Podcasts about Lean Launchpad

Steve Blank is one of Silicon Valley's most persistent hackers. As the pioneer of the Lean Startup movement, Blank has changed how startups are built, how entrepreneurship is taught, how science is commercialized, and how companies and the government innovate. And now, as a Stanford professor, he's focused on hacking contemporary United States diplomacy and warfare. So what does Blank make of Elon Musk's attempts to make the Federal government more efficient? Will the American future be owned by SpaceX rather than NASA? And what does that tell us about the value of the Federal U.S. bureaucracy in the 21st century?Eight-time entrepreneur-turned-educator Steve Blank is credited with launching the Lean Startup movement. He's changed how startups are built, how entrepreneurship is taught, how science is commercialized, and how companies and the government innovate. Recognized as a thought leader on startups and innovation, Steve was named one of the Thinkers50 top management thinkers and recognized by the Harvard Business Review as one of 12 Masters of Innovation. His Harvard Business Review cover story (May 2013) defined the Lean Startup movement. He teaches his Lean LaunchPad class at Stanford, Berkeley, Columbia and NYU, among others; and created the National Science Foundation Innovation Corps that is now the standard for science commercialization in the U.S. His Hacking for Defense class at Stanford is revolutionizing how the U.S. defense and intelligence community deploys innovation with speed and urgency, and its sister class, Hacking for Diplomacy, is doing the same for foreign affairs challenges managed by the U.S. State Department. A prolific writer and speaker, Steve blogs at www.steveblank.com. His articles regularly appear in Forbes, Fortune, The Atlantic and Huffington Post.Named as one of the "100 most connected men" by GQ magazine, Andrew Keen is amongst the world's best known broadcasters and commentators. In addition to presenting KEEN ON, he is the host of the long-running How To Fix Democracy show. He is also the author of four prescient books about digital technology: CULT OF THE AMATEUR, DIGITAL VERTIGO, THE INTERNET IS NOT THE ANSWER and HOW TO FIX THE FUTURE. Andrew lives in San Francisco, is married to Cassandra Knight, Google's VP of Litigation & Discovery, and has two grown children.Keen On is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit keenon.substack.com/subscribe

We just finished the 14th annual Lean LaunchPad class at Stanford. The class had gotten so popular that in 2021 we started teaching it in both the winter and spring sessions. During the quarter the eight teams spoke to 919 potential customers, beneficiaries and regulators. Most students spent 15-20 hours a week on the class, about double that of a normal class. In the 14 years we've been teaching the class, we had something that has never happened before – all eight teams in this cohort have decided to start a company.

Mar Hershenson is Pear VC's Founding Managing Partner. Pear VC's portfolio includes DoorDash, Gusto, Affinity, among others. After earning a Ph.D. in Electrical Engineering from Stanford University, Mar co-founded three startups in mobile/e-commerce, enterprise software, and semiconductor industries and has registered 14 separate patents. She is currently a Lecturer at Stanford Univeristy, teaching Lean Launchpad, one of the premier entrepreneurship classes at Stanford. Mar serves on the board of trustees of Harvey Mudd College and the Advisory Board of the Electrical and Computer Engineering department at Carnegie Mellon University. She is a founder of Equity Summit, the premier conference for connecting URM Venture Capital GPs to LPs, and was an initial founding member of All Raise. She has been recognized by MIT Technology Review as a Top Innovator Under 35, named a Champion of Innovation by Fast Company, awarded the Digital Automation Conference's Marie R. Pistil Achievement Award, and recognized on the Forbes Midas List in 2021, 2022, and 2023.    You can learn more about:  How to start and run a successful VC fund  How to pitch top investors/ invest in the next generation of unicorn startups  How to keep pursuing your startup idea even when people tell you "no"    ===================== YouTube: @GraceGongCEO Newsletter: @SmartVenture LinkedIn: @GraceGong TikTok: @GraceGongCEO IG: @GraceGongCEO Twitter: @GraceGongGG =====================

How do you scale-up a start-up? How do you make sure a large corporate doesn't stifle innovation? These are questions - and many more - that Steve Blank has been addressing for decades as one of the world's leading authorities on entrepreneurship and innovation.In this podcast find out what:Companies do to innovation as they grow.The problem with innovation theatre is.It takes to create an ambidextrous organisation.The distinction is between an innovator and entrepreneur - and why successful.He compares founders to. He thinks of entrepreneurship as a career choice.He would advise an up-and-coming entrepreneur to do.More about Steve:Steve co-created the Lean Start Up movement through his work on customer development. He has been part of, or co-founded eight Silicon Valley startups. He now teaches entrepreneurship and national security innovation to undergrads and postgrads at Stanford University as an Adjunct Professor. The National Science Foundation adopted his Lean Launchpad class as the U.S. standard for commercialising basic and applied research via the Innovation Corps. All his course material is open-sourced.His book 'Startup Owners Manual: the Step-by-Step Guide for Building a Great Company.'For more details including his excellent newsletter go here.My resources: Sign up to my Flashes+Sparks for stimuli, ideas, guidance and tips on how to lead your team, organisation or self more effectively, delivered straight to your inbox:If you're not subscribed already do subscribe to my youtube channel where you can watch the conversation.Take the Extraordinary Essentials test to identify your strengths and development areas.For more details about me:★Services to CEOs, entrepreneurs and professionals.★About me - my background, experience and philosophy.★Examples of my writing.★Follow me and engage with me on LinkedIn.★Follow me and engage with me on Twitter.

We just finished the 11th annual Lean LaunchPad class at Stanford — our first version focused on deep science and technology. I've always thought of the class as a minimal viable product – testing new ideas and changing the class as we learn. This year was no exception as we made some major changes, all of which we are going to keep going forward.

In our first-ever ETL Research bonus episode, we look at one of the first empirical studies of lean startup. In a recent paper published in the Strategic Entrepreneurship Journal, researchers Michael Leatherbee and Riitta Katila find that lean startup’s emphasis on “customer discovery” — that is, directly testing business hypotheses with potential costumers during product development — does help teams converge on business ideas. They also find that MBAs are both hesitant to embrace the method and especially successful when they choose to employ it. Katila is a professor in Stanford’s Department of Management Science and Engineering and research director of the Stanford Technology Ventures Program, and Leatherbee is a professor at the Pontificia Universidad Católica de Chile as well as President of the Advisory Board for Startup Chile. In this conversation they are joined by Stanford adjunct professor Steve Blank, whose Lean Launchpad class and 2003 book The Four Steps to the Epiphany were foundational to the lean startup movement.

In this episode, I’m really excited to have as my guest, Steve Weinstein. With a background that spans technology, product development, and entertainment, Steve Weinstein is an innovation expert, entrepreneur, and educator who enjoys building products or teaching others how to build companies using Lean Startup techniques. Steve is Senior VP of Strategy at BMNT Inc, helping to create pipelines of innovation that companies, government agencies, and other large organizations can use to stay competitive. A former C-level executive at a number of startups, he teaches entrepreneurship classes, including Steve Blank’s Lean LaunchPad course, as well as Hacking for Defense and its sister courses, Hacking for Social Impact and Hacking for Oceans, at multiple major universities including U.C. Berkeley and Stanford. Before joining BMNT, Steve was founder and CEO of Motion Picture Laboratories, the Silicon Valley-based R&D center funded directly by the six Hollywood major studios. He was CTO of Deluxe Entertainment; guided the transition from physical technologies to e-commerce at Rovi Corporation; and at Vicinity, a mapping company acquired by Microsoft in 2002. He was also a founding executive and Chief Strategist and Technologist at Liberate Technologies, an interactive television software company. In our discussion, Steve talked to me about: Creating value beyond the dollars in profit The impact of consumer perception on brands What a mission-driven organisation is and how they behave Listen to the podcast to learn more. Show Notes and Blog The Podcasts See omnystudio.com/listener for privacy information.

Club E will be joined by Faz K. Bashi, MD to discuss his career as an entrepreneur and and angel investor. Tune in for insights and trends within the minds of angel investors. With the lack of institutional investors in the Midwest startup space, angel investors fill an addressable gap in the start up funding ecosystem. About Faz: Faz K. Bashi, MD, has a research background in Immunology and Virology from UCSF. He is an active member of Life Science Angel's (LSA) in Silicon Valley. He is a member of Berkeley Angel Network. He is also Lead Venture Investor with Portfolia's FemTech Fund I, and soon to be announced FemTech Fund II, focused on female health and wellness. He is very active in the Animal Health space, and is co-Founder, Board member, Investor & Advisor to Anubis Bio; an all-natural food-tech platform with first product scaling in revenue in USA and Korea, called DoggyStat ( https://doggystat.com/ ).He served a 3-year term as Board Member of the Angel Capital Association (ACA) where he continues to be Chair of the ACA's Life Sciences Syndication group. He is active with UCSF’s Entrepreneurship Startup 101 and Lean Launchpad, external advisory board member for UCSF's CTSI and Johns Hopkins' CBID (https://cbid.bme.jhu.edu/), Mentor for women entrepreneur leaders at both CSweetener.org and Springboard Enterprises (www.sb.co) Life Sciences Council. He volunteers his time with Peninsula Bridge program to help the underserved kids of East Palo Alto get inspired about their futures via education. He is committed to helping find treatments for Tinnitus, Autism, Lupus, and Vascular diseases. He completed several triathlons with Team-In-Training to raise funds for the Leukemia and Lymphoma Society.

Jeff is an operating partner in Bessemer’s Silicon Valley office where he primarily works with chief executive and financial officers to share and implement best practices. He was the former CFO of Oracle (market value of $150B), and previously the CFO of several public and private companies. He teaches the Lean Launchpad class at Stanford University’s Graduate School of Engineering with Steve Blank. Additionally, Jeff serves on the Board of Kaiser Permanente, Twilio, Shutterstock and until recently Booking Holdings.

Jeff Epstein is on the board of Shutterstock, Twilio, Kaiser Permanente, and was the CFO of Oracle, DoubleClick, Nielsen and King World and is an operating partner at Bessemer Venture Partners. He teaches the Lean LaunchPad class at Stanford with me. And the minute he talks about financing I shut up and take notes.

This week begins a five-part series on finding your workforce and developing talent for your organization. Today’s episode is all about becoming a Silver Entrepreneur. In fact, I share some of my own journey and how I became a Silver Entrepreneur.   I experienced a very full and rewarding career in manufacturing for 41 years. As I became eligible for retirement, I decided to reinvent myself and start a new career. Once I embarked on consulting, I realized that the actual practice required “practice” and the book learning was only the beginning. After many lessons, trials, and mistakes, I made the transition from manufacturing employee to Silver Entrepreneur. I am still on a journey, but I’m getting farther along down the road! Today, I will share with you what has worked (and is still working), as well as some of my missteps and practices, so that you too can become a Silver Entrepreneur (or begin to understand the mindset of one).   Now for some next steps, take some time this week to develop an action and learning plan. Join a startup program, a weekend program, or check out Steve Blank’s website and the other resources found below.  Next week I will shift generations a little bit and talk about how to understand and speak with Millennials.  We’ll dive deeper into these concepts: What I mean by Silver Entrepreneur and how I embraced the title The 4 steps to becoming a Silver Entrepreneur Developing your teachable point of view  The skill sets for an Expertise Business Knowing when to bring on employees or contractors; determining what to outsource Some ways to make it easy to find, connect, and work with you; including choosing your platform (blogs, podcasts, etc) and mindset shifts Resources and links mentioned: ”Platform” by Michael Hyatt Brand You Podcast with Mike Kim Leading the Factory Forward podcast NSF Innovation Corps (I-Corps™) The National Science Foundation (NSF) I-Corps program prepares scientists and engineers to extend their focus beyond the university laboratory and accelerates the economic and societal benefits of NSF-funded, basic-research projects that are ready to move toward commercialization. Steve Blank’s website In 2011 at the request of the National Science Foundation, Steve Blank modified his Lean Launchpad class and it became the curriculum for the NSF I-Corps. 86 universities now teach the class. Connect with Me: LinkedIn Facebook Please Leave a Rating and Review:Since this podcast is new, I’m asking for Apple Podcasts reviews. This will help others discover and learn what Leading the Factory Forward is all about. I thank you so much for being here and I’ll see ya next time on Leading the Factory Forward. — Lynn   *** EPISODE CREDITS: If you like this podcast and are thinking of creating your own, consider talking to my producer, Danny Ozment. He helps thought leaders, influencers, executives, HR professionals, recruiters, lawyers, realtors, bloggers, coaches, and authors create, launch, and produce podcasts that grow their business and impact the world. Find out more at https://emeraldcitypro.com 

We just finished the 8th annual Lean LaunchPad class at Stanford. The team presentations are at the end of this post. It’s hard to imagine, but only a decade ago, the capstone entrepreneurship class in most universities was how to write – or pitch- a business plan. As a serial entrepreneur turned educator, this didn’t make sense to me. In my experience, I saw that most business plans don’t survive first contact with customers.

Entrepreneur Steve Blank has served as a founder, investor and even in the air force. But there’s another title he’s is known for: professor. Blank has earned a reputation among budding and veteran business leaders alike as the father of the Lean Startup movement, a business philosophy that popularized startup concepts like “pivoting” and “minimum viable product.” And he’s taught these ideas on business and innovation at Stanford, the University of California at Berkeley, Columbia and New York Universities. His course on the “lean” methodologies, called Lean Launchpad, is offered at more than 75 schools around the world and was one of the earliest to appear on the online course platform Udacity. This week on the EdSurge On Air podcast, we talk to Steve about both his business and teaching careers, and how changes in the startup world are reflected in both the lean method and his courses. Listen below, or subscribe to the EdSurge On Air podcast on your favorite podcast app (like iTunes or Stitcher). Highlights from the conversation below have been lightly edited and condensed for clarity.

