Startups and Public Policy<br />Steve Blank<br />www.steveblank.com<br />Twitter: sgblank<br />Slides: www.slideshare.net/...
Corporate Lifecycle, Innovation, Startups, Founders, Ecosystem<br />
Corporate Lifecycle, Innovation, Startups, Founders, Ecosystem<br />Why Should I Care?<br />
Why Start New Companies in Finland?<br />
Because Old Ones Die<br />
Corporate Lifecyclesare Getting Shorter<br />
Disruption<br />Technology, Globalization, Regulation, Consumer Taste<br />
Disruption<br />Technology, Globalization, Regulation, Consumer Taste, Competition, etc.<br />
Job Growth From Existing Companies will decline <br />
Job Growth Will Come From New Companies<br />
Job Growth Will Come From New Companies<br />Startups<br />
First -What’s A Startup?<br />Six Types of Startups<br />
Startup<br />Lifestyle Startups Work to Live their Passion<br /><ul><li>Serve known customer with known product
Get paid for their passion</li></li></ul><li>Small Business<br />Startup<br />Small Business StartupsWork to Feed the Fami...
Feed the family</li></li></ul><li>Small Business<br />Startup<br />Exit Criteria<br /><ul><li> Business Model found</li></...
Feed the family</li></li></ul><li>Scalable<br />Startup<br />Large Company<br />Scalable StartupBorn to Be Big<br />Search...
Execute<br />Search<br />Scalable<br />Startup<br />Large Company<br />Exit Criteria<br /><ul><li> Business model found
 Total Available Market > €300m
 Can grow to €50/year</li></ul>Scalable StartupBorn to Be Big<br />
Scalable<br />Startup<br />Large Company<br />Scalable StartupBorn to Be Big<br />Execute<br />Search<br /><ul><li> A scal...
Needs “Risk capital”
What Silicon Valley means when they say “Startup”</li></li></ul><li>Buyable StartupBorn to Be Sold<br />Search<br />Sell<b...
Buyable Startup<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to e0M Acquisition<br />Goal is to solve for:<br ...
Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Innovation<br />Transition<br />Scalable<br />Sta...
Known product feature needs</li></li></ul><li>Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Inn...
Partner
Acquire</li></ul>- IP- Talent<br />      - Product<br />      - Customers<br />      - Business<br />
Large Company Disruptive Innovation<br />New Division<br />Large Company<br />Transition<br />Disruptive Innovation<br /><...
New tech, customers, channels</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Large Company<b...
Partner
Acquire</li></ul>- IP- Talent<br />      - Product<br />      - Customers<br />      - Business<br />
Large Non-Profit<br />Social Startup<br />Social Entrepreneurship Startups<br /><ul><li>Solve pressing social problems
Social Enterprise: Profitable
Social Innovation: New Strategies</li></li></ul><li>Each of these startups require different skills<br />They Can Not Be T...
Each of these startups require different Government Policies<br />They Can Not Be Built the Same Way<br />
Scalable Startups Will Provide the Highest Job Growth<br />
Scalable Startups Will Provide the Highest Job Growth<br />They Require an Ecosystem You Do Not Have<br />
Entrepreneurs<br />Scalable Startup Ecosystem<br /><ul><li> Take risk
No funding
 Building product
 Thinking through business model</li></li></ul><li>Entrepreneurs<br /><ul><li> skills training
 mentoring = experience
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Startups and public policy 090811

  1. Startups and Public Policy<br />Steve Blank<br />www.steveblank.com<br />Twitter: sgblank<br />Slides: www.slideshare.net/sblank<br />
  2. Corporate Lifecycle, Innovation, Startups, Founders, Ecosystem<br />
  3. Corporate Lifecycle, Innovation, Startups, Founders, Ecosystem<br />Why Should I Care?<br />
  4. Why Start New Companies in Finland?<br />
  5. Because Old Ones Die<br />
  6. Corporate Lifecyclesare Getting Shorter<br />
  7. Disruption<br />Technology, Globalization, Regulation, Consumer Taste<br />
  8. Disruption<br />Technology, Globalization, Regulation, Consumer Taste, Competition, etc.<br />
  9. Job Growth From Existing Companies will decline <br />
  10. Job Growth Will Come From New Companies<br />
  11. Job Growth Will Come From New Companies<br />Startups<br />
  12. First -What’s A Startup?<br />Six Types of Startups<br />
  13. Startup<br />Lifestyle Startups Work to Live their Passion<br /><ul><li>Serve known customer with known product
  14. Get paid for their passion</li></li></ul><li>Small Business<br />Startup<br />Small Business StartupsWork to Feed the Family<br /><ul><li>Serve known customer with known product
