An interesting post from Steve Blank talks about how he met the guy who went on to found The Startup Genome Project and just released their first report on what makes a startup successful.
Key findings are:
- Founders that learn are more successful
- Startups that pivot once or twice times raise 2.5x more money
- Many investors invest 2-3x more capital than necessary in startups that haven’t reached problem solution fit yet
- Investors who provide hands-on help have little or no effect on the company’s operational performance
- Solo founders take 3.6x longer to reach scale stage
- Business-heavy founding teams are 6.2x more likely to successfully scale
- Technical-heavy founding teams are 3.3x more likely to successfully scale with product-centric startups with no network effects
- Balanced teams with one technical founder and one business founder raise 30% more money
- Most successful founders are driven by impact
- Founders overestimate the value of IP before product market ﬁt by 255%
- Startups need 2-3 times longer to validate their market than mostfounders expect
- Startups that haven’t raised money over-estimate their market size by 100x
- Premature scaling is the most common reason for startups to performworse
- B2C vs. B2B is not a meaningful segmentation of Internet startupsanymore because the Internet has changed the rules of business
Steve Blank has made available his Lean Startup LaunchPad Course, the class he teaches at Stanford that is built around his customer development methodology, all accessible directly from his blog.
The classes are:
- Overview/Business Models/Customer Development
- Business Model Hypotheses
- Value Proposition Hypotheses
- Customer Hypotheses
- Customer Relationship Hypotheses
- Channel Hypotheses
- Revenue Model
- Key Resources, Activities, Expense Model
- Final Presentations
Although you don’t get to see Steve talk (there are no videos), the slides and notes are a great resource worth checking out.
Really interesting interview with Steve Blank about startups and entrepreneurship, is a good overview of Steve’s key beliefs. If you are new to his customer development methodology, is worth checking out.
A few interesting quotes from the video:
“A startup is an irrational passion”
“Entrepreneurship is a calling”
“Everything you think you know on day 1 is a hypothesis”
Watch the video below.