Startups are not smaller versions of large companies, but interestingly we also see that companies are not larger versions of startups. I’ve been spending some time with large companies that are interested in using “Lean Startup” methods. One of the conundrums is why does innovation take so long to happen in corporations? Previously Hank Chesbrough … Continue reading “Driving Corporate Innovation: Design Thinking vs. Customer Development”
Author: Steve Blank
The Path of Our Lives
“Some men see things as they are and say, why; I dream things that never were and say, why not?” —George Bernard Shaw (paraphrased by Ted Kennedy) I got a call that reminded me that most people live their life as if it’s predestined—but some live theirs fighting to change it. At 19 I joined … Continue reading “The Path of Our Lives”
Trust but Verify: When Customer Feedback is Not Enough
[Editor’s Note: If you’re following the methodology laid out by startup strategy guru and Xconomist Steve Blank, you have begun with a hypothesis about a customer need or problem. Then you develop a “mininum viable product” (MVP), a prototype with the smallest possible feature set that still shows potential customers how your idea can help … Continue reading “Trust but Verify: When Customer Feedback is Not Enough”
Keep Calm and Test the Hypothesis
[Editor’s Note: On June 2 we published a video from startup strategy guru Steve Blank on The Real Meaning of “Minimum Viable Product.” A proper MVP, Blank argued in that video, is a prototype with the smallest possible feature set that still shows potential customers how your idea can help them. Once you have an MVP, … Continue reading “Keep Calm and Test the Hypothesis”
Why Lean May Save Your Life: The I-Corps at NIH
Today the National Institutes of Health announced they are offering my Lean LaunchPad class (I-Corps @ NIH ) to commercialize Life Science. There may come a day that one of these teams makes a drug, diagnostic or medical device that saves your life. —- Over the last two and a half years the National Science … Continue reading “Why Lean May Save Your Life: The I-Corps at NIH”
The Real Meaning of “Minimum Viable Product”
[Editor’s Note: In today’s tech startup culture, it’s widely understood that it’s smarter to build a “minimum viable product” or MVP and get it to market quickly than to labor behind closed doors for years on an elaborate and feature-rich product that, in the end, nobody might really want. But what if the MVP turns … Continue reading “The Real Meaning of “Minimum Viable Product””
Corporate Acquisitions of Startups: Why Do They Fail?
For decades large companies have gone shopping in Silicon Valley for startups. Lately the pressure of continuous disruption has forced them to step up the pace. More often than not the results of these acquisitions are disappointing. What can companies learn from others’ failed efforts to integrate startups into large companies? The answer – there … Continue reading “Corporate Acquisitions of Startups: Why Do They Fail?”
Get the Heck Out of the Building in Founder’s School: Part 2
With a ~$2 billion endowment the Kauffman Foundation is the largest non-profit focused on entrepreneurship in the world. Giving away $80 million to every year (~$25 million to entrepreneurial causes) makes Kauffman the dominant player in the entrepreneurship space. Kauffman launched Founders School – a new education series to help entrepreneurs develop their businesses during … Continue reading “Get the Heck Out of the Building in Founder’s School: Part 2”
Why Companies Are Not Startups
In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. There’s been lots written about how companies need to be more innovative, but very little on what stops them from doing so. Companies looking to … Continue reading “Why Companies Are Not Startups”
How to Tell When a Startup Is Ready for Investment
Since 2005 startup accelerators have provided cohorts of startups with mentoring, pitch practice, and product focus. However, accelerator Demo Days are a combination of graduation ceremony and pitch contest, with the uncomfortable feel of a swimsuit competition. Other than “I’ll know it when I see it”, there’s no formal way for an investor attending Demo … Continue reading “How to Tell When a Startup Is Ready for Investment”
This Ain’t Like Dusting Crops, Boy. Oh, Wait…Actually, It Is.
Awhile back I blogged about Ashwin, one of my ex-students wanted to raise a seed round to build Unmanned Aerial Vehicles (drones) with a hyper-spectral camera and fly it over farm fields collecting hyper-spectral images. These images, when processed with his company’s proprietary algorithms, would be able to tell farmers how healthy their plants were, … Continue reading “This Ain’t Like Dusting Crops, Boy. Oh, Wait…Actually, It Is.”