  15. Feed the family</li></li></ul><li>Small Business<br />Startup<br />Exit Criteria<br /><ul><li> Business Model found</li></ul>- Profitable business<br /><ul><li> Existing team</li></ul>< €100K in revenue<br />Small Business StartupsWork to Feed the Family<br /><ul><li>known customer known product
  16. Feed the family</li></li></ul><li>Scalable<br />Startup<br />Large Company<br />Scalable StartupBorn to Be Big<br />Search<br />Goal is to solve for:<br /> unknown customer and unknown features <br />
  17. Execute<br />Search<br />Scalable<br />Startup<br />Large Company<br />Exit Criteria<br /><ul><li> Business model found
  18. Total Available Market > €300m
  19. Can grow to €50/year</li></ul>Scalable StartupBorn to Be Big<br />
  20. Scalable<br />Startup<br />Large Company<br />Scalable StartupBorn to Be Big<br />Execute<br />Search<br /><ul><li> A scalable startup is designed to grow big
  21. Needs “Risk capital”
  22. What Silicon Valley means when they say “Startup”</li></li></ul><li>Buyable StartupBorn to Be Sold<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to 30M Acquisition<br />Goal is to solve for:<br /> Internet, Mobile, Gaming Apps<br />
  23. Buyable Startup<br />Search<br />Sell<br />Scalable<br />Startup<br />€3 to e0M Acquisition<br />Goal is to solve for:<br /> Internet and Mobile Apps<br />Sell to larger company<br />
  24. Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Innovation<br />Transition<br />Scalable<br />Startup<br />Large Company<br /><ul><li> Existing Market / Known customer
  25. Known product feature needs</li></li></ul><li>Large Company Sustaining InnovationInnovate or Evaporate<br />Sustaining Innovation<br />Transition<br />Scalable<br />Startup<br />Large Company<br /><ul><li>Build
  26. Partner
  27. Acquire</li></ul>- IP- Talent<br /> - Product<br /> - Customers<br /> - Business<br />
  28. Large Company Disruptive Innovation<br />New Division<br />Large Company<br />Transition<br />Disruptive Innovation<br /><ul><li>New Market
  29. New tech, customers, channels</li></li></ul><li>Large Company Disruptive Innovation<br />New Division<br />Large Company<br />Transition<br />Disruptive Innovation<br /><ul><li>Build
  30. Partner
  31. Acquire</li></ul>- IP- Talent<br /> - Product<br /> - Customers<br /> - Business<br />
  32. Large Non-Profit<br />Social Startup<br />Social Entrepreneurship Startups<br /><ul><li>Solve pressing social problems
  33. Social Enterprise: Profitable
  34. Social Innovation: New Strategies</li></li></ul><li>Each of these startups require different skills<br />They Can Not Be Taught the Same Way<br />
  35. Each of these startups require different Government Policies<br />They Can Not Be Built the Same Way<br />
  36. Scalable Startups Will Provide the Highest Job Growth<br />
  37. Scalable Startups Will Provide the Highest Job Growth<br />They Require an Ecosystem You Do Not Have<br />
  38. Entrepreneurs<br />Scalable Startup Ecosystem<br /><ul><li> Take risk
  39. No funding
  40. Building product
  41. Thinking through business model</li></li></ul><li>Entrepreneurs<br /><ul><li> skills training
  42. mentoring = experience
  43. networking
  44. shared office
  45. small funding ~ €30K
  46. limited time ~ 6 months</li></ul>Incubators<br />Scalable Startup Ecosystem<br />
  47. Angel Funds<br />Entrepreneurs<br /><ul><li> it’s now a company
  48. searching for a business model
  49. limited funding ~ €300K
  50. mentoring</li></ul>Incubators<br />Scalable Startup Ecosystem<br />
  51. Venture Capital Funds<br />Entrepreneurs<br />Incubators<br />Scalable Startup Ecosystem<br /><ul><li> Large funding > €2000K
  52. Found a business Model
  53. Scale
  54. Multiple rounds of money
  55. Startup Experience outside of Finland</li></li></ul><li><ul><li> Current policies in:
  56. Capital Gains
  57. Immigration
  58. Cultural view of Risk and Failure</li></ul>All actively discourage Scalable Startups<br />Scalable Startup Ecosystem<br />
  59. Each of These Steps Must Require Risk<br />
  60. Each of These Steps Must Require Risk<br />For the Entrepreneur and For the Investor<br />
  61. Public Funding of Private Capital Does Not Work<br />
  62. Public Funding of Private Capital Does Not Work<br />Each Party Needs to Have Equal Risk<br />
  63. The Goal of Public Funding Should be to Create a Private Capital Ecosystem<br />
  64. The Goal of Public Funding Should be to Create a Private Capital Ecosystem<br />Fund and attract experienced Incubators & Venture Capital<br />
  65. And Put Yourself Out of Business<br />
  66. Thank You<br />

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