Steve Blank Podcast

For a decade the cybersecurity community was predicting a cyber apocalypse tied to a single event – the day a Cryptographically Relevant Quantum Computer could run Shor’s algorithm and break the public-key cryptography systems most of the internet runs on. It’s possible that the first cybersecurity apocalypse may have come early.

This is the 16th year we’ve been teaching the Stanford Lean LaunchPad class. This year, from the first hour of the first class, we realized we were seeing something extraordinary happen. It was both the end and beginning of a new era.

Drones in Ukraine and in the War with Iran have made the surface of the earth a contested space. The U.S. has discovered that 1) air superiority and missile defense systems (THAAD, Patriot batteries) designed to counter tens or hundreds of aircraft and missiles is insufficient against asymmetric attacks of thousands of drones. And that 2) undefended high value fixed civilian infrastructure – oil tankers, data centers, desalination plants, oil refineries, energy nodes, factories, et al -are all at risk.

The Department of War is in the midst of the most ambitious acquisition reform in 60 years. It’s just in time as drone and missile warfare lessons (autonomy, Counter UAS, etc.) from Ukraine and the War in Iran are top of mind and reshaping what the DoW is buying. Reorganizing the DoW into Portfolio Acquisition Executives is reforming how the DoW is buying. The new Warfighting Acquisition System is working to reward speed to delivery.

If you started a company more than two years ago, it’s likely that many of your assumptions are no longer true. You need to stop coding, building, recruiting, fund raising, etc., and take stock of what changed around you. Or your company will die.

A while ago I wrote about what happens in a startup when a new event creates a wake-up call that makes founding engineers reevaluate their jobs. (It’s worth a read here.) Recently my wife and I had something happen that made us reevaluate a 25-year-old relationship. These two bookends made me realize something larger: reevaluating all types of relationships – romantic, friendship, founders, business partnerships/ventures, and even countries – is a healthy and normal part of growing, getting older and, at times, wiser.

When I was a new VP of Marketing I got a painful lesson of who my PR (Public Relations) agency actually worked for. Later I realized that it was true for all of my external vendors. And much later I realized what I really should have been asking them to do. The lessons still apply even though AI Agents will upend all of this and PR will end up being one of the many businesses that will no longer exist in its current form. Here’s why.

Every once in a while you learn something new that makes you completely rethink how/why an event actually happened. And then you consider how it affects the rest of our country and our lives. This is one of those stories.

The Department of War (DoW) senior Acquisition leadership (the people who decide what and how the DoW buys equipment and services) now is headed by people from private capital (venture capital and private equity.)

In November 2025 the Department of War (DoW) unveiled the biggest changes in 60 years of how they will buy weapons and services. This month Congress, with bipartisan support, rapidly made them into law in the National Defense Authorization Act (the NDAA) – 3,096 pages of legislative text and 636-page Joint Explanatory Statement.

The Department of War Just Shot the Accountants and Opted for Speed by Steve Blank

I’ve always thought of myself as a practitioner. In the startups I was part of, the only “strategy” were my marketing tactics on how to make the VP of Sales the richest person in the company. After I retired, I created Customer Development and co-created the Lean Startup as a simple methodology which codified founders best practices – in a language and process that was easy to understand and implement. All from a practitioner’s point of view.

The October 2025 PEO Directory – Update 2. The Department of War (DoW) is one of the world’s largest organizations. If you’re a startup trying to figure out who to call on and how to navigate the system, it can be – to put it politely – challenging.

Tons of words have been written about the Trump Administrations war on Science in Universities. But few people have asked what, exactly, is science? How does it work? Who are the scientists? What do they do? And more importantly, why should anyone (outside of universities) care?

Great founders shine in a crisis.

How To Sell to the Dept of War – The 2025 PEO Directory by Steve Blank

How did you go bankrupt?” Two ways. Gradually, then suddenly.” Ernest Hemingway, The Sun Also Rises Every disruptive technology since the fire and the wheel have forced leaders to adapt or die. This post tells the story of what happened when 4,000 companies faced a disruptive technology and why only one survived.

