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Hot deals, talent wars and ‘winning’ entrepreneurs: Just another day in Menlo Park

Optimism in the air—that was the first thing you would have noticed at an EY Entrepreneur of the Year® reception at the Rosewood Sand Hill last week.

As I walked through the hotel’s reception area, I couldn’t miss the well parked Lamborghinis highlighted by a metallic blue one that simply screamed “IPO success.” Just to the side of the reception area, the Rosewood bar was packed with wall-to-wall patrons relishing in the latest business deals.

The real show was going on in the Rosewood’s lower conference room, where a wonderful reception was held for the 24 finalists of the EY Entrepreneur of the Year Awards, who were honored for making the grade. Truthfully they were all winners at this event, which RoseRyan proudly sponsored again this year. However, the final 8 winners will not be announced until June 11 at the lavish event at The Fairmont in San Francisco. (Check out the 24 finalists for Northern California here: www.ey.com/us/eoy/norcal.)

Conversations in Menlo Park that night with the entrepreneurs and their teams ranged from valuations of funding rounds to the mentality of “take the money now” when it is available from growth-starved investors. These entrepreneurs’ most immediate worry? The talent war. They seem most concerned with the ability to hire top-notch employees with just a small pool of candidates in front of them.

Looking further out, they are optimistic about the future, but they also expressed a sense of trepidation of what is going to happen when interest rates rise and the cost of commercial and residential real estate continues to be expensive. There is a general feeling that the current influx of late-stage funding rounds may decline once any indication of a slowdown in the general economy occurs.

But any down talk was quashed by the overriding sense of optimism. It was wonderful to see a diverse group of companies among the finalists. Although cloud software and mobile technology seem to gather all of the headlines these days, these finalists represent a broad range of categories: finance, beverage, food, biotech, consumer brands, cleantech and healthcare. Of course, application developers, wireless and cloud companies are well represented too.

Overall, the EY finalists are a fine showing for Northern California as they demonstrate the versatility and entrepreneurial spirit that are alive and well here.

Chris Vane is a director at RoseRyan, where he leads the development of the finance and accounting firm’s cleantech and high tech practices. He can be reached at [email protected] or call him at 510.456.3056 x169.

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Innovation, leadership are dominant qualities of EY Entrepreneur of the Year Award recipients

Economists like to debate about the level of economic growth that is driven by innovation. Some think that the days of rapid growth in the U.S. economy is over and any new inventions won’t make up for the slowdown in growth. Others think that innovation and new ideas are still taking off and will fuel lots of economic growth. I’m not an economist, but the one thing I know for certain is that Northern California has a group CEOs who aren’t waiting around to find out. They are leading their companies in developing new technologies and new and better ways of operating their businesses, all while building high performance teams.

I met them firsthand during the recent 28th EY Entrepreneur of the YearTM Awards gala for Northern California at the Fairmont Hotel in San Jose. The theme for this event, for which RoseRyan proudly served as a sponsor, was “honoring the best of the best,” and it was successful at that. There were 27 finalists out of an original group of over 110 CEOs. Of the finalists, the regional award winners were chosen from nine categories ranging from software and technology to life sciences and digital advertising. There was a very good mix of entrepreneurs from all different kinds of backgrounds and experiences.

This was one of 25 programs in U.S. cities and in 61 countries around the world; the overall national winner will be announced later this year. There were over 14,000 individuals involved in this global endeavor. Some were from established companies, some from startups, and others from large companies. For our area, here are the winners announced at the gala (for quick videos about each company, go to EY’s website):

  • Technology: David Gorodyansky, CEO, AnchorFree
  • Services: Fedele Bauccio, co-founder and CEO, Bon Appétit Management Co.
  • Emerging: Marcin Kleczynski, CEO, Malwarebytes
  • Life Sciences: David Hung, founder, president and CEO, Medivation
  • Software: Vladimir Shmunis, CEO and founder, RingCentral
  • Digital Advertising: George John, CEO and co-founder, and Richard Frankel, president and co-founder, Rocket Fuel
  • Large Companies: Amir Dan Rubin, president and CEO, Stanford Hospital & Clinics
  • Internet: Pete Flint, CEO and founder, Trulia
  • Real Estate and Finance: Doug Brien, co-founder, and Colin Wiel, co-founder, Waypoint Homes

A theme that I heard repeatedly during this year’s program and in the past is that innovation doesn’t just involve the CEO or founder, but rather it is a bottom’s up process involving many people at all levels of the organization. Those honored at the EY event recognized that truth; the first people many of them thanked in their acceptance speeches were their employees. Those who will go far know they need to develop a team of key people who believe in what they are trying to accomplish. “The best advice I ever got from anybody is … get the wrong people off the bus as quickly as possible and get the right people on the bus,” said Kleczynski in a video about Malwarebytes, an anti-malware software provider. “They will get you going; they will get you where you need to go.”

