This episode offers ecommerce operators a deep dive into the philosophy behind the Long-Term Stock Exchange (LTSE), a new market designed to combat short-termism. Eric Ries explains how prioritizing long-term growth, stakeholder value, and R&D can benefit businesses beyond just financial metrics. It provides a unique perspective on company structuring and investment that could influence how DTC brands approach funding and growth strategies.
Key takeaways
The LTSE aims to shift focus from quarterly earnings to sustainable, long-term growth, which could inform DTC brands seeking patient capital and aiming for enduring value creation.
Understanding the LTSE’s emphasis on stakeholder capitalism (employees, customers, community) can help ecommerce businesses build brand loyalty and attract mission-driven talent.
The episode highlights the negative impact of short-term investor pressure on R&D and innovation; DTC brands should consider the implications of different funding sources on their ability to invest in long-term product development and technology.
Explore how "Lean Startup" principles, such as validated learning and rapid experimentation, can be applied to public company strategies, offering a framework for continuous improvement even at scale.
Consider how different stock exchange models could impact employee incentives and company culture, especially for ecommerce businesses contemplating future public offerings.
Eric Ries, the founder of the Long-Term Stock Exchange and author of The Lean Startup, talks with Vox.com's Ezra Klein at the 2019 Code Conference.
In this episode: The LTSE’s recent SEC approval; what’s the point of a stock exchange and why do we need a new one?; the problem with short-term public markets; how would going public on the LTSE be different for CEOs?; how things would change for employees?; the culture of short-term vs. long-term leadership ownership; the values of “Lean Startups”; what public companies and markets could learn from those values; how to attach companies to more stakeholders; The Enlightened Capitalists and the history of business reform; would the LTSE penalize short-term investors?; and Wall Street’s impatience with R&D.
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What does this episode say about founder & leadership?
The LTSE aims to shift focus from quarterly earnings to sustainable, long-term growth, which could inform DTC brands seeking patient capital and aiming for enduring value creation.
What does this episode say about finance & fundraising?
Understanding the LTSE’s emphasis on stakeholder capitalism (employees, customers, community) can help ecommerce businesses build brand loyalty and attract mission-driven talent.
What does this episode say about founder & leadership?
The episode highlights the negative impact of short-term investor pressure on R&D and innovation; DTC brands should consider the implications of different funding sources on their ability to invest in long-term product development and technology.
What does this episode say about founder & leadership?
Explore how "Lean Startup" principles, such as validated learning and rapid experimentation, can be applied to public company strategies, offering a framework for continuous improvement even at scale.
What does this episode say about founder & leadership?
Consider how different stock exchange models could impact employee incentives and company culture, especially for ecommerce businesses contemplating future public offerings.
