CEE 246: Venture Creation for the Real Economy
Course Information
A project-based course where teams of four prepare for the fundraising and launch of an entrepreneurial venture in the 'real economy'—i.e., startups targeting users in construction and sustainable buildings, manufacturing, healthcare, transportation, energy, infrastructure financing, and manufacturing 4.0, among others. Students acquire the experience of an early-stage entrepreneur as they progress through stages of team building, opportunity assessment, product-market fit analysis, business model architecture, product planning and development, go-to-market strategy, financial modeling, and fundraising planning. The course will introduce the use of AI tools that can accelerate the development of each aspect of the student teams’ business opportunity, launch plan, and final investor pitch.
Course structure includes weekly workshops, guest presentations from seasoned entrepreneurs and industry experts, weekly meetings with the teaching team, and one-on-one support from dedicated business mentors/coaches. Course leverages detailed online material from the CGOE Idea-to-Market program (I2M). The experience includes three pitches to panels of VCs and other industry experts starting with Opportunity Assessment, then Operations and Financial Modeling, and finally wrapping up with an Investor Pitch to Silicon Valley VCs and other investors. By the end of the class, students will be equipped with the knowledge and network to evaluate and create impactful business ideas, many of which have been launched from this class.
The course is organized around two Gate presentations (coaching sessions with Silicon Valley experts) and a Final Pitch to a panel of partners from top VC firms.
Gate I - Teams, self-assembled from the cohort of participants, synthesize a proposed business opportunity, learn the difference between business models and the whole company, use an opportunity assessment framework to evaluate their ideas and product-market fit, and prosecute a customer development program mostly outside of class.
Gate II - Teams develop a product build strategy, a go-to-market strategy, and a financing strategy. Pre-built sophisticated financial models are provided to each team so that they can build the appropriate financial structure for their company and evaluate financing requirements.
Final Pitch - Teams develop an understanding of the venture capital business model, how venture funds actually work, company ownership structures, and maintaining alignment of interests between entrepreneurs and investors.
Auditors are not permitted as this is a team project course requiring significant time commitments. The course is open to all Stanford students, with a preference for graduate students.
This is an intensive course, but there are no prerequisites other than a passion for creating new ventures and the ability to put in the required time. This is a competitive class and encourages and prioritizes admission to preformed teams.
For any questions, please reach out to course TAs: elissair@stanford.edu & xinzeng@stanford.edu
1st Mixer
If you're still looking for a team, join for this team formation mixer to meet students, learn about their backgrounds and potential ideas, and form your teams!
Date: November 3rd at 6:30 pm.
Location: Y2E2, Room 299
2nd Mixer
If you're still looking for a team, join for this team formation mixer to meet students, learn about their backgrounds and potential ideas, and form your teams!
Date: November 17th at 6:30 pm.
Location: Y2E2, Room 299
Finding Prospective Team Members
To see what other students are interested in pursuing, and to start forming teams, please add your information to the spreadsheet below.
Stanford provides a tool for forming teams, that may be useful in recruiting team members or finding a team to join : https://teamformationhub.stanford.edu/connect
Course Instructors
Michael Lyons
Course Syllabus
- Opportunity Assessment
- Product-Market Fit
- Business Model Architecture
- Pitching and Storytelling
- Go To Market
- Product Development
- Financial Modeling
- Metrics and Milestones
- Venture Capital, Equity, and Ownership
Frequently Asked Questions
This list covers the most common questions we receive about the course. Don't see your question listed here? Feel free to email the course TA.
Registration
I'm an undergraduate. Can I still enroll?
Yes. This course is an intensive 10-week effort and requires significant time and coordination with members of the team you’ll be on. A mix of graduate and undergraduate participants has been shown to enhance the course. Go for it if your schedule allows.
I'm not in the School of Engineering. Can I enroll?
Yes. The majority of students who enroll in this course are from the School of Engineering, but we encourage students from other departments as well. Alumni have been from Computer Science, Graduate School of Business, Law School, Medical School, and Humanities. The Stanford Center for Professional Development (SCPD) also provides participation for non-degree option students.
Can I audit?
No. This class demands a high level of commitment, therefore formal enrollment is required. Auditing doesn’t really achieve much as outside team effort is 80% of the learning.
Can I take this course for less than 4 units?
The course is listed as a 3- or 4-unit course. All students should take it for 4 units unless they have a capped number of units to work with. Regardless, you will still be required to do the same amount of work if you register for 3 or 4 units.
Team Formation
Do I need to be part of a team before I enroll in class?
