The document discusses the differences between entrepreneurship education and traditional business school education. It notes that entrepreneurship education focuses on topics like hypothesis testing, customer development, business model testing, and agile development to help students search for a scalable business model. In contrast, business school education emphasizes execution, accounting, management, and administrative skills needed to operate large companies. The goal of entrepreneurship education is to teach students how to transition a startup into a large company through validating a business model and product/market fit.
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
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
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
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
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!
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