Dan Toma is the co-author The Corporate Startup: How Established Companies Can Develop Successful Innovation Ecosystems. Puzzled by the questions ‘why are innovative products mainly launched by startups?’, Toma focuses on enterprise innovation strategy - specifically on the changes blue-chip organizations need to make to allow for new ventures to be built in a corporate setting, and has worked with the likes of Deutsche Telekom, Bosch, Jaguar Land Rover, Bayer, John Deere or Allianz. Dan holds a dual degree MBA from Bradford University and TiasNimbas Business School while being certified lean startup acceleration specialist by Columbia University through the Lean Launchpad program. We riffed on all things corporate innovation, viable alternatives to common pitfalls and given Dan’s Romanian heritage, the 94 Romanian World Cup team. On corporate innovation, expect to learn about: An innovation thesis and why your company needs one Why it’s imperative to get the plumbing right by building an innovation ecosystem The importance of getting the metrics right and going beyond mere activity metrics to what Dan calls impact metrics We covered a lot more ground in this conversation that will be of serious interest to intrapreneurs so sit back, relax or enjoy your walk, workout or wherever you happen to be listening to this, for my conversation with yet another critical thinker on the topic of corporate innovation and on thriving under conditions of uncertainty,  Dan Toma. Topics Discussed: Dan’s background Why companies need an innovation thesis The paradox of innovation within a large company What is an innovation thesis and why do companies need one? Why startups aren’t a smaller version of a large company and vice versa Lessons from venture capital How to build an innovation ecosystem Why metrics for sustaining innovation don’t support adjacent or disruptive innovation Diversity not just of what you can see, but what you can’t see - in particular, how people think Budgeting for corporate innovation Lean leadership Success stories and case studies The value of premortems and retrospectives to get buy-in for ‘iterative’ ways of doing things How to support the taking of lots of small bets instead of few large ones Show Notes: Linkedin: www.linkedin.com/in/dantoma/ Get Dan’s book, The Corporate Startup: https://amzn.to/2Nx63tC Twitter: @Danto_ma Dan’s site and consulting: danto.ma Innov8rs Sydney conference: innov8rs.co/sydney Get the book, Clarity First: https://amzn.to/2NyNJjP Coupon code: 8-steve I hope you enjoyed this episode. If you’d like to receive a weekly email from me, complete with reflections, books I’ve been reading, words of wisdom and access to blogs, ebooks and more that I’m publishing on a regular basis, just leave your details at www.futuresquared.xyz/subscribe and you’ll receive the very next one. Listen on Apple Podcasts @ goo.gl/sMnEa0 Also available on: Spotify, Google Play, Stitcher and Soundcloud Twitter: www.twitter.com/steveglaveski     Instagram: www.instagram.com/@thesteveglaveski  Future Squared: www.futuresquared.xyz Steve Glaveski: www.steveglaveski.com  Medium: www.medium.com/@steveglaveski  Terminator clips sourced from www.terminatorfiles.com and intellectual property of Tristar Pictures. 

It’s always fun to see what happens to my students after they leave class. Jeff Witten started CoinOut four years ago in my Columbia University 5-day Lean LaunchPad class. CoinOut eliminates the hassle of getting a pocket full of loose change from merchants by allowing you to put it in a digital wallet. Jeff just appeared on Shark Tank and the Sharks funded him. We just caught up and I got to do a bit of customer discovery on Jeff’s entrepreneurial journey to date.

We just finished our Lean LaunchPad class at UC Berkeley’s engineering school where many of the teams embedded machine learning technology into their products. It struck me as I watched the teams try to find how their technology would solve real customer problems, is that machine learning is following a similar pattern of previous technical infrastructure innovations. Early entrants get sold to corporate acquirers at inflated prices for their teams, their technology, and their tools. Later entrants who miss that wave have to build real products that people want to buy.

Retired serial entrepreneur Steve Blank, creator of the “Lean LaunchPad” methodology for startups, discusses Silicon Valley's roots as the epicenter of electronic warfare in the mid-20th century and how the region's innovation ecosystem formed. An adjunct professor in Stanford University's Department of Management Science & Engineering, Blank also walks through the lean-startup movement and how its principles are now helping the U.S. government innovate faster in the areas of basic science, health, national defense and international diplomacy.

Retired serial entrepreneur Steve Blank, creator of the “Lean LaunchPad” methodology for startups, discusses Silicon Valley’s roots as the epicenter of electronic warfare in the mid-20th century and how the region’s innovation ecosystem formed. An adjunct professor in Stanford’s Department of Management Science & Engineering, Blank also walks through the lean-startup movement and how its principles are now helping the U.S. government innovate faster in the areas of basic science, health, national defense and international diplomacy.

Hacking for Diplomacy is a new course from the Management Science and Engineering department in Stanford’s Engineering school and Stanford’s International Policy Studies program that will be first offered in the Fall of 2016.

Doris talks to Steve Blank, Stanford professor and creator of Lean LaunchPad® about how students learn creative problem-solving for today’s world in courses that incorporate the same methodologies Steve designed for use by engineers, graduate school students and entrepreneurs.

Steve Blank is considered by many to be the godfather of Silicon Valley and is credited with spearheading the customer development model which birthed the lean startup, popularised by his former pupil Eric Ries' book of the same name. He is one of the most prominent and widely respected thought leaders in the world on innovation and entrepreneurship. Over the last 35 years, Steve has been part of, or co-founded eight Silicon Valley startups. These have run the gamut from semiconductors, video games, personal computers, and supercomputers. (MIPS, Zilog, Rocket Science, SuperMac, Convergent Technologies, Ardent, ESL) Steve's last company was E.piphany, an enterprise software company. Steve currently teaches entrepreneurship at U.C. Berkeley-Haas Business School, Columbia University, NYU, Stanford University Engineering School and UCSF. In 2009 he was awarded the Stanford University Undergraduate Teaching Award in the department of Management Science and Engineering. In 2011 the National Science Foundation adopted his Lean Launchpad class as the U.S. standard for commercializing basic and applied research via the Innovation Corps.   Topics Discussed: - the corporate innovation outpost - the evolution of corporate R&D - getting to "yes" for corporate innovation - why entrepreneurs and intrapreneurs are not the same - why horizon 1 systems don't support horizon 3 innovation - why horizon 3 or disruptive innovation requires a little bit of crazy - innovation in the public sector - how important it is to get the culture right - acquisitions and innovation - if he could work for any company in the world at any stage of their lifecycle, which would it be and why   There were definitely some nerves in the lead up to this interview given that Steve is somebody who I have the upmost admiration for in the space of innovation and entrepreneurship and some of those nerves might have shone through during moments in this podcast so feel free to have a laugh at my expense! :)     Show Notes: - SteveBlank.com - Four Steps to the Epiphany (book): https://amzn.to/2zoUH6e - The Startup Owner's Manual (book): https://amzn.to/2MSAfOt - Twitter: @sgblank --- I hope you enjoyed this episode. If you’d like to receive a weekly email from me, complete with reflections, books I’ve been reading, words of wisdom and access to blogs, ebooks and more that I’m publishing on a regular basis, just leave your details at www.futuresquared.xyz/subscribe and you’ll receive the very next one. Listen on Apple Podcasts @ goo.gl/sMnEa0 Also available on: Spotify, Google Play, Stitcher and Soundcloud Twitter: www.twitter.com/steveglaveski Instagram: www.instagram.com/@thesteveglaveski Future Squared: www.futuresquared.xyz Steve Glaveski: www.steveglaveski.com Medium: www.medium.com/@steveglaveski

We just finished the 6th annual Lean LaunchPad class. This year we made a small but substantive addition to way we teach the class, adding a week for reflection. The results have made the class massively better.

Mike Panesis, the Executive Director of the Center for Entrepreneurship at California Lutheran University met with host Mark Sylvester to discuss the role of the Center in the Startup Ecosystem. Mike has been working with entrepreneurs for years now, having most recently been the Entrepreneurial Programs Manager at UCSB, working directly with the Technology Management Program (TMP). In this episode we covered enough topics to warrant a couple of shows, here’s what you can expect: • Started the show with a discussion about Greek food and festivals • How entrepreneurs learn from customers along the way and how ideas for companies most usually change • The role of resilience in the founders emotional make up • What you can learn from mentors, including Steve Blank and the Lean Launchpad approach • How to think about social responsibility and your startup • The difference between an Accelerator and an Incubator • How to work with Mentors - how to select Mentors • How the various startup efforts in the 805 work together quotes “You need to know what you don’t know" - Mike Panesis “Not all that wander are lost - JR Tolkien Links to sites and programs mentioned during the show: Cal Lutheran Center for Entrepreneurship web: http://www.callutheran.edu/entrepreneurship twitter: @CalLutheranCE instagram: @CalLutheranCE facebook: https://www.facebook.com/CalLutheranCE St. Demetrios Greek Orthodox Church: http://www.saintdem.org Ventura County Greek Festival: http://www.vcgreekfestival.org SB Greek Festival: http://www.santabarbaragreekfestival.org UCSB TMP: http://www.tmp.ucsb.edu SLO HotHouse: http://www.slohothouse.com Steve Blank: http://www.steveblank.com Frank Robinson: http://www.syncdev.com 805 Startups: http://www.805startups.com Salty Girl Seafood: http://www.saltygirlseafood.com/ twitter: @Salty_Girls Capyx: http://www.capyx.com (founder taught himself to code) twitter: @Capyx

Todd Dunn is the Director of Innovation and runs the Intermountain Healthcare Transformation Lab, which is working to foster innovation in the healthcare industry. Todd DunnHe’s now run several Lean LaunchPad classes and has seen a ton of healthcare startups. Here’s his advice for startups in this space.

Thibault Duchemin and his team applied for our Lean LaunchPad class at UC Berkeley in 2014. We accepted them because it was clear Thibault was driven to solve a very personal problem – he grew up in a Deaf family, the only one who could hear. His team project was to provide automated aids for the hearing impaired. Here’s his story.

Stephen Chambers spent 22 years in some of the most innovative companies in life science as the director of gene expression and then as a co-founder of his own company. Today he runs SynbiCITE, the UK’s synthetic biology consortium of 56 industrial partners and 19 Academic institutions located at Imperial College in London. Stephen and SynbiCITE, just launched the world’s first Lean LaunchPad for Synthetic Biology program. Here’s his story.

The University of Maryland is now integrating the Lean LaunchPad® into standard innovation and entrepreneurship courses across all 12 colleges within the University. Over 44 classes have embedded the business model canvas and/or Customer Discovery including a year-long course taken by every single one of its bioengineering majors. It’s made a big bang.

NYU has adopted the Lean LaunchPad® class as a standard entrepreneurship course across twelve different schools/colleges within the University. Over 1,000 students a year are learning lean startup concepts. Impact!

One of the great things about teaching is that while some students pass by like mist in the night others remain connected forever. I get to watch them grow into their careers and cheer them on. Its been three and a half years since I first designed and taught the Lean LaunchPad class and lots of water has gone under the bridge since then. I’ve taught hundreds of teams, the National Science Foundation Innovation Corps has taught close to 400 teams led by our nations top scientists, and the class is being taught around the world.

Today the National Institutes of Health announced they are offering my Lean LaunchPad class (I-Corps @ NIH ) to commercialize Life Science. There may come a day that one of these teams makes a drug, diagnostic or medical device that saves your life.

Our Stanford and Berkeley Lean LaunchPad classes are over for this year, and as usual we learned as much from teaching the teams as the teams did from us. Here are a few of the Lessons Learned from these two classes.

