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And that's only YC. I suspect that if you do this calculation for all VC-backed companies, the percent of revenues coming from other VC-backed companies is even
by cs702 3y ago
And that's only YC. I suspect that if you do this calculation for all VC-backed companies, the percent of revenues coming from other VC-backed companies is even higher!
- joshuahedlund 3y agoIn fact, 100% of B2B companies have 100% of their revenue coming from other companies!
- Ekaros 3y ago0% of B2B companies have sales to public entities like governments or municipalities?
- 1letterunixname 3y agoB2B just means not B2C, which doesn't necessarily exclude government or education. B2M is to everyone.
- cs702 3y agoThe thing with VC-backed companies is that many, and maybe most of them, are burning money and depend on raising fresh VC capital to stay afloat. If the VC spigot is turned off, all these companies will cut spending and/or fail at the same time. In a drought of fresh capital, the faster a VC-backed startup can reduce its dependence on other VC-backed startups, the greater its chances of survival.
- resource0x 3y agoIt's called "cross-pollination".