Large Growth Companies Create Sizable Startup Opportunities

David Cummings on Startups

Jason Lemkin  wrote a great post last month titled  The Simple Reason Why There Will be 10-20 Great CRM IPOs in the Next Few Years . The idea is awesome: when a company like hits $10 billion in run rate, the bottom 10% of the customers get neglected, creating $1 billion in revenue opportunities for startups. Here are a few thoughts on large growth companies creating sizable startup opportunities:
  • Market reinventions happen every 10-15 years, so it’s inevitable everyone will be disrupted at some point (think mainframes, PCs, Internet, mobile, etc)
  • Opportunities come in the form of a vertical-specific offering, a lower priced offering, and/or a better solution
  • Better solutions in CRM will come in the form of more fully integrated marketing and sales platforms that aren’t tied to traditional conventions
  • Disruptive vertical-specific offerings will be the most prominent (e.g. CRM for real estate, CRM for legal, CRM for accounting…

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