Steve Blank, lecturer Haas School of Business UCB. He has been a entrepreneur in Silicon Valley since the 1970s. He has been teaching and developing curriculum for entrepreneurship training. Built a method for high tech startups, the Lean LaunchPad.TranscriptSpeaker 1: Spectrum's next. Speaker 2: Okay. Okay. Speaker 1: Welcome to spectrum the science and technology show on k a l x Berkeley, a [00:00:30] biweekly 30 minute program bringing you interviews featuring bay area scientists and technologists as well as a calendar of local events and news. Speaker 3: Hello and good afternoon. My name is Renee Rao and I'll be hosting today's show. Today we present part two of two interviews with Steve Blank. I lecture at the High School of business at UC Berkeley. Steve has been a serial entrepreneur in silicon valley since the late 1970s in the early two thousands he retired from the day to day involvement [00:01:00] of running a company. He has been teaching entrepreneurship training ever since. By 2011 he was said to have devised a scientific method for launching high tech startups, dubbed the lean launchpad. The National Science Foundation caught wind of this and asked Steve to build a variation for teaching scientists and engineers how to launch startups. In 2013 Steve partnered with UCLA and the NSF to offer the lean launch pad class for life science and healthcare. In part two, Steve Talks about getting [00:01:30] the NSF lean launch pad classes going, the evolution of startup companies and innovation, and now Brad swift continued his interview with Steve Blank. Speaker 4: Okay. Speaker 5: In your experience with these scientists and teaching them, are these people self selected? They're the ones who are anxious and eager and there are other scientists maybe back in the lab are reluctant afraid of the process. Speaker 4: So just the personality of it. Yeah, so this goes back to the comment I made earlier about entrepreneurs being artists. It was the implicit comment [00:02:00] I just kind of both through in the beginning, but as important is that you can't assign entrepreneurship as a job, right? If you really think about them, you can't split up a room and say, those of you on the left, you're going to be musicians. And those are you on the right, you're working on the assembly line like, Oh yeah, WTI. I mean, it doesn't work. It doesn't work like that. All right. Entrepreneurship is a calling. Just like art, just like music, just like writing is something you have to passionately want to do, but much like art, we've learned something [00:02:30] a couple hundred years ago that very early on in people's lives in elementary school and junior high school in high school, we want to have our depreciation. Speaker 4: They're not intensive classes, but their exposure to art that people might not know their artists. They might not know they have a passion to paint or to sculpt or to write or to entertain. I will contend because entrepreneurship is an art. We actually need those type of classes early on because scientists didn't understand [00:03:00] that not was their passion to invent and create. They might actually have an equal passion to wait a minute, I actually want to take this thing all the way through when I want to see what happens. If hundreds of thousands of people were being affected by this medicine, not just, here's my paper in the latest publication. It doesn't mean everybody could do that, but it means we've not yet gotten the culture to where we could say, well is this something that kind of excites you? And I think we're getting better to understand what it takes to do that. Speaker 4: Would you have any [00:03:30] idea what that would look like? The kind of exposure that you would be talking about in grammar school or Middle School? Sure. It turns out one of the unintended consequences of teaching the scientists that National Science Foundation is, remember their professors, almost all of them tenured running labs and universities across the country. And so here they take this class from the national science foundation and about half or two thirds of them now go back to their own universities, pissed cause they go, how come we're not teaching this? And so what happens is the National Science Foundation asked [00:04:00] me and Jerry Angle, who was the head of entrepreneurship at Haas, why don't you guys put on a course through a nonprofit called NCIA to teach educators in the United States who want to learn how to teach this class. And so we teach the lean launchpad for educators. We teach now 300 educators a year. Speaker 4: One of the outgrowths of that class was entrepreneur educators from middle school and high school started showing up and I went, you're not really teaching this to kids. They went, [00:04:30] oh Steve, you should see our class. And I went, oh my gosh, this is better than I'm doing. So they'd taken the same theory and they modified the language. So it was age appropriate. And so the two schools that had some great programs were Hawkin school outside of Cleveland and Dunn's school here in California. And in fact they're going to hold their own version of the educator class in June of 2014 for middle school and high school educators who were interested in teaching this type of entrepreneurial education. So I think it's starting to be transformative. I think we [00:05:00] have found the process to engage people early and not treated like we're teaching accounting to do, treating it like we're teaching art. Speaker 4: And again, we're still experiment thing. I wish I could tell you we got it now. I don't think so. I think we're learning, but the speed at which we're learning through it makes me smile. That's great. It is great. The Passion of the educators really is exciting. And Are you able to teach us remotely so that scientists from around the country don't have to come to you and sort of stop what they're doing? I was teaching the class [00:05:30] remotely. It's now taught in person in multiple regions. So that's how we solved that problem. But my lectures were recorded and not only were they recorded, they were recorded with really interesting animation. So instead of just watching me was a talking head. These are broken up into two minute clips and it's basically how to start a company and it's on you udacity.com so if you want to see the lean launch pad class in the lectures, it's on your udacity.com it's called the p two 45 but by accident we made these lectures public to not only the [00:06:00] national science foundation scientists, but we opened it up to everybody. Speaker 4: And surprisingly there is now over a quarter million people have taken the class. I've had people stop me at conferences and have told me that the Arabic translation, which I didn't even know existed, it's the standard in the Middle East. I had people from Dubai and Saudi Arabia in Lebanon literally within 10 feet go, oh well we recognize you. And I went, who are you turning over, Mr Blank, you worthy? I went, what's going on? I laugh not because it's me, but because [00:06:30] this is the power of the democratization of entrepreneurship. I have to tell you a funny story is that I grew up with the entrepreneur cluster was silicon valley and something in the last five years that I've gotten to travel with both Berkeley and Stanford and National Science Foundation to different countries to talk and teach about entrepreneurship. And my wife and I happened to be on vacation in Prague and when I really knew the world had changed as my wife had said, you know Steve, we're kind of tired of eating hotel food. Speaker 4: I wonder if there were ending entrepreneurs and Proc, I didn't want to, I [00:07:00] don't know. You know, let me go tweet and any entrepreneurs and Prague, you know, looking for a good check. Brie hall and hour and a half later we're having dinner with 55 entrepreneurs and Prague television is there and they said, Steve, you don't understand. Here's why. Here's an entrepreneur community everywhere. The only thing we still have unique in the bay area is that entrepreneurship and innovation. We've become a company town. That is our product. Much like Hollywood used to be movies in Detroit used to be cars in Pittsburgh steel. [00:07:30] While obviously there are people who do other stuff, teach in restaurants, put the business. The business to the bay area really is entrepreneurship and innovation. While we tell stories about the entrepreneurs, the unheralded part of that ecosystem is that we have equally insane financial people. Speaker 4: Why Silicon Valley happened was that the venture capitalist in the 1970s in Boston when it wasn't clear whether it was going to be Boston or Silicon Valley to be the center of entrepreneurship, the venture capitalist in Boston continued to act [00:08:00] like bankers, venture capitalists in Silicon Valley. They decided to act like pirates and the pirates want and so what really differentiates the observational make with an entrepreneurship is everywhere in the world. Entrepreneurial clusters only happen when all these things, these components, primarily entrepreneurs, but a heavy dose of risk capital capable of writing not only small checks but large checks and doubling and tripling down on startups. That's why you have the Facebooks and the googles and the twitters [00:08:30] around here. You also have a culture let's people know and understand. In the 1950s and sixties people came to San Francisco and Berkeley to live an alternate personal lifestyle, but they were hitting 30 miles south to have an alternate business lifestyle around Stanford and it was this kind of magic combination of great weather, the ability to do things in both business and your personal life that you couldn't anywhere else. These cultural phenomenons actually were and under appreciated until a very smart professor at Berkeley [inaudible] [00:09:00] wrote a book called regional advantage that actually described a lot of these things and open my eyes about why this region actually won. Speaker 1: You're listening to spectrum on k a Alex Berkeley. Steve Blank is our guest. He's a former entrepreneur and current lecturer at the High School of business. And the next segment he talks about how startups has changed since he first began in Silicon Valley in the 1970s Speaker 4: is entrepreneurship then changed as a result [00:09:30] of that. What really happened was the harmonic conversion of a really interesting set of events. One is, is that if you think back on how startups worked in the, in the golden age of Silicon Valley in the seventies and eighties to build a startup required millions if not tens of millions of dollars, not to run it, but just to start it, you needed to buy computers, either mainframes or mini computers and then workstations. You needed to license millions of dollars of expensive software. The only venture people were either in [00:10:00] Boston or silicon valley and they lived on sand hill road and nowhere else, and therefore it was kind of a formal process and the cost of entry was literally millions or tens of millions of dollars. There was no other way to get computing. There was no other way to get money. The second is, we had no theory about startups. Speaker 4: That is, there were no management tools at all. But what happened starting out of the rubble actually of the last Internet bubble, things change in technology in a way. I don't think people outside the technology business appreciate it off. Probably the biggest [00:10:30] one was actually generated by Amazon. It turns out Amazon created something called Amazon web services. And if you're a consumer, all you know is Amazon maybe for kindle and for sure for their books or their website. But if you're a programmer, Amazon has become the computing utility. You no longer have to buy computers from your laptop. You literally log in to hundreds of millions of dollars of computers and you have access to the world's largest computing resource ever assembled [00:11:00] for pennies, for pennies, and you don't need any storage. You're storing it all and online and all the computing. So number one, Amazon web services truly turned computing hardware and software into a pennies per gigabyte and MIPS, et Cetera, in a way that was unbelievable 10 years earlier. Speaker 4: Two is that changed the cost of entry of an early stage venture. You no longer needed millions of dollars. In fact, if you were smart entrepreneur, you could start on your credit card and if you didn't have your credit card, maybe some friends and family, [00:11:30] and that started a very different wave because it changed venture capital. It used to be there were either doctors or dentists or other reform of venture capital firms like Kleiner Perkins and Mayfield and sequoia. But the fact is that now after a ton of entrepreneurs could start on their credit cards, they still didn't need $20 million. Maybe eventually they did, but they could just take $100,000 or half a million dollars and get pretty far. And that created a new class of super angels or angel investors [00:12:00] that just never existed before. Kind of this intermediate level. And so venture capital changed. And also with that change, it changed where they could be located. Speaker 4: You no longer had to be located to be a investor in New York, Boston, or San Diego. Th that amount of capital could be available in the London or Helsinki or Estonia or Jordan, Beijing. Third is, and I will take credit for some of this, the invention of a new way to look and how to build these startups. It used to be that if you were building [00:12:30] a physical product, you would do something called the functional Spec or you'd get requirements from a customer. You build a specification and then you'd make an early version of the product called Alpha test, maybe a less buggy version called Beta test, which foist on some poor unsuspecting customers and then you'd have a party at something called first customer ship and that process was called waterfall development and from beginning to end typically took years and insight in the software business and Toyota had it even [00:13:00] earlier is that we could build products differently, we could build products incrementally and iteratively and that's called agile engineering and for startups, how you want to build your products is agily and iteratively because almost always what you believe on day one are all the customer features that they need. Speaker 4: It's a pretty safe bet. You're not a visionary, you're actually hallucinating and that most of the features you would historically have built in go unused on needed and unwanted. But if [00:13:30] in fact you could actually test intermediate versions of the product iteratively and rapidly on those customers with a formal process which I invented called customer development, those two hand in hand change the speed and trajectory of how startups get built. And so now you see these startups coming out of nowhere and getting acquired in three years, but they have tens of millions of customer. Where did that come from? Well, in the old days we'd still be writing the software, building the hardware. Speaker 6: Aw, it's [00:14:00] a public affairs show, k, a l X. Berkeley. Our guest is Steve Link a lecture at UC Berkeley's Haas School of business. The next segment, Steve Talks about his current work, trying to understand how innovation drives some companies and fails in others. Speaker 4: If I can, the unintended consequence of all this