A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

The Silicon Valley-oriented technology press outlets don’t cover us because we’re not in San Francisco, even though we’re more successful than most of the startups they cover. Late last year we passed $100M in annual recurring revenue. After the success of Smart Bear, I should be setting my sights on something big, not this.

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Engineer Revenue San Francisco Security 152

Steve Blank

FEBRUARY 11, 2010

Later I realized six salespeople without revenue to match was a proxy for an out of control burn rate that now had the boards serious attention. they’re furthest from the Silicon Valley corporate office and any oversight.). These “friends and family orders” made the first nine months of their revenue plan.

Burn Rate 252

Burn Rate Silicon Valley Marketing Boston 252

Steve Blank

NOVEMBER 5, 2009

A Progress Graph on the right visually shows how far you’ve come (in whatever units of goodness you’re tracking – revenue, units, users, etc.) Good if you have your own money, better if the cash comes from investors, but best if it’s revenues from customers. Get back up and running. Order Here. Now In Print!

Customer Development 270

Customer Development Developer Customer Silicon Valley 270

Startup Professionals Musings

JANUARY 21, 2019

Image via Wikipedia From the advice I hear these days, if you want to be a successful entrepreneur, you need to be in Silicon Valley, Boston, New York, or one of the few other financial hubs around the world. Sizing the market, projecting revenue, and calculating break-even points are critical, even for a coffee shop.

Silicon Valley 269

Silicon Valley Missouri Technical Review Boston 269

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 237

Silicon Valley IPO Technical Review Venture Capital 237

Startup Professionals Musings

JUNE 26, 2020

You may have heard that venture capitalists in Silicon Valley no longer read business plans. 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. Budget time and dollars for each.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Steve Blank

SEPTEMBER 7, 2009

Instead of a Sales team and organized to sell with a consistent and successful sales roadmap generating revenue, it is a disorganized and unhappy organization burning lots of cash. Because the company based its headcount and expenses on the expectation that the Sales organization will bring in revenue according to plan. Order Here.

Customer Development 233

Customer Development Developer Customer Silicon Valley 233

YoungUpstarts

AUGUST 30, 2011

Blackbox , founded by entrepreneurs Bjoern Lasse Herrmann and Max Marmer, in June released its first Startup Genome Report — a 67-page in depth analysis on what makes Silicon Valley startups successful based on profiling over 650 startups. 93% of startups that scale prematurely never break the $100k revenue per month threshold.

Silicon Valley 189

Silicon Valley Software Review Startup Cofounder 189

Steve Blank

SEPTEMBER 22, 2011

Heck, in Silicon Valley even the waiters can do it.). Emphasis should be on the discovery done for that weeks assigned canvas component (channel, customer, revenue model) but include other things you learned about the business model. and Balsamiq and throwing together a web site. What are the steps in building a web site?

Lean 334

Lean Web Coder Business Model 334

Steve Blank

JANUARY 19, 2011

30 months ago he raised a Series A venture round from two name brand Silicon Valley VC firms. Admittedly, my ex student was quirky, bordering on eccentric, but he had a long and successful track record in Silicon Valley delivering complex products before he went back to get his MBA. The Bad Board Member.

Silicon Valley 237

Silicon Valley Venture Capital Software Review Technical Review 237

Both Sides of the Table

SEPTEMBER 17, 2013

The main thrust of the post is that with YouTube taking a 45% of revenue and talent taking 70% of the remaining revenue, YouTube Networks didn’t have sustainable businesses unless they invested heavily in technology as a tool to increase margin and provide defensibility. And production is where Hollywood beats Silicon Valley.

Video 339

Video Technical Review Distribution Aggregator 339

Both Sides of the Table

NOVEMBER 25, 2010

I came several times to NorCal (where I grew up, actually) and went and met several partners from each Silicon Valley firm. Winning the contract meant that we would hit our quarterly revenue figure and be in good position for our annual sales target. I decided to put both of those issues to bed in 2010.

