What is a Compound Startup?
An integrated collection of tools in one convenient package is what a compound startup provides. Its goal is to create a fully interoperable solution that is also the finest in its field. The notion stems from the fact that B2B SaaS has evolved and requires entrepreneurs to address more complex business issues. In other words, proponents of the “compound startup” theory argue that the pool of the problems that differentiated, targeted solutions may effectively address is drying up.
The popular belief of startup founders over the past decade has been to zero in on a single area of focus. Find a specific problem, solve it, and you’ll be rewarded. In fact, looking back over the previous decade, such guidance was spot on. As a result, several high-quality point-solution SaaS solutions are on the market today, many of which have displaced less-capable components of legacy business software suites.
Unfortunately, things have begun to spiral out of control. As a founder and fund manager, the number of products I intend to purchase is mind-boggling. Calendly, Hubspot, Carta, MailChimp, Docsend, G-Suite, etc. That comes at a very high financial price, costing me about $15 per month for each seat on average. But there’s also the trouble of getting everything in order. As a client, this is quite distressing, and as an entrepreneur, you’re up against numerous other tools for the same limited cash. Unfortunately, the year 2015 is now gone.
The world has evolved, and so have our expectations of these businesses and the goods and services they provide. As a result, the era of point solutions that solve only one problem for organizations and have a limited scope is over.
A decade ago, many SaaS companies could simply choose one of these specialized, standalone products and build a very successful company around it. There will be less room for these specialized SaaS companies to thrive in the future since they provide solutions that have already been widely adopted. When it comes to solving business challenges, SaaS companies need to step it up a notch and figure out how to do it across several business platforms. This is a radical departure from the conventional “grab and grow” way of thinking, but it also provides a tremendous opportunity. Users in today’s oversaturated marketplaces are hungry for products that are easier to use and more adaptable. Users in today’s oversaturated marketplaces are hungry for products that are easier to use and more adaptable. It is time for the Super App strategy to be front and center.
By definition, limiting your startup’s focus restricts the types of problems you may address. When you consider the difficulties your customers are facing, they frequently include many distinct business systems or point solutions, explains Parker Conrad of Rippling. “In fact, I think some of the biggest problems, and therefore the issues that potentially give rise to the most valuable companies, tend to be things that span many different point solutions products within a business. And thus, only building a one-point solution product can’t really address them.
Sure, it’s more difficult to be an expert in many fields while following the Compound Startup approach. Furthermore, getting the resources and money necessary for such endeavors is more difficult. When communicating with potential investors, the greatest challenge is often establishing a consistent story and messaging. It is easier said than done, but if you succeed, your product will strengthen its foundations and framework and make it more appealing to consumers. More interest means more possible funding, leading to a snowball effect. The success stories of companies like WeChat, IOS (Apple), and SalesForce, which began as small startups and grew into multibillion-dollar conglomerates, are easy to find. The success they’ve had may be attributed to the breadth of their product line and, more significantly, the seamless integration between each of those items.
Improved pricing is another obvious and often-overlooked benefit of implementing a Compound Startup strategy. If you’re a Compound Startup, you may easily outperform the competition by charging more for your bundle than they do for any one product. This allows you to undercut the competition and offer significant savings to your customers while still honoring and maximizing the value of your agreement with them.
What is a Super App?
Super Apps are a suite of integrated mobile services delivered through a single interface. They bring a plethora of various services together under one digital roof. Many of them had their humble beginnings with the passion of a few pioneering businesspeople, a few hundred dollars in seed funding, the promise of an untapped market, and a handful of loyal users. They have grown to be worth billions of dollars and can now compete with major technology hubs. But, can new businesses compete successfully in this industry?
In recent years, several multi-national corporations across a wide range of sectors have developed cutting-edge web applications (or “Super Apps”) specifically for their customers. Super Apps are distinguishable from regular apps because they provide an ecosystem that combines several financial, recreational, and lifestyle activities. For example, customers may do their grocery shopping, money orders, concert ticket buying, and cab hailing, all from the comfort of home, thanks to this one central app.
Mike Lazaridis, the creator of BlackBerry, first coined the phrase “Super App” in 2010. A Super App, in his view, is a self-contained suite of useful programs that can be used whenever and wherever they are needed. The Super App from BlackBerry was a bust since the firm couldn’t figure out how to make money off it, and the company’s devices, in general, were losing ground in the marketplace. WeChat and Alipay, two of the newest, hippest, and most advanced Super Apps, have not only broken through the idea of a closed environment. Still, they have also surpassed the passport regarding their users’ importance.
In conclusion, a Super App is, without a doubt, a practical aggregation of mobile applications since it simultaneously places everything at the user’s disposal. On the other hand, the issue of “peaceful cohabitation” between several Super Apps on our mobile devices, all of which try to protect our personal information and different types of information in general, is still unresolved. The concept is straightforward: the more the number of facets of life condensed into “one hand” (one gadget, one application), the greater the associated dangers.