Yesterday we paid a visit to STHLM TECH MEETUP, Europe’s largest monthly event for startups. The place was packed with 700 enthusiastic people, whereof at least 200 were standing due to limited seating. The atmosphere reminded us more about a rock concert than anything else – really inspiring. After listening to the startup pitches, we made some observations that we would like to share with you:
- The number of peer-to-peer business ideas is literally exploding. What Lending Club and Funding Circle have done within finance is now tested upon numerous of other industries. Now, the problem with peer-to-peer business is that the model by itself requires a huge number of returning users. It needs liquidity. To put it bluntly, it’s fairly easy to come up with a business idea where a liquid peer-to-peer platform would help disrupting an existing market. It’s just so damn difficult to find all those returning users. That’s the great competitive edge “old school” big companies still have – enormous body of customers. Returning customers. Occasionally, some enthusiastic entrepreneurs seem to neglect this fact.
- B2C Subscription models are as popular as ever. One can say that you disrupt a market, simply by making the customer stay at home and get handpicked goods and services at the doorstep for a monthly discounted fixed fee. However, the price factor is to a large extent a psychological trick, since this model makes us buy much more than we used to do, if so to a lower price-per-unit. Consumers of today are slowly building up a “black hole” with various monthly subscriptions. A black hole where Insurance companies, music- and movie services, gym cards etc are proudly taking fixed seats. But as the hole grows bigger, the opportunity decreases drastically for new ideas to get into the hole by simply saying “well, its only €9.99 a month…”
- The last reflection is that startups still tend to focus so much energy on various B2C-models. We guess it’s the recognition-factor that biases the entrepreneur in neglecting various B2B opportunities. We believe there are many interesting disruption opportunities by simply taking a good B2C idea, revise it a bit, and then put in a B2B context. Out of numerous opportunities, just think about efficient communication in big organizations; where is the corporate Snapchat alternative?
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