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

Steve Blank

While you might be interested in building a company that changes the world, regardless of how long it takes, your investors are interested in funding a company that changes the world so they can have a liquidity event within the life of their fund ~7-10 years. (A You’ve been funded to get to a liquidity event.

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Why good people leave large tech companies

Steve Blank

They make hardware with a large part of their innovation in embedded software and services. While a significant part of the headcount of this tech company was in manufacturing, the director’s group was made up of experienced software engineers. I was visiting with an ex-student who’s now the CFO of a large public tech company.

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

Steve Blank

Today it’s dominated by capital efficient software, web and mobile startups whereas 10 years ago it was dominated by semiconductor and hardware startups that consumed huge amounts of capital before their first dollar in revenue. The result was too much money in too few deals. The inevitable failures then damaged returns.

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How to Fund Your Startup Without Losing Control

Up and Running

Currently, most ecommerce businesses have IT staff constantly running manual tests to confirm that their site is operating properly, or they manually create expensive software to run these tests. Conclusion. Accepting any investor, particularly a sophisticated investor like private equity, involves accepting some degree of loss of control.

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

Steve Blank

It includes venture funded startups in all industries, from software to biotech. Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010. If you’re starting a software company, your exit is most likely a sale to a larger company. Source: NVCA.).

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Respect Competitors and Capitalize on Your Strengths

Startup Professionals Musings

For example, if your new software adds innovative new features and mobile access to a classic offering, you could name and degrade current vendors for their lack of support, or you could highlight your innovative additions over the current market leaders. Investors need a liquidity event to get their money out.

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New Rules for the New Internet Bubble

Steve Blank

The reward for doing so was a liquidity event via an Initial Public Offering. Software companies had to buy specialized computers and license expensive software. They taught you about customers, markets and profits. Startups needed millions of dollars of funding just to get their first product out the door to customers.

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