stuff. Remember this whole lean startup stuff has become a movement by itself. Harvard business review contacts me and says, Steve, [00:14:30] every large corporation is now desperately struggling how to deal with continuous disruption in the 21st century. That is all the rules that worked in the 20th century, you know, be number one in market share, you know, like be number one and two, I mean all the Jack Welsh rules, you follow those who be out of business in seven years. Why, you know, globalization in China Inc Internet has made consumers flighty very little brand loyalty. Pricing is almost transparent. Cost of starting a new business is infinitely lower. All of the things [00:15:00] that made you strong in the 20th century as a corporation are no longer true. Some of them are obviously, but not really. And so every large corporation are trying to relearn a set of rules and guess where they're looking for, they're looking at startups of how do we be as innovative as apple as that. Speaker 4: That is, the models are now silicon valley and other technology companies. And so my article, the lean startup changes everything became the cover of the Harvard Business Review and May, 2013 what was interesting is that I started [00:15:30] getting calls from executives whose titles I had never heard of before. It turns out almost every large company is now appointing a VP of corporate innovation. I had never heard of it. You know what's that? And when you go talk to them, and I've talked to a bunch of them, now you find out that they're all struggling to solve this continuous disruption problem by trying to build innovation inside the DNA of large corporations in the u s and overseas and the first sign of companies [00:16:00] trying to do that is appointing somebody typically as a corporate staff person to have some kind of internal incubator. I could politely say, that's a nice first step put it really doesn't solve the problem. Speaker 4: It actually just points out what the problem is and can I digress for another 10 seconds? It turns out that the problem that corporations are having is not a tactical organizational problem. The things I described, the globalization, the effect of the [00:16:30] Internet, et Cetera, are just strategic problems that every corporation is facing. The last time companies faced something, this major was in the 1920s, uh, u s corporations grew from small mom and pop businesses from the 1870s to 1920s and they kind of came up with a form of organization called functional organizations, meaning you had a head of sales, a head of marketing, a head of manufacturing, but by function that was the only way companies were organized. But by 1920, some [00:17:00] u s corporations spans from New York to San Francisco. And so there was a geography problem here. You had a head of sales tryna run multiple geography. Speaker 4: It wasn't even the same time zone. And some companies like dupont had a different problem while they also had geography problems. Dupont made everything from explosives to paint. But you only had one marketing group and one manufacture. How do, how do you manage that? And for about five or six years for corporations, dupont, General Motors, Sears and standard oil, understood. They had a strategy [00:17:30] problem and attacked it by playing with the structure of the company, meaning how the company was organized and they all finally decided that they were going to organize in a radically different form called divisions. Instead of just having functions, they would actually break up like for example, General Motors into the Buick Division and ultimate build division or whatever, or for dupont explosives divisions and the paint division and on top of a thin layer of corporate staff, but now have a company organized by divisions first changed in [00:18:00] 50 years and how companies were organized. Speaker 4: Fast forward 40 years later, the third form of corporate organization to emerged called Matrix organizations where you start with a functional organization, but now all of a sudden we would have specific projects pop up, gee, I want to work on the new fad six fighter. Well, I have an engineering group, but let me put together a team that could pull out of engineering and pull out a product management and put together for our temporary amount of time and then they'll go back into their functions and then be pulled out again. But that's it. Those are the only three forms [00:18:30] of corporate organization. I'll contend that we're facing a common strategy problem that is not solvable by just pasting on vps of innovation. I believe it's solvable by rethinking on the highest possible level is do we need a fourth form of corporate organization? And I gotta tell you I got the answer, but I'm not going to tell you now. Okay.Speaker 5: Is this sort of then turning all the operations research that's been done over the past? You know, since World War II, [00:19:00] that was when it seemed to be salient. Is it on its ear now? Is this, Speaker 4: so if you really think about what we built for the last 150 years is corporations were the epitome of operational efficiency through operations research, the output of business schools. I mean all our stuff has had to be continuous execution, driving to the lowest cost provider and outsourcing and all that stuff. That's great. But you're going out of business and in fact, companies that do that, [00:19:30] I will contend have a much shorter lifespan that companies that now do continuous innovation. That is, if you think about the difference between Amazon and Netflix and apple, when jobs was alive versus standard US companies, the distinction was they were continuously innovating, ruined Leslie, innovating, and it was not some department that was innovating. It's a big idea. It was the entire company was innovating, yet they were making obscene profits. So clearly there are some models of some companies who [00:20:00] have figured out and in fact HP in the 70s and eighties had figured out how to do and then they lost the formula. I think we now actually have a theory, a strategy of how to do that and some really specific tactics. How, I know we could do this in detail for u s corporations and corporations worldwide, but I want to start at the u s and we're going to be talking and writing about that in the next year. Speaker 5: Great. So that's what you're actively working. Speaker 4: Oh, actively working. And I'm Hank Chesboro who have inventor of open innovation here at Haas business school and with Alexander Osterwalder [00:20:30] and venture of the business model canvas. All have been part of some of these discussions. You know, I just get smarter by hanging out with much smarter people. And I'm not the only one who's thinking about that. There are lots of very smart people trying to crack the code and at the same time, companies are raising their hand and the symptom of raising their hand is they're appointing vps of innovation and her likes saying, yeah, you know, here's what we are. Oops, it doesn't quite work. And finance has different rules and but wait a minute, I'm trying to be innovative, but the HR manual doesn't allow me to hire people. No, [00:21:00] no. Legal says I can't use our brand here. So what you're really finding is that it's not an org problem. Speaker 4: It's not anybody's trying to be mean. Is that what we're missing is the CEO and board conversation is, oh my gosh, maybe we need to get innovation in every part of the company, not by exception. That's the idea I'll telegraph for now. And how do you do that without affecting current profits? And it's quite possible because again, there are these experiments of companies that are insanely from a profitable, who've done this. [00:21:30] Now can we just make a teachable and doable by other corporations? And the answer is yes, we're going to go do that. Do you see that pace of technology accelerating? Absolutely. I think we're in the golden age of both technology and entrepreneurship. You ain't seen anything yet. I'm still constantly amazed sitting here smiling. When you say that is why I still love to teach is that, you know, I get to see my students come up with things. Speaker 4: You hear the 400th hotel automation package or the whatever, but you know, and then you see something, again, drones are three d printing [00:22:00] or you could do white with your phone, you're gonna make a turn on or you're a password through. It's just things that are unimaginable. And then you watch the next generation of Steve Jobs that said, you know, the current version silicon valley is you go on much. Who single handedly is val to obsolete the automobile industry? And at the same time just wrecking havoc in this space launch industry, single individual who had, by the way, zero qualifications to do any of those. Congratulations. Welcome to entrepreneurship. He had the will to be disruptive [00:22:30] and he understood that the technology was about at the edge of being able to do what he did. That's how we got the iPod and the iPhone or else in a perfect world and Nokia would still have 89% market share. If I was General Motors and Ford, I'd be really concerned. Steve Blank, thanks very much for coming on spectrum. Great. Thanks for having me. Speaker 6: You'd like more insight into Steve Blank's ideas. Go to his website, Steve blank.com [00:23:00] as Steve mentioned, the Lean launch pad course is available. I knew udacity.com to learn more about the NSF mean launchpad curriculum, search for NSF [inaudible] your local to the bay area. Go to [inaudible] dot com if you're interested in startup appreciation materials for educators, go to n c I n aa.org/l l p. Stretching shows [00:23:30] are archived on iTunes yet it gives created a simple link for you. The link is tiny url.com/calex spectrum and now a few some technology events happening locally over the next two weeks. Brad Swift joins me for the calendar. Speaker 3: California's coastal waters are home to one of the four richest temperate marine biota is in the world. The California Academy of Sciences will be holding [00:24:00] a series of lectures and events to explore this incredible diversity of life. They look, explain what makes this region so productive and why it needs to be protected on Saturday, March 22nd from nine to 11:00 AM a variety of Speakers will consider the impacts of human activity on the local marine ecosystems and the establishment and efficacy of marine protected areas. They will also discuss how diversity is monitored in California's oceans and which areas will need to be most closely scrutinized for future impact. For more information on the [00:24:30] March 22nd event. Please visit cal academy.org Speaker 5: on Monday, March 31st University of Maryland professor of human development, Nathan Fox will give a lecture on his recent studies on whether experiences shaped the brain and neural circuitry for emerging cognitive and social behaviors over the first years of life. Something that many developmental scientists take for granted. Foxes study the Bucharest early intervention project [00:25:00] is the first randomized trial of a family intervention for children who experienced significant psychosocial neglect early in their lives. A group of infants living in institutions in Romania were recruited and randomized to be taken out of the institution and placed into family foster care homes or to remain in the institution. He then followed up with the children several times over the next eight years and examine the lasting [00:25:30] effects of the deprivation and which, if any interventions were successful in assuaging the harmful effects, the free public talk will be held on March 31st from 12 to 1:30 PM on the UC Berkeley campus in room 31 50 of Tolman hall Speaker 3: on Wednesday per second. You see Berkeley's department of Environmental Science Policy and management will present a speech by Chris Mooney, a journalist who's written several books on the resistance that many [00:26:00] Americans have to accepting scientific conclusions. His lecture will be titled The Science of why we don't believe in science and we'll examine the reasons behind Americans disinterest in scientific solutions to the world's problems. The free public lecture will be held on Wednesday, April 2nd at 7:00 PM in the International House Auditorium of UC Berkeley. Here at spectrum, we like to present new stories we find particularly interesting. Brad Swift joins me in presenting the news. Speaker 5: UC Berkeley Professor, Dr. Richard Kramer [00:26:30] and his research team have been able to temporarily restore light sensitivity to mice, missing a majority of their rods and cones in healthy mammals. The eyes detect light with specialized photo receptor cells or rods and cones and then transmit a signal to their optic nerve cells which eventually communicate with the brain. Dr. Kramer and his team explored the effects of a similarly light-sensitive molecule known as d n a Q in healthy mice and mice [00:27:00] with a degenerative disease that caused them to lose nearly all their rods and cones. After dosing, the mice with d n a Q, the mice were exposed to lights and their optic nerve activity was measured via electrode arrays. The diseased mice showed strong light sensitivity. The team next examined a small number of animals in light and dark conditions to test whether the sensitivity conferred any perception of the light. In the diseased mice, [00:27:30] the injected mice were better able to form an association between a light stimuli and electric shock than those in the control group. While millions of humans suffer from similar degenerative retinal conditions, definitive conclusions on the broader therapeutic and deleterious effects of the molecule. D n a Q are still years away. Speaker 3: In a recent study published in the journal bio materials, UC Berkeley researchers were able to eliminate the transmission rep [00:28:00] of a common infection. Staphylococcus Aureus is a bacterium that commonly infects patients who've had surgeries involving prosthetic joints and artificial heart, bowels, staff, or aces. Ability to adhere to medical advices is key to experience as once introduced to the body. It can cause severe illness. UC Berkeley Bio and mechanical engineering, Professor Mohammad [inaudible] fraud and others in his lab examined how the clusters of staff warriors were able to adhere so well to certain Yana surfaces as well as the type of surfaces [00:28:30] that increased or decreased the bacteria's ability to clean. They quickly found that while staff [inaudible] can adhere to a variety of flattened curves services, it does seem to have a preference for certain structures including a tubular pillar where the bacteria was able to partially embed itself within holes in the structure. Professor, my fraud expressed hope that the improved understanding of these preferences could allow the design of medical devices built to attenuate bacterial adhesion while escaping the need to chemically damaged the bacteria to prevent transmission Speaker 7: [00:29:00] [inaudible]. Speaker 5: The music heard during the show was written and produced by Alex Simon. Speaker 1: Thank you for listening to spectrum. If you have comments about the show, please send them to us via email. Our email address is spectrum to a k a l ex@yahoo.com Trina's in two weeks at the same time. [inaudible] Speaker 8: [00:29:30] [inaudible]. Hosted on Acast. See acast.com/privacy for more information.

