my career, divided between San Francisco and Boston. Sad to say, I've never (at least before reading this question) heard of anyone, ever, even once, talking about startups in Baltimore.
Phil Darnowsky
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