What Makes a Startup Idea 'VC Backable'?
What exactly makes a startup idea attractive to venture capitalists? Understanding this can be the key to unlocking the doors to VC funding.
It comes down to three things: talent, speed of execution, and economics.
For talent, finding motivating and retaining the right people to do client work is really hard, expensive and often leads to thin margins.
Low code greatly reduces both the number of people required and the skill sets of those people to execute on any given project. But low code tools don't replace developers no different than, for instance, photoshop. You can't replace the need for designers. On the contrary, photoshop drove out a design renaissance. We see low code doing the same thing in the development world.
On the speed of execution dimension, long projects introduce lots of risk. Shorter projects done by more compact teams are far easier to execute and lead to much greater client satisfaction.
From an economic perspective, reducing sales friction leads to more deals, so selling low code, in essence, is easier. More compact teams delivering sophisticated work faster leads to better gross margins and lastly many low code companies offer a partnership model where agencies can garner recurring revenue from what they do.
Low code has a transformative effect on digital agencies. Enhances their business model and really ensures that they're future proof moving forward.
8base is redefining the way software is built. If a conversation about this is interesting to you, we'd love to chat and help you think through your approach. Contact us.