Steve Blank, lecturer Haas School of Business UCB. He has been a entrepreneur in Silicon Valley since the 1970s. He has been teaching and developing curriculum for entrepreneurship training. Built a method for high tech startups, the Lean LaunchPad.TranscriptSpeaker 1: Spectrum's next. Speaker 2: Okay. Okay. Speaker 1: Welcome to spectrum the science and technology show on k a l x Berkeley, a [00:00:30] biweekly 30 minute program bringing you interviews featuring bay area scientists and technologists as well as a calendar of local events and news. Speaker 3: Hello and good afternoon. My name is Renee Rao and I'll be hosting today's show. Today we present part two of two interviews with Steve Blank. I lecture at the High School of business at UC Berkeley. Steve has been a serial entrepreneur in silicon valley since the late 1970s in the early two thousands he retired from the day to day involvement [00:01:00] of running a company. He has been teaching entrepreneurship training ever since. By 2011 he was said to have devised a scientific method for launching high tech startups, dubbed the lean launchpad. The National Science Foundation caught wind of this and asked Steve to build a variation for teaching scientists and engineers how to launch startups. In 2013 Steve partnered with UCLA and the NSF to offer the lean launch pad class for life science and healthcare. In part two, Steve Talks about getting [00:01:30] the NSF lean launch pad classes going, the evolution of startup companies and innovation, and now Brad swift continued his interview with Steve Blank. Speaker 4: Okay. Speaker 5: In your experience with these scientists and teaching them, are these people self selected? They're the ones who are anxious and eager and there are other scientists maybe back in the lab are reluctant afraid of the process. Speaker 4: So just the personality of it. Yeah, so this goes back to the comment I made earlier about entrepreneurs being artists. It was the implicit comment [00:02:00] I just kind of both through in the beginning, but as important is that you can't assign entrepreneurship as a job, right? If you really think about them, you can't split up a room and say, those of you on the left, you're going to be musicians. And those are you on the right, you're working on the assembly line like, Oh yeah, WTI. I mean, it doesn't work. It doesn't work like that. All right. Entrepreneurship is a calling. Just like art, just like music, just like writing is something you have to passionately want to do, but much like art, we've learned something [00:02:30] a couple hundred years ago that very early on in people's lives in elementary school and junior high school in high school, we want to have our depreciation. Speaker 4: They're not intensive classes, but their exposure to art that people might not know their artists. They might not know they have a passion to paint or to sculpt or to write or to entertain. I will contend because entrepreneurship is an art. We actually need those type of classes early on because scientists didn't understand [00:03:00] that not was their passion to invent and create. They might actually have an equal passion to wait a minute, I actually want to take this thing all the way through when I want to see what happens. If hundreds of thousands of people were being affected by this medicine, not just, here's my paper in the latest publication. It doesn't mean everybody could do that, but it means we've not yet gotten the culture to where we could say, well is this something that kind of excites you? And I think we're getting better to understand what it takes to do that. Speaker 4: Would you have any [00:03:30] idea what that would look like? The kind of exposure that you would be talking about in grammar school or Middle School? Sure. It turns out one of the unintended consequences of teaching the scientists that National Science Foundation is, remember their professors, almost all of them tenured running labs and universities across the country. And so here they take this class from the national science foundation and about half or two thirds of them now go back to their own universities, pissed cause they go, how come we're not teaching this? And so what happens is the National Science Foundation asked [00:04:00] me and Jerry Angle, who was the head of entrepreneurship at Haas, why don't you guys put on a course through a nonprofit called NCIA to teach educators in the United States who want to learn how to teach this class. And so we teach the lean launchpad for educators. We teach now 300 educators a year. Speaker 4: One of the outgrowths of that class was entrepreneur educators from middle school and high school started showing up and I went, you're not really teaching this to kids. They went, [00:04:30] oh Steve, you should see our class. And I went, oh my gosh, this is better than I'm doing. So they'd taken the same theory and they modified the language. So it was age appropriate. And so the two schools that had some great programs were Hawkin school outside of Cleveland and Dunn's school here in California. And in fact they're going to hold their own version of the educator class in June of 2014 for middle school and high school educators who were interested in teaching this type of entrepreneurial education. So I think it's starting to be transformative. I think we [00:05:00] have found the process to engage people early and not treated like we're teaching accounting to do, treating it like we're teaching art. Speaker 4: And again, we're still experiment thing. I wish I could tell you we got it now. I don't think so. I think we're learning, but the speed at which we're learning through it makes me smile. That's great. It is great. The Passion of the educators really is exciting. And Are you able to teach us remotely so that scientists from around the country don't have to come to you and sort of stop what they're doing? I was teaching the class [00:05:30] remotely. It's now taught in person in multiple regions. So that's how we solved that problem. But my lectures were recorded and not only were they recorded, they were recorded with really interesting animation. So instead of just watching me was a talking head. These are broken up into two minute clips and it's basically how to start a company and it's on you udacity.com so if you want to see the lean launch pad class in the lectures, it's on your udacity.com it's called the p two 45 but by accident we made these lectures public to not only the [00:06:00] national science foundation scientists, but we opened it up to everybody. Speaker 4: And surprisingly there is now over a quarter million people have taken the class. I've had people stop me at conferences and have told me that the Arabic translation, which I didn't even know existed, it's the standard in the Middle East. I had people from Dubai and Saudi Arabia in Lebanon literally within 10 feet go, oh well we recognize you. And I went, who are you turning over, Mr Blank, you worthy? I went, what's going on? I laugh not because it's me, but because [00:06:30] this is the power of the democratization of entrepreneurship. I have to tell you a funny story is that I grew up with the entrepreneur cluster was silicon valley and something in the last five years that I've gotten to travel with both Berkeley and Stanford and National Science Foundation to different countries to talk and teach about entrepreneurship. And my wife and I happened to be on vacation in Prague and when I really knew the world had changed as my wife had said, you know Steve, we're kind of tired of eating hotel food. Speaker 4: I wonder if there were ending entrepreneurs and Proc, I didn't want to, I [00:07:00] don't know. You know, let me go tweet and any entrepreneurs and Prague, you know, looking for a good check. Brie hall and hour and a half later we're having dinner with 55 entrepreneurs and Prague television is there and they said, Steve, you don't understand. Here's why. Here's an entrepreneur community everywhere. The only thing we still have unique in the bay area is that entrepreneurship and innovation. We've become a company town. That is our product. Much like Hollywood used to be movies in Detroit used to be cars in Pittsburgh steel. [00:07:30] While obviously there are people who do other stuff, teach in restaurants, put the business. The business to the bay area really is entrepreneurship and innovation. While we tell stories about the entrepreneurs, the unheralded part of that ecosystem is that we have equally insane financial people. Speaker 4: Why Silicon Valley happened was that the venture capitalist in the 1970s in Boston when it wasn't clear whether it was going to be Boston or Silicon Valley to be the center of entrepreneurship, the venture capitalist in Boston continued to act [00:08:00] like bankers, venture capitalists in Silicon Valley. They decided to act like pirates and the pirates want and so what really differentiates the observational make with an entrepreneurship is everywhere in the world. Entrepreneurial clusters only happen when all these things, these components, primarily entrepreneurs, but a heavy dose of risk capital capable of writing not only small checks but large checks and doubling and tripling down on startups. That's why you have the Facebooks and the googles and the twitters [00:08:30] around here. You also have a culture let's people know and understand. In the 1950s and sixties people came to San Francisco and Berkeley to live an alternate personal lifestyle, but they were hitting 30 miles south to have an alternate business lifestyle around Stanford and it was this kind of magic combination of great weather, the ability to do things in both business and your personal life that you couldn't anywhere else. These cultural phenomenons actually were and under appreciated until a very smart professor at Berkeley [inaudible] [00:09:00] wrote a book called regional advantage that actually described a lot of these things and open my eyes about why this region actually won. Speaker 1: You're listening to spectrum on k a Alex Berkeley. Steve Blank is our guest. He's a former entrepreneur and current lecturer at the High School of business. And the next segment he talks about how startups has changed since he first began in Silicon Valley in the 1970s Speaker 4: is entrepreneurship then changed as a result [00:09:30] of that. What really happened was the harmonic conversion of a really interesting set of events. One is, is that if you think back on how startups worked in the, in the golden age of Silicon Valley in the seventies and eighties to build a startup required millions if not tens of millions of dollars, not to run it, but just to start it, you needed to buy computers, either mainframes or mini computers and then workstations. You needed to license millions of dollars of expensive software. The only venture people were either in [00:10:00] Boston or silicon valley and they lived on sand hill road and nowhere else, and therefore it was kind of a formal process and the cost of entry was literally millions or tens of millions of dollars. There was no other way to get computing. There was no other way to get money. The second is, we had no theory about startups. Speaker 4: That is, there were no management tools at all. But what happened starting out of the rubble actually of the last Internet bubble, things change in technology in a way. I don't think people outside the technology business appreciate it off. Probably the biggest [00:10:30] one was actually generated by Amazon. It turns out Amazon created something called Amazon web services. And if you're a consumer, all you know is Amazon maybe for kindle and for sure for their books or their website. But if you're a programmer, Amazon has become the computing utility. You no longer have to buy computers from your laptop. You literally log in to hundreds of millions of dollars of computers and you have access to the world's largest computing resource ever assembled [00:11:00] for pennies, for pennies, and you don't need any storage. You're storing it all and online and all the computing. So number one, Amazon web services truly turned computing hardware and software into a pennies per gigabyte and MIPS, et Cetera, in a way that was unbelievable 10 years earlier. Speaker 4: Two is that changed the cost of entry of an early stage venture. You no longer needed millions of dollars. In fact, if you were smart entrepreneur, you could start on your credit card and if you didn't have your credit card, maybe some friends and family, [00:11:30] and that started a very different wave because it changed venture capital. It used to be there were either doctors or dentists or other reform of venture capital firms like Kleiner Perkins and Mayfield and sequoia. But the fact is that now after a ton of entrepreneurs could start on their credit cards, they still didn't need $20 million. Maybe eventually they did, but they could just take $100,000 or half a million dollars and get pretty far. And that created a new class of super angels or angel investors [00:12:00] that just never existed before. Kind of this intermediate level. And so venture capital changed. And also with that change, it changed where they could be located. Speaker 4: You no longer had to be located to be a investor in New York, Boston, or San Diego. Th that amount of capital could be available in the London or Helsinki or Estonia or Jordan, Beijing. Third is, and I will take credit for some of this, the invention of a new way to look and how to build these startups. It used to be that if you were building [00:12:30] a physical product, you would do something called the functional Spec or you'd get requirements from a customer. You build a specification and then you'd make an early version of the product called Alpha test, maybe a less buggy version called Beta test, which foist on some poor unsuspecting customers and then you'd have a party at something called first customer ship and that process was called waterfall development and from beginning to end typically took years and insight in the software business and Toyota had it even [00:13:00] earlier is that we could build products differently, we could build products incrementally and iteratively and that's called agile engineering and for startups, how you want to build your products is agily and iteratively because almost always what you believe on day one are all the customer features that they need. Speaker 4: It's a pretty safe bet. You're not a visionary, you're actually hallucinating and that most of the features you would historically have built in go unused on needed and unwanted. But if [00:13:30] in fact you could actually test intermediate versions of the product iteratively and rapidly on those customers with a formal process which I invented called customer development, those two hand in hand change the speed and trajectory of how startups get built. And so now you see these startups coming out of nowhere and getting acquired in three years, but they have tens of millions of customer. Where did that come from? Well, in the old days we'd still be writing the software, building the hardware. Speaker 6: Aw, it's [00:14:00] a public affairs show, k, a l X. Berkeley. Our guest is Steve Link a lecture at UC Berkeley's Haas School of business. The next segment, Steve Talks about his current work, trying to understand how innovation drives some companies and fails in others. Speaker 4: If I can, the unintended consequence of all this