Steve Blank

NOVEMBER 11, 2013

This post is an update of what we learned about life science distribution channels. Life Science/Health Care distribution channels differ by Category. It turns out that for commercialization, the business model (Customers, Channel, Revenue Model, etc.) Life Science and Health Care Differences in Distribution Channels.

Distribution 224

Distribution Channel Lean Intellectual Property 224

Startup Professionals Musings

DECEMBER 11, 2022

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Lack of intellectual property. Undefined business model or very low gross margins.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

JANUARY 14, 2023

Simply stated, it means that your business has the potential to multiply revenue with minimal incremental cost. Smart entrepreneurs never outsource their core competency, and never rely on intellectual property they don’t own. Focus on marketing and indirect channels to get the message out quickly.

Hockey Stick 339

Hockey Stick Intellectual Property Non-Compete Business Model 339

Startup Professionals Musings

MAY 18, 2020

It’s equally easy to go online and incorporate your new entity, register some intellectual property and have some fun with social media for marketing and interacting with customers. Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

The Startup Magazine

MARCH 29, 2024

Revenue streams are another critical component of your business model. Develop a marketing strategy that leverages both digital and traditional channels. It’s crucial to protect your intellectual property as well, including trademarks, patents, and copyrights.

Intellectual Property 133

Intellectual Property Angel Investor Business Model Bootstrapping 133

Startup Professionals Musings

JULY 13, 2019

Every business needs revenue to provide investor returns and offset costs. Free” is not an attractive revenue model to investors. Popular revenue models today include recurring subscription charges, licensing, as well the traditional sale or lease model. Investors will demand clear channel definitions. Key partners.

Intellectual Property 250

Intellectual Property Business Model Angel Investor Channel 250

Startup Professionals Musings

MARCH 14, 2020

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Lack of intellectual property. Undefined business model or very low gross margins.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

APRIL 19, 2020

Simply stated, it means that your business has the potential to multiply revenue with minimal incremental cost. Smart entrepreneurs never outsource their core competency, and never rely on intellectual property they don’t own. Focus on marketing and indirect channels to get the message out quickly.

Hockey Stick 386

Hockey Stick Intellectual Property Startup Non-Compete 386

Steve Blank

MARCH 31, 2014

Today’s workforce has radically different expectations, brands are losing their power, physical channels are being destroyed by virtual ones, market share is less important than market creation, and software is eating world. Companies horde cash and squeeze the most revenue and margin from the money they use.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Growthink Blog

DECEMBER 3, 2012

Important aside : for those entrepreneurs that harbor the desire to sell but not the ambition to build a meaningfully sized, process-based organization should then focus their exit planning almost exclusively on technology and intellectual property development. And you know what? Yes, companies that sell are the good and lucky ones.

Intellectual Property 112

Intellectual Property Technical Review Revenue Reputation 112

Startup Professionals Musings

JULY 9, 2017

Every business needs revenue to provide investor returns and offset costs. Free” is not an attractive revenue model to investors. Popular revenue models today include recurring subscription charges, licensing, as well the traditional sale or lease model. Investors will demand clear channel definitions. Key partners.

Business Model 143

Business Model Intellectual Property Startup Angel Investor 143

Startup Professionals Musings

NOVEMBER 11, 2013

Even a non-profit has to generate revenue (or donations) to offset operating costs. No intellectual property. Intellectual property is also often the largest element of early-stage company valuations for professional investors. Don’t quit your day job until new revenue is flowing.

Intellectual Property 251

Intellectual Property Startup Viral Early Stage 251

Startup Professionals Musings

OCTOBER 1, 2012

Even a non-profit has to generate revenue (or donations) to offset operating costs. No intellectual property. Intellectual property is also often the largest element of early-stage company valuations for professional investors. Don’t quit your day job until new revenue is flowing.

Intellectual Property 274

Intellectual Property Entrepreneur Viral Early Stage 274

Startup Professionals Musings

MARCH 18, 2016

First priority is real revenue, customers and contracts. Thus, $100,000 of gross revenue in the last 12 months might be extrapolated to $500,000 to $1 million in valuation. Future revenue projections are not relevant at the pre-revenue stage. Future revenue projections are not relevant at the pre-revenue stage.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Startup Professionals Musings

JULY 27, 2018

Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Intellectual property and sustainable competitive advantage. Five-year financial projections of revenue and expenses.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Growthink Blog

MARCH 14, 2011

Important aside : for those entrepreneurs that harbor the desire to sell but not the ambition to build a meaningfully sized organization should then focus their exit planning almost exclusively on technology and intellectual property development. When they get knocked down, they smile, wipe their brow, and get right back in the fray.

Technical Review 76

Technical Review Intellectual Property Revenue Technology 76

Startup Professionals Musings

AUGUST 13, 2012

Do describe your intellectual property and “secret sauce”. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Skip the technical jargon and hyperbole. Focus is the keyword here. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Steve Blank

FEBRUARY 25, 2014

These included; identification of a compelling clinical need, large enough market, intellectual property, regulatory issues, and reimbursement, and whether there was a plausible exit. The heart of the therapeutics IRL also required “Proof of relevance” – was there a path to revenues fully articulated, an operational plan defined.

