Building A 21st Century Economy in Finland

Aalto University is Leading the Way

Why Start New Companies in Finland?

Because Old Ones Die

Corporate Lifecyclesare Getting Shorter

Disruption

Technology, Globalization, Regulation, Consumer Taste

Disruption

Technology, Globalization, Regulation, Consumer Taste,

Competition, etc.

Job Growth Will Come From New Companies

Job Growth Will Come From New Companies

Startups

Aalto is Leading the Way

Center for Entrepreneurship, Startup Sauna, Venture Garage,

Entrepreneurship Society

Alto is Leading the Way

Center for Entrepreneurship, Startup Sauna, Venture Garage, Aalto Entrepreneurship Society

First -What’s A Startup?

Six Types of Startups

Startup

Lifestyle Startups Work to Live their Passion

• Serve known customer with known product

• Get paid for their passion

Small BusinessStartup

Small Business StartupsWork to Feed the Family

• Serve known customer with known product

• Feed the family

Small BusinessStartup

Exit Criteria- Business Model found- Profitable business- Existing team< €100K in revenue

Small Business StartupsWork to Feed the Family

• known customer known product

• Feed the family

ScalableStartup

Large Company

Scalable StartupBorn to Be Big

Goal is to solve for: unknown customer and

unknown features

Search

ScalableStartup

Large Company

Exit Criteria- Business model found- Total Available Market > €300m- Can grow to €50/year

Scalable StartupBorn to Be Big

Search Execute

ScalableStartup

Large Company

- Total Available Market > $500m- Company can grow to $100m/year- Business model found- Focused on execution and process- Typically requires “risk capital”

Scalable StartupBorn to Be Big

• In contrast a scalable startup is designed to grow big• Typically needs risk capital• What Silicon Valley means when they say “Startup”

Search Execute

ScalableStartup

€3 to 30M Acquisition

Buyable StartupBorn to Be Sold

Goal is to solve for: Internet, Mobile, Gaming Apps

Search Sell

ScalableStartup

€3 to e0M Acquisition

Buyable Startup

Goal is to solve for: Internet and Mobile Apps

Search Sell

Sell to larger company

Transition Large Company

ScalableStartup

Sustaining Innovation

• Existing Market / Known

customer• Known product feature needs

Large Company Sustaining InnovationInnovate or Evaporate

Large Company Disruptive Innovation

New Division Transition Large

Company

Disruptive Innovation• New Market• New tech, customers, channels

Large Company Disruptive Innovation

New Division Transition Large

Company

Disruptive Innovation• Build• Partner• Acquire - IP - Talent - Product - Customers - Business

Large Non-Profit

Social Startup

Social Entrepreneurship Startups

• Solve pressing social problems• Social Enterprise: Profitable• Social Innovation: New Strategies

Each of these startups require different skills

They Can Not Be Taught the Same Way

Entrepreneurship as a Management Science

E-School instead of B-School

Business as a Management Science

• 1601 East India Company

• 300 years of companies without MBA credentials

• 1908 Harvard first MBA

ScalableStartup

Large CompanyTransition

- Execution- Strategy- Accounting- Products- Engineering- Management- Administration

Business School

Business School Topics

Large Company

Business School

Business School Courses

Courses- Managerial Finance/Accounting- Managing Groups and Teams- Financial Accounting- Operations- Modeling for Optimization- Global Value Chain Strategies

ScalableStartup Transition

Business School Results?

• U.S. corporations went from local to national then international

• Cadre of experienced managers to match

• Experts on finance and growth (Dupont/GM)

B-Schools made the 20th Century the American business century

ScalableStartup

Large CompanyTransition

Business School Versus Entrepreneurship School

Entrepreneurship School

- Hypothesis testing- Business Model design- Customer Development- Agile Development- Metrics- Venture Finance- Design Thinking

- Execution- Accounting- Products- Engineering- Management- Administrative

Business School

ScalableStartup

Large CompanyTransition

Courses- Lean Launchpad- Customer/Agile Development- Business Model Design- Entrepreneurial Management- Creativity and Innovation- Entrepreneurial Finance- User-centric design

Business School

Business School Versus Entrepreneurship Courses

Entrepreneurship School

Courses- Managerial Finance/Accounting- Managing Groups and Teams- Financial Accounting- Operations- Modeling for Optimization- Global Value Chain Strategies

Aalto Will Educate the 21st Century

• Partnership with Stanford University

• Center for Entrepreneurship

• Startup Sauna

• Venture Garage

• Aalto Entrepreneurship Society

Thanks

www.steveblank.com