stuff. Remember this whole lean startup stuff has become a movement by itself. Harvard business review contacts me and says, Steve, [00:14:30] every large corporation is now desperately struggling how to deal with continuous disruption in the 21st century. That is all the rules that worked in the 20th century, you know, be number one in market share, you know, like be number one and two, I mean all the Jack Welsh rules, you follow those who be out of business in seven years. Why, you know, globalization in China Inc Internet has made consumers flighty very little brand loyalty. Pricing is almost transparent. Cost of starting a new business is infinitely lower. All of the things [00:15:00] that made you strong in the 20th century as a corporation are no longer true. Some of them are obviously, but not really. And so every large corporation are trying to relearn a set of rules and guess where they're looking for, they're looking at startups of how do we be as innovative as apple as that. Speaker 4: That is, the models are now silicon valley and other technology companies. And so my article, the lean startup changes everything became the cover of the Harvard Business Review and May, 2013 what was interesting is that I started [00:15:30] getting calls from executives whose titles I had never heard of before. It turns out almost every large company is now appointing a VP of corporate innovation. I had never heard of it. You know what's that? And when you go talk to them, and I've talked to a bunch of them, now you find out that they're all struggling to solve this continuous disruption problem by trying to build innovation inside the DNA of large corporations in the u s and overseas and the first sign of companies [00:16:00] trying to do that is appointing somebody typically as a corporate staff person to have some kind of internal incubator. I could politely say, that's a nice first step put it really doesn't solve the problem. Speaker 4: It actually just points out what the problem is and can I digress for another 10 seconds? It turns out that the problem that corporations are having is not a tactical organizational problem. The things I described, the globalization, the effect of the [00:16:30] Internet, et Cetera, are just strategic problems that every corporation is facing. The last time companies faced something, this major was in the 1920s, uh, u s corporations grew from small mom and pop businesses from the 1870s to 1920s and they kind of came up with a form of organization called functional organizations, meaning you had a head of sales, a head of marketing, a head of manufacturing, but by function that was the only way companies were organized. But by 1920, some [00:17:00] u s corporations spans from New York to San Francisco. And so there was a geography problem here. You had a head of sales tryna run multiple geography. Speaker 4: It wasn't even the same time zone. And some companies like dupont had a different problem while they also had geography problems. Dupont made everything from explosives to paint. But you only had one marketing group and one manufacture. How do, how do you manage that? And for about five or six years for corporations, dupont, General Motors, Sears and standard oil, understood. They had a strategy [00:17:30] problem and attacked it by playing with the structure of the company, meaning how the company was organized and they all finally decided that they were going to organize in a radically different form called divisions. Instead of just having functions, they would actually break up like for example, General Motors into the Buick Division and ultimate build division or whatever, or for dupont explosives divisions and the paint division and on top of a thin layer of corporate staff, but now have a company organized by divisions first changed in [00:18:00] 50 years and how companies were organized. Speaker 4: Fast forward 40 years later, the third form of corporate organization to emerged called Matrix organizations where you start with a functional organization, but now all of a sudden we would have specific projects pop up, gee, I want to work on the new fad six fighter. Well, I have an engineering group, but let me put together a team that could pull out of engineering and pull out a product management and put together for our temporary amount of time and then they'll go back into their functions and then be pulled out again. But that's it. Those are the only three forms [00:18:30] of corporate organization. I'll contend that we're facing a common strategy problem that is not solvable by just pasting on vps of innovation. I believe it's solvable by rethinking on the highest possible level is do we need a fourth form of corporate organization? And I gotta tell you I got the answer, but I'm not going to tell you now. Okay.Speaker 5: Is this sort of then turning all the operations research that's been done over the past? You know, since World War II, [00:19:00] that was when it seemed to be salient. Is it on its ear now? Is this, Speaker 4: so if you really think about what we built for the last 150 years is corporations were the epitome of operational efficiency through operations research, the output of business schools. I mean all our stuff has had to be continuous execution, driving to the lowest cost provider and outsourcing and all that stuff. That's great. But you're going out of business and in fact, companies that do that, [00:19:30] I will contend have a much shorter lifespan that companies that now do continuous innovation. That is, if you think about the difference between Amazon and Netflix and apple, when jobs was alive versus standard US companies, the distinction was they were continuously innovating, ruined Leslie, innovating, and it was not some department that was innovating. It's a big idea. It was the entire company was innovating, yet they were making obscene profits. So clearly there are some models of some companies who [00:20:00] have figured out and in fact HP in the 70s and eighties had figured out how to do and then they lost the formula. I think we now actually have a theory, a strategy of how to do that and some really specific tactics. How, I know we could do this in detail for u s corporations and corporations worldwide, but I want to start at the u s and we're going to be talking and writing about that in the next year. Speaker 5: Great. So that's what you're actively working. Speaker 4: Oh, actively working. And I'm Hank Chesboro who have inventor of open innovation here at Haas business school and with Alexander Osterwalder [00:20:30] and venture of the business model canvas. All have been part of some of these discussions. You know, I just get smarter by hanging out with much smarter people. And I'm not the only one who's thinking about that. There are lots of very smart people trying to crack the code and at the same time, companies are raising their hand and the symptom of raising their hand is they're appointing vps of innovation and her likes saying, yeah, you know, here's what we are. Oops, it doesn't quite work. And finance has different rules and but wait a minute, I'm trying to be innovative, but the HR manual doesn't allow me to hire people. No, [00:21:00] no. Legal says I can't use our brand here. So what you're really finding is that it's not an org problem. Speaker 4: It's not anybody's trying to be mean. Is that what we're missing is the CEO and board conversation is, oh my gosh, maybe we need to get innovation in every part of the company, not by exception. That's the idea I'll telegraph for now. And how do you do that without affecting current profits? And it's quite possible because again, there are these experiments of companies that are insanely from a profitable, who've done this. [00:21:30] Now can we just make a teachable and doable by other corporations? And the answer is yes, we're going to go do that. Do you see that pace of technology accelerating? Absolutely. I think we're in the golden age of both technology and entrepreneurship. You ain't seen anything yet. I'm still constantly amazed sitting here smiling. When you say that is why I still love to teach is that, you know, I get to see my students come up with things. Speaker 4: You hear the 400th hotel automation package or the whatever, but you know, and then you see something, again, drones are three d printing [00:22:00] or you could do white with your phone, you're gonna make a turn on or you're a password through. It's just things that are unimaginable. And then you watch the next generation of Steve Jobs that said, you know, the current version silicon valley is you go on much. Who single handedly is val to obsolete the automobile industry? And at the same time just wrecking havoc in this space launch industry, single individual who had, by the way, zero qualifications to do any of those. Congratulations. Welcome to entrepreneurship. He had the will to be disruptive [00:22:30] and he understood that the technology was about at the edge of being able to do what he did. That's how we got the iPod and the iPhone or else in a perfect world and Nokia would still have 89% market share. If I was General Motors and Ford, I'd be really concerned. Steve Blank, thanks very much for coming on spectrum. Great. Thanks for having me. Speaker 6: You'd like more insight into Steve Blank's ideas. Go to his website, Steve blank.com [00:23:00] as Steve mentioned, the Lean launch pad course is available. I knew udacity.com to learn more about the NSF mean launchpad curriculum, search for NSF [inaudible] your local to the bay area. Go to [inaudible] dot com if you're interested in startup appreciation materials for educators, go to n c I n aa.org/l l p. Stretching shows [00:23:30] are archived on iTunes yet it gives created a simple link for you. The link is tiny url.com/calex spectrum and now a few some technology events happening locally over the next two weeks. Brad Swift joins me for the calendar. Speaker 3: California's coastal waters are home to one of the four richest temperate marine biota is in the world. The California Academy of Sciences will be holding [00:24:00] a series of lectures and events to explore this incredible diversity of life. They look, explain what makes this region so productive and why it needs to be protected on Saturday, March 22nd from nine to 11:00 AM a variety of Speakers will consider the impacts of human activity on the local marine ecosystems and the establishment and efficacy of marine protected areas. They will also discuss how diversity is monitored in California's oceans and which areas will need to be most closely scrutinized for future impact. For more information on the [00:24:30] March 22nd event. Please visit cal academy.org Speaker 5: on Monday, March 31st University of Maryland professor of human development, Nathan Fox will give a lecture on his recent studies on whether experiences shaped the brain and neural circuitry for emerging cognitive and social behaviors over the first years of life. Something that many developmental scientists take for granted. Foxes study the Bucharest early intervention project [00:25:00] is the first randomized trial of a family intervention for children who experienced significant psychosocial neglect early in their lives. A group of infants living in institutions in Romania were recruited and randomized to be taken out of the institution and placed into family foster care homes or to remain in the institution. He then followed up with the children several times over the next eight years and examine the lasting [00:25:30] effects of the deprivation and which, if any interventions were successful in assuaging the harmful effects, the free public talk will be held on March 31st from 12 to 1:30 PM on the UC Berkeley campus in room 31 50 of Tolman hall Speaker 3: on Wednesday per second. You see Berkeley's department of Environmental Science Policy and management will present a speech by Chris Mooney, a journalist who's written several books on the resistance that many [00:26:00] Americans have to accepting scientific conclusions. His lecture will be titled The Science of why we don't believe in science and we'll examine the reasons behind Americans disinterest in scientific solutions to the world's problems. The free public lecture will be held on Wednesday, April 2nd at 7:00 PM in the International House Auditorium of UC Berkeley. Here at spectrum, we like to present new stories we find particularly interesting. Brad Swift joins me in presenting the news. Speaker 5: UC Berkeley Professor, Dr. Richard Kramer [00:26:30] and his research team have been able to temporarily restore light sensitivity to mice, missing a majority of their rods and cones in healthy mammals. The eyes detect light with specialized photo receptor cells or rods and cones and then transmit a signal to their optic nerve cells which eventually communicate with the brain. Dr. Kramer and his team explored the effects of a similarly light-sensitive molecule known as d n a Q in healthy mice and mice [00:27:00] with a degenerative disease that caused them to lose nearly all their rods and cones. After dosing, the mice with d n a Q, the mice were exposed to lights and their optic nerve activity was measured via electrode arrays. The diseased mice showed strong light sensitivity. The team next examined a small number of animals in light and dark conditions to test whether the sensitivity conferred any perception of the light. In the diseased mice, [00:27:30] the injected mice were better able to form an association between a light stimuli and electric shock than those in the control group. While millions of humans suffer from similar degenerative retinal conditions, definitive conclusions on the broader therapeutic and deleterious effects of the molecule. D n a Q are still years away. Speaker 3: In a recent study published in the journal bio materials, UC Berkeley researchers were able to eliminate the transmission rep [00:28:00] of a common infection. Staphylococcus Aureus is a bacterium that commonly infects patients who've had surgeries involving prosthetic joints and artificial heart, bowels, staff, or aces. Ability to adhere to medical advices is key to experience as once introduced to the body. It can cause severe illness. UC Berkeley Bio and mechanical engineering, Professor Mohammad [inaudible] fraud and others in his lab examined how the clusters of staff warriors were able to adhere so well to certain Yana surfaces as well as the type of surfaces [00:28:30] that increased or decreased the bacteria's ability to clean. They quickly found that while staff [inaudible] can adhere to a variety of flattened curves services, it does seem to have a preference for certain structures including a tubular pillar where the bacteria was able to partially embed itself within holes in the structure. Professor, my fraud expressed hope that the improved understanding of these preferences could allow the design of medical devices built to attenuate bacterial adhesion while escaping the need to chemically damaged the bacteria to prevent transmission Speaker 7: [00:29:00] [inaudible]. Speaker 5: The music heard during the show was written and produced by Alex Simon. Speaker 1: Thank you for listening to spectrum. If you have comments about the show, please send them to us via email. Our email address is spectrum to a k a l ex@yahoo.com Trina's in two weeks at the same time. [inaudible] Speaker 8: [00:29:30] [inaudible]. See acast.com/privacy for privacy and opt-out information.

