The difference between these startups and any Web 2.0 parody of brands is that a vast majority of these software startup actually generate cash. On the WWW, eCommerce companies put aside, the bulk of services generate zero revenues. In the so-called Web 2.0 world, only market leaders like Meetic, LinkedIn, Facebook and MySpace are profitable – which is not the case with software publishers in general, software being the one industry amongst its peers with the highest row margins.
A few stats about these startups:
- all segments of the software industry represented (digital entertainment, enterprise software, mobility, robotics, SaaS and…Web 2.0)
- an average growth rate of 300%, some of these startups even topping 1000% figures (Miyowa, Excentive, etc.)
- 2 failures out of 50+ companies (4% mortality ratio: extremely low for early stage companies)
- about half of these software ventures have raised series A for an average financing of 3m euros (4m USD) with top-tier venture capital shops
I’m keeping internationalization figures for myself – but I’m telling you, it’s very impressive. More info about the Microsoft IDEAS program aimed at enhancing the expansion of high potential software startups right here.
Before I wrap this post up, which French software startups are to join IDEAS next? We’re opened to all recommendations and I’ll be glad to answer any question regarding this program.
Interesting article. Thank you for highlighting the MSFT focused start-ups in the Web 2.0 world.
- David Gearhart
Comment by David Gearhart — June 14, 2007 @ 17:13
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