Students are expected to submit a team application to join the course. Pre-formed complete teams are welcomed, and there will also be many opportunities to meet other students and form teams.
Do I need to have a business idea to enroll?
No. However, if you do - great! Many great business ideas have been created in class and ended up being real companies acquired in the marketplace.
How do teams form? Will I be assigned to a team?
We do not assign members to teams. Admission will be granted to teams of four (or 3-5), not to individuals. We will hold two student mixers sessions in Fall quarter and one early in Winter quarter where interested students can form teams.
How many people compose a team?
Four team members is the ideal mix to address the substantial workload and to foster learning around team dynamics. Different team constructs are considered by the teaching team depending on circumstances. This can also be a factor when SCPD students are involved in teams, both wholly outside and hybrids of on-campus/off-campus groups.
Team Dynamics
What roles are in each team?
Each team will have a CEO, CFO, CTO, and CMO. These roles usually remain unchanged throughout the quarter. Pick the role that best reflects your interests/strengths. Some teams decide to re-assign roles as team functionality evolves.
What if my team becomes dysfunctional?
One of the key attributes of a successful venture is a strong team that can work through their problems together. Be selective in choosing your teammates and be prepared to work through difficult issues.
What if one of my teammates is not "pulling their weight"?
Try to resolve it within your team. If the situation continues, please approach the teaching team. Final grades will also reflect individual participation and contribution.
Grading
Does everyone in the team get the same grade?
Not necessarily. Individual participation and contributions are also considered.
What kind of feedback can I expect?
This course is a bit different than typical academic courses. We are trying to expose participants to the real-world challenges of building and funding a startup company. The members of the teaching team are all highly practiced experts in actually doing this, including numerous startups and venture capital track records across multiple funds. Therefore, the feedback can at times be blunt and categorized as tough love. This will prepare teams well for the final presentations to top-tier venture firms’ managing partners. A final grade will be assigned at the end of the quarter based heavily on the feedback from those VC judges. That feedback will be provided directly to each team. Throughout the quarter, the teaching team will monitor assignments/deliverables. Feedback on the assignments will come directly from the TAs. Much of the learning will come from feedback/discussions with industry mentors, provided to each team, and from coaching/office hour sessions with the teaching team each week. The course is largely about coaching, not grading.
Can I take this class Pass/No-Credit?
No. Letter grade only.
Intellectual Property
Best practices for student entrepreneurial courses
Entrepreneurship is deeply ingrained in Stanford's culture and we have benefited greatly from it. The Stanford Office of Technology Licensing (OTL) website provides basic guidelines to faculty and students for inventions developed as a result of entrepreneurial courses taught at Stanford.
Best practices for student startups
Both Stanford and its entrepreneurs have responsibilities to optimize technology transfer and mitigate conflict of interest (COI) when licensing Stanford intellectual property to a startup. Stanford has a rich history of translating inventions, and these practices are designed to build on that strong base.
Who owns the intellectual property?
The intellectual property belongs to the team as a whole. Stanford does not own a part of the company unless the team is working with a Stanford-related technology (i.e., either research from one of the team members or a Stanford patent). In this case, the students are highly encouraged to discuss this with the Stanford Office of Technology Licensing (OTL) to better understand what licensing and royalty terms would be applicable.
If I feel my idea may become a real company, what should I do?
The primary goal of the class is to teach you the process of entrepreneurship, not to start actual companies. However, if you feel your idea may become real, be sure to discuss intellectual property rights with your team from the beginning.
Will my intellectual property rights be protected when I discuss my ideas with the class?
You must be prepared to share your ideas openly with the class. It is a forum for you to "bounce" your ideas off your peers. The teaching team can also refer teams to work with legal counsel on founding team issues and IP protection if this is deemed necessary.
What if I feel that my idea will be the "next killer app" and I don't want others to know my plans?
Stealth companies that might have the next killer app will generally be much further along than the opportunities developed in this course. If you are that advanced, this course is probably not the right environment for your team. Many early stage ideas were developed into fundable companies in this course using both pre-formed teams and ones developed in-vivo. A sharing environment provides maximum learning. Secrecy inhibits it. Legitimate entrepreneurs do not steal ideas. There are no outsiders, except VCs who might fund you, exposed to anything done inside this class.
Acknowledgements
The teaching team would like to thank the Stanford Technology Ventures Program (STVP), the Stanford Engineering Center for Global & Online Education (SGOE), and the Departments of Civil & Environmental Engineering (CEE) and Management Science & Engineering (MS&E) for the decades of their continuing support and guidance, and to Fenwick and West, LLP for their generous contributions to supporting entrepreneurship education.