Ilya Strebulaev’s Post

𝐂𝐚𝐥𝐢𝐟𝐨𝐫𝐧𝐢𝐚 𝐰𝐚𝐬 𝐛𝐲 𝐟𝐚𝐫 𝐭𝐡𝐞 𝐭𝐨𝐩 𝐬𝐭𝐚𝐭𝐞 𝐢𝐧 𝐩𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐮𝐧𝐢𝐜𝐨𝐫𝐧𝐬 𝐞𝐯𝐞𝐫𝐲 𝐲𝐞𝐚𝐫 𝐟𝐫𝐨𝐦 𝟐𝟎𝟏𝟕 𝐭𝐨 𝟐𝟎𝟐𝟏 Far behind California, New York and Massachusetts compete for 2nd place. Washington is in the top 5 in 4 out of 5 years. Other states that made the top 5 in at least one year: Illinois, Florida, Maryland, and Utah. Thank you to the Stanford University Graduate School of Business Venture Capital Initiative for support. Note: We identified the founding state and the year of achieving unicorn status for 1,015 of 1,110 US-based VC-backed unicorns in our sample. The states are ranked by the number of VC-backed startups founded in these states that became unicorns in 2017-2021. #stanford #stanfordgsb #venturecapital #startups #innovation #technology

𝐓𝐡𝐞 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐌𝐢𝐧𝐝𝐬𝐞𝐭 𝐢𝐧 𝐒𝐅𝐎 😊 On my way to leading a strategic offsite session at a global VC firm, I made a quick stop at Compass Books in SFO airport. Thrilled to see 𝘛𝘩𝘦 𝘝𝘦𝘯𝘵𝘶𝘳𝘦 𝘔𝘪𝘯𝘥𝘴𝘦𝘵 front and center on the new non-fiction stand! 📚✨ You can imagine the smile on this author's face! A few weeks ago, I was in the same shop on my way to Paris, and all the copies were sold out (unhappy author face then!). Excited to capture 𝘛𝘩𝘦 𝘝𝘦𝘯𝘵𝘶𝘳𝘦 𝘔𝘪𝘯𝘥𝘴𝘦𝘵 in more locations soon! 📸😊 #stanford #stanfordgsb #theventuremindset

None of the top ten companies by market cap in non-US G7 countries are VC-backed. Non-US G7 includes the UK, France, Canada, Germany, Italy, and Japan. Six of the top ten companies in the US are VC-backed. The average age of the top ten in non-US G7 is 132 years. None is younger than 50 years. The average age of the top ten in the US is 78 years. Six are younger than 50 years. The numbers speak for themselves. To stimulate growth and entrepreneurship, the rest of the world should adopt the Venture Mindset. The sooner, the better. And the US should not lose it. Thank you to the Stanford University Graduate School of Business Venture Capital Initiative for support. Note: The market capitalization data is of June 8, 2024. #stanford #stanfordgsb #venturecapital #startups #innovation #technology

𝐁𝐫𝐢𝐧𝐠𝐢𝐧𝐠 𝐭𝐡𝐞 𝐕𝐞𝐧𝐭𝐮𝐫𝐞 𝐌𝐢𝐧𝐝𝐬𝐞𝐭 𝐭𝐨 𝐒𝐭𝐚𝐧𝐟𝐨𝐫𝐝 𝐒𝐄𝐏 Last week I had the privilege to “recruit” 200+ participants at the Stanford Executive Program (SEP) at the Stanford University Graduate School of Business to join me in the Venture Mindset movement! We covered the basic principles of the Venture Mindset and its practical applications in two intensive sessions for each of the three classes of the 2024 SEP cohort. The sessions flew by, and I found myself wishing for more time, especially with the abundance of slides, materials, and insights I had prepared. This time, there were even more questions, comments, and examples from participants, making the sessions incredibly dynamic and engaging. One key insight from my many strategic sessions on the Venture Mindset with executives at global companies: intentions don’t matter—specific actions do. The playbook mechanisms we offer in the book can be readily applied in almost any setting. Thank you to each and every SEP 2024 participant, your participation made these sessions so enriching! https://lnkd.in/g4jTraG8 #stanford #stanfordgsb #theventuremindset #education

