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Tesla Lost $700 Million Last Year, So Why Is Tesla’s Valuation $60 Billion?

Steve Blank

What explains this more than 1,000 to 1 discrepancy in valuation? Companies with business models built around internal combustion engines disrupted those built around horses. changing a business model is extremely difficult. Very few companies manage to make the transition from one business model to another.

Valuation 295
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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

Most large companies manage three types of innovation: process innovation (making existing products incrementally better), continuous innovation (building on the strength of the company’s current business model but creating new elements) and disruptive innovation (creating products or services that did not exist before.).

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Why a Company Can’t “Be More Like a Startup”

Steve Blank

Initially, a startup has no business model and no market share to defend. If they select a business model that targets industry incumbents, they don’t have to worry about upsetting existing customers, partners or distribution channels. Its employees and investors don’t depend on an existing revenue stream.

Startup 306
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Is the Lean Startup Dead?

Steve Blank

These bubble startups were actually guessing at their business model and did premature and aggressive hype and early company launches and had extremely high burn rates – all predicated on an IPO to raise more cash. And if the company does go public, the valuations are at least 10x of the last bubble.

Lean 335
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Beyond the Lemonade Stand: How to Teach High School Students Lean Startups

Steve Blank

The startups and the teaching team crafted a challenge for the kids to tackle using the Customer Development methodology, Lean Launchpad tools and the business model canvas. These two startups had problems they could not solve on their own due to lack of resources—time, people, money.

Lean 335
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

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ESADE Business School Commencement Speech

Steve Blank

Look at the valuations of companies like Tesla, Illumina, and Twitter. The first will be commodity businesses that are valued for their ability to execute their current business model. The second class will be firms with a demonstrated ability to continually innovate and reinvent their business models.