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High Tech Start Up

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High Tech Start Up

The Complete Handbook for Creating Successful New High Tech Companies

Free Press,

15 min read
10 take-aways
Text available

What's inside?

If that pregnant gleam in your eye means you want to give birth to your very own bouncing, baby tech firm, read this manual before you quit your day job.

Editorial Rating

5

Qualities

  • Well Structured
  • Background
  • Concrete Examples

Recommendation

Using enormous detail and plenty of case studies, John L. Nesheim presents a step-by-step plan for starting a new high tech company. Given the abundance of insider insights, his guidebook could be a critical part of your training if you are contemplating such a venture. After reading this book, you’ll at least know what you’re getting yourself into before you make that first call to your newly acquired corporate attorney. Nesheim designed his book to be informative, also, to venture capitalists and corporate development managers who work with new ventures. Nesheim backs up his authoritative tone with plenty of facts and figures (updated in 2000 in this second edition) So, if that pregnant gleam in your eye relates to a bouncing, baby tech firm, getAbstract recommends this book as part of your planning process, with the caveat that times have changed a lot for start ups since this book went to press, so look for some history and some evergreen nuggets of advice.

Summary

Start ups and Their Funding

“High-growth ventures have emerged as economic power houses in the United States, generating thousands of jobs, diffusing technological knowledge and creating a culture of innovation that has ripple effects throughout every type of business organization. Indeed, their impact has changed business around the world,” explains David BenDaniel, professor of entrepreneurship at Cornell University’s Johnson Graduate School of Management.

Many of the facts about typical high-tech start ups contradict popular stereotypes. The chances are six in a million that an idea for a high-tech business will ultimately become a successful company that goes public. Here are the real numbers:

  • Fewer than 20% of funded start ups go public.
  • Founder-CEOs own less than 4% of their high-tech companies after the initial public offering, although booms like the early Internet years can raise that to 10% and higher.
  • Most start up’s business plans aren’t up to par and, therefore, are not well received.
  • Venture capitalists finance only six of every 1,000 business plans received, on average.
  • Venture capital investors own 50% to 70...

About the Author

John L. Nesheim  is an engineer and Silicon Valley veteran. He teaches entrepreneurship at Cornell University and other schools in Asia and Europe. Entrepreneurs, investors, governments, universities, corporations and Wall Street experts use his research findings on high tech start ups to increase their understanding of entrepreneurial effectiveness. He also runs startupweb.com.

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