Steve Blank, lecturer Haas School of Business UCB. He has been a entrepreneur in Silicon Valley since the 1970s. He has been teaching and developing curriculum for entrepreneurship training. Built a method for high tech startups, the Lean LaunchPad.TranscriptSpeaker 1: Spectrum's next. Speaker 2: Okay. Speaker 3: [inaudible].Speaker 1: Welcome to spectrum the science and technology show on k a [00:00:30] l x Berkeley, a biweekly 30 minute program bringing you interviews, featuring bay area scientists and technologists as well as a calendar of local events and news [inaudible]. Speaker 4: Hi, and good afternoon. My name is Brad Swift. I'm the host of today's show. Today we present part one of two interviews with Steve Blank, a lecturer at the Haas School of business at UC Berkeley. Steve has been a serial entrepreneur in silicon valley since the late 1970s [00:01:00] see if you recognize any of these companies. He was involved with Xylog convergent technologies, MIPS, computer, ardent, super Mack, rocket science games and epiphany. In 1999 Steve Retired from day to day involvement in running a company since 2002 he has been teaching and developing curriculum for entrepreneurship training. By 2011 he was said to have devised [00:01:30] the scientific method for launching high tech startups, dubbed the Lean launch pad. In part one Steve Talks about his beginnings, the culture of Silicon Valley, the intersection of science, technology, finance, and business. Steve Blank, welcome to spectrum. Oh, thanks for having me. I wanted to find out from you how it is you got started as an entrepreneur. What attracted you to that? Speaker 5: He's probably the military. I, uh, spent four years in the air [00:02:00] force during Vietnam and a year and a half in Southeast Asia. And then when I came back to the United States, I worked on a B, 52 bombers in the strategic air command. And I finally years later understood the difference between working in a crisis organization, which was in a war zone where almost anything was acceptable to get the job done versus an execution organization that was dealing with mistakes. Men dropping a 20 megaton nuclear weapon where you process and procedure was actually imperative. And it turned [00:02:30] out I was much better in the organizations that required creativity and agility and tenacity and resilience. And I never understood that I was getting the world's best training for entrepreneurship. I went back to school in Ann Arbor and managed to get thrown out the second time in my life out of University of Michigan. Speaker 5: I call that the best school I was ever thrown out of a Michigan state was the next best school where it was a premed. And then, um, I was sent out to silicon valley. I was working as a field service engineer and what I didn't realize two years later was 16% [00:03:00] startup to bring up a computer system in a place called San Jose. And San Jose was so unknown that my admin got us tickets for San Jose, Puerto Rico until I said, I think it's not out of the country. I came out there to do a job to install a process control system. I thought it was some kind of joke is that there were 45 pages of advertisements in the newspaper at the time for scientists, engineers, et cetera. And I flew back and quit, got a job at my first startup in Silicon Valley [00:03:30] and subsequently I did eight of them in 21 years. Speaker 5: What were some of the ones that stand out out of the eight? You know, I had some great successes. There were four IPOs out of the eight, I'd say one or two. I had something to do with the others. I was just kinda standing there when the safe fell on the guy in front of me and the money dropped down and I got to pick it up. But honestly, in hindsight, and I can now say this only in hindsight, I learned the most from some of the failures though I wouldn't tell you why I wanted to learn that at the time, but failing [00:04:00] and failing hard when it was absolutely clear it was your fault and no one else's forced me to go through the stages of denial and then blame others and then whatever. And then acceptance and then ultimately kind of some real learning about how to build early stage ventures. Speaker 5: You know, I blew my Nixon last company, I was on the cover of wired magazine and 90 days after the cover I realized my company was going out of business and eventually did. And I called my mother who was a Russian immigrant and every time I spoke to my mother I [00:04:30] had to pause because English wasn't her first language. And you know, I'd say something and pause and then she'd say something back and pause. And whenever I said, mom, I lost 35 million hours, pause. And then she said, where'd you put it? I said, no, no, no mom, I'm calling you to tell you none of them was 30 I didn't even get the next sentence out. Cause then she went, oh my gosh, she wants $35 million. We can't even change your name. It's already plank. And then she started thinking about it and she said, and the country we came from [00:05:00] is gone. Speaker 5: There's no fast to go. I said, no, no mom though. What I'm trying to tell you is that the people gave me $35 million, just give me another $12 million to do the next startup. And it was in comprehensible because what I find when I talked to foreign visitors to silicon valley or to any entrepreneurial cluster, you know, we have a special name for failed entrepreneur in Silicon Valley. Do you know what it is? Experienced? It's a big idea in the u s around entrepreneurial clusters, failure equals experience. [00:05:30] People don't ask you if you change your name or have to leave town or you're going to go bankrupt, et cetera. The first thing your best friend will ask you is, so what's your next startup? That's an amazing part of this culture that we've built here and that's what happened to me. My last startup, I returned $1 billion each to those two investors and it's not a story about me, it's a story about the ecosystem that we live in that's both supremely American and supremely capitalists, but also Sir Pulliam clustered in just [00:06:00] a few locations in the United States where there are clear reasons why one succeeded to some fail. Speaker 5: You know, when I retired from my last one, I decided that after eight startups in 21 years, my company was about to go public and my kids were seven and eight years old at the time and luckily we had children when I was in my late thirties and so therefore I got to watch people I admired incredibly at work, watch how they dealt with their families. And what was surprising [00:06:30] is that most of them had feet of clay when it came to home. They basically focused 100% of their efforts at work and as their kids grew up, their kids hated them. I kind of remember that in the back of my head, and so when I had the opportunity to retire, I said, I want to watch my kids grow up. And so I did. And that's a preambled answer your question. That's at the end. Speaker 5: For the first time in my life, my head wasn't down completely inside trying to execute in a single company. I had a chance to reflect on [00:07:00] the 21 years and believe it or not, I started to write my memoirs and I got, you know what I realize now in hindsight, it was actually an emotional catharsis of kind of purging. What did I learn? And I asked, it was 80 pages into it writing. He was a vignette and I would write lessons learned from each of those experiences and what I realized truly the hair was standing up and back of my neck. On page 80 there was a pattern I had never recognized in my career and I realized no one else had recognized [00:07:30] it either and either I was very wrong or there might be some truth and here was the pattern in silicon valley since the beginning we had treated startups like they were smaller versions of large companies. Speaker 5: Everything a large company did. The investment wisdom was, well they write business plans, you write business plans, they organize sales, marketing and Bizdev and you do that. They write our income statement, balance sheet and cashflow and do five year plans and then you do that too. Never noticing that. In fact that distinction, and no one had ever said this [00:08:00] before, what large companies do is execute known business models and the emphasis is on execution, on process. What a known business model means is we know who our customer is, we know how to sell it, we know who competitors are. We know what pride in an existing company it's existing cause somebody in the dim past figured that stuff out. But what a startup is doing is not executing. You think you're executing. That's what they told you to go do, but reality you failed most of the time because you were actually searching [00:08:30] for something. Speaker 5: You were just guessing in front of my students here at Berkeley and at Stanford I used the word, you have a series of hypotheses that are untested, but that's a fancy word for you're just guessing. And so the real insight was somebody needed to come up with a set of tools for startups that were different than the tools that were being taught on how to run and manage existing corporations. And that tool set in distinction at the turn of the century didn't exist. That is 1999 [00:09:00] there was not even a language to describe what I just said and I decided to embark on building the equivalent of the management stack that large corporations have for founders and early stage ventures. Speaker 6: Mm, Speaker 7: [00:09:30] yeah. Speaker 8: You are listening to spectrum on k a l x Berkeley. Steve Blank is our guest. He is an entrepreneur and lecturer at the hospital of business. In the next segment of your talks about collaborating with the National Science Foundation Speaker 9: [inaudible].Speaker 4: [00:10:00] So when you're advising scientists and engineers who think they might be interested in trying to do a startup, what do you tell them they need to know about business and business people? Okay. Speaker 5: It's funny you mentioned scientists and engineers because I didn't know too many years in my career. I mean I sold to them as customers, [00:10:30] but in the last three or four years I got to know some of the top scientists in the u s for a very funny experience. Can I tell you what happened? It turned out that this methodology, I've been talking about how to build startups efficiently with customer development and agile engineering and one other piece called the business model canvas. This theory ended up being called the lean startup. One of my students, Eric Reese and I had actually invested in his company and then actually made him sit for my class at Berkeley because his cofounder, [00:11:00] the lost my money last time I invested. I said, no, no, sit through my class. And of course his co founder was slow to get it, but Eric got it in a second, but came the first practitioner of customer development, the first lean startup practitioner in the world. Speaker 5: Eric got it so much he became the Johnny Appleseed of the idea. In fact, it was actually Ericson side, the customer development. Then agile development went together and he named it the lean startup. But even though we had this theory, the practice was really kind of hard. It was like liking the furniture and Ikea until you got the pieces at home [00:11:30] and then realized it was Kinda hard to assemble. So I decided to do is take the pieces and teach entrepreneurs in a way they have never been taught before on how to start a company. Now this requires a two minutes sidebar. Can I give you? It turns out one of the other thing that I've been involved with is entrepreneurial education as I teach here at Haas, but I also teach at Stanford at UCF and a Columbia, but entrepreneurship used to be kind of a province, mostly of business schools and we used [00:12:00] to teach entrepreneurs just like they were accountants. Speaker 5: No one ever noticed that accountants don't run startups. It's a big idea. No one ever noticed. That's the g. We don't teach artists that way and we don't teach brain surgeons that way. That is sit in the class, read these cases like you were in the law school and somehow you'll get smarter and know how to be an operating CEO of an early stage venture. Now with this, you have to understand that when I was an entrepreneur, rapacious was applied word to describe my behavior and my friends who knew me as an entrepreneur [00:12:30] would laugh when they realized that was an educator and say, Steve, you were born entrepreneur. You knew you can't teach entrepreneurship. You can't be taught. You were born that way. Now since I was teaching entrepreneurship, this set of somewhat of a conundrum in my head, and I pondered this for a couple of years until I realized it's the question everybody asks, but it was the wrong question. Speaker 5: Of course you could teach entrepreneurship. The question is that we've never asked is who can you teach it to and that once you frame the question that way you start [00:13:00] slapping your forehead because you realize that founders of companies, they're not like accountants or MBAs. I mean they were engineers, they might be by training and background, but founders, visionaries, they're closer to artists than anybody else in the world and we now know how to teach artists for the last 500 years since the renaissance. How do we teach artists what we teach them theory, but then we immerse them in experiential practice until they're blue in the face or the hands fall off or they never want to look at another [00:13:30] brusher instrument or write another novel again in their life. We just beat them to death as apprentices, but we get their hands dirty or brain surgeons. Speaker 5: You have, they go to school, but there's no way you'd ever want to go to a doctor who hadn't cracked open chest or skulls or whatever or a surgeon, but we were teaching entrepreneurship like somehow you could read it from the book. My class at Stanford was one of the first experiential, hands-on, immersive float body experience and I mean immersive is that basically [00:14:00] we train our teams in theory that they're going to frame hypotheses with something called the business model canvas from a very smart guide named Alexander Osterwalder. They were going to test those hypotheses by getting outside the building outside the university, outside their lab, outside of anywhere and talk. I bought eyeball to 10 to 15 customers a week. People they've never met and start validating or invalidating those hypotheses and they were going to in parallel build as much of the product as [00:14:30] they can with this iterative and incremental development using agile engineering, whether it was hardware or software or medical device, it doesn't matter. Speaker 5: I want you to start building this thing and also be testing that. Now, this worked pretty well for 20 and 22 year olds students with hoodies and flip flops. But it was open question. If this would work with scientists and engineers, and about three years ago I was driving on campus and I got a call and then went like this, hi Steve, you don't know me. My name is heirarchical lick. I'm the head of the National Science Foundation [00:15:00] SBR program. We're from the U s government. We're calling you because we need your help. And because I was still a little bit of a jerk, I said, the government got my help during Vietnam. I'm not giving it an anymore. And he went, no, no, no, no. We're talking about your class. I went, how do you know about my class? They said, well, you've clogged every session of it. Speaker 5: And I just tend to open source everything I do, which is a luxury I have, not being a tenured professor, you know, I, I think giving back to our community is one of the things that silicon valley excels [00:15:30] at. And I was mentored and tutored by people who gave back. And so therefore since I can't do it, I give back by open sourcing almost everything I do. If I learn it and my slides are out there and I write about it and I teach them. And so I was sharing the experiences of teaching this first class. I didn't realize there were 25 people at the National Science Foundation following every class session. And I didn't even know who the National Science Foundation was. And I had to explain what Steve, we give away $7 billion [00:16:00] a year. We're the group that funds all basic science in universities in the u s where we're on number two to the National Institute of Health, which is the largest funder of medical and research in the u s and that's great. Speaker 5: So why are you calling? We want you to do this class for the government. I said, for the government, and I thought, you guys just fund bigger. He said, no, we're, we're under a mandate from theU s congress. All research organizations is that if any scientist wants to commercialize their basic research, we have programs called the spr and STTR programs that [00:16:30] give anywhere from $500,000 in the first phase or up to three quarters of a million dollars in phase two or more for scientists who want to build companies. Well, why are you calling me? And they're all nicely said, well thank God Congress doesn't actually ask how well those teams are doing. And I said, what do you mean? He said, well, we're essentially giving away cars without requiring drivers Ed and you can imagine the results. And I said, okay, but what did you see in what I'm doing? Speaker 5: He said, Steve, you've invented the scientific [00:17:00] method for entrepreneurship. We want you to teach scientists. They already know the scientific method. Our insight here is they'll get what you're doing in a second. You just need to teach them how to do it outside the building. And so within 90 days I've got a bunch of my VC friends, John Fiber and Jim Horton follow and a Jerry angle and a bunch of others. And we put together a class for the national science foundation as a prototype. They got 25 teams headed up by principal investigators in material science and robotics and computer science and fluidics and teams [00:17:30] of three from around the country. And we put them through this 10 week process and we trained scientists how to get outside the building and test hypotheses. And the results were spectacular. So much so that the NSF made it a permanent program. Speaker 5: I trained professors from Georgia tech and university of Michigan who then went off to train 15 other universities. It's now the third largest accelerator in the world. We just passed 300 teams of her best scientists. Well, let me exhale and tell you the next step, which really got interesting. This worked for [00:18:00] National Science Foundation, but I had said that this would never work for life sciences because life sciences therapeutics, cancer, dry. I mean, you know, you get a paper and sell nature and science and maybe 15 years later, you know, something happens and she, you know, what's the problem? If you cure cancer, you don't have a problem finding customers. But at the same time I've been saying this, you CSF, which is probably the leading biotech university in the world here in San Francisco, was chasing me to actually put on this class for them. And I kept saying, no, you don't [00:18:30] understand. Speaker 5: I say it doesn't work. And they said, Steve, we are the experts in this. We say it does. And finally they called my bluff and said, well, why don't you get out of the building with us and talk to some of the leading venture capitalists in this area who basically educated me that said, look, the traditional model of drug companies for Pharma has broken down. They're now looking for partnerships, Obamacare and the new healthcare laws have changed how reimbursement works. Digital health is an emerging field, you know, medical devices. Those economics have changed. So we decided [00:19:00] to hold the class for life sciences, which is really a misnomer. It was a class for four very distinct fields for therapeutics, diagnostics, devices, and digital health. How to use CSF in October, 2013 is an experiment. First we didn't know if anyone would be interested because I know like the NSF, we weren't going to pay the teams. Speaker 5: We were going to make them pay nominal tuition and GCSF and we were going after clinicians and researchers and they have day jobs. Well, surprisingly we had 78 teams apply for 25 slots and we took 26 [00:19:30] teams including Colbert Harris, who was the head of surgery of ucs, f y Kerrison, the inventor of fetal surgery. Two teams didn't even tell Genentech they were sneaking out at night taking the class as well. And the results, I have to tell you, I still smile when I talk about this, exceeded everybody's wildest expectations such that we went back to Washington, took the results to the National Institute of Health and something tells me that in 2014 the National Institute of Health will probably be the next major government organization to adopt [00:20:00] this class in this process. Again, none of this guarantees success and these are all gonna turn into winners. What it does is actually allow teams to fail fast, allows us to be incredibly effective about the amount of cash we spent because we could figure out where the mistakes are rather than just insisting that we're right, but we now have a process that we've actually tested. Speaker 5: Well, I got a call from the National Science Foundation about six months ago that said, Steve, we thought we tell you we need to stop the experiment. And I thought, why? [00:20:30] What do you mean? Well, we got some data back on the effectiveness of the class. He said, well, we didn't believe the numbers. You know us. We told you we've been running this SBI our program for 30 years and what happens to the teams who want to get funded after? It's kind of a double blind review. People don't know who they are. They review their proposals and they on average got funded 18% of the time. Teams that actually have taken this class get funded 60% of the time. I thought we might've improved effectiveness 10 20% but this is a 300% [00:21:00] now let's be clear. It wasn't. That was some liquidity event mode as they went public. Speaker 5: It was just a good precursor on a march to how much did they know about customers and channels and partners and product market fit, et Cetera, and for the first time somebody had actually instrumented the process. So much so that the national science foundation now requires anybody applying for a grant. It's no longer an option to get out of the building and talk to 30 customers before they could even show up at the conference to get funded. That was kind of the science side and that's still going on and [00:21:30] I'm kind of proud that we might've made a dent in how the government thinks for national science foundation stuff, commercialization and how the National Institute of Health might be thinking of what's called translational medicine, but running those are 127 clinicians and researchers through the f program was really kind of amazing. Speaker 2: [inaudible] [inaudible] [00:22:00] [inaudible] Speaker 8: spectrum is a public affairs show on k a l x Berkeley. Our guest is Steve Blank electrode at UC Berkeley's Haas School of business. In the next segment, he goes into more detail about the lean startup, also known as the lean launchpad Speaker 2: [00:22:30] [inaudible] [inaudible] Speaker 4: with your launchpad startup launchpad. Is that, Speaker 5: well, there's two things. The class is called the lean launchpad lean launch and the software [00:23:00] we built for the National Science Foundation and now we use in classes and for corporations it's called launchpad central. We've basically built software that for the first time allows us to manage and view the innovation process as we go. Think of it as salesforce.com which is sales automation tool for salespeople. We now have a tool for the first time for entrepreneurs and the people working with them and managing them and trying to keep track of them and we just crossed 3000 teams who are using the software and I [00:23:30] use it in everything I teach and dude, Speaker 4: how long does the class take for a scientist or engineer who might be trying to think about, well, what's the time sink here? Yeah, Speaker 5: there's a shock to the system version, which I taught at cal tech and now teach twice a year at Columbia, which is days, 10 hours a day. But the ones that we teach from national science foundation, one I teach at Stanford and Berkeley, Stanford, it's a quarter at Berkeley semester from the NSF. It depends. It's about an eight to 10 week class. You could do this over a period of time. There's no magic. [00:24:00] There is kind of the magic and quantity to people you talk to and it's just a law of numbers. You talk to 10 people, I doubt you're going to find any real insight in that data. It talked to a thousand people. You know, you're probably, if you still haven't found the repeatable pattern, probably 20 [inaudible] too many or Tenex, too many a hundred just seem to be kind of a good centroid. And what you're really looking for is what we call product market fit. Speaker 5: And there are other pieces of the business model that are important. But the first two things you're writing at is, are you building something [00:24:30] that people care about? Am I care about? I don't mean say, oh, that's nice. I mean is when you show it to them, do they grab it out of your hands or grab you by the collar and say you're not leaving until I can have this. Oh, and by the way, if you built the right thing or your ideas and the right place, you will find those people. That's not a sign of a public offering, but it's at least a sign that you're on the right track. Speaker 2: Okay. Speaker 3: [00:25:00] [inaudible] Speaker 8: be sure to catch part two of this interview with Steve Blank in two weeks on spectrum. [00:25:30] In that interview, Steve Talks more about the lean launch pad, the challenge of innovation, Speaker 10: modern commerce, the evolution of entrepreneurship and the pace of technology. Steve's website is a trove of information and resources. Go to Steve Blank, all one word.com Steve Aalto, I mentioned the lean launchpad course available Speaker 2: on you, Udacity. That's you. [00:26:00] udacity.com Speaker 8: spectrum shows are archived on iTunes university. We have created a simple link for you. The link is tiny url.com/k a l ex spectrum Speaker 2: [00:26:30] [inaudible]. Speaker 10: Now a few of the science and technology events happening locally over the next two weeks. Naoshima joins me for the calendar. Speaker 1: Dr Claire Kremen. Our previous guest on spectrum is a professor in the Environmental Science Policy and management department at UCB. She is the CO director of the center [00:27:00] for diversified farming systems and a co faculty director of the Berkeley Food Institute. Claire [inaudible] will be giving a talk on Monday, March 10th at 3:00 PM in Morgan Hall Lounge. She will be talking about pollinators as a poster child for diversified farming systems. Dr Kremlin's research on pollinators has attracted national news coverage and is of great importance to California agriculture. The talk will be followed by a reception with snacks and drinks. Again, this will be Monday, March 10th at 3:00 PM in Morgan Hall Lounge. Speaker 6: [00:27:30] Okay. Speaker 4: The science of cal lecture for March will be delivered by Dr Troy Leonberger. The topic is genetics. The lecture is Saturday, March 15th at 11:00 AM in room one 59 of Mulford Hall. Now a single news story presented by Neha Shah Speaker 1: just over a week ago. You see Berkeley's own. Jennifer Doudna, a professor of several biology and chemistry classes at cal, was awarded [00:28:00] the lorry prize in the biomedical sciences for her work on revealing the structure of RNA and its roles in gene therapy. Doudna will receive the Lurie metal and $100,000 award this May in Washington DC. The Lurie Prize is awarded by the foundation for the National Institutes of health and this is its second year of annually recognizing young scientists in the biomedical field. Doudna was originally intrigued by the 1980 breakthrough that RNA could serve as enzymes. In contrast to the previously accepted notion that RNA was [00:28:30] exclusively for protein production. Downness is work today with RNA deals specifically with a protein known as cas nine which can target and cut parts of the DNA of invading viruses. Doudna and her collaborators made use of this knowledge of cast nine to develop a technique to edit genes which will hopefully lead to strides in human gene therapy. Dowden is delighted by her recent recognition and confident in the future of RNA research and the medical developments that will follow Speaker 6: [inaudible].Speaker 10: [00:29:00] The music heard during the show was written and produced by Alex Simon. Speaker 7: Thank you for listening to spectrum. If you have comments about the show, please send them. Speaker 9: All [00:29:30] right. Email address is spectrum to klx@yahoo.com join us in two weeks at this same time. [inaudible]. See acast.com/privacy for privacy and opt-out information.