𝐓𝐡𝐞 𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐈𝐏𝐎𝐬 𝐚𝐦𝐨𝐧𝐠 𝐮𝐧𝐢𝐜𝐨𝐫𝐧𝐬 𝐯𝐚𝐫𝐢𝐞𝐬 𝐟𝐫𝐨𝐦 𝐲𝐞𝐚𝐫 𝐭𝐨 𝐲𝐞𝐚𝐫. 𝐁𝐲 𝐚 𝐥𝐨𝐭. The fraction of unicorns that exit via IPO varies a lot as well. Among 466 unicorns that exited over the period from 2010 to 2021, 236 (51%) did so via an IPO. Others exited via direct listing, reverse merger (SPAC), getting acquired, or going bankrupt. On average, 20 unicorns did an IPO every year over that period. Overall, the number of IPOs increased. Starting from only 5 IPOs held in 2010, the annual number went up to 12 IPOs in 2014, 22 in 2018, 32 in 2020, and a peak of 78 in 2021. The only deviations from this upward trend were 2015 and 2016 with 9 and 4 IPOs, respectively. IPOs were usually responsible for 40% to 60% of all exits. For example, in 2020 there were 32 IPOs (46% of the total), compared with 25 M&As, 11 reverse mergers, and 1 direct listing. 2016 was also the only year when IPOs represented just one-quarter of all unicorn exits, with most of the others being M&A deals. And in 2010, every single unicorn exit was an IPO. What are your predictions for unicorn exits in 2024? Share your thoughts in the comments! Thank you to the Stanford University Graduate School of Business Venture Capital Initiative team for spearheading this research. #stanford #stanfordgsb #venturecapital #startups #innovation #technology

𝐒𝐡𝐨𝐩𝐢𝐟𝐲 𝐢𝐬 𝐭𝐡𝐞 𝐲𝐨𝐮𝐧𝐠𝐞𝐬𝐭 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐢𝐧 𝐂𝐚𝐧𝐚𝐝𝐚'𝐬 𝐭𝐨𝐩 𝟏𝟎 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐨𝐧𝐥𝐲 𝐨𝐧𝐞 𝐭𝐡𝐚𝐭 𝐰𝐚𝐬 𝐕𝐂-𝐛𝐚𝐜𝐤𝐞𝐝. In the US, 6 were VC-backed.   Only 1 out of Canada's top 10 was founded in the past 50 years. In the US, 7 were. The average founding year for the top 10 is 1947 for the US and 1911 for Canada.     Share these facts with Justin Trudeau!   Note: To analyze top companies in cases of mergers and acquisitions, the founding year is determined by that of the main acquiring party, or by the older of the two companies in the case of a merger of equals. The market data is as of June 8, 2024.   Thank you to the Stanford University Graduate School of Business Venture Capital Initiative team for spearheading this research. #stanford #stanfordgsb #venturecapital #startups #innovation #technology #venturevoyage  

I’m looking forward to discussing the venture mindset for family businesses with R. Adam Smith. Join us as I share my insights in a Family Business Audiocast on July 2 at 12:00pm EST. Registration is open at https://lnkd.in/egXGsnx3.   #stanford #stanfordgsb #venturecapital #startups #innovation #familyenterprises

𝐂𝐞𝐥𝐞𝐛𝐫𝐚𝐭𝐢𝐧𝐠 𝟐𝟎 𝐲𝐞𝐚𝐫𝐬 𝐚𝐭 𝐒𝐭𝐚𝐧𝐟𝐨𝐫𝐝!    On July 1st 2004, I embarked on my Stanford journey as an assistant professor of finance. I still vividly remember that first drive along Palm Drive!    Twenty years later, I would love to say a heartfelt THANK YOU to everyone who has made my life at Stanford University so special: my colleagues, my students, my friends, and my family!    Here are a few key lessons I’ve learned over these 20 years:  🧠 The prepared mind pays off. Becoming an expert in your field truly pays dividends.  🔄 Embrace flexibility over rigid commitment. Changing course isn't a retreat; it can be a powerful way forward.  💡 Incentives drive behavior.  📚 As teachers, we often learn more from our students.  🌟 Stanford is an amazing place. Here's to the next 20 years! 🚀 #stanford #stanfordgsb #theventuremindset 

