Steve Blank, an Adjunct Professor at Stanford University, is widely regarded as the father of modern entrepreneurship. Prior to academia, Steve’s career spanned eight different startups. Credited with launching the Lean Startup movement with his May 2013 Harvard Business Review cover story, Steve has changed how startups are built, and how entrepreneurship is taught. Steve is also the renowned author of The Four Steps to the Epiphany and The Startup Owner’s Manual.

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In today’s episode, we discuss:

• Why there aren’t more successful startups
• How to improve entrepreneurship in the USA
• Misunderstood aspects of the Lean Startup methodology
• Common traits shared by outlier founders
• Why successful entrepreneurs are irrational (and need to be)
• How founders can transition to CEOs
• Why some second-time founders fail
• Building in existing versus new markets
• The Four Steps to the Epiphany in 2023

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Referenced:

• Alexander Osterwalder: https://www.linkedin.com/in/osterwalder
• Allen Michels: https://en.wikipedia.org/wiki/Allen_Michels
• Ben Wegbreit, Co-founder of E.piphany: https://www.linkedin.com/in/ben-wegbreit-22192/
• Convergent Technologies: https://en.wikipedia.org/wiki/Convergent_Technologies
• Eric Ries: https://www.linkedin.com/in/eries/
• Gordon Bell: https://www.linkedin.com/in/gordon-bell-3035b43/
• JB Straubel: https://www.linkedin.com/in/jb-straubel-b694981/
• Kathy Eisenhardt: https://www.linkedin.com/in/kathleen-eisenhardt-5642247/
• Roger Siboni, former CEO of E.piphany: https://theorg.com/org/coupa-software/org-chart/roger-siboni
• Satya Nadella: https://www.linkedin.com/in/satyanadella/
• Steve Ballmer: https://www.linkedin.com/in/steve-ballmer-7087a8157/
• The lean launchpad at Stanford: https://steveblank.com/2011/05/10/the-lean-launchpad-at-stanford-–-the-final-presentations/
• The semiconductor industry - explained: https://steveblank.com/2022/01/25/the-semiconductor-ecosystem/
• The three pillars of world class corporate innovation: https://steveblank.com/2022/11/11/the-three-pillars-of-world-class-corporate-innovation/
• Tina Seelig: https://www.linkedin.com/in/tinaseelig/
• Tom Mueller, Ex-SpaceX Propulsion CTO: https://www.linkedin.com/in/thomas-mueller-2094513b/
• Why corporate entrepreneurs are extraordinary: https://steveblank.com/2015/08/25/why-corporate-entrepreneurs-are-extraordinary-the-rebel-alliance/
• Why entrepreneurs start companies rather than join them: https://steveblank.com/2018/04/11/why-entrepreneurs-start-companies-rather-than-join-them/

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Where to find Steve:

• LinkedIn: https://www.linkedin.com/in/steveblank/
• Twitter/X: https://twitter.com/sgblank
• Website: https://steveblank.com/

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Where to find Brett:

• LinkedIn: https://www.linkedin.com/in/brett-berson-9986094/
• Twitter/X: https://twitter.com/brettberson

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Where to find First Round Capital:

• Website: https://firstround.com/
• First Round Review: https://review.firstround.com/
• Twitter: https://twitter.com/firstround
• Youtube: https://www.youtube.com/@FirstRoundCapital
• This podcast on all platforms: https://review.firstround.com/podcast

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Timestamps:

(00:00) Introduction

(02:20) Why there aren’t more successful startups

(06:07) Outlier founders have similar childhoods

(10:34) How to be a successful founder CEO

(12:00) Why entrepreneurship should be taught in schools

(16:39) The importance of curiosity

(19:57) The role of instincts in entrepreneurship

(22:31) Having profound beliefs in a vision

(24:17) Building in existing versus new markets

(29:09) What second-time founders can get wrong

(33:49) Why founders need to be irrational

(39:28) Common traits shared by outlier founders

(45:05) Evaluating what makes a startup successful

(49:44) Steve’s assessment of Satya Nadella at Microsoft

(52:26) What it takes to build an incredible company

(60:45) The Four Steps to the Epiphany in 2023

(64:36) The origins of The Four Steps to the Epiphany