Steve Blank

JUNE 8, 2009

In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customer development would be useful. would look in each of the verticals. Product Development – How do you engineer it? Others you need to know when you execute the plan.

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Vertical Silicon Valley RSS Marketing 123

Steve Blank

JUNE 3, 2009

Simulation to Reduce Invention Risk If you’re in a vertical where “invention risk” is dominant, then you want to do everything you can to manage and reduce those risks. When I wrote the Four Steps to the Epiphany , the Customer Development text, I hadn’t yet thought about what vertical markets it might be appropriate for.)

Vertical 130

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Steve Blank

JUNE 25, 2009

Their engineering teams didn’t have the expertise using off-the-shelf microprocessors (back then “real” computer companies designed their own instruction sets and operating systems.) Their engineers hated us. Engineers as Salesmen I thought (and still do) that this sales guy walked on water.

Technology 139

Technology Silicon Valley Fractional VPE Part-Time VPE 139

Both Sides of the Table

JUNE 18, 2010

To see the video of This Week in VC click on this link. What a pleasure that I got to spend an hour talking with both Om Malik (whom I’ve always respected his views) and Paul Jozefak , a venture capital partner at Neuhaus Partners in Germany (and formerly the head of Europe for SAP Ventures).

Venture Capital 225

Venture Capital Non-Compete Vertical Europe 225

Steve Blank

AUGUST 31, 2009

Yet startup companies have traditionally used this model to manage and pace not only engineering but also non-engineering activities. The flaw in this thinking is that “first customer ship&# is simply the date when engineering thinks they “finished” the 1.0 release of the product. Blog at WordPress.com.

Customer Development 241

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Steve Blank

APRIL 27, 2009

This post makes a lot more sense if you look at the earlier posts as well as the video and slides. My office is in the Terman Engineering Building. My office is in the Terman Engineering Building. Apparently, the Office of Scientific Research thought that Stanford’s engineering department was second rate.)

Silicon Valley 185

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ReadWriteStart

JANUARY 6, 2011

In fact, in the discussion on JuJu brands is yet another validation of the verticalization and niche-ization of the Internet. This week, I published an article called The Top 10 Vertical and Social Web Trends where I have discussed this at length. Photo by yirsh. Discuss.

Vertical 115

Vertical Web San Francisco Entrepreneur 115

Steve Blank

NOVEMBER 12, 2009

Brendan McManus said: “Lessons Learned” – A New Type of Venture Capital Pitch [link] #startup #advice [.] Lessons Learned” – A New Type of Venture Capital Pitch « Steve Blank (tags: presentations presuation vc startup) [.] Lessons Learned” – A New Type of Venture Capital Pitch [.]

Venture Capital 216

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Steve Blank

APRIL 9, 2009

To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires. And our Director of Technical Marketing was superb at understanding customer needs and communicating them to engineering.

Silicon Valley 263

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Steve Blank

JULY 30, 2009

Unfortunately most startups learn this by going through the “Fire the first Sales VP&# drill: You start your company with a list of potential customers reading like a “who’s who&# of whatever vertical market you’re in (or the Fortune 1000 list.) Your board nods sagely at your target customer list.

Silicon Valley 133

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Steve Blank

APRIL 6, 2009

The Army offered Fred Terman, the Dean of Engineering at Stanford, a $5M contract to build an electronics countermeasures lab. HP had an ethical culture, entrepreneurial spirit, and deep Stanford engineering department connections. The “customers’” contracts funded the company. Seven years later in 1971 ESL went public.

Silicon Valley 176

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Steve Blank

APRIL 2, 2009

Since no benchmarks existed, we enlisted our engineering department in a serious software development effort and wrote our own. We listed the editors, writers, what they had previously had written, deadlines, what the competitive products were, how our benchmarks stacked up, what “upgrades” our boards needed from engineering to win, etc.

Silicon Valley 124

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Steve Blank

JULY 27, 2009

And I understood engineering since I interacted with them almost daily. And finally, I had a great working relationship with our engineers who designed the chips. I found that having a senior marketer responsible for business strategy surrounded by ex-engineers and domain experts makes one heck of a powerful marketing department.