𝐌𝐚𝐧𝐲 𝐧𝐨𝐧-𝐔𝐒 𝐮𝐧𝐢𝐯𝐞𝐫𝐬𝐢𝐭𝐢𝐞𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐠𝐫𝐞𝐚𝐭𝐞𝐬𝐭 𝐜𝐡𝐚𝐧𝐜𝐞 𝐨𝐟 𝐩𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐚 𝐔𝐒 𝐮𝐧𝐢𝐜𝐨𝐫𝐧 𝐟𝐨𝐮𝐧𝐝𝐞𝐫 𝐟𝐫𝐨𝐦 𝐢𝐭𝐬 𝐮𝐧𝐝𝐞𝐫𝐠𝐫𝐚𝐝𝐮𝐚𝐭𝐞 𝐩𝐫𝐨𝐠𝐫𝐚𝐦𝐬 𝐚𝐫𝐞 𝐢𝐧 𝐈𝐬𝐫𝐚𝐞𝐥.    Founders of US-based VC-backed companies who graduated from the Technion - Israel Institute of Technology are 21 times more likely than average to achieve unicorn status in the US.    Odds ratios for other universities in Israel:    Reichman University: 10.5 more likely  The Hebrew University of Jerusalem: 5.9  Tel Aviv University: 5.6  Ben-Gurion University of the Negev: 5.2    In three cases – Tsinghua University, Fudan University, and Savitribai Phule Pune University – we could not determine a ratio because EVERY founder graduating from these universities ended up with a unicorn (at least, in our sample)!     These are all astonishing odds.     The following schools with at least 10 founders among their undergraduate students also had good odds of producing unicorn founders:    Indian Institute of Technology, Bombay (3.0 times more likely than average)  Bar-Ilan University (2.2)  Indian Institute of Technology, Delhi (2.0)  University of Waterloo (1.6)  Birla Institute of Technology and Science, Pilani (1.6)  Indian Institute of Technology, Kanpur (1.4)  Queen's University (1.4)    Any other universities you expected to see in this post?    Thank you to the Stanford University Graduate School of Business Venture Capital Initiative team for spearheading this research.    Note: In our sample of 2,897 founders of 1,110 US-based VC-backed unicorns, 607 founders earned a bachelor’s degree outside the US. Among the 2,337 founders from the random sample of 1,027 US-based VC-backed companies, 345 did so. Undergraduates from the Israel Institute of Technology include 26 unicorn founders and 1 random sample founder. Dividing one on the other, and correcting for the different number of unicorn founders and random sample founders, the odds ratio is 21.      #stanford #stanfordgsb #venturecapital #startups #innovation #technology 

𝐍𝐨𝐧𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐔𝐊’𝐬 𝐭𝐨𝐩 𝟏𝟎 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 𝐚𝐫𝐞 𝐕𝐂-𝐛𝐚𝐜𝐤𝐞𝐝.     As the UK voters will have a say in a week, all the attention is on the sluggish UK growth. Voters and regulators, pay attention to these facts.    FACT 1: The UK has no companies in top 10 that were VC-backed. The US has 7.    FACT 2: The UK has only one company in top 10 that was founded in the last 50 years. The US has 6.    In fact, nine (!) out of ten top UK companies were all established before 1930.     The average year of founding top 10 companies in the US is 1947 and 1888 in the UK, the oldest of all major developed countries.    One UK company, Arm Holdings, is the youngest at 34 years old. The second-youngest, Unilever, was founded in 1929.     Until the UK has a fully developed VC ecosystem and until its business leaders, regulators, and politicians acquire the Venture Mindset, the UK growth will continue to be well below dreams of many under any party in government.     Share these insights with Keir Starmer and Rishi Sunak!     Note: To identify the age of top companies in cases of mergers and acquisitions, the founding year is determined by that of the main acquiring party, or by the older of the two companies in case of a merger of equals. The market data is as of June 8, 2024.     #stanford #stanfordgsb #venturecapital #startups #innovation #technology #venturevoyage