By Larry Chiang
I love After Parties. Have you been to one I’ve hosted? This afterparty I’m hosting on a WordPress via 5 embedded tweets and two pictures with one jaw dropping video.
If you’re a lazy student taking CS 183B online for zero cost, let me cut to Peter Thiel’s lecture’s chase and conclusion:
“A business creates X dollars of value and captures Y% of X”
That is exactly EUBM (more on “Engineer Up a Business Model” #EUBM later! Down below.
Peter Thiel at the 44:10 mark reveals: “Often times for scientists & engineers, Y equals zero”
That’s a problem.
Problem: We engineers get screwed when a douchie pays us zero
Solution: Delve into a different class at Stanford. “Technology Entrepreneurship” is Engr 145. It’s all free at “#ENGR145”
Solution: Make Y > 0.
Problem: Engineers can’t believe alpha male problems
For example, in this business model canvas, area number one can be “I’m a big dumb HTB and as a Huge Takeover Bank I can’t tell what cellphone numbers are google voice. Lol most google voice numbers scream fraud when you’re doing bill collection from deadbeats who “charged off”. Credit code 9 is ChargeOff when a bank gives up on a loan
Problems in the real world are super basic but tough for CS majors to identity
Thus, the value (X) in the above case is helping banks lose less cash by screening out credit applicants that have google voice and no legit cellphone service
Now, lets get our “Y”, bitchezz
The “Y” corresponds to “2”
Remember the “X” is region “1”
the “X” is region “1”. It’s the value to a company
“Y” corresponds to “2” aka REVENUE STREAMS
Testimonial #7 of 9
Practice entrepreneurship on something already dead like #99dresses, #Plancast or this…
(it died after sxsw)
It died after SXSW
SO just like a Doctor practices on cadavers, practice on a startup that’s written a postmortem
Disclosure: I sold Plancast and financially benefitted after the postmortem
(Think of it as “last board of director doing” versus the opposite VC douche which is First Investor Signalling)
Or if resuscitating something dead creeps you out… Do something “LCMCC” and new
Conclusion: That was quite the fun afterparty. You’re welcome.