By David Riggs
I co-run an agency that teaches a hundred startups per year how to do growth marketing. This gives me a unique vantage point: I know which types of startups most often reach profitability.
That’s an important metric, because startups that don’t reach this milestone typically fail to raise additional funding — then die.
Here’s what we’ll learn:
- Companies are increasingly living and dying by ads. Because it’s the startup’s approach to customer acquisition — not its business model or market — that most determines its early-stage profitability.
- E-commerce companies lend themselves best to ads, and SMB SaaS the worst. Meanwhile, most startup founders in 2019 are starting SaaS companies. They’d benefit from the data we share in this post.
- In fact, our agency has found that every other type of business reaches profitability quicker than SMB SaaS, including mobile apps, Chrome extensions and enterprise SaaS.
Our sampling of startups isn’t as biased as startup valuation leaderboards, because we also …read more
Source: Tech Crunch