Steve Blank

FEBRUARY 25, 2014

a language corporate innovation groups can use to communicate to business units and finance. The heart of the therapeutics IRL also required “Proof of relevance” – was there a path to revenues fully articulated, an operational plan defined. data that investors, accelerators and incubators can use to inform selection.

Incubator 310

Incubator Intellectual Property Startup Lean 310

Steve Blank

JUNE 23, 2016

Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. Intel under their last two CEOs delivered more revenue and profit than any ever before. Risk capital has provided financing for new ideas in the form of startups. They knew how to execute the current business model.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO.

Private Equity 325

Private Equity Metrics China Business Model 325

Steve Blank

AUGUST 15, 2016

Prior to founding Carely , Michael Eidsaune earned his MBA in finance and spent several years in investment management, eventually earning his level 1 CFA certification. Our revenue model was wrong. We tried to boil the ocean in the most literal sense. If you can’t hear the clip, click here. We thought we figured it out.

Cofounder 142

Cofounder Entrepreneur Africa Sales Cycle 142

Steve Blank

MARCH 8, 2011

Agora’s selling points are its ability to reduce users’ IT infrastructure cost and enhance revenue for service providers. Intended for cloud infrastructure service providers, enterprises with spare capacity in their private clouds, startups, companies doing image and video processing, and others.

Lean 298

Lean Business Model Customer Development Guinea 298

Steve Blank

AUGUST 15, 2016

Prior to founding Carely , Michael Eidsaune earned his MBA in finance and spent several years in investment management, eventually earning his level 1 CFA certification. Our revenue model was wrong. We tried to boil the ocean in the most literal sense. If you can’t hear the clip, click here. We thought we figured it out.

Cofounder 120

Cofounder Entrepreneur Africa Sales Cycle 120

Steve Blank

JANUARY 25, 2010

How do we finance the company, etc. When revenue, users, traffic, etc., The goal of your early business model can be revenue, or profits, or users, or click-throughs – whatever you and your investors have agreed upon. What’s the distribution channel. How do we price and position the product? Who are our partners?

Agile 335

Agile Startup Silicon Valley Business Model 335

Steve Blank

JULY 15, 2010

Until 1995 startups going public typically had a track record of revenue and profits. Suddenly there was a public market for companies with limited revenue and no profit. They’ve created virtual IPO’s for founders and employees via late-stage private financing. Netscape’s 1995 IPO changed the rules. Yet while the U.S.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Steve Blank

FEBRUARY 22, 2010

I had been confused for years why I had to update an income statement each board meeting that said zero for 18 months before we had any revenue. How do we finance the company, etc. But What Does a Business Model Have to Do With Accounting in My Startup? A startup is a search for a repeatable and scalable business model. Financials.

Balance Sheet 298

Balance Sheet Startup Burn Rate Metrics 298

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. The ripple effects won’t be obvious at first. External Assessment.

South Korea 333

South Korea Salary Business Model China 333

Steve Blank

AUGUST 31, 2009

The first hint lies in its name; this is a product development model, not a marketing model, not a sales hiring model, not a customer acquisition model, not even a financing model (and we’ll also find that in most cases it’s even a poor model to use to develop a product.) So what’s wrong the product development model?

Customer Development 238

Customer Development Developer Customer Silicon Valley 238

Steve Blank

MAY 3, 2011

Last week the teams tested their Revenue Models hypotheses: what are customers willing to pay for? Their initial customer segment were upwardly mobile professionals with $2-10K discretionary purchases/year (excluding travel,) and their revenue model was affiliate program fees. All the teams have crossed the Rubicon. .

South Dakota 217

South Dakota Business Model Lean United States 217

Steve Blank

JUNE 24, 2013

When you get customer scale and raise a large financing round , take the battle to the incumbents. Use competition among governments to your advantage, eg, if New York or North Carolina doesn’t want Tesla, put the store in New Jersey, across the river from Manhattan, increasing New Jersey’s tax revenue. Lessons Learned.

