Breaking Things: The Paradox of Building Entrepreneurial Ecosystems

When I started my career as an entrepreneur, I didn’t even know that’s what I was doing. I just wanted to start a business. It was the late 90s—a time of rapid innovation, dot-com booms (and eventual busts), and a sense that technology was changing everything. I wanted to be part of that. What started as curiosity turned into a lifetime calling. Now, four startups and multiple exits later, I’ve failed, succeeded, and most importantly—learned.

Much of my journey has been in and around university startup ecosystems. Over the past two decades, I’ve seen technology entrepreneurship grow from a niche movement into big business, backed by billions of dollars in investment. In 1990, venture capital investment in U.S. startups was a little over $3 billion; in 2024, that number was over $209 billion. The pace of innovation has been equally staggering—U.S. patent applications have nearly doubled in the last 20 years, reflecting the explosion of new ideas and technologies.

Given this momentum, policymakers and institutions have scrambled to encourage more entrepreneurship. First, universities began to organize and centralize their entrepreneurship programs. Then entire communities followed suit, building incubators and accelerators. Now, entire states are developing structures, systems, and even appointing “Chief Innovation Officers” to oversee it all.

As we are seeing in current events, the desire to "move fast and break things" makes most in large government or systems very nervous. The challenge is that successful entrepreneurs move fast and take risks. They don’t always wait for permission, and they often launch before things are fully figured out. Meanwhile, institutions thrive on order, minimize risk, and value consensus. These differences can create friction, but they also present an opportunity to shape ecosystems that enable both structure and speed. The key is designing support systems that empower entrepreneurs without slowing them down.

So how can states, communities, and universities build ecosystems that actually work for entrepreneurs? Here are four ideas:

1. De-Risk Entrepreneurship, Not Startups

Many institutions aim to reduce risk in startups by providing structured oversight and support. While this intention is valuable, a proven approach is to focus on de-risking (not eliminating risk) entrepreneurship itself—making it easier for founders to take the leap.

This means helping entrepreneurs find resources like low-cost space, legal support, or even subsidized housing. Four of the best resources I ever received during my early career were:

• Subsidized interns through Interns for Indiana—early-stage labor I could afford.
• Low-cost lab space at Purdue University—a place to build and experiment.
• Deferred legal expenses from? Russell Cox, Ice Miller, Bose McKinney & Evans—so I could incorporate and file patents without immediate financial strain.
• Streamlined Licensing - from Purdue University and University of Cincinnati, both developed streamlined licensing processes that were transparent and saved time.

These were game-changers. When entrepreneurs are supported at a foundational level, they can focus on navigating the risks of building their tech and companies.

2. Build Networks That Facilitate Connections

When we launched Copient Technologies, all of our co-founders were Purdue staff, and our first investors, legal help, and mentors were all Purdue alumni. We found them through hustle - we once drove all the way to Michigan just to go to a start-up event that had a Purdue alumnus that we wanted to meet.

Large institutions, whether universities or governments, often manage networks of investors, advisors, and mentors. While protecting these networks is understandable, it can inadvertently make it harder for early-stage entrepreneurs to access the right people.

The opportunity lies in fostering environments where these connections happen naturally and quickly. The entrepreneur that waits for introductions is probably not taking enough risks. Rather than acting as matchmakers or gatekeepers—roles that can introduce unnecessary layers of complexity—institutions can create open, dynamic spaces where talent, capital, and mentorship intersect organically. The challenge is to design systems that foster serendipitous interactions while ensuring the environment remains focused on high-value connections for participants.

3. Find Success and Double Down

The best place to learn to be an entrepreneur is in a startup. Looking at Copient Technologies, Arxan Technologies, and even Kylin Therapeutics, I’ve seen around 10 companies founded by individuals who got their early start in these ventures. The same trend holds across Indiana—some of the biggest entrepreneurial successes have come from people who first worked at places like Angie’s List and ExactTarget.

Startups are the best incubators of entrepreneurial talent. The opportunity is to harness this dynamic by keeping the flywheel going—supporting startup employees so they become the next generation of founders. A crucial part of this is paying close attention to exits. When successful startups sell, close, or pivot, how can we ensure that their talent and capital reinvest in the ecosystem? By facilitating soft landings, reintegration programs, or reinvestment incentives, communities can sustain a cycle of entrepreneurial growth that benefits future startups.

4. Empower Faculty-Entrepreneur Collaborations

Universities have made significant progress in streamlining licensing for innovations, and there is an even greater opportunity to foster early-stage collaboration between faculty and business-minded entrepreneurs. By creating more accessible pathways for these partnerships—often before an invention is fully developed—universities can accelerate the transformation of ideas into real-world solutions while cultivating a culture of open innovation.

Increasing the visibility and accessibility of these collaborations can encourage more faculty members to engage in entrepreneurial problem-solving. By fostering a streamlined and transparent process—one that reduces friction without imposing rigid structures—universities and communities can create an environment where innovation flows more naturally, attracting greater participation and investment of time, talent, and funding.

This approach is rooted in The Medici Effect by Frans Johansson, where the intersection of diverse disciplines sparks breakthrough ideas. By facilitating seamless engagement between faculty and entrepreneurs—just as universities have done with licensing—higher education institutions can amplify entrepreneurship and drive meaningful economic impact.

Unleashing the Entrepreneurial Superpower

Entrepreneurs succeed, in part, because of their hustle, grit, and relentless drive to push boundaries. The key to building a thriving ecosystem is to channel that momentum into new opportunities. By amplifying what makes founders excel—their ability to move fast, take risks, and iterate rapidly—ecosystems can create an environment where innovation flourishes.

Support systems should act as a launchpad, reducing friction while empowering access to critical resources, mentorship, and capital. The goal is to cultivate conditions where entrepreneurs can thrive on their own terms, leveraging their natural strengths to drive impactful change. The ecosystems that embrace and empower this entrepreneurial superpower will be the ones that lead the way into the future.