Startup Success Rate @100x Higher Than YC
100x higher hit rate
According to Business Insider, startups that apply to Y-Combinator have a 0.4% success rate. Using the same criteria, Idealab, the first startup studio, has a 47% success rate. Our last five startups were profitable, indicating our startup success rate may be as high as 83%. We attribute this increase to our development process and the judgement of experienced entrepreneurs who lead or startups.
We Originate our ideas
In our experience, first-hand experience with a fundamental problem is critical for startup success. All or our ideas and startups begin with a problem we've personally experienced. We just don't think there is any substitute for this.
We Use a proprietary process
We've developed a proprietary process for finding product-market fit and building a scalable path to customers. Our process, called Insight-Driven Iteration, uses customer insight to develop and optimize our innovative business models.
Entrepreneurial Judgment Matters
"Good judgment comes from experience, and a lot of that comes from bad judgment." - Will Rogers. That's why we only use experienced entrepreneurs to run our startup companies. These unique individuals are have world-class experience in business model creation and execution, helping us beat the odds of startup success.
We spin up and spin out
We believe there are two phases to building a great company: search and execution. In search, the founding team is searching for a business model. Once proven, the startup switches into execution mode. We split these activities into two teams because people are generally good at one or the other, but not both.
The following startups were created by our Founders in our previous startup studio, MCDM Holdings, Inc.
BargainDepot was an e-commerce company that sold fashion accessories and officially licensed household merchandise at discounted prices, similar to Overstock.com. Cash-over-cash return = 1200x
e360Insight was a predictive email marketing company that used advanced predictive analytics technology to predict which offers customers would click on. At its peak e360 sent half a billion messages per month. Cash-over-cash return = 300x.
Acquisition Science (A16E.com) is a multi-channel data company that provides data and connections between online and offline datasets. Cash-over-cash return 700x.
Life Phase Media was a life event data company that evolved into a data and innovation consultancy in the ad tech market. Cash-over-cash return 8x.
uBaby was a social media site for new moms where they can connect with other moms and their friends to discuss motherhood and related issues. The site was shuttered as Facebook was rising in the marketplace.
Razius and Fienza were sunglass and handbag brands for proprietary fashion accessories designed, developed and sold as an adjacent line of business to BargainDepot, our e-commerce platform. The brands were shuttered when we exited BargainDepot.
How Can You Help?
If you'd like to join us as a partner in creating the best startup studio on the planet, contact us today.