{"id":1763,"date":"2013-11-14T13:17:45","date_gmt":"2013-11-14T17:17:45","guid":{"rendered":"https:\/\/www.duck9.com\/?p=1763"},"modified":"2013-11-14T13:19:49","modified_gmt":"2013-11-14T17:19:49","slug":"what-they-do-teach-you-at-stanford-engineering-about-spinouts","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/what-they-do-teach-you-at-stanford-engineering-about-spinouts\/","title":{"rendered":"What They Do Teach You at Stanford Engineering About Spinouts"},"content":{"rendered":"
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By Larry Chiang <\/div>\n
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I read so that I could then leverage OPE (other people’s expertise)<\/div>\n
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Here is something that I wanted to expand…<\/div>\n
<\/p>\n\n\n\n\n
<\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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11\/14\/13, 8:06 AM<\/a><\/div>\n
Spin-outs is absolutely the most underpromoted business maneuver.<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

I expose things you should be paying attention to because it will alter how things might turn out for you.<\/div>\n

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Spin-outs.<\/div>\n
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Definition. An entity is spun out of another entity. In essence it’s a sequel. Spinout businesses reduce risk. <\/div>\n
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Some examples that are legendary spin-outs:<\/div>\n
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Intel. It spun out of Fairchild Semi<\/div>\n
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IVP. It spun out of Amex<\/div>\n
<\/div>\n
Chevy spun out of GM or vice versa. (Steve Blank was talking too fast during lecture)<\/div>\n
<\/div>\n
SalesForce spun out of Oracle. <\/div>\n
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I forget what Oracle spun out of… Sun? Tom Seibel?<\/div>\n
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Everything sports spun out of IMG (my mentors company is Intl Mgmnt Group)<\/div>\n
<\/div>\n
Wicked, the play, spun out 30 years after the movie, Wizard of Oz, came out. Err 40.<\/div>\n
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Capital One spun out of Signet Bank.<\/div>\n
<\/div>\n
Bank. Of. America. is actually the (orphan homeless) bastard child of two bastards: NCNB and C&S Sovran (both spin-outs themselves). They merged to form Nations Bank which eventually bought leftover assets of Bank of America. <\/div>\n

<\/p>\n

Now you know what I’m paying attention to.<\/div>\n
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Note: the parent entity sometimes takes an equity stake. Sometimes it does not. Often times a set of “pre-assembled” co-founders were a team at the parent entity.<\/div>\n
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When the entire pre-assembled team spins out… VCs them<\/div>\n
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Patternistically, I pattern recognize…<\/div>\n
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– Josh Elman, VC, recruiting founders to fund from his previous entities (fb, twitter, etc)<\/div>\n
<\/div>\n
– Jon Teo, VC, recruiting founders to fund from his previous entity Google<\/span><\/div>\n

<\/span><\/div>\n
– Ryan Sarver, <\/span>VC, recruiting founders to fund from his previous entity Twttr<\/span><\/div>\n

<\/span><\/div>\n
– Roelof Botha<\/span>, VC, recruiting founders to fund from his previous entity (PayPal)<\/span><\/div>\n

<\/span><\/div>\n
And to go OLD SCHOOL!!!!<\/span><\/div>\n

<\/span><\/div>\n
– Don Valentine<\/span>, VC, recruiting founders to fund from his previous entity (Intel)<\/span><\/div>\n

<\/span><\/div>\n
I highly recommend, you the 19 year old sophomore in CS to<\/span><\/div>\n
– pattern replicate. (PR)<\/span><\/div>\n
– pattern iterate. (PI)<\/span><\/div>\n

<\/span><\/div>\n
Patterns are important.<\/span><\/div>\n

<\/span><\/div>\n
Like Tyler Durden from FIGHT CLUB said: “You’re not a unique snowflake”. <\/span><\/div>\n

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My opinion: Once you realize you’re a cliche, you THEN have the chance to be something special<\/span><\/div>\n

<\/span><\/div>\n
Leave the pattern recognition (PR) to a person slightly older that you and mentoring you. All together now, PR + PR + PI = #PRPRPI<\/div>\n
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That was a hashtag ‘derivation’ THERE WILL BE A QUIZ. Seriously. Study this my CS major padawan,<\/div>\n
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PRPRPI’s a system my mentor (IMG founder) taught me. (He is the original guy that got paid to learn MBA shitake )<\/div>\n
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ENGR145’s Anchor Concept: #PRPRPI <\/div>\n
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It moves you to the right on the entrepreneur bell curve <\/div>\n
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<\/a><\/div>\n
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<\/a><\/div>\n
<\/div>\n
<\/a><\/div>\n
<\/div>\n
CEO of Duck9<\/div>\n
Stanford University Entrepreneur in Residence, Emeritus<\/div>\n
<\/div>\n
Duck9 = “Deep Underground Credit Knowledge” 9<\/div>\n
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<\/div>\n
****************<\/div>\n
Editor of the BusinessWeek Channel “What They Don’t Teach at Business School”<\/div>\n
https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog<\/a><\/a><\/div>\n
CNN Video Channel: https:\/\/ireport.cnn.com\/people\/larrychiang<\/a><\/a><\/div>\n
<\/div>\n
Read my last 10 tweets at https:\/\/www.Twitter.com\/LarryChiang<\/a><\/a><\/div>\n
<\/div>\n
Author, NY Times Bestseller<\/div>\n
https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\/?s=Ny+times+bestseller<\/a><\/a><\/div>\n
<\/div>\n
“What They Will NEVER Teach You at Stanford Business School” comes out 11-11-14<\/div>\n
<\/div>\n
https:\/\/www.fastcompany.com\/embed\/c0d4562ea2049<\/a><\/a><\/div>\n
<\/div>\n
52 Cards. Two Jokers. What They DO Teach You at Stanford Engineering<\/div>\n
<\/a><\/div>\n
<\/div>\n
Emergency swings and cutting deals as an 9 year old<\/div>\n
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<\/a><\/div>\n
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##########<\/div>\n
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630-705-5555<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By Larry Chiang  I read so that I could then leverage OPE (other people’s expertise) Here is something that I wanted to expand… Larry Chiang (@LarryChiang) 11\/14\/13, 8:06 AM Spin-outs is absolutely the most underpromoted business maneuver. I expose things you should be paying attention to because it will alter how things might turn out […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1763","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/1763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=1763"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/1763\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=1763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=1763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=1763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}