"Creative destruction." It's an economics term that captures the dynamic cycle in which economies make progress--develop and integrate innovations and create new sectors and industries--by destroying the previous systems.
It's also the name of
a new lab based out of the Rotman School of Management at the University of Toronto. That lab has just seen its first cohort of participants complete and eight-month boot camp, designed to give participants the pragmatic knowledge and real-world connections they need to make their ventures flourish.
One distinctive feature of the program is that acceptance in no way guarantees completion: in fact, nearly half of the original group doesn't make it through to the end. Participating ventures, each of which have between one and five members, meet periodically with mentors over the course of the program to establish milestones for their companies' development, and track progress along the way. After each round of meetings, those that are weakest get dropped from the program--of the 18 original participating ventures, only eight completed the program.
Worth noting: those eight now have an equity value estimated at $65 million in total.
Creative Destruction Lab came about, explains its director, Jesse Rodgers, after "looking at the gap that exists in education and research….there's certainly a failure in terms of connecting with [the] right people. The biggest thing that's messing with early stage entrepreneurs is the judgment in how to get where they want to go, and get there faster. They can't get the right mentors, they can't get the right coaches - that's a scarce resource."
As for what distinguished the ventures that successfully completed the program from those that did not, Rodgers says, it came down to one simple element: "Team dynamic. All the ones that didn't make the cut had team issues." It was surprising, he said, just how powerful this factor was, and how universal its influence. "Regardless of industry, the common thing is just the people, and how they work."
Writer: Hamutal Dotan
Source: Jesse Rodgers, Director, Creative Destruction Lab