Howard
Tullman takes over 1871
November 23, 2013
By John Pletz
Howard Tullman
Howard Tullman,
one of Chicago's best-known and most-successful serial entrepreneurs, is the
new CEO of 1871, the startup hub at the Merchandise Mart that has become the
city's calling card for tech.
Mr. Tullman replaces Kevin Willer, who stepped down in June to become a
partner at Chicago Ventures. Mr. Tullman is taking the job and the accompanying
lead role at the Chicagoland Entrepreneurial Center with the backing of both
Mayor Rahm Emanuel and Gov. Pat Quinn.
The 68-year-old Tullman is a longtime startup adviser and investor who
launched Tribeca Flashpoint Academy — a for-profit digital media school — after
turning around Kendall College by focusing on culinary training. His other
credits include CCC Information Services, Tunes.com and Cobalt Group.
Mr. Tullman has
been a willing to mentor entrepreneurs, but he's also blunt and unflinching in
assessing them. Expect him to move the goalposts both for the tenants at 1871
and for the organization.
“We need to get a
little more rigor in the process” of selecting and evaluating entrepreneurs and
their companies, he told me. “I don't want 500 guys there pretending to be
entrepreneurs. I want to establish some discipline of up or out. This has got
to be about creating value. We've run out the string of being about goodwill,
warm feelings. I want 1871 to be a factory that's going to turn out the best
startups in the country.
“I want to bring
more practicality,” he added. “I want the results to go from 'how much money
did you raise,' to 'how much revenue are you generating?' "
The 50,000-square-foot facility,
which opened in May 2012, is home to 240 entrepreneurs and
startup companies who pay $125 to $400 a month for space on month-to-month
leases. It's also home to accelerator programs TechStars and ImpactEngine, as
well as space for meetings and events, such as talks that have drawn
entrepreneurs such as Sun Microsystems founder Scott McNealy and AOL founder Steve Case.
GAME PLAN
Mr. Tullman
sketched out an ambitious to-do list when we talked yesterday:
• He said Indiegogo, a source of crowdfunding for tech startups that's
based in San Francisco, will open its Midwest office at 1871, and he plans
to add 3D printing facilities.“Nothing is a hotter topic among
entrepreneurs,” he said.
• He'll draw on
his Tribeca Flashpoint roots to add a studio to make videos to help spread the message
about 1871 and Chicago's startups and to help educate a broader audience about
entrepreneurship.
• Expect Mr.
Tullman, who partnered with corporations at both Tribeca Flashpoint and Kendall
College, to do the same at 1871. “These companies will want exposure to the
ideas and potential customers,” he said. “I'm less interested in GE writing a
check than having them being an in-kind partner.”
• Longer term, Mr. Tullman wants to
find space for companies who graduate from 1871 and need more
room but aren't yet ready to go out on their own to lease offices. “One of the
things I'm going to be looking at is whether 1871 2.0 is going to also have
suites that can accommodate five to 15 guys.”
Even though rents in the Mart have
been on the rise since 1871 opened its doors and Motorola Mobility decided to call it home Mr. Tullman
was a longtime resident with Tribeca Flashpoint.
'HOME RUN'
He is a great get
to run 1871, which houses more than 240 individual entrepreneurs and startups.
J.B. Pritzker, managing partner of Pritzker Group Venture Capital and founder
of 1871, called Mr. Tullman's selection “a home run.” “I don't think anyone
imagined we could get someone with the level of talent he brings,” he said.
Mr. Tullman became a candidate
after the Chicagoland Entrepreneurial Center, the not-for-profit that runs
1871, hired search firm Spencer Stuart three months ago.
“Rahm and the
governor both suggested I think about it,” says Mr. Tullman, who is connected
as well in political circles as he is in the tech community. Mr. Emanuel, who
has made tech startups a key focus for City Hall, is a frequent visitor to
1871; and Mr. Quinn provided $2.3 million from the state to help bankroll the
facility.
Jim O'Connor Jr.,
co-chairman of the CEC board and its interim CEO, said Mr. Tullman was one of
four finalists, who included candidates from both coasts. He was the unanimous
choice. “Howard's a great catch,” he said. “Our two main criteria were to find
a proven entrepreneur and a visionary with a track record of execution.”
Mr. Tullman, who
sold majority control of Tribeca Flashpoint a year ago and resigned as chairman
Friday, is uniquely positioned for the role
“I don't regard
this as platform where I can go find my next job,” said Mr. Tullman, who plans
to stay in the job two to three years. “It's a nice opportunity to take this
whole story and facility to next level. The chance to work with all these
companies is pretty exciting.”
Mr. Tullman also runs a venture fund called G2T3V LLC, which invests
in local startups, including several based at 1871. Both he and his new bosses
recognize potential for perceptions of conflict of interest with his new role
but say there are procedures in place at the board level to avoid pitfalls.
“The real bottom
line is the policy of the CEC is one of disclosure,” he said, but defended his
role as an investor. "It helps to put your money where your mouth is. I
want to continue to have the ability to do that.”
Though he doesn't
officially start his job until the first week of January, expect Mr. Tullman to
get an early start and keep going late. He typically gets up around 4 a.m. and
often is on a second meal by the time he holds breakfast meetings with others.
Few things slow him down, even a heart attack. While still in the intensive
care unit a few years ago, Mr. Tullman was firing off emails, a former
associate recalled.
“He's 68 going on
22,” Mr. O'Connor said.
All I can say is,
set your alarm clocks.