I’ve been having coffee with lots of frustrated founders (my students and others) bemoaning most VCs won’t even meet with them unless they have AI in their fundraising pitch. And the AI startups they see are getting valuations that appear nonsensical. These conversations brought back a sense of Déjà vu from the Dot Com bubble (at the turn of this century), when if you didn’t have internet as part of your pitch you weren’t getting funded.

We just finished the 15thannual Lean LaunchPad class at Stanford. The class had gotten so popular that in 2021 we started teaching it in both the winter and spring sessions. During the 2025 spring quarter the eight teams spoke to 935 potential customers, beneficiaries and regulators. Most students spent 15-20 hours a week on the class, about double that of a normal class.

We just finished our 10th annual Hacking for Defense class at Stanford. What a year. Hacking for Defense, now in 70 universities, has teams of students working to understand and help solve national security problems. At Stanford this quarter the 8 teams of 41 students collectively interviewed 1106 beneficiaries, stakeholders, requirements writers, program managers, industry partners, etc. – while simultaneously building a series of minimal viable products and developing a path to deployment.

International Policy students will be spending their careers in an AI-enabled world. We wanted our students to be prepared for it. This is why we’ve adopted and integrated AI in our Stanford national security policy class – Technology, Innovation and Great Power Competition. Here’s what we did, how the students used it, and what they (and we) learned.

US global dominance in science was no accident, but a product of a far-seeing partnership between public and private sectors to boost innovation and economic growth.

The U.S. has spent the last 70 years making massive investments in basic and applied research. Government funding of research started in World War II driven by the needs of the military for weapon systems to defeat Germany and Japan. Post WWII the responsibility for investing in research split between agencies focused on weapons development and space exploration (being completely customer-driven) and other agencies charted to fund basic and applied research in science and medicine (being driven by peer-review.)

Prior to WWII the U.S was a distant second in science and engineering. By the time the war was over, U.S. science and engineering had blown past the British, and led the world for 85 years.

A minimum viable product (MVP) is not always a smaller/cheaper version of your final product. Defining the goal for a MVP can save you tons of time, money and grief.

Sometimes financial decisions that are seemingly rational on their face can precipitate mass exodus of your best engineers.

Asking, “Can I have coffee with you to pick your brain?” is probably the worst possible way to get a meeting with someone with a busy schedule. Here’s a better approach.

It’s not the crime that gets you, it’s the coverup.

Listening to my the family talk about dividing up the cooking chores for this Thanksgiving dinner, including who would peel the potatoes, reminded me that most careers start by peeling potatoes.

I started working when I was 14 (I lied about my age) and counting four years in the Air Force I’ve worked in 12 jobs. I left each one of them when I was bored, ready to move on, got fired, or learned as much as I can. There was only one job that I quit when I feared for my life.

Entrepreneurs tend to view adversity as opportunity.

Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. Because almost everything – all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important. - Steve Jobs

When I was in my 20’s I worked at Convergent Technologies, a company that was proud to be known as the “Marine Corps of Silicon Valley.” It was a brawling “take no prisoners,” work hard, party hard, type of company. The founders coming out of the DEC (Digital Equipment Corporation) and Intel culture of the 1960’s and ‘70’s. As an early employee I worked all hours of the day, never hesitated to jump on a “red-eye” plane to see a customer at the drop of a hat, and did what was necessary to make the company a winner. I learned a lot at Convergent, going from product marketing manager in a small startup to VP of Marketing of the Unix Division as it became a public company. Two of my role models for my career were in this company. (And one would become my mentor and partner in later companies.) But this story is not about Convergent. It’s about entrepreneurship and family.

We Sleep Peaceably In Our Beds At Night Only Because Rough Men Stand Ready To Do Violence On Our Behalf. Everyone has events that shape the rest of their lives. This was one of mine.

