Synthesizing Steve Blank's way of looking at various startup types ranging from family businesses to corporate spinouts

1. Startup Types
This presentation is made possible by the support of the American People through the United States Agency
for International Development (USAID). The contents of this presentation are the sole responsibility of Rick
Rasmussen and do not necessarily reflect the views of USAID or the United States Government.
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2. Types of startups
• Lifestyle business
• Scalable startup
• Buyable startup
• Large company
– sustaining
innovation
– disruptive innovation
• Social innovation

3. Lifestyle Startups
Work to Live their Passion
Startup
• Serve known customer with known product
• Work for their passion

4. Lifestyle Startups
Work to Feed the Family
Startup
Sustainable
Income
• Serve known customer with known product
• Feed the family
• Build some brand
• Pass along to the kids
Pass along to kids
or moderate exit

5. Scalable Startup - Born to Be Big
Search
Execute
Scalable
Startup
Large
Company
Goal is to solve for:
unknown customer and
unknown features

6. Scalable Startup
Search
Execute
Scalable
Startup
Large
Company
Goal is to solve for:
unknown customer and
unknown features
Exit Criteria
- Business model found
- Total Available Market > $500m
- Can grow to >$100m/year
- Can be Venture capital funded

7. Buyable Startup
Search
Sell
Scalable
Startup
$2 to $50M
Acquisition
Goal is to solve for:
Internet, Mobile, Gaming Apps
- Sell to larger company
- Angel or early stage VC

8. Large Company Sustaining Innovation
Innovate or Evaporate
Sustaining Innovation
Scalable
Startup
Transition
Large
Company
• Existing Market / Known customer
• Known product feature needs

9. Large Company Disruptive Innovation
New
Division
Transition
Disruptive Innovation
• New Market
• New tech, customers, channels
Large
Company

10. Large Company Disruptive Innovation
New Division
• Build
• Partner
• Acquire
- IP
- Talent
- Product
- Customers
- Business
Transition
Disruptive Innovation
Large
Company

11. Social Entrepreneurship Startups
Social
Startup
• Solve pressing social problems
• Social Enterprise: Profitable
• Social Innovation: New Strategies
• Not venture-backable
Large
Non-Profit