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The Lean Startup - Eric Ries [121]

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​8–5​-million-​round-​for-​path/

3. Includes approximately $30 million of assets under management and approximately $150 million of assets under administration, as of April 1, 2011.

4. For more on Wealthfront, see the case study written by Sarah Milstein at http://​www.​startuplessonslearned.​com/​2010/​07/​case-​study-​kaching-​anatomy-​of-​pivot.​html. For more on Wealthfront’s recent success, see http://​bits.​blogs.​nytimes.​com/​2010/​10​/19/​wealthfront-​loses-​the-​sound-​effects/

5. IMVU’s results have been shared publicly on a few occasions. For 2008, see http://​www.​worldsinmotion.​biz/​2008/​06/​imvu_​reaches_​20_​million_​regist.​php; for 2009 see http://​www.​imvu.​com/​about/​press_​releases/​press_​release_​20091005_1.​php, and for 2010 see http://​techcrunch.​com/​2010/​04/​24/​imvu-​revenue/

6. Business architecture is a concept explored in detail in Moore’s Dealing with Darwin. “Organizational structure based on prioritizing one of two business models (Complex systems model and Volume operations model). Innovation types are understood and executed in completely different ways depending on which model an enterprise adopts.” For more, see http://​www.​dealingwithdarwin.​com/​theBook/​darwinDictionary.​php


Chapter 9. Batch

1. http://​lssacademy.​com/​2008/​03/​24/​a-​response-​to-​the-​video-​skeptics/

2. If you’re having trouble accepting this fact, it really is helpful to watch it on video. One extremely detail-oriented blogger took one video and broke it down, second-by-second, to see where the time went: “You lose between 2 and 5 seconds every time you move the pile around between steps. Also, you have to manage the pile several times during a task, something you don’t have to do nearly as much with [single-piece flow]. This also has a factory corollary: storing, moving, retrieving, and looking for work in progress inventory.” See the rest of the commentary here: http://​lssacademy.​com/​2008/​03/​24/​a-​response-​to-​the-​video-​skeptics/

3. Timothy Fitz, an early IMVU engineer, deserves credit for having coined the term continuous deployment in a blog post: http://​timothyfitz.​wordpress.​com/​2009/​02/​10/​continuous-​deployment-​at-​imvu-​doing-​the-​impossible-​fifty-​times-​a-​day/. The actual development of the continuous deployment system is the work of too many different engineers at IMVU for me to give adequate credit here. For details on how to get started with continuous deployment, see http://​radar.​oreilly.​com/​2009/​03/​continuous-​deployment-​5-eas.​html

4. For technical details of Wealthfront’s continuous deployment setup, see http://​eng.​wealthfront.​com/​2010/​05/​deployment-​infrastructure-​for.​html and http://​eng.​wealthfront.​com/​2011/​03/​lean-​startup-​stage-​at-​sxsw.​html

5. This description of School of One was provided by Jennifer Carolan of NewSchools Venture Fund.

6. For more on the large-batch death spiral, see The Principles of Product Development Flow: Second Generation Lean Product Development by Donald G. Reinertsen: http://bit.ly/pdflow

7. These lean health care examples are courtesy of Mark Graban, author of Lean Hospitals (New York: Productivity Press, 2008).

8. This illustrative story about pull is drawn from Lean Production Simplified by Pascal Dennis (New York: Productivity Press, 2007).

9. For an example of this misunderstanding at work, see http://​www.​oreillygmt.​eu/​interview/​fatboy-​in-​a-​lean-​world/

10. Information about Alphabet Energy comes from interviews conducted by Sara Leslie.

11. For more on Toyota’s learning organization, see The Toyota Way by Jeffrey Liker.


Chapter 10. Grow

1. The Hotmail story, along with many other examples, is recounted in Adam L. Penenberg’s Viral Loop. For more on Hotmail, also see http://​www.​fastcompany.​com/​magazine/​27/​neteffects.​html

2. For more on the four customer currencies of time, money, skill, and passion, see http://​www.​startuplessonslearned.​com/​2009/​12/​business-​ecology-​and-​four-​customer.​html

3. http://​pmarca-​archive.​posterous.​com/​the-​pmarca-​guide-​to-​startups-

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