Lean Acceleration
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Lean Acceleration

Starttech Next: The market segment on which we focus

Our value proposition is all about high capital efficiency and low capital loss ratio. We aim to meeting these qualities in the entrepreneurship journeys of founders who work on B2B software solutions which primarily target the North American market and secondarily the Northern/Western European one.

In this post I’d like to further elaborate on the specific kind of B2B software solutions we are targeting to invest in.

In a few words, we’d like to invest in the next 50 Salesforce.com of this world — or, to be more in context, in the next 50 TalentLMS and Yodeck of this world.

Enterprise software has been out there for decades. Functionality-wise it’s been doing miracles. Incredible amount of intellectual firepower has been deployed for creating sophisticated business logic which basically more or less runs our world.

The software is what fuels the information revolution. It would be fair to say that software is the primary weaponry of the entrepreneurship revolution too. Few successful businesses, if any, can run without proper business software.

There still is, however, a gap. And where you can find a gap, you can always find an opportunity — And such an opportunity Starttech Ventures is exploring with Starttech Next.

Good software is generally still expensive. Expensive to buy, expensive to customize, expensive to deploy, expensive to run. This reality defines the opportunity we shall explore.

Hence, only large organizations can actually afford good software; small and medium sized ones suffer from using mediocre software solutions.

This is in the core of our target market:

Lean software solutions offered as a service at a cost which is affordable by small and medium enterprises but still offering functionality similar to the one larger companies enjoy from heavyweight solutions.

There’s also another very interesting angle of the same reality:

The internet keeps changing the economy. We’ve entered the stage where the removal of geographical barriers and limitations is a reality also for small and medium sized businesses.

This new exciting reality is actually transforming the small and medium sized businesses themselves; so far they had to be generalists in order to succeed in their local market. Now, business success will come from excelling in a specific niche, out of specialization in a global market.

But this specialization by nature makes the use of more sophisticated software a necessity — a wide necessity which drives the insane success of the Salesforce.com and xero.com of this world!

In a few words, the lean enterprise software solutions, such as TalentLMS, not only are becoming affordable and accessible for “smaller” businesses, but, on top of this, they are becoming available exactly the moment when those customers need these solutions.

It just could not have been better.

I remember a discussion over dinner in San Francisco, CA, in November 2017 where one of the participants was asking whether all available software solutions have already been developed.

My response to this opinion is clear: Just a very small fraction of the lean software solutions which the vast market of small and mid-sized business needs has been developed already — and generally, the solutions already in the market can still be significantly improved!

The team at Starttech Ventures has a firm belief that during the next 15 to 20 years the market shall witness thousands of success stories of lean enterprise software solutions which will thrive in the marketplace helping small and mid-sized enterprises to compete for success in the international marketplace.

We know it’s gonna be thousands and we shall be co-drivers in the journey of 50 of them. If you feel like joining the ride, do let us know!

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