Silicon Valley 120

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Steve Blank

AUGUST 17, 2009

Some students who were getting their engineering graduate degrees wrote masters and PhD thesis that were classified. Four years later Ayer and another Granger engineer would leave Granger and found one of the preeminent electronic warfare and ELINT companies: Applied Technologies. The future of the valley was clear – microwaves.

Silicon Valley 144

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thebarefootvc

JUNE 6, 2013

Over the years I have looked at recommendation engines, wearable technology (in this case, fabric that detected heart activity), biosensors, home monitoring, video analysis and natural language processing algorithms.

Venture Capital 88

Venture Capital Mobile Vertical Algorithm 88

Steve Blank

SEPTEMBER 3, 2009

The meaning of alpha test , beta test, and first customer ship are pretty obvious to most engineers. The plan calls for selling in volume the day Engineering is finished building the product. While the product is being engineered, Marketing begins to create web sites, corporate presentations and sales materials.

Customer Development 220

Customer Development Developer Customer Silicon Valley 220

Startup Lessons Learned

AUGUST 24, 2009

We faced this same problem in entrepreneurship and venture capital, but we are getting past it. If our goal is just to create a blog or a YouTube video as a hobby, there’s no need for this kind of rigorous process. And, most importantly, what could we do right now to answer the riskiest of these questions. Expo SF (May.

San Francisco 113

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David Teten

DECEMBER 3, 2019

(To see the video above, please click the image, and then click on the Play button.). Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Skype and Zoom are useful for video/audio conferences. you can see the video here.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Steve Blank

APRIL 29, 2009

I am also a pilot, and computer engineer, and love to read stories about sigint and black aircraft programs. Besides it being harder to get funding, it seems like this would be a good time to get cheap labor, rent, and product. Also, it would be nice to do something that helps this country (but not solely for that reason).

Silicon Valley 173

Silicon Valley Iraq RSS Vietnam 173

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Marketing demand creation programs (Search Engine Marketing, Public Relations, Advertising, Lead Generation, Trade Shows, etc.)

Lean 250

Lean Silicon Valley Startup RSS 250

Steve Blank

AUGUST 27, 2009

The startup develops its first positioning statement and uses this to explain the company and its benefits to venture capitalists. Combined with product costs, an engineering budget, and schedules, this results in a spreadsheet that faintly resembles the first financial plan in the company’s business plan.

Silicon Valley 263

Silicon Valley Product Startup Product Development 263

Steve Blank

AUGUST 3, 2009

Frederick Terman, Stanford’s Dean of Engineering, enlisted Stanford University as a major arms suppliers in this war. Stanford as a Center of Microwave and Electronics In 1946 after running the military’s secret 800 person Electronic Warfare Lab at Harvard, Fred Terman returned to Stanford as the dean of the engineering schoo l.

Silicon Valley 157

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Steve Blank

JULY 2, 2009

To an entrepreneur, being asked to join a venture firm with an Entrepreneur-in-Residence title means you have been tapped on the shoulder by the VC gods. I asked Peter what kind of company he had in mind and was surprised and dismayed by the answer, “I want to make video games.” I didn’t give his video game idea another thought.

Silicon Valley 120

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Steve Blank

APRIL 2, 2009

We decided to work with our engineering department to create the Potreo benchmarks because we really wanted to see how our boards performed with the four applications customers told us that they used; Photoshop, Quark, Illustrator and PageMaker. These were applications we had never seen or ran before when the boards were designed.

Silicon Valley 124

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Steve Blank

MAY 21, 2009

If you think you are going to offend your customers or embarrass your engineering organization, get out of the marketing department. Then shout the messages out (virtually) at the top of your lungs. Visually, demo’s, wild colors, etc. IBM doesn’t have to shout to get noticed, but you do. Blog at WordPress.com.