Flipping the Flipped Classroom
Two of the hot topics in education in the last few years have been Massive Open Online Courses (MOOC’s) and the flipped classroom. I’ve been experimenting with both of them. What I’ve learned (besides being able to use the word “pedagogy” in a sentence) is 1) assigning students lectures as homework doesn’t guarantee the students … Continue reading “Flipping the Flipped Classroom”
Sometimes It Pays to Be A Jerk
The concepts in my Lean LaunchPad curriculum can be taught in a variety of classes–as an introduction to entrepreneurship all the way to a graduate level “capstone class.” I recently learned being tough when you select teams for a capstone class pays off for all involved. Here’s why. Our Lean LaunchPad class requires student teams … Continue reading “Sometimes It Pays to Be A Jerk”
Time for Founders School
Having a film crew in your living room for two days is something you want to put on your bucket list. With a ~$2 billion endowment the Kauffman Foundation is the largest non-profit focused on entrepreneurship in the world. Giving away $75 -100 million to entrepreneurial causes every year makes Kauffman the dominant player in … Continue reading “Time for Founders School”
Do Pivots Matter?
In late 2013 Cowboy Ventures did an analysis of U.S.-based tech companies started in the last 10 years, now valued at $1 billion. They found 39 of these companies. They called them the “Unicorn Club.” The article summarized 10 key learnings from the Unicorn club. Surprisingly, one of the “learnings” said that “the “big pivot” … Continue reading “Do Pivots Matter?”
How Do You Want to Spend the Next Four Years of Your Life?
As our Lean LaunchPad for Life Sciences class winds down, a good number of the 26 teams are trying to figure out whether they should go forward to turn their class project into a business. Given that we’ve been emphasizing evidence-based entrepreneurship and the Investment Readiness Level, I guess I shouldn’t have been surprised when … Continue reading “How Do You Want to Spend the Next Four Years of Your Life?”
It’s Time to Play Moneyball: The Investment Readiness Level
Investors sitting through Incubator or Accelerator demo days have three metrics to judge fledgling startups – 1) great looking product demos, 2) compelling PowerPoint slides, and 3) a world-class team. We think we can do better. We now have the tools, technology and data to take incubators and accelerators to the next level. Teams can … Continue reading “It’s Time to Play Moneyball: The Investment Readiness Level”
A 21st-Century Bill of Consumer Product Rights
Among the great innovations of the 21st century are products that are cloud-connected and update and improve automatically. For software, gone are the days of having to buy a new version of physical media (disks or CDs). For hardware it’s the magical ability to have a product get better over time as new features are … Continue reading “A 21st-Century Bill of Consumer Product Rights”
300 I-Corps Teams in Two Years
This is the start of the third year teaching teams of scientists (professors and their graduate students) in the National Science Foundation Innovation Corps (I-Corps). This month we’ve crossed ~300 teams in the first two years through the program. I-Corps is the accelerator that helps scientists bridge the commercialization gap between their research in their … Continue reading “300 I-Corps Teams in Two Years”
Building Great Founding Teams
There’s been a lot written about the individual characteristics of what makes a great founder, but a lot less about what makes a great founding team and how that’s different from a great founding CEO. I think we’ve been imprecise in defining three different roles. In doing so we’ve failed to help founders understand what … Continue reading “Building Great Founding Teams”
An MVP Is Not a Cheaper Product—It’s About Smart Learning
A minimum viable product (MVP) is not always a smaller/cheaper version of your final product. Defining the goal for an MVP can save you tons of time, money and grief. Drones over the Heartland I ran into a small startup at Stanford who wants to fly unmanned aerial vehicles (drones) with a hyper-spectral camera over … Continue reading “An MVP Is Not a Cheaper Product—It’s About Smart Learning”
Don’t Give Away Your Board Seats
I had a group of ex-students out to the ranch who were puzzling over a dilemma—they’ve been working hard on their startup, were close at finding product/market fit and had been approached by Oren, a potential angel investor. Oren had been investing since he left Google four years ago and was insisting on not only … Continue reading “Don’t Give Away Your Board Seats”
Strangling Innovation: Tesla vs. “Rent Seekers”
The greatest number of jobs is created when startups create a new market—one where the product or service never existed before or is radically more convenient. Yet this is where startups will run into anti-innovation opponents they may not expect. These opponents have their own name—“rent seekers”—the landlords of the status-quo. Smart startups prepare to … Continue reading “Strangling Innovation: Tesla vs. “Rent Seekers””
The Lean LaunchPad Educators Class