Steve Blank, lecturer Haas School of Business UCB. He has been a entrepreneur in Silicon Valley since the 1970s. He has been teaching and developing curriculum for entrepreneurship training. Built a method for high tech startups, the Lean LaunchPad.TranscriptSpeaker 1: Spectrum's next. Speaker 2: Okay. Speaker 3: [inaudible].Speaker 1: Welcome to spectrum the science and technology show on k a [00:00:30] l x Berkeley, a biweekly 30 minute program bringing you interviews, featuring bay area scientists and technologists as well as a calendar of local events and news [inaudible]. Speaker 4: Hi, and good afternoon. My name is Brad Swift. I'm the host of today's show. Today we present part one of two interviews with Steve Blank, a lecturer at the Haas School of business at UC Berkeley. Steve has been a serial entrepreneur in silicon valley since the late 1970s [00:01:00] see if you recognize any of these companies. He was involved with Xylog convergent technologies, MIPS, computer, ardent, super Mack, rocket science games and epiphany. In 1999 Steve Retired from day to day involvement in running a company since 2002 he has been teaching and developing curriculum for entrepreneurship training. By 2011 he was said to have devised [00:01:30] the scientific method for launching high tech startups, dubbed the Lean launch pad. In part one Steve Talks about his beginnings, the culture of Silicon Valley, the intersection of science, technology, finance, and business. Steve Blank, welcome to spectrum. Oh, thanks for having me. I wanted to find out from you how it is you got started as an entrepreneur. What attracted you to that? Speaker 5: He's probably the military. I, uh, spent four years in the air [00:02:00] force during Vietnam and a year and a half in Southeast Asia. And then when I came back to the United States, I worked on a B, 52 bombers in the strategic air command. And I finally years later understood the difference between working in a crisis organization, which was in a war zone where almost anything was acceptable to get the job done versus an execution organization that was dealing with mistakes. Men dropping a 20 megaton nuclear weapon where you process and procedure was actually imperative. And it turned [00:02:30] out I was much better in the organizations that required creativity and agility and tenacity and resilience. And I never understood that I was getting the world's best training for entrepreneurship. I went back to school in Ann Arbor and managed to get thrown out the second time in my life out of University of Michigan. Speaker 5: I call that the best school I was ever thrown out of a Michigan state was the next best school where it was a premed. And then, um, I was sent out to silicon valley. I was working as a field service engineer and what I didn't realize two years later was 16% [00:03:00] startup to bring up a computer system in a place called San Jose. And San Jose was so unknown that my admin got us tickets for San Jose, Puerto Rico until I said, I think it's not out of the country. I came out there to do a job to install a process control system. I thought it was some kind of joke is that there were 45 pages of advertisements in the newspaper at the time for scientists, engineers, et cetera. And I flew back and quit, got a job at my first startup in Silicon Valley [00:03:30] and subsequently I did eight of them in 21 years. Speaker 5: What were some of the ones that stand out out of the eight? You know, I had some great successes. There were four IPOs out of the eight, I'd say one or two. I had something to do with the others. I was just kinda standing there when the safe fell on the guy in front of me and the money dropped down and I got to pick it up. But honestly, in hindsight, and I can now say this only in hindsight, I learned the most from some of the failures though I wouldn't tell you why I wanted to learn that at the time, but failing [00:04:00] and failing hard when it was absolutely clear it was your fault and no one else's forced me to go through the stages of denial and then blame others and then whatever. And then acceptance and then ultimately kind of some real learning about how to build early stage ventures. Speaker 5: You know, I blew my Nixon last company, I was on the cover of wired magazine and 90 days after the cover I realized my company was going out of business and eventually did. And I called my mother who was a Russian immigrant and every time I spoke to my mother I [00:04:30] had to pause because English wasn't her first language. And you know, I'd say something and pause and then she'd say something back and pause. And whenever I said, mom, I lost 35 million hours, pause. And then she said, where'd you put it? I said, no, no, no mom, I'm calling you to tell you none of them was 30 I didn't even get the next sentence out. Cause then she went, oh my gosh, she wants $35 million. We can't even change your name. It's already plank. And then she started thinking about it and she said, and the country we came from [00:05:00] is gone. Speaker 5: There's no fast to go. I said, no, no mom though. What I'm trying to tell you is that the people gave me $35 million, just give me another $12 million to do the next startup. And it was in comprehensible because what I find when I talked to foreign visitors to silicon valley or to any entrepreneurial cluster, you know, we have a special name for failed entrepreneur in Silicon Valley. Do you know what it is? Experienced? It's a big idea in the u s around entrepreneurial clusters, failure equals experience. [00:05:30] People don't ask you if you change your name or have to leave town or you're going to go bankrupt, et cetera. The first thing your best friend will ask you is, so what's your next startup? That's an amazing part of this culture that we've built here and that's what happened to me. My last startup, I returned $1 billion each to those two investors and it's not a story about me, it's a story about the ecosystem that we live in that's both supremely American and supremely capitalists, but also Sir Pulliam clustered in just [00:06:00] a few locations in the United States where there are clear reasons why one succeeded to some fail. Speaker 5: You know, when I retired from my last one, I decided that after eight startups in 21 years, my company was about to go public and my kids were seven and eight years old at the time and luckily we had children when I was in my late thirties and so therefore I got to watch people I admired incredibly at work, watch how they dealt with their families. And what was surprising [00:06:30] is that most of them had feet of clay when it came to home. They basically focused 100% of their efforts at work and as their kids grew up, their kids hated them. I kind of remember that in the back of my head, and so when I had the opportunity to retire, I said, I want to watch my kids grow up. And so I did. And that's a preambled answer your question. That's at the end. Speaker 5: For the first time in my life, my head wasn't down completely inside trying to execute in a single company. I had a chance to reflect on [00:07:00] the 21 years and believe it or not, I started to write my memoirs and I got, you know what I realize now in hindsight, it was actually an emotional catharsis of kind of purging. What did I learn? And I asked, it was 80 pages into it writing. He was a vignette and I would write lessons learned from each of those experiences and what I realized truly the hair was standing up and back of my neck. On page 80 there was a pattern I had never recognized in my career and I realized no one else had recognized [00:07:30] it either and either I was very wrong or there might be some truth and here was the pattern in silicon valley since the beginning we had treated startups like they were smaller versions of large companies. Speaker 5: Everything a large company did. The investment wisdom was, well they write business plans, you write business plans, they organize sales, marketing and Bizdev and you do that. They write our income statement, balance sheet and cashflow and do five year plans and then you do that too. Never noticing that. In fact that distinction, and no one had ever said this [00:08:00] before, what large companies do is execute known business models and the emphasis is on execution, on process. What a known business model means is we know who our customer is, we know how to sell it, we know who competitors are. We know what pride in an existing company it's existing cause somebody in the dim past figured that stuff out. But what a startup is doing is not executing. You think you're executing. That's what they told you to go do, but reality you failed most of the time because you were actually searching [00:08:30] for something. Speaker 5: You were just guessing in front of my students here at Berkeley and at Stanford I used the word, you have a series of hypotheses that are untested, but that's a fancy word for you're just guessing. And so the real insight was somebody needed to come up with a set of tools for startups that were different than the tools that were being taught on how to run and manage existing corporations. And that tool set in distinction at the turn of the century didn't exist. That is 1999 [00:09:00] there was not even a language to describe what I just said and I decided to embark on building the equivalent of the management stack that large corporations have for founders and early stage ventures. Speaker 6: Mm, Speaker 7: [00:09:30] yeah. Speaker 8: You are listening to spectrum on k a l x Berkeley. Steve Blank is our guest. He is an entrepreneur and lecturer at the hospital of business. In the next segment of your talks about collaborating with the National Science Foundation Speaker 9: [inaudible].Speaker 4: [00:10:00] So when you're advising scientists and engineers who think they might be interested in trying to do a startup, what do you tell them they need to know about business and business people? Okay. Speaker 5: It's funny you mentioned scientists and engineers because I didn't know too many years in my career. I mean I sold to them as customers, [00:10:30] but in the last three or four years I got to know some of the top scientists in the u s for a very funny experience. Can I tell you what happened? It turned out that this methodology, I've been talking about how to build startups efficiently with customer development and agile engineering and one other piece called the business model canvas. This theory ended up being called the lean startup. One of my students, Eric Reese and I had actually invested in his company and then actually made him sit for my class at Berkeley because his cofounder, [00:11:00] the lost my money last time I invested. I said, no, no, sit through my class. And of course his co founder was slow to get it, but Eric got it in a second, but came the first practitioner of customer development, the first lean startup practitioner in the world. Speaker 5: Eric got it so much he became the Johnny Appleseed of the idea. In fact, it was actually Ericson side, the customer development. Then agile development went together and he named it the lean startup. But even though we had this theory, the practice was really kind of hard. It was like liking the furniture and Ikea until you got the pieces at home [00:11:30] and then realized it was Kinda hard to assemble. So I decided to do is take the pieces and teach entrepreneurs in a way they have never been taught before on how to start a company. Now this requires a two minutes sidebar. Can I give you? It turns out one of the other thing that I've been involved with is entrepreneurial education as I teach here at Haas, but I also teach at Stanford at UCF and a Columbia, but entrepreneurship used to be kind of a province, mostly of business schools and we used [00:12:00] to teach entrepreneurs just like they were accountants. Speaker 5: No one ever noticed that accountants don't run startups. It's a big idea. No one ever noticed. That's the g. We don't teach artists that way and we don't teach brain surgeons that way. That is sit in the class, read these cases like you were in the law school and somehow you'll get smarter and know how to be an operating CEO of an early stage venture. Now with this, you have to understand that when I was an entrepreneur, rapacious was applied word to describe my behavior and my friends who knew me as an entrepreneur [00:12:30] would laugh when they realized that was an educator and say, Steve, you were born entrepreneur. You knew you can't teach entrepreneurship. You can't be taught. You were born that way. Now since I was teaching entrepreneurship, this set of somewhat of a conundrum in my head, and I pondered this for a couple of years until I realized it's the question everybody asks, but it was the wrong question. Speaker 5: Of course you could teach entrepreneurship. The question is that we've never asked is who can you teach it to and that once you frame the question that way you start [00:13:00] slapping your forehead because you realize that founders of companies, they're not like accountants or MBAs. I mean they were engineers, they might be by training and background, but founders, visionaries, they're closer to artists than anybody else in the world and we now know how to teach artists for the last 500 years since the renaissance. How do we teach artists what we teach them theory, but then we immerse them in experiential practice until they're blue in the face or the hands fall off or they never want to look at another [00:13:30] brusher instrument or write another novel again in their life. We just beat them to death as apprentices, but we get their hands dirty or brain surgeons. Speaker 5: You have, they go to school, but there's no way you'd ever want to go to a doctor who hadn't cracked open chest or skulls or whatever or a surgeon, but we were teaching entrepreneurship like somehow you could read it from the book. My class at Stanford was one of the first experiential, hands-on, immersive float body experience and I mean immersive is that basically [00:14:00] we train our teams in theory that they're going to frame hypotheses with something called the business model canvas from a very smart guide named Alexander Osterwalder. They were going to test those hypotheses by getting outside the building outside the university, outside their lab, outside of anywhere and talk. I bought eyeball to 10 to 15 customers a week. People they've never met and start validating or invalidating those hypotheses and they were going to in parallel build as much of the product as [00:14:30] they can with this iterative and incremental development using agile engineering, whether it was hardware or software or medical device, it doesn't matter. Speaker 5: I want you to start building this thing and also be testing that. Now, this worked pretty well for 20 and 22 year olds students with hoodies and flip flops. But it was open question. If this would work with scientists and engineers, and about three years ago I was driving on campus and I got a call and then went like this, hi Steve, you don't know me. My name is heirarchical lick. I'm the head of the National Science Foundation [00:15:00] SBR program. We're from the U s government. We're calling you because we need your help. And because I was still a little bit of a jerk, I said, the government got my help during Vietnam. I'm not giving it an anymore. And he went, no, no, no, no. We're talking about your class. I went, how do you know about my class? They said, well, you've clogged every session of it. Speaker 5: And I just tend to open source everything I do, which is a luxury I have, not being a tenured professor, you know, I, I think giving back to our community is one of the things that silicon valley excels [00:15:30] at. And I was mentored and tutored by people who gave back. And so therefore since I can't do it, I give back by open sourcing almost everything I do. If I learn it and my slides are out there and I write about it and I teach them. And so I was sharing the experiences of teaching this first class. I didn't realize there were 25 people at the National Science Foundation following every class session. And I didn't even know who the National Science Foundation was. And I had to explain what Steve, we give away $7 billion [00:16:00] a year. We're the group that funds all basic science in universities in the u s where we're on number two to the National Institute of Health, which is the largest funder of medical and research in the u s and that's great. Speaker 5: So why are you calling? We want you to do this class for the government. I said, for the government, and I thought, you guys just fund bigger. He said, no, we're, we're under a mandate from theU s congress. All research organizations is that if any scientist wants to commercialize their basic research, we have programs called the spr and STTR programs that [00:16:30] give anywhere from $500,000 in the first phase or up to three quarters of a million dollars in phase two or more for scientists who want to build companies. Well, why are you calling me? And they're all nicely said, well thank God Congress doesn't actually ask how well those teams are doing. And I said, what do you mean? He said, well, we're essentially giving away cars without requiring drivers Ed and you can imagine the results. And I said, okay, but what did you see in what I'm doing? Speaker 5: He said, Steve, you've invented the scientific [00:17:00] method for entrepreneurship. We want you to teach scientists. They already know the scientific method. Our insight here is they'll get what you're doing in a second. You just need to teach them how to do it outside the building. And so within 90 days I've got a bunch of my VC friends, John Fiber and Jim Horton follow and a Jerry angle and a bunch of others. And we put together a class for the national science foundation as a prototype. They got 25 teams headed up by principal investigators in material science and robotics and computer science and fluidics and teams [00:17:30] of three from around the country. And we put them through this 10 week process and we trained scientists how to get outside the building and test hypotheses. And the results were spectacular. So much so that the NSF made it a permanent program. Speaker 5: I trained professors from Georgia tech and university of Michigan who then went off to train 15 other universities. It's now the third largest accelerator in the world. We just passed 300 teams of her best scientists. Well, let me exhale and tell you the next step, which really got interesting. This worked for [00:18:00] National Science Foundation, but I had said that this would never work for life sciences because life sciences therapeutics, cancer, dry. I mean, you know, you get a paper and sell nature and science and maybe 15 years later, you know, something happens and she, you know, what's the problem? If you cure cancer, you don't have a problem finding customers. But at the same time I've been saying this, you CSF, which is probably the leading biotech university in the world here in San Francisco, was chasing me to actually put on this class for them. And I kept saying, no, you don't [00:18:30] understand. Speaker 5: I say it doesn't work. And they said, Steve, we are the experts in this. We say it does. And finally they called my bluff and said, well, why don't you get out of the building with us and talk to some of the leading venture capitalists in this area who basically educated me that said, look, the traditional model of drug companies for Pharma has broken down. They're now looking for partnerships, Obamacare and the new healthcare laws have changed how reimbursement works. Digital health is an emerging field, you know, medical devices. Those economics have changed. So we decided [00:19:00] to hold the class for life sciences, which is really a misnomer. It was a class for four very distinct fields for therapeutics, diagnostics, devices, and digital health. How to use CSF in October, 2013 is an experiment. First we didn't know if anyone would be interested because I know like the NSF, we weren't going to pay the teams. Speaker 5: We were going to make them pay nominal tuition and GCSF and we were going after clinicians and researchers and they have day jobs. Well, surprisingly we had 78 teams apply for 25 slots and we took 26 [00:19:30] teams including Colbert Harris, who was the head of surgery of ucs, f y Kerrison, the inventor of fetal surgery. Two teams didn't even tell Genentech they were sneaking out at night taking the class as well. And the results, I have to tell you, I still smile when I talk about this, exceeded everybody's wildest expectations such that we went back to Washington, took the results to the National Institute of Health and something tells me that in 2014 the National Institute of Health will probably be the next major government organization to adopt [00:20:00] this class in this process. Again, none of this guarantees success and these are all gonna turn into winners. What it does is actually allow teams to fail fast, allows us to be incredibly effective about the amount of cash we spent because we could figure out where the mistakes are rather than just insisting that we're right, but we now have a process that we've actually tested. Speaker 5: Well, I got a call from the National Science Foundation about six months ago that said, Steve, we thought we tell you we need to stop the experiment. And I thought, why? [00:20:30] What do you mean? Well, we got some data back on the effectiveness of the class. He said, well, we didn't believe the numbers. You know us. We told you we've been running this SBI our program for 30 years and what happens to the teams who want to get funded after? It's kind of a double blind review. People don't know who they are. They review their proposals and they on average got funded 18% of the time. Teams that actually have taken this class get funded 60% of the time. I thought we might've improved effectiveness 10 20% but this is a 300% [00:21:00] now let's be clear. It wasn't. That was some liquidity event mode as they went public. Speaker 5: It was just a good precursor on a march to how much did they know about customers and channels and partners and product market fit, et Cetera, and for the first time somebody had actually instrumented the process. So much so that the national science foundation now requires anybody applying for a grant. It's no longer an option to get out of the building and talk to 30 customers before they could even show up at the conference to get funded. That was kind of the science side and that's still going on and [00:21:30] I'm kind of proud that we might've made a dent in how the government thinks for national science foundation stuff, commercialization and how the National Institute of Health might be thinking of what's called translational medicine, but running those are 127 clinicians and researchers through the f program was really kind of amazing. Speaker 2: [inaudible] [inaudible] [00:22:00] [inaudible] Speaker 8: spectrum is a public affairs show on k a l x Berkeley. Our guest is Steve Blank electrode at UC Berkeley's Haas School of business. In the next segment, he goes into more detail about the lean startup, also known as the lean launchpad Speaker 2: [00:22:30] [inaudible] [inaudible] Speaker 4: with your launchpad startup launchpad. Is that, Speaker 5: well, there's two things. The class is called the lean launchpad lean launch and the software [00:23:00] we built for the National Science Foundation and now we use in classes and for corporations it's called launchpad central. We've basically built software that for the first time allows us to manage and view the innovation process as we go. Think of it as salesforce.com which is sales automation tool for salespeople. We now have a tool for the first time for entrepreneurs and the people working with them and managing them and trying to keep track of them and we just crossed 3000 teams who are using the software and I [00:23:30] use it in everything I teach and dude, Speaker 4: how long does the class take for a scientist or engineer who might be trying to think about, well, what's the time sink here? Yeah, Speaker 5: there's a shock to the system version, which I taught at cal tech and now teach twice a year at Columbia, which is days, 10 hours a day. But the ones that we teach from national science foundation, one I teach at Stanford and Berkeley, Stanford, it's a quarter at Berkeley semester from the NSF. It depends. It's about an eight to 10 week class. You could do this over a period of time. There's no magic. [00:24:00] There is kind of the magic and quantity to people you talk to and it's just a law of numbers. You talk to 10 people, I doubt you're going to find any real insight in that data. It talked to a thousand people. You know, you're probably, if you still haven't found the repeatable pattern, probably 20 [inaudible] too many or Tenex, too many a hundred just seem to be kind of a good centroid. And what you're really looking for is what we call product market fit. Speaker 5: And there are other pieces of the business model that are important. But the first two things you're writing at is, are you building something [00:24:30] that people care about? Am I care about? I don't mean say, oh, that's nice. I mean is when you show it to them, do they grab it out of your hands or grab you by the collar and say you're not leaving until I can have this. Oh, and by the way, if you built the right thing or your ideas and the right place, you will find those people. That's not a sign of a public offering, but it's at least a sign that you're on the right track. Speaker 2: Okay. Speaker 3: [00:25:00] [inaudible] Speaker 8: be sure to catch part two of this interview with Steve Blank in two weeks on spectrum. [00:25:30] In that interview, Steve Talks more about the lean launch pad, the challenge of innovation, Speaker 10: modern commerce, the evolution of entrepreneurship and the pace of technology. Steve's website is a trove of information and resources. Go to Steve Blank, all one word.com Steve Aalto, I mentioned the lean launchpad course available Speaker 2: on you, Udacity. That's you. [00:26:00] udacity.com Speaker 8: spectrum shows are archived on iTunes university. We have created a simple link for you. The link is tiny url.com/k a l ex spectrum Speaker 2: [00:26:30] [inaudible]. Speaker 10: Now a few of the science and technology events happening locally over the next two weeks. Naoshima joins me for the calendar. Speaker 1: Dr Claire Kremen. Our previous guest on spectrum is a professor in the Environmental Science Policy and management department at UCB. She is the CO director of the center [00:27:00] for diversified farming systems and a co faculty director of the Berkeley Food Institute. Claire [inaudible] will be giving a talk on Monday, March 10th at 3:00 PM in Morgan Hall Lounge. She will be talking about pollinators as a poster child for diversified farming systems. Dr Kremlin's research on pollinators has attracted national news coverage and is of great importance to California agriculture. The talk will be followed by a reception with snacks and drinks. Again, this will be Monday, March 10th at 3:00 PM in Morgan Hall Lounge. Speaker 6: [00:27:30] Okay. Speaker 4: The science of cal lecture for March will be delivered by Dr Troy Leonberger. The topic is genetics. The lecture is Saturday, March 15th at 11:00 AM in room one 59 of Mulford Hall. Now a single news story presented by Neha Shah Speaker 1: just over a week ago. You see Berkeley's own. Jennifer Doudna, a professor of several biology and chemistry classes at cal, was awarded [00:28:00] the lorry prize in the biomedical sciences for her work on revealing the structure of RNA and its roles in gene therapy. Doudna will receive the Lurie metal and $100,000 award this May in Washington DC. The Lurie Prize is awarded by the foundation for the National Institutes of health and this is its second year of annually recognizing young scientists in the biomedical field. Doudna was originally intrigued by the 1980 breakthrough that RNA could serve as enzymes. In contrast to the previously accepted notion that RNA was [00:28:30] exclusively for protein production. Downness is work today with RNA deals specifically with a protein known as cas nine which can target and cut parts of the DNA of invading viruses. Doudna and her collaborators made use of this knowledge of cast nine to develop a technique to edit genes which will hopefully lead to strides in human gene therapy. Dowden is delighted by her recent recognition and confident in the future of RNA research and the medical developments that will follow Speaker 6: [inaudible].Speaker 10: [00:29:00] The music heard during the show was written and produced by Alex Simon. Speaker 7: Thank you for listening to spectrum. If you have comments about the show, please send them. Speaker 9: All [00:29:30] right. Email address is spectrum to klx@yahoo.com join us in two weeks at this same time. [inaudible]. Hosted on Acast. See acast.com/privacy for more information.