GSB S-353 Formation of New Ventures

Rob Chess and Peter Reiss (also with Donna Dubinsky)

March 4, 2008

What do the Following Companies Have in Common?

Group A Group B

Stub Hub Acumen Med.

Google AVAcore

Genentech Brion

HP LuxCore

Sun LightBit

Stem Cells, Inc. RFCo

Tableau Software VITE

353 - A Class on Startups

S 353 is the GSB’s core entrepreneurship class. (Taken by 2/3 of GSB students.)

This year, two sections are open to Stanford post-graduate students (i.e., Master’s, PhD’s).

The Chess-Reiss sections are meant to mix post-graduate students with GSB students. The mix reflects what you might find in a startup team.

The two sections are Tuesday/Thursday 8-9:45 and 10-11:45.

Course Rationale

The Chess-Reiss sections aim to give:

Non-MBAs a sense of the steps required to start a business; and

MBAs an appreciation science-based ideas that might become businesses.

MBAs and non-MBAs a forum to work with each other and potentially build relationships for future collaborations

The startup business models we consider come from life sciences, information, internet, and electronic hardware companies.

The course is taught by the business “case” method; case discussions focus on the entrepreneur who must act rather than a passive investor.

Course Topics - I

Identifying and Evaluating Business Opportunities

Identifying Opportunities

Valuing a Business Opportunity

Technology as the Basis for a Business

Acquiring and Leveraging Resources

Building Organizational Capital

Acquiring Human Capital

Acquiring Financial Capital

Partnering

Course Topics - II

Managing and Growing the Enterprise

Evolving the Business Model and Management Team

Driving and Managing Growth

Marketing, Selling and Growing Revenue

Managing Failure

Harvesting and Distributing Value

M&A

IPOs

Who Should Take Class

Anyone considering participating in a startupFounderManagement teamNow or later in career

Anyone wanting to understand the process of starting and growing a business.

Particularly valuable for non-MBA’s from the sciences, medicine, engineering, and design programs.

Typical Class

15 minute summary of last class60 minute discussion of case

e.g., Morgridge’s early days at Cisco How StubHub got Started IP and Ideas versus Opportunities

30 minute comments and Q&A from gueste.g., John Morgridge, Chairman Cisco

Jeff Fluhr, Former CEO StubHub Lou Lange, CEO CV Therapeutics Mike Folgner, Yahoo Video Systems Manager

(former CEO JumpCut) Allen Morgan, Partner Mayfield Ventures

Assignments and Grading

Emphasis on class participation (50% of Grade)

Two group assignments

Analysis of student business concepts

One TBD

Sessions

1. Business Vignettes 11. Gordon Biersch2. TechVideo 12. Zaplet3. ProjectShed 13. Cisco4. TravelFit 14. Connectics5. Trulia.com 15. McAfee6. StubHub 16. Netflix7. Hotmail 17. Palm8. Hourglass 18. Summary Class9. Nanogene10. Student Startups

Web-Based/Software (TechVideo, Trulia, StubHub, Hotmail, Zaplet, McAfee)Hardware (ProjectShed, Cisco, Palm) Life Sciences (Hourglass, Nanogene, Connectics)Consumer Products (Travel Fit, Gordon Biersch)

Some of Our Visitors

Mike Folgner, Yahoo Video

Randy Hetrick, CEO TravelFit

Sami Inkinen, COO Trulia.com

Allen Morgan, Mayfield Fund

Darin Buxbaum, CEO Hourglass

Melinda Thomas

Jeff Fluhr, Former CEO StubHub

Dan Gordon, Founder Gordon Biersch

John Morgridge, Former CEO and Chairman CISCO

Tom Wiggans, CEO Connectics

Don Santel, Former CEO CoTherix

Louis Lange, CEO CV Theraputics

Registration and Course Times

Two sections:Tuesday/Thursday 8-9:45 and 10-11:45Approximately 30 slots open in each.

On March 10, the GSB Registrar (Academic Operations) will open registration. You must petition them for admission.

GSB_REGISTRAR@gsb.stanford.edu

To contact us, preiss@stanford.edu rchess@nektar.com