North Carolina 335

North Carolina New Jersey New York Government 335

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

Founder 245

Founder Technical Review CTO Hire IPO 245

Steve Blank

JANUARY 4, 2010

Now with customers and early revenue, it was out raising its first round of venture money. They grow their business via profits or traditional bank financing. Their primary goal is a predictable revenue stream for the owner, with reasonable risk and reasonable effort and without the need to bring in world-class engineers and managers.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Steve Blank

AUGUST 20, 2013

Recently, the financing of innovation in medical devices has collapsed even further with most Class III devices simply unfundable. on medical device revenues, regardless of profitability delays or cash-flow breakeven. Companies must pay a medical device excise tax of 2.3%

Startup 294

Startup Lean Venture Capital IPO 294

Steve Blank

DECEMBER 7, 2010

Channel incentives – does your product or proposition extend or replace existing revenue for the channel? ——————– Class 6 Feb 8 th Testing Revenue Model. Class Lecture/Out of the Building Assignment: What’s a revenue model? What types of revenue streams are there?

Wiki 311

Wiki Lean Management Business Model 311

Steve Blank

MAY 28, 2009

The implications for entrepreneurs is that each of these (market risk versus invention risk,) require radically different financing models, a different type of venture investor, different timing for hiring sales and marketing, etc. These two numbers have direct impact on revenue and financial health.

Vertical 144

Vertical Silicon Valley Marketing Customer 144

Steve Blank

JUNE 24, 2013

When you get customer scale and raise a large financing round , take the battle to the incumbents. Use competition among governments to your advantage, eg, if New York or North Carolina doesn’t want Tesla, put the store in New Jersey, across the river from Manhattan, increasing New Jersey’s tax revenue. Lessons Learned.

North Carolina 227

North Carolina New Jersey New York Government 227

Steve Blank

JUNE 15, 2010

They understand that now’s not the time to hire a senior VP of Sales to start to scale the sales force or to look for a finance department to create income statements that say zero each month. Early stage investors have different insights then those investing in a later stage.

Founder 231

Founder Vesting Later Stage Early Stage 231

Steve Blank

JUNE 8, 2009

Business and Revenue Model – How do we organize to make money? Seed and Follow-on Financing – How do your finance it? Intellectual Property/Patents – Strategic or Tactical, timing? Regulatory Issues – What are they? Time to Market – How long? Product Development – How do you engineer it? Waterfall, Agile, Lean? How much?

Vertical 122

Vertical Silicon Valley RSS Marketing 122

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. A Progress Graph on the right visually shows how far you’ve come (in whatever units of goodness you’re tracking – revenue, units, users, etc.) Get back up and running.

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Steve Blank

SEPTEMBER 10, 2009

Most startups following the Product Development Model never achieve their revenue plan and burn through a ton of cash not knowing what hit them. After twelve months Handspring’s revenue was $170 million. They never understood Market Type. Why does Market Type matter? End result?

Customer Development 196

Customer Development Developer Customer Silicon Valley 196

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Steve Blank

DECEMBER 23, 2015

Jason Young , co-founder of MindBlown Labs , which makes mobile social games to teach young adults about personal finance. I was able to get a company to let me use their license for a percentage of my revenue. Listen to the full interviews by downloading them from SoundCloud here and here. And download any of the past shows here.).

Cofounder 120

Cofounder Entrepreneur Colorado Customer Development 120

Steve Blank

SEPTEMBER 2, 2015

Of the cohort that just graduated I think eight are completely self-sufficient and actually revenue positive and another 10 are in Series A round financing. . We’re in our second cohort, 71 young folks, all of whom are alums of the university, given the opportunity and resources to build their businesses.

New York 120

New York Entrepreneur Cofounder Equity 120

Steve Blank

SEPTEMBER 19, 2017

Finance, HR, Legal, Security, Policy, Branding, you name it, everyone in a division or corporate staff has an excuse for why we can’t do something, and everyone has the power to say no and no urgency to make a change.”. Or finance, who insisted on measuring the success of new ventures on their first year’s revenue and gross margin.

