Susan Kish, First Tuesday

nPost.com: Can you give us a little background on First Tuesday?

Susan: First Tuesday began in late 1998 when a collection of 60 Brits and American's gathered in a bar in the Soho district of London to discuss the various internet related projects that they were involved in.

At the gathering they discussed such things as the challenges for entrepreneurs in Britain, the vagaries of finding funding, and the fact that although it was clear that the internet was in the process of changing the business landscape in America-it was not clear that similar changes were under way in the United Kingdom.

The group decided that they would meet again in a month-on the First Tuesday of November-and invite along other people they knew who were involved in Internet related businesses. With each month the gatherings got larger and larger---with the word spreading primarily by word of mouth over email.

Within a short time the more forward thinking Venture Capitalists in England discovered First Tuesday was a great place to find talented early mover Internet Entrepreneurs. True stories began to circulate about entrepreneurs meeting Venture Capitalists at First Tuesday and having signed deals 8 days later. Given that interest in starting internet start-up companies was exploding throughout Europe-First Tuesday rapidly became the most sought after ticket around.

Entrepreneurs and Financiers soon started to fly in from continental Europe and from America to attend First Tuesday and take the pulse of London's Internet scene, learn more about the process of starting internet companies in Europe, and to find either funding or investment opportunities.

The rooms were amazingly buzzy with talk of business models, stock options, and scalability potential. At First Tuesday you both learned about how to start an internet company and met the people that could help you to do it successfully.

nPost.com: How have you been expanding internationally?

Susan: In September of 1999, First Tuesday launched in 15 European cities. Given that this was perhaps the peak of Europe's Internet euphoria, it is not surprising that it almost immediately took off in about 12 of those cites in the same way that it originally took off in London.

It showed that there was a tremendous need and desire for a place that a person could go to locally on a regular basis to learn more about the formation and building of an Internet company. For many cities and for many people, First Tuesday played the role of an informal school for New Economy entrepreneurialism.

First Tuesday's management at that time believed that they could build a large international network that could help start-up companies to find funding, to teach skills of running these companies, and to match entrepreneurs to financiers and services providers that they would need to know "to make their businesses successful more rapidly".

Based on Metcalfe's Law that the value of a Network grows exponentially with the number of nodes in the Network-First Tuesday decided to become the largest Network in the world of International Technology Economy Forums. Based on this strategy the company expanded from 1 city in 1 country in August of 1999 to 100 cities in 46 countries with over 150,000 by July of 2000.

nPost.com: First Tuesday initially began as an informal networking group, can you tell us a little about the transition from the early days to today?

Susan: First Tuesday, like any successful company operating in these turbulent times, has had to morph to the needs of the ever-changing marketplace. Up until late 2000 the First Tuesday network of cities devoted itself to helping the world's technology entrepreneurs to find their funding and get their businesses started. We operated a series of focused "match-making" meetings where pre-screened entrepreneurs got a chance to pitch their business plans to pre-screened financiers and we merged with a company that facilitated the rapid funding of seed round companies.

With the changes to how technology companies are being created and funded, First Tuesday has also shifted its emphasis.

We are now focusing on helping all sorts of business innovators-whether they are starting small companies or working within large companies-to grow their business thru the application of technology.

In addition, to the classic First Tuesday event we provide a range of forums that facilitate connectivity with key segments in environments which enhance knowledge transfer, skill development, and business deals, in areas such as training, brain storming and workshops.

nPost.com: What are the key differences between doing a startup in Europe vs. the US?

Susan: The U.S. has a longer tradition of both creating and funding start-up companies. Thus the entrepreneurs and the venture capitalists generally have more experience. They are farther along on the learning curve and hopefully will not be making the same mistakes they did the first time.

Another key difference is one of scale. For a company to be extremely successful in American-it need only capture the American market. For a European company to be extremely successful it needs to be successful in its home country as well as in one or more other countries. This increases the challenges it faces.

nPost.com: What are the key issues facing startups and entrepreneurs today?

Susan: The key opportunity for Start-Ups is in dealing with pos- Bubble trauma. Clearly lots of companies got funded last year that had no business getting funded. Similarly, there are some really good companies today that are not getting funded because of market skepticism brought about by the collapse of so many start-ups. The pendulum of market sentiment is probably swinging too far in the other direction, but its direction is driven at a fundamental level, by the general economy.

nPost.com: Can you also give us a little background on yourself as well? How did you become involved with First Tuesday?

Susan: I had been a banker for almost 20 years, and had recently left to set up my own start-up. Not surprisingly, I found it much more difficult than starting initiatives within UBS. I saw that difficulty as both a barrier for my own business, but also as an opportunity. I was introduced to First Tuesday by a VC in Munich, went to one event, and decided to try it on a local basis in the fall of 1999. We have since become one of the largest by metrics of market penetration, and successful of the local First Tuesday's.

nPost.com: What do you see as the greatest opportunities for First Tuesday?

Susan: First Tuesday is uniquely positioned as the ultimate global network of incredible local depth. Our strongest asset is our global network of entrepreneurial, innovative decision makers, who are constantly exploring and developing new ideas and new ways to apply technology.

nPost.com: And what do you see as the greatest threat facing you right now?

Susan: Executing our plan fast enough and well enough to capture the opportunity we are presented with.

nPost.com: Looking back is there anything you would have done differently?

Susan: Of course, there are numerous things that could have been done differently-there always are. The trick is to not belabor the past but to learn from it as we approach future decisions.

nPost.com: Do you think the dot.com downturn was due to ineffective business models or ineffective execution on those business models?

Susan: Yes, of course. Ineffective business models, ineffective execution, outlandish expectations about the rate at which consumers would change their behavior, and an environment that rewarded focusing more on "eyeballs" and "valuation" than on business fundamentals all contributed to the downturn that we all have experienced.

But rapid technological change is here to stay and real companies will continue to find ways to make real profits from these changes for generations to come. Chapter 1 is over. Let's move on to Chapter 2. As often happens, we have probably over estimated the short term impact of these changes, and underestimated the long term impact.

nPost.com: What are the key things that have led to First Tuesday's success as one of the most recognized Networking Groups in the world?

Susan: The concept consistently attracted dedicated people in city after city that wanted to help their particular city to grow successful businesses locally. It is this dedication of the network of city leaders that made First Tuesday what it is today.

nPost.com: Any words of advice for a would-be entrepreneur, or someone looking to get started in their career?

Susan: This is one of the most exciting times in the history of business. The markets we are in will continue to change rapidly and dramatically throughout the rest of our careers. Given this, the skills of the entrepreneur will be the skills necessary for all organizations-large and small, new and old-to survive and thrive.

nPost.com: What are the key qualities that you look for in co-workers?

Susan: Honesty, optimism, business agility, and sheer intelligence. It also helps if they have a good sense of humor, and don't mind eating lots of pizza.

nPost.com: Any last parting words?

Susan: Technology is changing the world faster than any of us realize making this both one of the most exciting times EVER to be in business and one of the most frightening. The key is that "We ain't seen nothing yet" in terms of the changes but if First Tuesday teaches us anything it teaches us that in these turbulent times it is better to be holding hands with others in our community so as to better enjoy this exciting ride.