Large Growth Companies Create Sizable Startup Opportunities
Posted by David Cummings on David Cummings on Startups
Jason Lemkin wrote a great post last month titled The Simple Reason Why There Will be 10-20 Great CRM IPOs in the Next Few Years. The idea is awesome: when a company like Salesforce.com hits $10 billion in run rate, the bottom 10% of the customers get neglected, creating $1 billion in revenue opportunities for startups. Here are a few thoughts on large growth companies creating sizable startup opportunities:
o Market reinventions happen every 10-15 years, so it’s inevitable everyone will be disrupted at some point (think mainframes, PCs, Internet, mobile, etc)
o Opportunities come in the form of a vertical-specific offering, a lower priced offering, and/or a better solution
o Better solutions in CRM will come in the form of more fully integrated marketing and sales platforms that aren’t tied to traditional conventions
o Disruptive vertical-specific offerings will be the most prominent (e.g. CRM for real estate, CRM for legal, CRM for accounting, etc.)
o Startups that can hit $5 or $10 million in run rate will have nice, solid businesses whereas ones that can get to $75-$100 million in run rate will be homeruns, and the market will support several of these
Go read Jason’s post on why there will be 10-20 great CRM IPOs in the next few years. Large growth companies create sizable startup opportunities and entrepreneurs should capitalize on it.
What else? What are some other thoughts on large growth companies creating sizable startup opportunities?