Steve Blank

article thumbnail

Why Governments Don’t Get Startups

Steve Blank

Scalable startups require risk capital to fund their search for a business model, and they attract investment from equally crazy financial investors – venture capitalists. When they find it, their focus on scale requires even more venture capital to fuel rapid expansion. lesson of using SBIC funds.),

article thumbnail

The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

The Small Business Investment Company (SBIC) Act in 1958 guaranteed that for every dollar a bank or financial institution invested in a new company, the U.S. And for the first time, private companies like Continental Capital, Pitch Johnson & Bill Draper and Sutter Hill were formed to take advantage of the government largesse from the SBA.

article thumbnail

The Secret History of Silicon Valley Part IX: Entrepreneurship in.

Steve Blank

Venture Capital, Microwaves and the OSS Dean Watkins the leader of TWT research at Stanford’s Electronic Laboratory, left Stanford in 1957 and co-founded Watkins-Johnson (with R.H. They would be one the first venture firms to organize their firm as a partnership rather than an SBIC or public company.