Is your scaleup reaching traction in mainstream markets?

Roland Siebelink
Sep 7, 2018 · 2 min read

DOUG: Junior scaleups are growth companies that have entered the mainstream market, correct?

ROLAND: Indeed, junior scaleups have figured out a “whole product.” For at least one beachhead segment in the mainstream market. Their product is so superior to the incumbent that the majority of customers is starting to sign up. As a result, they are conquering that beachhead by storm.

DOUG: Where are junior scaleups’ customers on the adoption curve?

ROLAND: Junior scaleups sign up mostly early majority customers. Pragmatic buyers who want to avoid risky product decisions. But who, once they do buy a new product, want to commit to it for the long term.

DOUG: What is the milestone that turns sophomore scaleups into junior scaleups reached?

ROLAND: Junior scaleups have reached mainstream fit. Their product is now providing a 100% solution for at least one niche of mainstream customers. A niche they can build on to expand to adjacent niches.

DOUG: How much money have they raised?

ROLAND: Junior scaleups have raised a Series C round from venture capitalists. This enables them to embed themselves even deeper in their niche of superiority.

DOUG: What about their product maturity?

ROLAND: Junior scaleups’ products are becoming the reference solution for a mainstream market. For tech companies in particular, “market leadership” starts crowding out any particular benefit.

DOUG: All right, what is the next challenge for junior scaleups?

ROLAND: Junior scaleup teams need to master how to disrupt the mainstream market. Like in the board game Risk, they target conquering the entire board through conquering one territory (niche) at a time. For every mainstream niche, they expand their competences. They get vertical knowledge, partner with the correct ecosystem, et cetera. All so that they can serve as the leading provider.

DOUG: How many people do junior scaleups employ?

ROLAND: Junior scaleups have a workforce of 100s of employees. They are often spread across several locations. Tech companies will have expanded across the Atlantic. Functional departments are dominant, but they start realizing they need cross-functional teams too. Junior scaleups build more project teams, product councils and emerging business unit councils.

DOUG: And how big are their revenues?

ROLAND: Junior scaleups sell between $25M–$100M a year. This is close to the traditional revenues required for an IPO.


Roland Siebelink regularly speaks and writes about leadership in fast-growing tech startups. You can find more of his insights, including free chapters of his book “Scaling Silicon Valley Style” on www.rolandsiebelink.com

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