Scale up the business model to attain product market fit and to enable fast growth.

Scale strategy

After the 6-12 months venture building phase, you have a working MVP with first traction on the customer and commercial side. Time to celebrate? Well, a beer or two is ok. But the work to turn your offspring into a flourishing and profitable business only starts now.

1-6

years

Substantial growth

of the venture

1

Premature year 1 & 2

The venture is just out of MVP and has found an initial product-market fit. We found a first target group or cohort that likes our product and generates recurring revenues. At this point, you want to invest into growing these cohorts and build the infrastructure you need to handle the volumes. That could include growing your sales unit or further invest in growth channels.

2

Mature year 3 & 4

After successful growth over the first years, you start to see first challenges to continue the high growth numbers in your existing cohorts. CAC’s are increasing as you have reached a certain ceiling. It’s now time to expand the market. Either by replicating the initial growth in new regions or by enriching the product portfolio. While you want to build future growth areas, it’s also important to focus on key drivers like COGS and become profitable in your older cohorts.

3

Final year 5 & 6

The venture has been growing over the last couple of years, acquired a strong and loyal base of customers for both initial and newer products, and has been expanding into new markets. Most probably profitability has been reached, at least in certain product portfolios and/or markets. It’s now time to select the path for the next 20 years. This phase can include preparation for an IPO or a trade sale. Depending on the exit path, the venture wants to further push growth or focus more on profitability.

Source of funding?

Based on your strategy and ambition as well as the needs of the venture, we see several sources of funding
From the core business/balance sheet
From the corporate venturing fund
From outside investors

Curious how you can innovate with us?

Dominic Mehr
Associate Partner
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