Silicon Valley 185

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Steve Blank

SEPTEMBER 17, 2009

Market Type Integral to the Customer Development model is the notion that Market Type choices affect the way the company will deploy its sales, marketing and financial resources. Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.

Customer Development 246

Customer Development Developer Customer Silicon Valley 246

Steve Blank

APRIL 20, 2009

By the late 1930′s when HP started, a small group (measured in hundreds) of engineers who made radio tubes were building the valleys’ ecosystem for electronics manufacturing, product engineering and technology management. And these microwave engineers were working at startups – not large companies.

Silicon Valley 279

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Steve Blank

MARCH 28, 2009

Now we have ditched the cold war triad in the 21st century since the Soviet Union became Russia again and discovered its own style of capitalism.) Think of a plane the length of a 767 airliner (but with 30 foot longer wings and 8 engines rather than 2) whose only mission was to FedEx 70,000 pounds of nuclear weapons to the Soviet Union.

Silicon Valley 202

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Steve Blank

JULY 20, 2009

Luckily while I was teaching classes at headquarters, Zilog’s field application engineers (the technical engineers working alongside our salesmen) would work side-by-side with our large customers as they designed their systems with our chips. The VP of Sales gave me a funny look and just moved on with the agenda. VP of Sales?

Silicon Valley 181

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Steve Blank

NOVEMBER 30, 2009

As the engineers were busy rearchitecting the original Stanford MIPS chip into a commercial product, one of my jobs was to find out what features customers wanted. On the other hand, the Motorola 68000 microprocessor (used in the Sun and Apollo engineering workstations) and the IBM 360/370 mainframes were big-endian. What a great idea.

Customer Development 280

Customer Development Developer Customer Silicon Valley 280

Reid Hoffman

SEPTEMBER 8, 2020

Netflix went from mailing DVDs to streaming video. This pivot fundamentally changes your required organizational competencies, from Sales and Marketing to Engineering, Operations, and Support. We had engineering specialists and felt we had this unique technology. Apple went from Apple II to the Macintosh to iOS.

Startup 36

Startup Silicon Valley Business Model Mobile 36

Steve Blank

MAY 15, 2009

Signs of Success One of the things you do right in a startup, is you move from one cheap and cramped building to another as you grow, with desks, cubicles and engineers piled cheek to jowl. Engineers were packed in cubicles or desks right on top of each other? Now every engineer can have their own office.

Silicon Valley 212

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VC Cafe

FEBRUARY 15, 2017

Don’t take my word for it – in the roundup of venture capital predictions for 2017 , I found it to be the top recurring theme. Many large companies will be built (Michael Wolfe, Point Nine Capital). Venture Capital investments in AI, Europe 2016 (Source: Dealroom ). Billion in VC funding.

Artificial Inteligence 122

Artificial Inteligence Technical Review Startup 122

Steve Blank

JUNE 29, 2009

Since there was very little documentation my time was split between the design engineers who built the system and the test and deployment team getting the system ready to go overseas. After I was done teaching each the day, I continued to write the operations manuals and work with the test engineers. (I Are You Single? Sign me up.

Agile 251

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VC Cafe

JULY 7, 2023

To put things in context, global venture funding in Q2 2023 reached $65 billion, an 18% decline quarter over quarter, and a 49% drop compared to the second quarter of 2022, when startup investors spent $127 billion, according to Crunchbase. I tried to consolidate my thoughts as well as other perspectives from leading venture capital funds.

Generative AI 88

Generative AI ChatGPT Startup 88

Steve Blank

MARCH 19, 2009

If you believed the opinions in the marketing department, the customers were in science, engineering, color desktop publishing, and a variety of applications with no single industry or application dominating the list. The obvious one’s were who were they? What did they do that they needed an expensive color graphics card?

Silicon Valley 192

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Steve Blank

AUGUST 24, 2009

The quintessential California couple, they stood out in our crowd as the engineer (in his late 20′s, respected by his peers and the customer) had hair down to his shoulders, sharply contrasting with the military crewcuts of the customers and most of the other contractors. Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.

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