What We Can Learn From The Failure Of Quibi

In 2018, Steve Blank wrote a piece in Harvard Business Review questioning the viability of the “lean startup” model. Given that Steve had pioneered lean startup techniques, I was intrigued. Why would he, all of a sudden begin, to doubt an idea that had been so successful and, to me at least, still seemed so relevant, even for large enterprises.

As it turned out, what made Steve hesitate was a new venture called “New TV” that was headed up by the dream team of legendary Hollywood producer Jeffrey Katzenberg and star Silicon Valley CEO Meg Whitman. Beyond talent and cache, it had raised almost $2 billion. With that much money, how could it lose?

Now we know. The venture, which eventually came to be known as “Quibi,” recently announced it was shutting down, less than seven months after its product launch. It’s become an all too familiar tale. Multi-billion dollar washouts, including WeWork, Better Place and others, have become all too common. We need to learn from their mistakes.

You Can Have Too Much Money

At the heart of Steve Blank’s argument against his own idea was that The Lean Startup “was an answer to a specific problem,” namely that startup companies face a limited runway due to scarce capital. In effect, he sees launching a new company as a race to identify a viable…