Finance 226

Finance Lean Metrics Programming 226

Steve Blank

OCTOBER 1, 2009

Sloan kept the corporate staff small and focused on policymaking, corporate finance and planning. Sloan had each of the divisions start systematic strategic planning. 2) Provide corporate management with near real-time divisional sales reports and budgets that indicated when they deviated from plan.

Silicon Valley 156

Silicon Valley United States RSS Customer Development 156

Steve Blank

JUNE 7, 2010

The company had innovated, found a business model, grown successfully but now even as revenues continued to grow, the company was slowly but surely dying. As the revenues grew, engineering continued to pursue sustaining innovations - incremental improvements on its core technologies. It was impressive. More on this in another post.).

Silicon Valley 267

Silicon Valley Cofounder Acquisition Kansas 267

Steve Blank

NOVEMBER 7, 2013

What CEOs, management teams and shareholders care about is growth —revenue growth, greater user adoption, increased market share, bigger margins, etc. From Tax to Legal to Finance to HR, designing the new systems requires enormous amount of collaboration, transparency and trust. to find, attract and retain “starters.”.

Lean 326

Lean Nepal Cofounder Customer Development 326

Steve Blank

MARCH 17, 2015

Finance, HR, Branding, Legal, you name it, everyone in a division or corporate staff has an excuse for why we can’t do something, and everyone has the power to say no and no urgency to make a change.”. Or finance, who insisted on measuring the success of new ventures on their first year’s revenue and gross margin.

Lean 120

Lean Metrics Business Model Distribution 120

Steve Blank

OCTOBER 10, 2016

She and her team ran a successful Kickstarter campaign, went through the Techstars Boulder 2015 accelerator program, and recently closed a $3 million financing round with The Foundry Group. . I thought all of these are raising $5 million, $10 million, $15 million pre-revenue. Jacqueline Ros left a teaching job to found Revolar.

Entrepreneur 260

Entrepreneur Cofounder San Francisco Campaign 260

Steve Blank

JUNE 10, 2010

Success for this new division meant generating substantial revenue and profit for company. Irfan got banks to finance rickshaw-pullers and designed rickshaws that can shelve newspapers, mineral water bottles and other essentials for rickshaw passengers. The division developed the IBM PC and announced it in less than a year.

Silicon Valley 328

Silicon Valley Entrepreneur United States New York City 328

Steve Blank

MAY 4, 2009

But without sales there is no revenue, and without revenue there is no company. All the strategic thinking in the world won’t make up for a missed revenue plan. If sales revenue and profits are high enough, we could take the company public or sell it, and the stock would be worth more than the paper it was printed on.

Silicon Valley 126

Silicon Valley RSS Non-Compete California 126

Steve Blank

OCTOBER 10, 2016

She and her team ran a successful Kickstarter campaign, went through the Techstars Boulder 2015 accelerator program, and recently closed a $3 million financing round with The Foundry Group. . I thought all of these are raising $5 million, $10 million, $15 million pre-revenue. Jacqueline Ros left a teaching job to found Revolar.

Entrepreneur 120

Entrepreneur Cofounder San Francisco Campaign 120

Steve Blank

MARCH 26, 2019

My original vision for the class was to use the business model canvas as a framework to teach engineering students all the nine elements of the business model: customer, distribution channel, revenue, get/keep/grow, value proposition, activities, resources, partners and costs.

Lean 248

Lean Business Model Balance Sheet Video 248

Steve Blank

NOVEMBER 21, 2015

Existing companies are starting to feel the pressures of new technologies and the massive wave of new entrants fueled by the explosion of investment from a recent form of financing – venture capital. Venture capital firms, as we know them only date back to the 1970s.)

Silicon Valley 120

Silicon Valley Venture Capital United States Technical Review 120