The Startup Genome Project was started earlier this year in order to find out what makes internet startups successful and what does not. As the history has it, the Internet has created some of the world's youngest billionaires! According to the creators of the report
Despite the supreme economic importance of scalable startups, we still don't understand the patterns of successful creation and more than 90% of startups fail, due predominantly to self-destruction rather than competition. For the less than 10% of startups that do succeed, most encounter a handful of near death experiences along the way.
The report has been created from a pool of data from around 650 internet startups and is now available for download on their website. If you are founder of a start-up or still burning it out, then this report is a must read for you. Well, one of the things that we liked from the report and thought about sharing with you all is that it classifies all internet startups into 4 types:
Startups belonging to this category are mostly consumer focused, product centric and often target a fast execution of their project which involves automating a manual process.
The Social Transformer
As the name says this startup has the S of Social Media in it. Startups of these kind have runaway user growth, complex ux and network effects and create new ways for people to interact.
Startups of this kind depend on lead generation with inside sales representatives and target early monetization of their products. They generally target the smaller markets and replicate innovations from consumer Internet and rebuild it for smaller enterprises.
One phrase for the startups belonging to this category is "high customer dependency", targets complex & rigid markets and often have a repeatable sales process.
So, what kind of startups do you think you are building? DO let us know in the comments section.
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