Smash Notes

Should I Start a Consumer Startup or a Business-to-business Startup

at 11:05

From the episode: Startup Lessons from Serial Entrepreneur Justin Kan

Answer

Consumer startups are a lottery ticket. Take Twitch.tv vs Atrium for example.

In the case with Twitch, nobody believed there was a market in streaming video over the internet. Even as founders they were skeptical there was business. On the bright side, there was also no competition because nobody believed it was worth competing. Justin and Co got all the time to figure our their product market fit, even with all the mistakes they'd made along the way.

Atrium, on the other hand, is a business that requires a structured and a measured approach. Now that Justin knows how to raise capital and to put together a team ...etc, he's got an upper hand when compared to Justin at 22, winging it along the way. Consumer startups are like a lottery ticket, which is why most mature entrepreneurs prefer to play the b2b game.

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