From Startup to Scaleup
Scaling up a tech company doesn’t start when you’re 50 people, it starts from the very beginning. You need to lay a good foundation by having a strong product/market fit, sufficient financing and great leadership. This website is a resource for tech entrepreneurs seeking to move from startup to scaleup, those whose objectives are to create world class companies.
Good research is the foundation of evidence-based management. And if you aren’t basing decisions on evidence then what are you basing them on? The research you’ll discover here has been conducted in order to figure out how entrepreneurs can increase their chances of moving from startup to scaleup.
Scaleup Advisory Services
Many technology entrepreneurs who want to create world class companies are challenged to drive growth consistently. In our research we have attempted to discover why some companies are able to connect with markets, raise sufficient funds, and develop world class team and others are challenged. In order to address the challenges entrepreneurs face, we work with them to help them develop marketing and financial strategies, raise funds and build a team.
Why is this stuff important?
New products that fail.
Startups that fail
Failures due to lack of market need
Venture backed startups that earn a 4X return
Recent Research – The Rich Get Richer
Canadian VC deal sizes continue to lag those in other countries and at the same time, the returns of Canadian VCs also lag American VC returns. Canadian VCs made a strategic decision to invest the way they did as they could just as easily have chosen to invest twice as much in half as many companies. This begs the question; does the smaller deal size result in smaller returns?
To figure that out we looked at the results of 587 US companies and 131 Canadian ones. What we found was that the more funding a company has, the faster it grows and the faster a company grows, the more funding it can get. This seems to be one reason why Silicon Valley based companies, who have the greatest levels of funding out-perform the rest of the US and why the US outperforms Canada.
We believe that Canadian VCs are inadvertently limiting their own returns. They are making strategic decisions to finance companies later, less frequently, and with less money than companies in the US, thus potentially generating low returns.
Triggers and Barriers to Innovation
Making sure there is a market for your product or service is the first step in developing a world class company. One of the things that creates a challenge for entrepreneurs is thinking that there is a market for something that they have developed when there really isn’t. This frequently leaves them with a product in search of a market. In 2018 we will be releasing a book that sets out to explore this subject. In the meantime, take a look at the content we have on this site. In it we are looking at the forces that act on buyers; the triggers to innovation, as well as the barriers and forces of competitive differentiation.