the jason maynard software hour: christopher lochhead play bigger
TRANSCRIPT
Category DesignThe discipline of creating and monetizing new markets.
Category Design
Com
pany
Des
ign P
roduct Design
Category
King
Everything we believe about the value of any given category of product/service we’ve been conditioned to believe.
Category Design Increases The Odds
• Customers need new categories as mental tags to organize new products in their minds
• Before customers care about what a new product does they have to understand what problem it solves
• Categories create hierarchies of value• Must have• Nice to have• Not interested
Condition The Market.
Category Kings"If the category is big enough and the category king is dominant enough, current valuation is almost irrelevant. The key to making investment decisions is understanding category potential and the ability of the category king to define, develop and dominate the space over time," Jason Maynard
Managing DirectorWells Fargo Securities
13
The Odds
Less than 1% of VC-backed technology companies are ever worth $1B or more.
Play Bigger Time To Market Cap Report
Since 2000 the United States has produced only 83, $1B+ market cap technology companies.
Play Bigger Time To Market Cap Report
Winning technology companies are growing in value almost 3X faster now vs. the early part of this century.
Leading consumer tech startups are growing market cap at more than $600m per year.
Leading enterprise companies are growing market cap at more than $100m per year.
Play Bigger Time To Market Cap Report
Survival of the Fastest
Since 2000, Play Bigger TTMC 100 companies created over half a trillion dollars of market cap.
Play Bigger Time To Market Cap Report
# Company nameMarket Cap
($Bn)TTMC Velocity
($Mn / Yr)Company Age (Yrs)
4 Snapchat 10.0 3,765 2.7
5 Twitter 22.4 3,091 7.3
6 LinkedIn 28.5 2,195 13.0
7 Airbnb 10.0 1,589 6.3
8 Workday 15.3 1,527 10.0
9 Dropbox 10.0 1,377 7.3
10 Pinterest 5.0 1,144 4.4
11 Square 6.0 1,042 5.8
Play Bigger TTMC 100: 11 Super Unicorns
1 2 3
FacebookMarket Cap: $214.6BnTTMC Velocity: $19,513M/YCompany Age: 11.0
UberMarket Cap: $40.0BnTTMC Velocity: $6,730M/YCompany Age: 5.9
WhatsAppMarket Cap: $21.8BnTTMC Velocity: $4.247M/YCompany Age: 5.1
Questions That Matter• Is there a category strategy?
• S1• Earnings calls• Website
• Is the CEO an Evangelist for the category• Framing the problem• Creating category potential Vs. competing for existing TAM• Driving a “From – To”
• Are the winning the TTMC race?
Thank You
Christopher Lochhead
Twitter: @lochhead
@playbiggeradv
playbigger.com
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