China 333

China Silicon Valley Software Review Technical Review 333

Both Sides of the Table

NOVEMBER 25, 2010

I came several times to NorCal (where I grew up, actually) and went and met several partners from each Silicon Valley firm. Winning the contract meant that we would hit our quarterly revenue figure and be in good position for our annual sales target. I decided to put both of those issues to bed in 2010.

China 328

China Silicon Valley Software Review Technical Review 328

Both Sides of the Table

OCTOBER 15, 2014

Much has been written about when it is time to hire a “professional CEO” to run a startup company and of course that has long been a norm in Silicon Valley when founders find that their inexperience may be a limiting factor in company growth ( know as the Peter Principle ). So why did Larry need to return?

Founder 309

Founder CTO Hire Silicon Valley Leadership 309

Steve Blank

APRIL 9, 2009

And it was going to mention the two words that SuperMac marketing needed to live and breathe: revenue and profit. If marketing can’t deliver the 40,000 leads what else can we do for sales to still achieve our revenue and profitability?”) They understood the mission intent was our corporate revenue and profit goals. Order Here.

Silicon Valley 271

Silicon Valley Technical Review RSS PR 271

Startup Professionals Musings

NOVEMBER 7, 2016

In enterprises, performance objectives are usually tied to internal processes, rather than beating competitors, customer acquisition, and revenue growth. Measurements set on internal objectives, rather than market traction. This approach, when applied to a new venture, often actually inhibits progress and market penetration.

Technical Review 214

Technical Review Entrepreneur Silicon Valley Burn Rate 214

Steve Blank

MARCH 12, 2014

We realized that past K-12 Entrepreneurial classes taught students “the lemonade stand” version of how to start a company: 1) come up with an idea, 2) execute the idea, 3) do the accounting (revenue, costs, etc.). We wanted to teach our students how to think like entrepreneurs not accountants.

Lean 335

Lean Customer Development Startup Silicon Valley 335

Both Sides of the Table

MAY 7, 2013

My estimate is that the top 5 YouTube networks will do > $200 million net revenue in 2013 (after Google’s share). Hollywood vs. Silicon Valley and Who Will Win. Distribution costs have, too. This is classic “Innovator’s Dilemma” market conditions. The Future of the Digital Living Room.

Video 320

Video Los Angeles Technical Cofounder CTO Hire 320

Steve Blank

JULY 30, 2014

their burn rate (the amount of money they’re spending monthly minus any revenue coming in) and. In large companies, the employees are no less smart, but the organization is optimized to deliver repeatable products, revenue and profits. First, most Silicon Valley startups were (and primarily still are) technology-driven.

Customer Development 335

Customer Development Design Developer Customer 335

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. million post-money valuation with no revenue. I acknowledged this in the article.

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Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

JULY 16, 2010

The best and most consistent funds in Silicon Valley (e.g. But my conversations in the private corridors on Sand Hill Road in Silicon Valley is that many fund sizes will be smaller going forward. Revenue must come from a primary source (as opposed to advertising or other third party sources). Others will, too.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Steve Blank

SEPTEMBER 24, 2009

When a startup finds a repeatable sales process and steadily increasing revenue, its investors wants to harvest the rewards and build a culture of “execution.” 4) You don’t see any revenue gain past three years. Steve Blanks 30 years of Silicon Valley startup advice. on July 9, 2010 at 12:50 pm Said: [.]

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Customer Silicon Valley RSS California 218

Both Sides of the Table

JULY 6, 2016

Silicon Valley itself was built on the sciences with a foundation of trial-and-error and then improving the model and trying again. I believe this scientific method and trial-and-error approach is one of Silicon Valley’s most valuable strengths. Could big business accept its own creative destruction?

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South Korea Silicon Valley Los Angeles Japan 261

Steve Blank

APRIL 10, 2019

In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. It drove the relentless “do whatever it takes” culture of 20 th century Silicon Valley. Why Startups Offer Stock Options. And the bet worked.

