Software Companies solving Big Problems
One thing I have noticed over the years is that many software businesses that are being built and financed today follow a simple logic: they have a linear path where the business can be scaled from small to big in a more or less continuous fashion. VCs love financing those software businesses. There is a simple spreadsheet model, you just pull the model to the right and see it scale.
However, there are many software businesses that cannot be built like that. Specifically, many that focus on solving big problems where a small product simply cannot deliver a solution that is complete enough to solve a customer’s problem. For example, take UiPath. That company doesn’t fix a problem that small companies have. Only large companies have problems that UiPath's software can fix. However, for the software to deliver value in an enterprise setting, it must be a very complete product.?
The beauty of Software Companies solving Big Problems is that once you have built one and the market starts to adopt the product, it is very hard for competitors to emerge. There is simply too much to build. These software companies tend to win relatively big in their market.?
Harder to start initially, easier to defend eventually.?
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The other day I met Ratmir Timashev with whom I am co-invested in one of our software portfolio companies. Ratmir founded and ran Veeam Software, a software company solving a complex backup problem. He eventually sold the business for $5BN in 2020. Ratmir told me that the only software startups that interest him are those that focus on solving Big Problems and he sees a gap in the market to establish a system to help these companies get off the ground. He therefore has made a significant gift to the 美国俄亥俄州立大学 in Columbus and established an accelerator program focused on "Software Companies solving Big Problems". This program will be run by Tim Grace who is equally as excited about this as he is. Ratmir will personally coach the teams and use his extensive network to help them overcome the challenges that ambitious software companies initially have.?You can apply to the program here.
I love founders who focus on solving Big Problems and whenever I find an investor who wants to get behind them, I am excited to extend my network in that direction. I would encourage any team building Software Companies solving Big Problems to get in touch with Ratmir Timashev or Tim Grace , obviously I can introduce you to them, too, just ping me or reply to this article.?
Let’s be ambitious. Let’s fix more Big Problems.
Managing Director @ Techstars Columbus powered by Ohio State
1 年Thanks so much for sharing our mission at Techstars Columbus Powered by The Ohio State University, Jens! We really appreciate your partnership. cc: Dani Rose
?? Transformation through People, AI, Cloud Strategy, Cyber Security | Advisor, Technology Partner
1 年Hey Jens Lapinski Would love if you could intro Ratmir or Tim. We're working on solving progressive delivery of software that provides higher reliability while reducing effort/need of expensive skilled engineers (that usually end up building the same workflows yet interpreted subjectively). It is a big problem but not unsolvable, especially when more companies are moving to the cloud (then later hybrid cloud). DM me :)
I agree. Harder to start initially, easier to defend eventually. But, I think solving a problem for smaller companies (SMBs) doesn't necessarily mean that the problem is "small" and the other way around.
Chief Executive Officer at Dutchess Management Strategic Advisory
1 年Jens really captures the fundamental mission of The Center for Software Innovation at OSU as established by Ratmir Timashev and OSU. Solving big problems with software innovation. Thank you Jens.
2x tech founder | TEDx Speaker | ex-SAP (CTO office) | ex-VC | EV Charging
1 年Would be interesting to know how UiPath, or such companies, build their product, an how do they avoid building a mammoth software that no one is using after 3 years of dev?