Eric Ries – Long Term Stock Exchange

Lucky to work for Flexport, we can attend interesting industry events right in our office. During one of these sessions Ryan Petersen, Flexport founder and CEO, interviewed one of my favorite authors, Eric Ries.

Eric’s first book, The Lean Startup, found many fans in different areas of the business. I listened to this book more than once after overcoming the idea that insights expressed in the “startup” volume could not possibly be applicable to large international enterprises where I worked. Actually, the insights were universal, and bureaucratic organizations could probably benefit from them more than nimble startups.

Another book, The Startup Way, addressed exactly this question: how to apply the principles of the first book to the enterprise. I listened to this book also a couple of times.

During his recent presentation at Flexport, Eric Ries explained the “evolution” of the adoption of business principles he advocated in The Lean Startup. As his first book gained popularity, he was invited to massive, and sometimes centuries old, enterprises, where he could meet with management and employees. He could observe the challenges these companies faced, which became the basis of his next book, The Startup Way.

Now he was observing the startups he knew, who adopted modern business principle long time ago, growing into slow bureaucratic organizations. Amazingly, this change could creep into companies still lead by the founders, who were puzzled to discover this transformation in their own organizations.

Eric also noticed that one important idea in his first book received very little attention. As “going public” step not only raised needed capital for new organizations but also encouraged short term thinking, the author advocated Long Term Stock Exchange as a possible solution. Few people noticed. Eric started organizing the new type of the stock exchange himself and recently the organization reached an important milestone:

On May 10, 2019, the Securities and Exchange Commission approved the Long-Term Stock Exchange’s application for registration as a national securities exchange, making the exchange one of only a handful of U.S. exchanges qualified to conduct listings and authorizing the company to operate a platform for buying and selling shares.  (LTSE.com)

This is definitely an interesting development to watch. I am also hoping for another book (or two)!

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