Stock Options 335

Stock Options Stock Vesting Common Stock 335

Steve Blank

MAY 21, 2012

This intersection of a customer base of billions of people with applications that are used/needed 24/7 never existed before.The potential revenue and profits from these users (or advertisers who want to reach them) and the speed of scale of the winning companies can be breathtaking. I’m an investor in many of these venture firms.)

Silicon Valley 336

Silicon Valley Venture Capital Social Media Media 336

Both Sides of the Table

SEPTEMBER 2, 2009

We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. Probably revenue based. I think a couple of million or revenues is probably a reasonable goal.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

ReadWriteStart

JUNE 26, 2020

In an instant, remote work went from a small Silicon Valley trend to a ubiquitous element of daily life. I think big tech hubs like silicon valley will still be highly relevant for securing capital, and for bleeding-edge ideas. You must focus on growing revenues, predicting revenues, and reducing expenses.

Silicon Valley 198

Silicon Valley Distribution Engineer Technical Review 198

Steve Blank

SEPTEMBER 5, 2018

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Almost overnight the floodgates opened, and risk capital was available at scale from venture capital investors who rushed their startups toward public offerings.

Lean 335

Lean Burn Rate Startup IPO 335

Steve Blank

NOVEMBER 13, 2012

By then, I had become a venture capitalist at Mitsui Sumitomo Insurance and found myself talking to a lot of entrepreneurs who were proclaiming their great technology yet were struggling with little revenue, and claiming they were “crossing the chasm”. We kept talking, with Steve asking “How long are you staying in Silicon Valley?”

Japan 305

Japan Customer Development Developer Customer 305

Both Sides of the Table

JANUARY 11, 2014

” Sean is somebody widely respected in Silicon Valley (although he now lives in SoCal) for having helped many early-stage companies go through major growth periods by quantitatively testing features with audiences to help diagnose what led to growth.

Technical Review 384

Technical Review Hockey Stick SEM Channel 384

Startup Professionals Musings

JUNE 26, 2013

Examples of some leaders in this space include Mike Maples in Silicon Valley and David S. Too many founders today face the conundrum that they need capital to get started, and even Angels defer until after you have your product built, business model proven, and a real revenue stream.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

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Founder Technical Review CTO Hire IPO 281

The Startup Magazine

JANUARY 8, 2019

In 2010, Kranthi was hired as a full-time software engineer by International Technological University (ITU), the Silicon Valley industry-oriented school where he had earned his second MS degree. The software generates instant dynamic reports, such as financial revenue, gender ratio, and more. Looking to Solve Problems.

Technical Review 137

Technical Review CTO Hire Silicon Valley Software Engineering 137

Both Sides of the Table

MAY 19, 2010

Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Note that these are “gross” revenue numbers.

Partner 240

Partner New York City Cofounder Syndicate 240

Steve Blank

AUGUST 24, 2009

Page views drive his ad revenue, which is probably CPM based. Steve Blanks 30 years of Silicon Valley startup advice. Is this behavior an outlier or is it the norm in the PR industry? Or is it just someones end of innocence ? Mike Arrington is a capitalist. Customers walk, patients sue, and people vote. Order Here. Now In Print!

Silicon Valley 215

Silicon Valley PR Technical Review RSS 215

Agile VC

JUNE 5, 2012

Both companies generate direct revenue from their platform in the form of a revenue share / platform tax (typically 30%) on software and digital goods sold through the respective platforms. Facebook’s direct platform revenue accounted for about 15% of the company’s overall sales whereas Apple’s was less than 1%.

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Java Flash Software Azure 170

Both Sides of the Table

FEBRUARY 17, 2010

They were frustrated that despite having the (monopoly) infrastructure that brought you the Internet, the majority of innovation and profits went to Silicon Valley startups. Apple wants to take a major share of the revenue. I was so frustrated working with carriers in the 1990’s. This isn’t open innovation.

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Flash Mobile Application Development Cloud 326