Incubator 310

Incubator Intellectual Property Startup Lean 310

Startup Professionals Musings

OCTOBER 12, 2010

That’s because a company’s value is a composite of all of the quantitative and qualitative factors that comprise a company: revenues, expenses, risks, growth prospects, quality of the management team, competitive advantages, strength of the intellectual property, and so forth. Detail isn’t important; tracking your progress is.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

Gust

NOVEMBER 3, 2013

Even a non-profit has to generate revenue (or donations) to offset operating costs. No intellectual property. Intellectual property is also often the largest element of early-stage company valuations for professional investors. Don’t quit your day job until new revenue is flowing.

Intellectual Property 183

Intellectual Property Startup Viral Early Stage 183

Startup Professionals Musings

MAY 13, 2011

Do describe your intellectual property and “secret sauce”. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Skip the technical jargon and hyperbole. Focus is the keyword here. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

SEPTEMBER 7, 2013

Simply stated, it means that your business has the potential to multiply revenue with minimal incremental cost. Smart entrepreneurs never outsource their core competency, and never rely on intellectual property they don’t own. Focus on marketing and indirect channels to get the message out quickly.

Hockey Stick 278

Hockey Stick Intellectual Property Startup Non-Compete 278

Startup Professionals Musings

APRIL 25, 2016

Investors are wary of startups with no intellectual property, even with a first-mover advantage. Revenue and profit projections are not credible. Revenue and profit projections are not credible. Real customer revenue and thousands of new users represent traction and are the best indication of fundability.

Intellectual Property 120

Intellectual Property Accredited Investor Angel Investor Reputation 120

Startup Professionals Musings

APRIL 6, 2016

It’s equally easy to go online and incorporate your new entity, register some intellectual property and have some fun with social media for marketing and interacting with customers. Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful.

Bootstrapping 120

Bootstrapping Hockey Stick Sweat Equity Intellectual Property 120

Startup Professionals Musings

JUNE 26, 2020

All startups, including non-profits, need revenue to thrive, such as such as from subscriptions, retail, online, licensing, or services. They want to see revenue to share in the return. Here I recommend a 5-year projection of revenues, expenses, and funding requirements. Provide specifics on the customer business model.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Startup Professionals Musings

AUGUST 1, 2016

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Lack of intellectual property. Undefined business model or very low gross margins.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. How you intend to beat specific competitors (business model, intellectual property) is a key investor decision criteria. Projected revenues and expenses over the strategic period.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Gust

AUGUST 5, 2012

Do describe your intellectual property and “secret sauce”. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Skip the technical jargon and hyperbole. Focus is the keyword here. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

FEBRUARY 14, 2016

Simply stated, it means that your business has the potential to multiply revenue with minimal incremental cost. Smart entrepreneurs never outsource their core competency, and never rely on intellectual property they don’t own. Focus on marketing and indirect channels to get the message out quickly.

Hockey Stick 120

Hockey Stick Intellectual Property Non-Compete Business Model 120

Startup Professionals Musings

JANUARY 11, 2015

Simply stated, it means that your business has the potential to multiply revenue with minimal incremental cost. Smart entrepreneurs never outsource their core competency, and never rely on intellectual property they don’t own. Focus on marketing and indirect channels to get the message out quickly.

Hockey Stick 120

Hockey Stick Intellectual Property Non-Compete Business Model 120

Startup Professionals Musings

APRIL 22, 2010

Do describe your intellectual property and “secret sauce”. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Skip the technical jargon and hyperbole. Focus is the keyword here. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Steve Blank

AUGUST 5, 2010

Bayh-Dole allowed for private ownership of government funded intellectual property developed in universities while the Orphan Drug Act created incentives for developing drugs for disorders afflicting fewer than 200,000 Americans. One could argue that there’s nothing new here, as Internet distibution models started in 1995.

Lean 258

Lean Internet Silicon Valley Venture Capital 258

Steve Blank

MARCH 25, 2011

In addition, they demoed to the paper management research group at the Stanford Intellectual Property Exchange project (a joint project between the Stanford Law School and Computer Science department to help computers understand copyright and create a marketplace for content). If you can’t see the slide above, click here.

Cloud 228

Cloud Intellectual Property Lean Customer Development 228

Business Plan Blog

JULY 9, 2013

Sustainable competitive advantages are not easily copied and generally stem from one or more of the following: vendor relations, product sourcing advantages, prime location, unique products/services; customer loyalty, customer service reputation, or distribution channel advantages. While all I.P. Dramatic Cost Advantage. Brand Loyalty.

Intellectual Property 45

Intellectual Property Differentiation Distribution Business Plan 45

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. As can be seen the average (mean) pre-money valuation for recent pre-revenue deals is $2.1

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Startup Professionals Musings

APRIL 26, 2021

Provide initial and long-term sources of revenue. Every business, including non-profits, need a viable source of revenue to cover the costs of operation and sustainability. The most attractive revenue model today for services is subscriptions, and for products it is sales and support. Patents are a good place for you to start.

Intellectual Property 332

Intellectual Property Angel Investor Business Model Channel 332

Steve Blank

JUNE 8, 2009

Sales – What Channel to reach the customer? Business and Revenue Model – How do we organize to make money? Intellectual Property/Patents – Strategic or Tactical, timing? Who is the Complementor? Marketing – How do you create end user demand? Business Development – What type of partnership or whole product is needed?

Vertical 122

Vertical Silicon Valley RSS Marketing 122