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.
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Agree, that process can be excruciating. Been on both sides of it. Why I often suggest startups in that situation partner w/complementary providers w/existing distribution/approved vendor relationships. Same cost as sales commissions but can be 5x faster to contract. ~Warm intros
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Do you mean startups or SMBs? I’m not sure selling to startups is always ‘fine’. It’s fine in an environment where there’s plenty of startup capital, like now. But if startup capital dries out, it’s insane. Don’t think this would have been a good strategy in 2002, for example.
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Related: Enterprise vs consumer IPOshttps://twitter.com/jwangARK/status/1124781742961901569 …
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