Surfer Model of Venture Growth

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Duration: 1:09
Source: Stanford ECorner
Author: Kathleen M. Eisenhardt, Stanford Technology Ventures Program
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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All we found in looking at our research is an interesting thing. What we found is what we call, "The Surfer Model of Venture Growth" - important key topic for today. What’s the idea if you can decode that two-by-two? It's saying if you start in a non-growth market with a lousy team, you're going to get X revenue and we will say, "In your wildest dreams, you're going to make a million dollars." Revenue of million dollars and that's even pretty good. If you have a weak team and a great market or a great team and a weak market, you're going to get, let's say 4X. But if you have the combination of a great team and a great market, the synergy of that - 12X is probably even low, it's probably more like 20X. There is a huge synergy around great team and a great market, which is why it's the Surfer Model of Venture Growth. Because you think about how do you get a great ride. It takes a great wave and it takes a great surfer. And that's really what growth is about ventures. It's that combination of great teams and great markets.
Language: English
Category: Business
Tags: Kathleen M. Eisenhardt, Stanford Technology Ventures Program
Country: United States


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