In 2023 China flying a “spy balloon” over the U.S. created an international incident. It turns out the U.S. did the same to the Soviet Union in the 1950’s.

Reducing Risk – Simulation versus Customer Development If you remember the first part of this discussion, startups face two types of risk; invention risk and/or customer/market risk. In either type of startup you want to put in place processes in place to reduce risk.

I’ve screwed up a lot of startups on faith. One of the key tenets of entrepreneurship is that you start your company with insufficient resources and knowledge.

I wrote this “Going to Trade Shows Like it Matters” memo as a board member after I saw our company at a trade show. Part 1 of this post offered some suggestions on going to trade shows to generate awareness. This post offers suggestions if you are going to a trade show to generate leads.

I was having lunch with a friend who is a retired venture capitalist and we drifted into a discussion of the startups she funded. We agreed that all her founding CEOs seemed to have the same set of personality traits – tenacious, passionate, relentless, resilient, agile, and comfortable operating in chaos. I said, “well for me you’d have to add coming from a dysfunctional family.” Her response was surprising, “Steve, almost all my CEO’s came from very tough childhoods. It was one of the characteristics I specifically looked for. It’s why all of you operated so well in the unpredictable environment that all startups face.”

One day I was having lunch with a VC sharing what I learned from my students. “Steve,” he said, “you’re missing the most interesting part of vertical markets. Our firm has a portfolio of companies across a broad range of markets and the way we look at it is pretty simple – the deals fall into two types: those with customer/market risk and those with invention risk.”

In the past entrepreneurship was viewed (and taught) as a single process, with a single approach to creating a business plan and securing funding for a startup. The best entrepreneurship textbooks and blogs assume that advice to startups is generalizable. But as I learned from my students this “one-size-fits-all” approach does not work for all startups. Different market opportunities present radically different startup risks and costs.

Ignore This Post If you’re selling via the web and trade shows are something your grandfather told you about, ignore this post. If you’re in markets that still exhibit at them (semiconductors, communications, enterprise software, medical devices, etc.,) you know they’re expensive in time, dollars and resources.

It was 1978. Here I was, a very junior employee of ESL, a company with its hands in the heart of our Cold War strategy. Clueless about the chess game being played in Washington, I was just a minion in a corporate halfway house in between my military career and entrepreneurship.

1978. Two years out of the Air Force, serendipity (which would be my lifelong form of career planning) found me in Silicon Valley working for my first company: ESL. If you’re an entrepreneur, ESL is the most important company you’ve never heard of. If you are a practitioner of Customer Development, ESL was doing it before most us were born. If you think the Cold War turned out the right side up (i.e. Communism being a bad science experiment) ESL’s founder Bill Perry was moving the chess pieces. And no one who really knew could tell you.

I love business plan competitions. I hate business plan competitions.

I just finished reading Donovan Campbell’s eye-opening book, “Joker One“, about his harrowing combat tour in Iraq leading a Marine platoon. This book may be the Iraq war equivalent of “Dispatches” which defined Vietnam for my generation. (Both reminded me why National Service would be a very good idea.)

I was visiting a friend whose company teaches executives how to communicate effectively. He had just filmed the second of a series of videos called, Speaking to the Big Dogs: How mid-level managers can communicate effectively with C-level executives (CEO, VP’s, General Managers, etc.) As we were plotting marketing strategy, I mentioned that the phrase “Speaking to the Big Dogs” might end up as his corporate brand. And that he might want to think about aligning all his video and Internet products under that name.

This article in the NY Times about China’s thinking strategically about electric cars was a poignant contrast to our struggles in the U.S. with the auto bailout. It reminded me about the adage, “when you’re up to your neck in alligators, the last thing you remember is that you were supposed to drain the swamp.” Memo to Washington – weren’t we were to be the country innovating here?

I saw an article in the New York Times about Google’s hiring practices that reminded me of the differences between great big successful technology companies and small scrappy startups.

Startup Ethics: Albatross or Essential? by Steve Blank