Lecture 1 (04:03)

Entrepreneurship: A High-risk Investment

Hoffman believes that out of three kinds of investment strategies, sure bets, low-risk management and high risk investments, entrepreneurship is the third kind. This style of investment is called accurate contrarian theories where raising sufficient money might help in mitigating risks, but does not ensure success.

Step 10%
Lecture 2 (06:42)

Fundamental Principles of Entrepreneurship

According to Hoffman, working as if you will succeed, getting to failure points and measuring them as early as possible, making a timely entry and exit into the market, taking controlled risks and finally, solving the easiest problems and not the most complex ones are some of the most fundamental principles of entrepreneurship.

Step 20%
Lecture 3 (03:25)

3 Key Lessons for an Entrepreneurial Internet Company

Hoffman describes 3 key lessons he learned at his first company, SocialNet. 1) Financing strategy should reflect one's financial capabilities. 2) Focusing on distribution is important. 3) Understanding that the entrepreneurial skill set is different from what is required to work for an established big company.

Step 30%
Lecture 4 (04:44)

Facing Competition through Innovation

Hoffman believes an entrepreneurial venture will face competition by either innovating against no competitors or against slow competitors. If a startup faces a smart, aggressive competitor, they must be really sure of what they are doing. He elaborates on this point with the example of 'Friendster' losing its first mover advantage to 'MySpace,' due to a lack of marketing strategy.

Step 40%
Lecture 5 (04:02)

Core Ideas for a Social Networking Company

Using LinkedIn as an example, Hoffman talks about the three main ideas which drive a successful social networking company. They are: Building a business profile, having a network for search and building an application on top of it. Such a concept not only helps employers to reference check prospective employees, but the other way as well.

Step 50%
Lecture 6 (04:35)

Comparison between an Entrepreneur & a General Manager

Hoffman draws comparisons between a general manager and an entrepreneur by giving his own example of becoming a general manager before starting his company. He also talks about the difference between an entrepreneur who takes wild risks and a professional general manager who is paid to mitigate risks.

Step 60%


Reid Hoffman, LinkedIn: Risk and Entrepreneurship, Winter 2007. (Stanford University: Stanford eCorner), http://ecorner.stanford.edu/. License: Creative Commons Attribution-NonCommercial 3.0


Reid Hoffman

Additional Notes

schooX is not affiliated or endorsed by Stanford's Entrepreneurship Corner. Please consider donating to Stanford University by clicking on the donation button below.