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Ask HN: A Taxonomy of Startup Strategies

13 pointsby bendtheblockabout 14 years ago
I've been observing online startups for a few years now and I'm interested in identifying a taxonomy.<p>I just put these together. Note that these are intentionally kept vertical-agnostic.<p>High-scope Infrastructure - use domain knowledge and innovation to provide a turnkey solution to a broad array of customers. Customers outsource to the service instead of attempting to roll their own equivalent. The company gives them a better solution than they could build for the same price. These startups usually ride on a new innovation and are capital intensive. (Amazon EC2, AppJet, Skype, Heroku, Sendgrid, Dropbox, iPad PoS)<p>High-scope Web App - as above but the utility is delivered via a traditional web app. These companies are still 'high-scope' even if they only provide services to a particular vertical, because their solution is usually more general than an equivalent in-house one would be. (Basecamp, Hoodle, Freshbooks, Convore, Wufoo, Xero, most SaaS)<p>Direct Marketplace - facilitates real commerce directly between two parties, where one or both can be a consumer or business. Users are attracted to these services because they can trade goods or services. Reliance on network effect. (eBay, Etsy, AirBnB, limos.com, Smarkets, Groupon, Kickstarter, 99designs, Theme Forest, GumTree)<p>Ad Marketplace - as above but for ads only (Gumtree, Craig's List)<p>Ads with peripheral service/content - visitors are attracted by the utility of a service or by engaging content, revenue from on-page ads. Even though the 'peripheral service' takes significant effort, the underlying aim is to drive traffic for the consumption of ads (Facebook, Google, SongKick, about.com, justin.tv, Reddit and other community sites)<p>Do you agree with these? What would yours be?

4 comments

messelabout 14 years ago
Perhaps a better name would be a taxonomy of startup strategies. One startup may switch or select several strategies depending on it's size and market. I'm interested in seeing this list expand if you pursue it. Please send me a url to a destination where you'll further develop it. (messel at gmail dot com)
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gyardleyabout 14 years ago
Without agreeing or disagreeing - I have to run, so I can't think about it in depth - why are you interested in startup taxonomy? What do you hope to get from it?<p>Not meant to be negative in any way - I'm curious.
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triviatiseabout 14 years ago
games/entertainment/virtual goods (zynga,scvngr,foursquare?), retail (actually selling things)<p>I dont think the taxonomy is very robust. When you talk strategy what do you mean? Ads are a strategy to monetize, but direct marketplace describes the business.<p>Content is more like published (blogs) vs. user generated content (facebook, twitter)<p>monetization strategy is different than maybe the customer acquisition strategy. If you pull all mention of ads then I think the taxonomy works better.<p>Craigslist to me is more like a direct marketplace
Hisokaabout 14 years ago
Wouldn't DropBox be considered more of a web app rather than infrastructure?<p>Some companies also are a cross-breed between some of them such as SEOMoz(content + web app).