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My guess is that a lot of successful founders are people with experience in a given domain who founded a company to fill an unfilled need within that domain, an
by chadash 8y ago
My guess is that a lot of successful founders are people with experience in a given domain who founded a company to fill an unfilled need within that domain, and that most of these founders are on the older end. For example, I recently interacted with the founder of a $200 million company that sells infrastructure materials (e.g. fiber optic wire) to large telecommunications companies. To found a company like this, you need to know that the need exists in the first place and you are are at a huge advantage if you already have contacts in the industry.
There are tons and tons of companies like this that you have never heard of because $200 million companies don't make the news. But they do make their owners very wealthy even if they aren't billionaires.
Lacking domain experience and/or industry connections, many young people will often found consumer facing companies. These companies are often winner-takes-all and a tiny fraction of them will make their founders super wealthy. Plus, consumer companies by nature tend to be more well known because they advertise their brand and cater to consumers so they appear on the news more often. For example, AbbVie and Medtronic both have larger market caps than McDonalds, but they (intentionally) don't seek publicity, so you don't hear about them (and therefore their founders) much.
- jjeaff 8y agoMany times, these $200 million companies make their owners far wealthier than even unicorn founders. Because not only are they sometimes fully owned by the founders, but they are making cash flow from day one (gasp!) and paying out healthy distributions from the beginning.
- Regardsyjc 8y agoAgreed. There are many business opportunities in "niches" . I met a founder who became a VC after she exited her company that did interior design for office buildings. I think I offended her when I called her 8-9 figure business a niche but I had never even imagined that that need could have possibly existed until she told me.
- chadash 8y agoTo be fair, that's a pretty big niche. There are hundreds of thousands if not millions of office buildings out there and they all need someone to design the interiors. But one thing that's kind of cool about it is that it doesn't scale beyond a certain point. Because it requires legs on the ground, this is the sort of business that isn't winner takes all. Sure you can get large, but there's always going to be room for boutique design firms.