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Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
Educating Entrepreneurs. Who?  What? Why?
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Educating Entrepreneurs. Who? What? Why?

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

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