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I think the lack of enterprise startups boils down to one simple issue, most people interested in startups have no understanding of enterprise. As an enterpris

by brd 13y ago

I think the lack of enterprise startups boils down to one simple issue, most people interested in startups have no understanding of enterprise. As an enterprise guy, I read HN discussions on subjects and there is just a lack of understanding about why enterprise companies do what they do, why they're so risk adverse, what they look for in tech, etc. Sure, a lot of enterprise sized solutions aren't that sexy. Sure, enterprise sales is a pain. But really, the kicker is that most 20 somethings just don't have a strong grasp of what makes the enterprise tick.

onion2k 13y ago
Very true indeed. There's an adage in the startup world that says you should try to solve a pain you suffer yourself - that's what you understand best. It's true. Unfortunately though, while startups are mostly made up of young, middle-class males, that won't include many problems you only really start to understand once you've got a good grasp of the enterprise world and the challenges there that haven't been addressed yet.
notastartup 13y ago
can you please write about this? I'm a 20-something looking to create a SaaS for Enterprise customers, and I'm constantly coming up dry. There's a lot of literature revolving around 20 bucks/month for a simple web app but pretty much lost and overwhelmed by the technical language behind most Enterprisey websites and the sheer number of features that seem dumped into a product which confuses the software engineering inside of me. I've begun researching Oracle Partnership and Salesforce, but even then, I am just lost as to how I can acquire my first enterprise customer because I don't know what they want and what they are looking for. I understand that enterprise sale cycles is long and I've posted numerous questions about hacking my way into this space with little response.
- gregpilling 13y ago
  Have you read patio11's stuff? http://www.kalzumeus.com/2013/05/23/selling-your-software-to-businesses-twiliocon-2012-presentation/ http://www.kalzumeus.com/2013/05/23/selling-your-software-to...
- brd 13y ago
  So just to give some quick answers to points you've brought up: Pricing for Enterprise is tricky, mostly because there are magic numbers where you go from 1 channel of approval to another. The goal is to price yourself high enough that they take you seriously without pricing yourself so high that you end up needing approval from a guy who doesn't care about the problem you're solving (unless of course you're ready to pitch to that audience). The long list of features is a side effect of the risk adverse nature of enterprise. One of the big things enterprise looks for is solutions to "what ifs". What if X happens, what if Y operates different, how do we know when Z occurred? Ultimately you are trying to sell them a solution that doesn't create a whole host of new problems and the feature list helps ensure that. Besides that, long feature lists help with the sales pitch. As for finding customers, that is where the real battle exists. Ideally you already have a short list of potential customers that you can talk to and work with while you create your initial product. Creating something from scratch and then trying to sell it is a much harder path to go down. I think there are hacks to this involving partnerships with other 3rd party solution providers but ultimately getting your first customer is going to be the biggest hurdle to overcome. Personally, I've shied away from enterprise startup ideas because 1) If I'm doing a startup, its probably to get out of the enterprise world and 2) Selling to the enterprise truly is a long, arduous experience that I'd rather avoid.
nwenzel 13y ago
I'm not really sure you can say there are a lack of enterprise startups anymore. Certainly there are more consumer facing companies for many of the reasons you cite. I also don't think is just for 20-year olds. Certainly it helps to not have financial obligations of a spouse and children, but plenty of my batch mates were in their 30s (like me), married (like me), and had kids (yup, me too).
midas007 13y ago
TL;DR: Don't automatically write off YC bc you think you have the right contacts, mentors and/or investors. So I've seen both sides: bright eyed startups out to change the world and enterprise startups that quit corporate. Enterprise startups are mostly about getting an early customer interested to help build out something they would use. Building to a real use-case and getting feedback on an ongoing experiment. To that end, with the experience and founders of founders and investors in that space, the value of YC doesn't seem particularly relevant to them when the path seems pretty clear. This may not be the case if particular YC partners have the exact relationships that would provide crucial leverage. (Business end-game can be a photo-finish measured in inches.) Also, access to folks that won't bullshit you is immensely important. Further, the community itself powerful and helps your venture from getting short-sticked in a business context (no matter how good is your game and network). So don't discount YC.

by brd 13y ago

onion2k 13y ago

Very true indeed. There's an adage in the startup world that says you should try to solve a pain you suffer yourself - that's what you understand best. It's true. Unfortunately though, while startups are mostly made up of young, middle-class males, that won't include many problems you only really start to understand once you've got a good grasp of the enterprise world and the challenges there that haven't been addressed yet.

notastartup 13y ago

can you please write about this? I'm a 20-something looking to create a SaaS for Enterprise customers, and I'm constantly coming up dry. There's a lot of literature revolving around 20 bucks/month for a simple web app but pretty much lost and overwhelmed by the technical language behind most Enterprisey websites and the sheer number of features that seem dumped into a product which confuses the software engineering inside of me. I've begun researching Oracle Partnership and Salesforce, but even then, I am just lost as to how I can acquire my first enterprise customer because I don't know what they want and what they are looking for. I understand that enterprise sale cycles is long and I've posted numerous questions about hacking my way into this space with little response.

gregpilling 13y ago
Have you read patio11's stuff? http://www.kalzumeus.com/2013/05/23/selling-your-software-to-businesses-twiliocon-2012-presentation/ http://www.kalzumeus.com/2013/05/23/selling-your-software-to...
brd 13y ago
So just to give some quick answers to points you've brought up: Pricing for Enterprise is tricky, mostly because there are magic numbers where you go from 1 channel of approval to another. The goal is to price yourself high enough that they take you seriously without pricing yourself so high that you end up needing approval from a guy who doesn't care about the problem you're solving (unless of course you're ready to pitch to that audience). The long list of features is a side effect of the risk adverse nature of enterprise. One of the big things enterprise looks for is solutions to "what ifs". What if X happens, what if Y operates different, how do we know when Z occurred? Ultimately you are trying to sell them a solution that doesn't create a whole host of new problems and the feature list helps ensure that. Besides that, long feature lists help with the sales pitch. As for finding customers, that is where the real battle exists. Ideally you already have a short list of potential customers that you can talk to and work with while you create your initial product. Creating something from scratch and then trying to sell it is a much harder path to go down. I think there are hacks to this involving partnerships with other 3rd party solution providers but ultimately getting your first customer is going to be the biggest hurdle to overcome. Personally, I've shied away from enterprise startup ideas because 1) If I'm doing a startup, its probably to get out of the enterprise world and 2) Selling to the enterprise truly is a long, arduous experience that I'd rather avoid.

nwenzel 13y ago

I'm not really sure you can say there are a lack of enterprise startups anymore. Certainly there are more consumer facing companies for many of the reasons you cite. I also don't think is just for 20-year olds. Certainly it helps to not have financial obligations of a spouse and children, but plenty of my batch mates were in their 30s (like me), married (like me), and had kids (yup, me too).

midas007 13y ago

TL;DR: Don't automatically write off YC bc you think you have the right contacts, mentors and/or investors. So I've seen both sides: bright eyed startups out to change the world and enterprise startups that quit corporate. Enterprise startups are mostly about getting an early customer interested to help build out something they would use. Building to a real use-case and getting feedback on an ongoing experiment. To that end, with the experience and founders of founders and investors in that space, the value of YC doesn't seem particularly relevant to them when the path seems pretty clear. This may not be the case if particular YC partners have the exact relationships that would provide crucial leverage. (Business end-game can be a photo-finish measured in inches.) Also, access to folks that won't bullshit you is immensely important. Further, the community itself powerful and helps your venture from getting short-sticked in a business context (no matter how good is your game and network). So don't discount YC.