The Startup Velocity Question: Segmentation Matters

An acute lack of understanding of Ideal Customer Profile (ICP) and an inadequate Market Segmentation result in artificially bloated TAM. Often, Segmentation is too broad. Let’s look at an example.

The Startup Velocity Question: Overestimating TAM

Accurate estimation of Total Available Market (TAM) is an essential component of a high velocity startup.  I see a chronic overestimation of TAM in my work with startups.

The Startup Velocity Question: Lack of Understanding of Positioning as a Discipline

I was chatting with an experienced venture capitalist in Silicon Valley about his portfolio’s Positioning challenges. He said, “In a lot of cases, Positioning (and the messaging that follows) is indeed the problem. But a bigger problem behind this is that the founders do not see much value in investing in this area. The founders

Read Full Article »

The Startup Velocity Question: Venture Funding Bootstrapped Startups

As you know, I categorically support bootstrapped entrepreneurs. There are numerous startups now that have achieved $4M-$5M in revenue without any external funding. However, it has taken time. Sometimes, it has taken 5-7 years to get there. VCs, however, are looking for velocity.

The Startup Velocity Question: Selling to CFOs under Tightening Budget Conditions

In a tightening market, budgets are under scrutiny.

The Startup Velocity Question: Large Companies ALSO Have Problems

Many large companies with hundreds of millions in revenues are currently facing slowdown.

The Startup Velocity Question: AI Blah Blah Blah

There’s an AI blah blah blah phenomenon right now all over the industry! “Product growth is plateauing or declining but we have AI that will rejuvenate everything …” Well, AI will do what? What is the exact positioning of your AI offering?

The Startup Velocity Question: VC Portfolios

As discussed, the Venture Capital model looks for hyper growth startups that grow at an exponential pace. Companies that can go from 0 to $100M in revenue in 5-7 years. Hyper Growth is not a natural state of business. Most businesses grow at a linear pace at best.