The Lean LaunchPad entrepreneurship curriculum has caught fire. This week 100 educators from around the world will come to Stanford to learn how to teach it. Life is full of unintended consequences. Ten years ago I started thinking about why startups are different from existing companies. I wondered if business plans and 5-year forecasts were … Continue reading “The Lean LaunchPad Educators Class”
Fundraising Is a Means, Not an End
For many entrepreneurs “raising money” has replaced “building a sustainable business” as their goal. That’s a big mistake. When you take money from investors their business model becomes yours. One of my ex students came out to the ranch to give me an update on his startup. When I asked, “What are you working on?” … Continue reading “Fundraising Is a Means, Not an End”
Founders and CEOs: You Can’t Outsource Learning
In a startup instead of paying consultants to tell you what they learned you want to pay them to teach you how to learn. Roominate, one of my favorite Lean LaunchPad teams came out to the ranch last week for a strategy session. Alice and Bettina had taken an idea they had tested in the … Continue reading “Founders and CEOs: You Can’t Outsource Learning”
Make Cyber Security Training Mandatory
The online world can be a dangerous place for the unprepared. And it’s just going to get worse. It’s time to teach cyber security as integral part of the high school and college curriculum and to all corporate employees. I grew up in New York City and for a few years heaven on earth for … Continue reading “Make Cyber Security Training Mandatory”
When Hell Froze Over—in the Harvard Business Review
In my 21 years as an entrepreneur, I would come up for air once a month to religiously read the Harvard Business Review. It was not only my secret weapon in thinking about new startup strategies, it also gave me a view of the management issues my customers were dealing with. Through HBR I discovered … Continue reading “When Hell Froze Over—in the Harvard Business Review”
Failure and Redemption
What’s gone and what’s past help Should be past grief. —William Shakespeare – The Winter’s Tale We give abundant advice to founders about how to make startups succeed, yet we offer few models about dealing with failure. So here’s mine. ——– In my experience, living through failure has 6 stages: Stage 1: Shock and Surprise … Continue reading “Failure and Redemption”
Crazy Enough to Change the World
Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow … Continue reading “Crazy Enough to Change the World”
Qualcomm’s Corporate Entrepreneurship Program—Lessons Learned
I ran into Ricardo Dos Santos and his amazing Qualcomm Venture Fest a few years ago and was astonished with its breath and depth. From that day on, when I got asked about which corporate innovation program had the best process for idea selection, I started my list with Qualcomm. This is part 2 of … Continue reading “Qualcomm’s Corporate Entrepreneurship Program—Lessons Learned”
Designing Qualcomm’s Corporate Entrepreneurship Program
I ran into Ricardo Dos Santos and his amazing Qualcomm Venture Fest a few years ago and was astonished with its breath and depth. From that day on, when I got asked about which corporate innovation program had the best process for idea selection, I started my list with Qualcomm. This is Ricardo’s “post mortem” … Continue reading “Designing Qualcomm’s Corporate Entrepreneurship Program”
Developing a 21st Century Entrepreneurship Curriculum
In 2012, in partnership with Stanford University, U.C. Berkeley and NCIIA, Jerry Engel and I first offered the Lean LaunchPad Educators Class. The class was designed to teach educators (and the entrepreneurs that support them) the Lean LaunchPad approach (Business Model Design, Customer Development and Agile Engineering) for teaching entrepreneurship. In addition the class offers … Continue reading “Developing a 21st Century Entrepreneurship Curriculum”
Open Source Entrepreneurship
One of the great things about being a retired entrepreneur is that I get to give back to the community that helped me. I assembled this collection of free and almost free tools, class syllabi, presentations, books, lectures, videos in the hope that it can make your path as an entrepreneur or educator easier. Free: … Continue reading “Open Source Entrepreneurship”
Entrepreneurs As Dissidents
Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t … Continue reading “Entrepreneurs As Dissidents”
Vision or Hallucination? Founders and Pivots
A founder’s skill is knowing how to recognize new patterns and to pivot on a dime. At times the pattern is noise, and the vision turns out to be a hallucination. Knowing how to sort between vision and hallucination can avoid chaos inside your startup. ——— Yuri, one of my ex students, started a big-data … Continue reading “Vision or Hallucination? Founders and Pivots”
The Forlorn Server; or, Don’t Mistake Unrequited Love for an Actual Deal
If there’s only one passionate party in a relationship it’s unrequited love. Here’s how I learned it the hard way. The Dartmouth Football Team After Rocket Science I took some time off and consulted for the very VCs who lost lots of money on the company. The VCs suggested I should spend a day at … Continue reading “The Forlorn Server; or, Don’t Mistake Unrequited Love for an Actual Deal”
