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Enterprise startups sometimes go on to succeed after a recap. Consumer startups rarely if ever do. The reason is that enterprise startups can have a genuinely good idea and still be killed by the slowness of the sales and development processes.
If you have a choice between starting a startup whose customers are big companies and one whose aren't, then all other things being equal, choose the latter.
Sometimes, of course, all other things are definitely not equal.https://boomsupersonic.com/
I much prefer B2B startups. Marketing costs are a fraction of what you need to spend on consumer. It's all partnerships & sales. Much easier to bootstrap without needing to take on outside VC & control too soon or at all. Long sales cycles also mean high switching costs once in.
Perfect example from today's headlines. Aviyo raised $150M after bootstrapping and acquiring just 12,000 business customers, not having to chase down 12 or 120 million consumers. https://techcrunch.com/2019/04/08/klaviyo-raises-150m-series-b-after-building-company-the-old-fashioned-way/ …
Do you have a favorite book for coders to understand enterprise sales? (we choose the latter)
One of the most critical difference being ability to pay substantial subscription by enterprises if they see value. Even at medium scale it can be good
Is this similar to the topic of “big fish small pond”, and you prefer the “big fish” option?
Over 1000.
@paulg It really depends on the founders. Experienced founders with industry connect may be better off doing latter . Fresh out of college one's will definitely get killed selling to enterprises mostly.
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