Steve Blank

JUNE 11, 2013

For many entrepreneurs “raising money” has replaced “building a sustainable business” as their goal. When you take money from investors their business model becomes yours. Just as a reminder, a startup is a temporary organization designed to search for a repeatable and scalable business model.

Venture Capital 226

Venture Capital IRR Liquidity Event Business Model 226

Startup Professionals Musings

AUGUST 7, 2015

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. In reality, they need a separate pitch about the business, carrying over only a slide or two about the solution. Remember, investors are buying into the business, not the product.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Steve Blank

JULY 19, 2010

I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. The customary vesting model has founders vest their stock over 4-years , and when the founding CEO gets in over their head the VC’s bring in professional management. Where’s My Liquidity Event.

Vesting 261

Vesting Liquidity Event Venture Capital Founder Vesting 261

Steve Blank

JULY 2, 2009

Entrepreneur-in-Residence After SuperMac I had been approached by one of our venture investors to be an entrepreneur in residence (EIR), a Silicon Valley phrase which says one thing but means another. I offered to introduce him to the firm whose Entrepreneur-in-Residence offer I had just accepted.

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

Startup Professionals Musings

AUGUST 13, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. For a family business, don’t project an exit. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. How does your business model make money? What are your forecasts for revenue, expenses and cash flow?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. The reward for doing so was a liquidity event via an Initial Public Offering. For VC’s and entrepreneurs the gold rush to liquidity was on.

Internet 334

Internet IPO Silicon Valley Agile 334

Startup Professionals Musings

MAY 13, 2011

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. For a family business, don’t project an exit. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Both Sides of the Table

MARCH 3, 2013

But while universities are developing online content they are not fundamentally disrupting leaning because the method of delivery is not a new business model. We talked about how business school historically hasn’t positioned entrepreneurs well for success. ” No royalty paid until there is revenue.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Gust

AUGUST 5, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. For a family business, don’t project an exit. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 22, 2010

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. For a family business, don’t project an exit. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Berkonomics

AUGUST 27, 2015

He has written numerous books and articles for entrepreneurs and investors, and was the publisher and editor-in-chief of Venture Magazine. Mr. Lipped addresses the issue of exits, and whether entrepreneurs should take the long view or cash out quickly when the opportunity arises. By Arthur Lipper.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48