Educating Entrepreneurs

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
3,806
On Slideshare
3,802
From Embeds
4
Number of Embeds
1

Actions

Shares
Downloads
205
Comments
0
Likes
4

Embeds 4

http://www.slideshare.net 4

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Educating Entrepreneurs Who? What? Why? Steve Blank Stanford Technology Ventures Program
  • 2. News From Silicon Valley Angels & TechStars Incubators Y-Combinator ($0-10M) Maples Investments Seed Funds SoftTech (Clavier) ($10-50M) SV Angel (Conway) Felicis (Senkut) First Round Capital Small VC Funds Union Square Ventures ($50-250M) Sequoia Benchmark Traditional VC Funds (>$250M) Source: Dave McClure 500hats.com
  • 3. News From Silicon Valley Angels & Incubators ($0-10M) Innovation is Seed Funds happening here ($10-50M) Small VC Funds ($50-250M) Traditional VC Funds (>$250M) Source: Dave McClure 500hats.com
  • 4. News From Silicon Valley •  Internet startups - $500K is the new $5M –  Driven by the top of the pyramid •  Seed Funds providing entrepreneurial education –  Ycombinator, TechStars, SeedCamp, LaunchBox, etc •  Customer Development/Lean Startup adoption –  Methodology to test hypothesis and business model
  • 5. Some Definitions
  • 6. Small  Business  Startups   Startup   Small  Business  
  • 7. Small  Business  Startups   Startup   Small  Business   - Business Model found - Profitable business -  Existing team < $10M in revenue
  • 8. Small  Business  Startups   Startup   Small  Business   - Business Model found - Profitable business -  Existing team < $10M in revenue •  5.7 million small businesses in the U.S. <500 employees •  They employ 99.5% of our workforce
  • 9. Scalable  Startup   Scalable   Large   Startup   Company   >$100M/year  
  • 10. Scalable  Startup   Scalable   Large   Startup   Company   >$100M/year   -  Total Available Market > $500m -  Company can grow to $100m/year -  Known business model -  Focused on execution and process
  • 11. Scalable  Startup   Scalable   Large   Startup   Company   >$100M/year   -  Total Available Market > $500m -  Company can grow to $100m/year -  Known business model -  Focused on execution and process •  In contrast a scalable startup is designed to grow big •  It typically needs risk capital •  These are what Silicon Valley means when they say “Startup”
  • 12. Very  Different  Startup  Curriculums     Startup   Small  Business   - Business Model found - Profitable business -  Existing team < $10M Scalable   Large   Startup   Company   >$100M/year   -  Total Available Market > $500m -  Company can grow to $100m/year -  Known business model -  Focused on execution and process
  • 13. Silicon  Valley  Startup  Curriculum   X X X Startup   Small  Business   - Business Model found - Profitable business -  Existing team < $10M Scalable   Large   Startup   Company   >$100M/year   -  Total Available Market > $500m -  Company can grow to $100m/year -  Known business model -  Focused on execution and process
  • 14. The  Transi0on   Scalable   Large   Transi9on   Startup   Company   -  Founders depart -  Professional Mgmt -  Process -  Beginning of scale
  • 15. Startups  Search,  Companies  Execute   The Search for the Business Model The Execution of the Business Model Scalable   Large   Transi<on   Startup   Company   -  Business Model found - Cash-flow breakeven -  Product/Market fit - Profitable - Repeatable sales model - Rapid scale - Managers hired - New Senior Mgmt ~ 150 people
  • 16. E-School instead of B-School
  • 17. What’s  A  Startup?   Scalable   Large   Transi<on   Startup   Company   -  Business Model found -  Product/Market fit - Repeatable sales model - Managers hired A Startup is the organization used to search for a scalable business model
  • 18. Teach the Business Model Not the Plan •  No Business Plan survives first contact with customers •  A Business Model diagrams how a company creates, delivers and captures value •  Or in English: How a company makes money
  • 19. Emphasis On Hypotheses Testing
  • 20. How Do Startups Search For A Business Model? •  The Search is called Customer Development •  The Implementation is called Agile Development
  • 21. Startups  Don’t  Last  Forever   Scalable   Large   Transi<on   Startup   Company   -  Business Model found - Cash-flow breakeven -  Product/Market fit - Profitable - Repeatable sales model - Rapid scale - Managers hired - New Senior Mgmt ~ 150 people You fail if you remain a startup!
  • 22. Durant  Versus  Sloan   Scalable   Large   Transi<on   Startup   Company  
  • 23. Entrepreneurship  School   Entrepreneurship School Scalable   Large   Transi<on   Startup   Company   -  Hypothesis testing -  Business Model testing -  Customer Development -  Agile Development -  Metrics -  Venture Finance -  Hands-on
  • 24. Business  School  Versus   Entrepreneurship  School   Entrepreneurship School Business School Scalable   Large   Transi<on   Startup   Company   -  Hypothesis testing -  Execution -  Business Model testing -  Accounting -  Customer Development -  Products -  Agile Development -  Engineering -  Metrics -  Management -  Venture Finance -  Administrative -  Hands-on
  • 25. Business  School  Versus   Entrepreneurship  School   Entrepreneurship School Business School Scalable   Large   Transi<on   Startup   Company   Courses Courses -  Entrepreneurial Management -  Managerial Finance/Accounting -  Creativity and Innovation -  Managing Groups and Teams -  Technology Entrepreneurship -  Financial Accounting -  Patent Law for Entrepreneurs -  Operations -  Global Entrepreneurial Marketing -  Modeling for Optimization -  Entrepreneurial Finance -  Global Value Chain Strategies