Technology

Thirty years later, “Crossing the Chasm” will be updated – TechCrunch Japan

When I was … A book recently published by our CEO in the open market of the 1990sCross the chasmI told management to read it and understand why scaling speeded up. I got stuck after four years of revenue going from zero to $ 60 million and a market capitalization of $ 1 billion.

We have a difficult time between the visionary early adopters, which author Geoffrey Moore called “Chasm”, who are willing to put up with imperfect products, and mainstream customers who want a more complete product. I noticed that I was stuck in the transition. This framework for marketing technology products has been one of the standard basic concepts of product market adaptation for 30 years since it was first published in 1991.

Why have the eye-popping optimistic VCs and entrepreneurs continue to fall below market size across the technology and innovation sectors in recent years?

We’ve been wondering why we venture capitalists and founders are making the same mistakes over and over again. This mistake has become even more pronounced in recent years. Despite the flood of optimism, we continue to misunderstand the potential market size. The market size has proven to be much larger than we all dreamed of. Reason? Today, everyone is an early adopter. Peter Drucker’s Mantra — Innovate or Die — is finally here.

A prominent example of our investment portfolio is the database software company MongoDB. Looking back at the Series A investment notes for this destructive open source NoSQL database startup, we have successfully managed some of the markets where the company has disrupted industry subsegments and has the potential to grow: I was impressed by the bold prediction that I would have a good chance to win. Future annual sales will reach $ 8 billion.

Our products are currently appealing to most of the market and are projected to reach $ 68 billion in 2020 and approximately $ 106 billion in 2024. As the market expands, there seems to be room for growth over the years to come.

Another example is Veeva, a vertical software company initially focused on the pharmaceutical industry. When they met the company in a series A round, they showed us a classic hockey stick slide and claimed to generate $ 50 million in revenue over five years.

We overcame concerns about market size when we and our founders concluded that we could make at least hundreds of millions of dollars in the pharmaceutical industry and expand from there to other vertical industries. Boy, we were wrong! The company applied for the S-1 five years later and made $ 130 million in revenue. Today, the company is projected to reach $ 2 billion in revenue run rates next year, but still focuses solely on the pharmaceutical industry.

Veeva was a pioneer in “vertical SaaS,” a software platform that serves a niche industry that has become a popular category in recent years. Another example of vertical SaaS is Squire, a company that my partner Jesse Middleton Angel invested in as part of a pre-seed round before joining Flybridge.

https://techcrunch.com/2021/06/10/after-30-years-crossing-the-chasm-is-due-for-a-refresh/ Thirty years later, “Crossing the Chasm” will be updated – TechCrunch Japan

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