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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

But for the last 40 years, it has provided the financial fuel for a revolution in Life Sciences and Information Technology and has helped to change the world. A liquidity event means that the equity (the stock) you sold your investor can now be converted into cash.) You’ve been funded to get to a liquidity event.

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Why good people leave large tech companies

Steve Blank

The belief then was that most founders couldn’t acquire the HR, finance, sales, and board governance skills rapidly enough to steer the company to a liquidity event, so they hired professional managers. Yet technology cycles have become a treadmill, and to survive startups need to be on a continuous innovation cycle.

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Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

Dino Vendetti a VC at Bay Partners, moved up to Bend, Oregon on a mission to engineer Bend into a regional technology cluster. Today with every city, state and country trying to build out a technology cluster, following Dino’s progress can provide others with a roadmap of what’s worked and what has not.

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Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

Steve Blank

The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Startup lifecycle in an IPO Market. Netscape’s 1995 IPO changed the rules. Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first. For more on this, see The 9 Steps of Using Technology to Improve Investing in Private Companies. This requires a real financial sacrifice. – Go public.

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Why Pitching Your Product Is Not Enough For Investors

Startup Professionals Musings

As a technology buff, I’m all too sensitive to the common investor complaint that technical people often end up selling yet another “solution looking for a problem,” because they are so impressed with their technology. Your solution may include leading technology, but if available to competitors, the lead won’t last.

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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

One other thing to note is that all employees – founders, early employees and later ones – all had the same vesting deal – four years – and no one made money on stock options until a “liquidity event ” (a fancy word to mean when the company went public or got sold.) That made sense. Who leads that process best?