With the help of the right people, entrepreneurs look for ways to disrupt and change industries, and that is what drives them. AnchorFree, for instance, aims to give everyone across the globe freedom when using the Internet and privacy protection when doing so. In his video, Gorodyansky said the company faced “headwinds” in its goals “but also knew in our hearts that we’re doing the right thing.”

Certainly, younger companies have more freedom to get changes made quickly. This is particularly true of the private companies involved in this program (over 80 percent of all award winners are privately held). Studies have shown that what really make the finalists different are their independence, freedom and flexibility. The overarching value they all share is outstanding leadership plus a willingness to try new things. Once a quarter, Trulia lets its engineers pursue any idea they have in mind, without the red tape that oftentimes ties down more established companies from realizing innovation. “It’s an incredible way for us to create an environment where creativity, where ownership is part of the culture,” according to Flint of the real-estate listing site. “So, new employees can come in, they can build a product they’re passionate about, solve the problem they want to solve, and release it to the public soon after.”

Indeed, their nimbleness and openness to ideas are continuing to make entrepreneurs the job engine of our economy, and all indications are that this will continue for the foreseeable future.

We can all learn from their stories, particularly in my industry. The world of finance and accounting consulting has been constantly changing over the past 10 to 20 years. Innovation in the way companies approach the market, deal with clients and look for talent is critical to success. Evolution in our business is oftentimes driven by regulatory changes and new ways of interpreting rules and principles. A firm that doesn’t embrace change and work with it will be left behind. The firms with strong visionary leadership are the ones that are leading the industry and staying ahead of the curve.

Stan Fels is a director at RoseRyan, who joined the finance and accounting firm in 2006. In addition to helping the finance dream team keep their skills sharp and stay true to RoseRyan’s proven processes, he matches gurus to clients in the high tech and life sciences sectors. 

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Bay Area entrepreneurs: inspiring stories, winning ideas

The announcement was just made for the Northern California CEOs who are regional semifinalists in EY’s Entrepreneur of the Year™ Awards program. In the months ahead, RoseRyan and other sponsors of this amazing program will interview these Bay Area leaders and get to know what makes them tick and how their high-growth companies stand apart from the rest. The actual regional winners will be announced at an awards gala June 10 at the Fairmont in San Jose.

But first, congratulations to all of the semifinalists who were announced last week. They are getting recognized as high-impact entrepreneurs who have barreled through challenges during shaky economic times to transform their great ideas into promising businesses. RoseRyan is proud to once again be a sponsor of the program, which is in its 28th year. It puts us in direct contact with CEOs who are innovative, highly motivated and representative of how business is evolving in our area.

This year’s impressive list of semifinalists reflects a very strong showing for Northern California, as the area tends to be well recognized in EY’s program. In fact, last year’s overall national winner was CEO Hamid Moghadam of real estate firm Prologis, which is based in San Francisco. With this region’s ever-changing pool of new companies, new technologies and new ideas, we continue to be an innovation engine.

Pride in our region is just one reason why it’s so exciting to take part in the awards program. Another is the chance to observe the diversity and dedication in all the nominees. These entrepreneurs are leading a mix of public, private, nonprofit and women-owned businesses. And many candidates are serial entrepreneurs who are sitting on fortunes. They don’t even have to work, but they love what they do. These leaders are a marvel to watch, and they’re inspiring.

Of course, a great idea and a passion for work will take an entrepreneur only so far. From my observations with the EY program over the last several years, I have also noticed the following common traits among the semifinalists:

  • They deal with business problems head-on, with flexibility and a strong sense of their company’s core strategies.
  • They recognize the value and strength of honest communication and transparency.
  • They have a clear vision and don’t sway from it.
  • They’re willing to take risks, based on their strong belief in themselves, their ideas and their team.
  • They know how to attract and retain talent. This is quite a challenge for any Bay Area company.

The stories that come out of these job creators and innovators will continue to evolve. Those of us who can watch from the sidelines will not only admire the changes and ideas that are afoot but be inspired as well. We all need insights into how to do things differently and explore whether we too should work in a new way or consider new strategies for hiring and retention. These entrepreneurs are bringing the best ideas to market, supported by solid teams and a healthy dose of enthusiasm and energy. Plus, they’re energizing our local – and national – economy. All of these achievements make RoseRyan a proud sponsor of the EY Entrepreneur Of The Year™ program.

Stan Fels is a director at RoseRyan, who joined the finance and accounting firm in 2006. In addition to helping the finance dream team keep their skills sharp and stay true to RoseRyan’s proven processes, he matches gurus to clients in the high tech and life sciences sectors.

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Bay Area leaders take top honors in Entrepreneur of the Year™ awards

Three Bay Area business leaders took home top national honors in Ernst & Young’s Entrepreneur Of The Year™ Awards program.

