Prior to 2011, startup founders had to discover what worked and what didn't, mostly through trial and error. Then the research published by Max Marmer (Startup Genome), Eric Ries (Lean Startup), Steve Blank (Customer Discovery) and others provided a more evidence-based and systematic process to guide entrepreneurs from idea generation through validation and initial launch. These frameworks greatly increased the quality and success rate of entrepreneurs, while reducing risk and cost.
However, most of these frameworks end at market entry, treating the rest of the process as a generic "scaleup" phase. In reality, scaleup is now the riskiest and most capital-intensive part of launching.
My basic hypothesis is that there is a "scaleup framework" with distinct phases, priorities and success criteria, which can be used by entrepreneurs, investors and ecosystem managers to reduce the risk of scaling up while improving the success rate.
For audio and webinar recording see https://youtu.be/5Yuc7fuIhk4
StrategyFest - What is a Scaleup and the Scaleup Lifecycle Model
1. The Scaleup Project:
What is a Scaleup
and The Scaleup Lifecycle Model
StrategyFest Webinar Series
September 19, 2017
Davender Gupta
Co-Founder and Venture Strategist, The Scaleup Project
www.TheScaleupProject.com
scaleup.davender.com
514-448-1894 davender@davender.com
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2. Outline
• What is a Scaleup
• Introduction to the Scaleup Lifecycle Model
• Dimensions of the Scaleup
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3. What is a Scaleup
• More than a Unicorn
• OCDE definition
• The Scaleup Menagerie
• Extending the Steve Blank Definition
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4. OCDE Definition of Scaleup
A scaleup (company) is a company who has an average annualized
return of at least 20% in the past 3 years with at least 10 employees
in the beginning of the period (OECD, 2007)[1]
4(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894
6. Extending the Steve Blank definition
• If Startup is “an organization formed to search for a repeatable and
scalable business model” [Steve Blank]
• Then a Scaleup is “an organization formed to establish the
foundation, skills and systems to create, deliver and harvest value in
order to capture sufficient market share to influence the market”.
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https://steveblank.com/2010/01/25/whats-a-startup-first-principles/
7. The Scaleup Lifecycle Model
• Startup Model
• Scaleup Models
• The Scaleup Lifecycle Model
7(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894
8. The Scaleup Lifecycle Model
8(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894
9. Scaleup Lifecycle Model
Preparation Beachhead Surge Consolidation Maturity
Description Ensuring solid
evidence of product-
market fit and
starting value
proposition
Entering the market,
gain momentum
from early adopters,
finding the Reference
Client to give us
credibility with
Pragmatists
All resources focused
on capturing or
creating market
share. Momentum is
of the essence
Become the go-to
standard for the
market
Evolving the business
model to become the
de-facto monopoly of
the market
Customers
(Moore Tech
Adoption Cycle)
Insiders Enthusiasts
Visionaries
Reference Client
Leap the chasm from
Visionaries to
Pragmatists
Pragmatists and early
Conservatives
Maintain mass
market
(Conservatives)
Key Question Do we have a clear
value proposition
and beachhead
market
How to not get
distracted by
Enthusiasts and
Visionaries/
Finding the
Reference Client
Do we continue, shut
down or pivot hard
to avoid valley of
death
When do we switch
our strategy priorities
from building
valuation/market
share to building
revenues
How to become the
de-facto monopoly of
the market
9(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894
10. The Two-Stage Hypothesis
• First stage – becoming a “rabbit” » leading local beachhead market
• Second stage – becoming a “gazelle” » first exports
10(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894
11. Dimensions
• Scaling the Market
• Scaling the Business Model
• Scaling the Systems
• Scaling Leadership and Culture
• Scaling the Finances
Additional topic:
• Scaling for Resilience and Anti-Fragility
11(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894
12. For more information
• Davender Gupta, The Scaleup Project
davender@davender.com
514-296-6288 (mobile)
http://linkedin.com/in/coachdavender
http://facebook.com/coachdavender
http://scaleup.davender.com
http://TheScaleupProject.launchrock.com
12(c)2017 Davender Gupta. All rights reserved. davender@davender.com 514-448-1894