I guess companies won't need any more startup help -- all the answers are here in this Business 2.0 article. The breathless descriptions make it sound so easy, anyone can do it! Ladies and Gentlemen, start your companies!
Seriously, the article gets some things right, but it still sounds like it was written in 1999 compared to what I'm seeing today in the Silicon Valley. In terms of the steps, there's a lack of customer involvement, market analysis and competitive analysis. I haven't seen many investors -- Angel's or VC's wanting to jump in until you've demonstrated you can produce revenues.
90% of companies following the article's prescribed route will not secure the funding they need -- and that strikes me as pretty irresponsible. Seed funding might have doubled in the last year, but it's still extremely difficult to get unless you are an experienced entrepreneur who's made investors money previously. A lot more market sizing and market research is required up front to determine whether you could even qualify for venture funding.
A much better option is to have a mechanism for self-funding - a consulting project, a spouse, parents or family with an extra bedroom. This is the barrier to entry for starting a company for many Americans.
Good entertainment, but let the reader beware before leaving your day job.