The national overall winner is Hamid Moghadam, CEO of Prologis; Tom Bedecarré, CEO of AKQA, was named top entrepreneur in the Media, Entertainment and Communications category, and Nicholas Woodman, CEO of GoPro, won in the Retail and Consumer Products category. EY announced the 11 national honorees Nov. 16 in Palm Springs; the list of winners is here.

These winners were chosen from a group of more than 250 outstanding entrepreneurs from across the country. It was a very strong showing for Northern California—direct evidence that the region continues to be an innovation engine that produces new companies, technologies and ideas.

All nominees, as in all the years that I have been involved with this program, are diverse. The companies these entrepreneurs lead are a mix of public, private, family-owned, nonprofit and women-owned businesses.

Many candidates are serial entrepreneurs and have made fortunes; even though many of them don’t have to work, they wouldn’t want to be doing anything else. What drives them and makes them so successful? Among the traits I’ve seen, a strong work ethic and family are most meaningful to these CEOs.

Some of the other common traits of these high-impact performers include:

  • They address business problems by being flexible and focusing on core strategies.
  • They recognize the value and strength of honest communication and transparency.
  • They have vision—and they stay focused on that vision.
  • All share a sense of action. As one said, “You can’t just talk your way out of situations, you need to take actions. That is what employees and customers are expecting.”
  • They take risks. Part of being a risk taker is having a strong belief in yourself, your ideas and the people you work with. This was evident with everyone. It’s easy to look back and say you took a risk and it worked, but what separates these folks from most is that they did take the risk.
  • They know how to attract and retain talent. This was a universal trait; it’s a key indicator of success for any business.

Much is said about the ripple effect of the work and efforts of these job creators, and I believe the world is watching them and the organizations they build. We do this not out of envy, but because they are the role models for what it takes to be successful in the 21st century.

They bring the best ideas to market, build the strongest teams and deliver the best products and services, and their companies energize the economy and promote stability and long-term growth. Recognizing these achievements is a key reason RoseRyan is proud to be a sponsor of the EY Entrepreneur Of The Year™ program, which is in its 27th year.

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Entrepreneur insights: be open, take risks, encourage questions

My colleagues and I have just finished over a dozen interviews of Bay Area CEOs who were regional semifinalists in Ernst & Young’s Entrepreneur of the Year Award program. It was an amazing opportunity, and I want to share some of their insights on managing businesses, leading teams, what motivates them and how they overcome obstacles.

But first, congratulations to the 58 semifinalists—and 30 finalists, who were announced yesterday. There was a record of 166 Northern California nominees this year. The regional winners will be announced at an awards gala June 25 at the Fairmont in San Jose. RoseRyan is proud to be a sponsor of the program, which is in its 25th year.

  • Many candidates are serial entrepreneurs and have made fortunes; however, even though many of them don’t have to work, they wouldn’t want to be doing anything else. The most dominant theme: a strong work ethic and family are most meaningful to these CEOs.
  • One CEO shared three lessons on building successful companies: Figure out how to address the business problem, keep a synergy with your core business when you expand the tool set, and recognize that strategy that works in one area doesn’t necessarily work in another.
  • All these people share a sense of action. As one said, “You can’t just talk your way out of situations, you need to take actions. That is what employees and customers are expecting.”
  • I asked one candidate how he’s gone from being a technologist to running a company that is looking at an IPO. He said, “You need to be coachable by the top talent you bring in to run the functional departments.” True insight from a leader.
  • Several CEOs believed that honest communication and total transparency kept their employees with them during “dark hours.” “If your employees know who you are, where you are going, and who you are not or where you won’t go, it helps them make the best decision,” noted one. “If you have a 25-year-old programmer working at  2 a.m. [and] he/she doesn’t know what the company is all about or know exactly where we are going, they may make the wrong judgment.”
  • Some CEOs said that they like it when an employee questions a direction, because they know it means others are wondering the same thing. This was a good demonstration of leadership: A CEO doesn’t always have to be right, but they do want open discussion with their employees.
  • They all have vision—they are looking three or more years down the road.
  • They all take risks. Part of being a risk taker is a strong belief in yourself, your ideas and the people close to you in the effort. This was evident with every individual. It’s easy to look back and say you took a risk and it worked, but I think what separates these folks from most is that they did take the risk.
  • Here’s one for us finance pros. We asked the CEO of a company that recently went public what it’s like being public. He said (and I quote), “Being a public company is easier than being a private company because of corporate governance.” He said he wasn’t talking about SOX (leave that to the CFO) but about goals. Multiple investors with restricted stock have varying priorities; once public, their shares are converted to common stock and they are all on the same page about what the company needs to do.

Finally, what makes an entrepreneur or visionary? Lots of things. But one said it was because he has a “gift of talking with financiers and can translate the tech stuff into commercial talk.”

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