What is the secret of successful startups? Why does one startup become a billion-dollar, worldwide phenomena while others clamor for survival? The Startup Genome Report reveals in depth about what makes Silicon Valley startups successful.
Coauthored by researchers from UC Berkeley & Stanford, its other contributors include Steve Blank, the Sandbox Network, and 10 accelerators from around the globe. Crack the innovation code of them Silicon Valley Founders here!
Founders That Learn Are More Successful
Startups that have helpful mentors, track metrics effectively, and learn from startup thought leaders raise 7 times more money and have 3.5 times better user growth.
Pivot Is Good
Startups that pivot once or twice times raise 2.5 times more money, have 3.6 times better user growth, and are 52 per cent less likely to scale prematurely than startups that pivot more than twice or not at all. A pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.
Technical Prowess Is A Must
Solo founders and founding teams without technical cofounders show a much lower probability of success.
Multiple Partners Are Good
Solo founders take 3.6 times longer to reach scale stage compared to a founding team of 2 and they are 2.3 times less likely to pivot.
Product Centric Startups Are Tougher To Push
Business-heavy founding teams are 6.2 times more likely to successfully scale with sales driven startups than with product centric startups.
Balanced Teams Work Best
Balanced teams with one technical founder and one business founder raise 30 per cent more money, have 2.9 times more user growth and are 19 per cent less likely to scale prematurely than technical or business-heavy founding teams.
Work To Create An Impact, Money Will Follow Later
Most successful founders are driven by impact rather than experience or money. Almost all revolutionary startups were driven by the vision to serve a strong need, or create new ones.
Most Founders Are Impatient
Startups need 2-3 times longer to validate their market than most founders expect. This underestimation creates the pressure to scale prematurely.
Stay Clear Of Premature Scaling
Premature scaling is the most common reason for startups to perform worse. They tend to lose the battle early on by getting ahead of themselves.
The B2C Vs B2B Battle Is Dead
B2B vs B2C is not a meaningful segmentation of Internet startups anymore because the Internet has changed the rules of business. Today there are different groups of startups that all have very different behavior regarding customer acquisition, time, product, market and team. The Automizers are consumer focused and product centric, like: Google, Dropbox, Slideshare. The challengers are into enterprise sales, with a high customer dependency, and complex and rigid markets, like: Oracle, Salesforce, MySQL, Redhat, Jive, etc. Then there are The Social Transformers like Ebay, LinkedIn, Yelp, Facebook, etc. Likewise newer categories are being created as we write this!
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