Why Facebook Is Killing Silicon Valley
We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are … Continue reading “Why Facebook Is Killing Silicon Valley”
How Innovation Dies
Faced with disruptive innovation, you can be sure any possibility for innovation dies when a company forms a committee for an “overarching strategy.” I was reminded how innovation dies when the e-mail below arrived in my inbox. It was well written, thoughtful, and had a clearly articulated sense of purpose. You may have seen one … Continue reading “How Innovation Dies”
How to Build a Billion-Dollar Startup
The quickest way to create a billion dollar company is to take basic human social needs and figure out how to mediate them online. Look at the first wave of the Web/mobile/cloud startups that have done just that: Facebook, Twitter, Instagram, Match.com, Pandora, Zynga, WordPress, LinkedIn. It’s your turn. Hard-Wired This week I’m in New … Continue reading “How to Build a Billion-Dollar Startup”
Killing Your Startup By Listening to Customers
The art of entrepreneurship and the science of Customer Development is not just getting out of the building and listening to prospective customers. It’s understanding who to listen to and why. Five Cups of Coffee I got a call from Satish, one of my ex-students, last week. He got my attention when he said, “Following … Continue reading “Killing Your Startup By Listening to Customers”
The Startup Team
Individuals play the game, but teams beat the odds. —SEAL team saying Over the last 40 years technology investors have learned that the success of a startup is not just about the technology, “it’s about the team.” We spent a year screwing it up in our Lean LaunchPad classes until we figured out it was … Continue reading “The Startup Team”
You’ll Be Dead Soon-Carpe Diem
Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything—all external expectations, all pride, all fear of embarrassment or failure—these things just fall away in the face of death, leaving only what is truly important. —Steve Jobs Watching an … Continue reading “You’ll Be Dead Soon-Carpe Diem”
Steel in Their Eyes—Why VCs should be Startup CEOs
A man who carries a cat by the tail learns something he can learn in no other way. —Mark Twain Venture capitalists who are serious about turning their firms into more than one-fund wonders may want to have their associates actually start and run a company for a year. Running a company is distinctly different … Continue reading “Steel in Their Eyes—Why VCs should be Startup CEOs”
How the iPhone Got Tail Fins—Part 2 of 2
Read part 1 of this post for background. By the early 1920s General Motors realized that Ford, which was now selling the Model T for $290, had an unbeatable monopoly on low-cost automobile manufacturing. Other manufacturers had experimented with selling cars based on an image and brand. (The most notable was an ad by the … Continue reading “How the iPhone Got Tail Fins—Part 2 of 2”
How the iPhone Got Tail Fins—Part 1 of 2
It was the most advanced consumer product of the century. The industry started with its innovators located in different cities over a wide region. But within 20 years it would be concentrated in a single entrepreneurial startup cluster. At first it was a craft business, then it was driven by relentless technology innovation and then … Continue reading “How the iPhone Got Tail Fins—Part 1 of 2”
How to Build a Web Startup: Lean LaunchPad Edition
As part of our Lean LaunchPad classes at Stanford, Berkeley, Columbia and for the National Science Foundation, students build a startup in 8 weeks using Business Model Design + Customer Development. One of the problems they run into is building a website. If you’re an experienced coder and user interface designer you think nothing is … Continue reading “How to Build a Web Startup: Lean LaunchPad Edition”
Silicon Valley’s Pay-It-Forward Culture
Foreign visitors to Silicon Valley continually mention how willing we are to help, network and connect strangers. We take it so for granted we never even to bother to talk about it. It’s the “Pay-It-Forward” culture. The Chips are Down in 1962 Walker’s Wagon Wheel Bar/Restaurant in Mountain View became the lunch hangout for employees … Continue reading “Silicon Valley’s Pay-It-Forward Culture”
Why Governments Don’t Get Startups–Or, Why There’s Only One Silicon Valley
Not understanding and agreeing what “entrepreneur” and “startup” mean can sink an entire country’s entrepreneurial ecosystem. I’m getting ready to go overseas to teach, and I’ve spent the last week reviewing several countries’ ambitious attempts to kick-start entrepreneurship. After poring through stacks of reports, white papers and position papers, I’ve come to a couple of … Continue reading “Why Governments Don’t Get Startups–Or, Why There’s Only One Silicon Valley”
The Startup Genome Compass
What makes startups succeed or fail? More than 90 percent of startups fail, due primarily to self-destruction rather than competition. For the less than 10 percent of startups that do succeed, most encounter several near death experiences along the way. Simply put, while we now have some good theory, we just are not very good … Continue reading “The Startup Genome Compass”