A new study from the Kauffman Foundation reveals that between 1995 and 2005, 25.3 percent of technology and engineering companies had at least one founder who immigrated to the United States. According to the study, “nationwide, these immigrant-founded companies produced $52 billion in sales and employed 450,000 workers in 2005. The majority of these immigrant entrepreneurs came from India, United Kingdom, China, Taiwan, Japan and Germany.”

In the article, Robert Litan, vice president of Research and Policy at the Kauffman Foundation provides some insight into the types of immigrant entrepreneurs who have helped to create some of the top startups in the country.

“These are individuals who initially entered the United States either as students or as employees of corporations that sponsored their visas, but who eventually created new businesses,” Litan explains. “These startup founders are very well educated, particularly in STEM disciplines, suggesting that research, technical education and thought leadership are drivers of new business generation.”

To read the entire article click here

How many of you have startup companies with founders who immigrated to the states?

Yesterday, we hosted another SpeedPitching Luncheon in Utah.  It was an incredibly successful event with nearly 40 early-stage investors in attendance.  I’ll write more about the event in a bit, but for now, I’d like to continue the discussion posed by Devin Thorpe about “Do You Dodge the Valuation Question?”

Devin:  I think that you pose a great question.  There were a few investors that came up to me and requested that we coach them on how to respond to the valuation question.  The reality is that we DO coach them on the valuation question… we just coach them to push off the discussion until the next meeting!

I agree with you that it’s not fair for the entrepreneur to nail down a valuation after a 7 minute discussion.  Too often the investors make large assumptions about the company, the market, and the management team without knowing all of the facts.  I know that the investors can’t stand the fact that the entrepreneurs dodge the question — they want to know the valuation up front.

The reason that they would like to know the question up front is because they want to know if the investment is in their ball park.  If it’s not in their ballpark, they won’t want the follow-up meeting no matter how strong the deal is.

So the REAL question is… is there a way to accurately respond to the valuation question (to please the investor) without pinning yourself on a certain valuation?  Maybe you could give a ball park answer so that they know that your deal is affordable, but then include a caveat that you would like to discuss in detail at a future meeting?

After yesterday’s luncheon, it has become apparent that we should suggest a different approach to our entrepreneurs so that our investors don’t get so frustrated.  I’d love to hear your suggestions.

Check out our CEO’s recent article in American Venture Magazine! Brock Blake discusses Fighting the Funding Curse of the First-time Entrepreneur. Every first-time entrepreneur should read this article. It is packed with helpful information. Excellent article Brock!

Have you heard of the World Entrepreneur of the Year Contest? After questioning all  of the FundingUniverse departments, I realized I was the only person in the FundingUniverse who did not know about this incredible contest.

The contest, organized by the prestigious accounting firm of Ernst and Young, is similar to the State and National Entrepreneur of the Year awards, but obviously on a much larger scale. The 2007 World Entrepreneur will be announced on June 2, 2007 in Monte Carlo, Monaco.

My FundingUniverse colleague, Josh Bruni, sent me a link to Hot Shot Business. It is a sweet game created by Disney and the Kauffman Foundation. Hot Shot Business is an interactive game that teaches entrepreneurial skills to children. Props to Disney and the Kauffman foundation for teaching the value and excitement of entrepreneurship early on. Executives at Disney and the Kauffman Foundation obviously understand they are influencing the next generation of entrepreneurs. Way to go!

• Prediction: Facebook will be the largest social network in the world
  Name says it all. Hugely long post. We’ll see how this Facebook opening up play actually pans out.

Obviously, the FundingUniverse team loves our Speedpitching luncheons, but look at what ValleyWag is saying about the event.