Idea validation and estimating market size

I have an idea for a form builder app targeting a specific niche B2B. I am about to start validating my idea. According to my estimation there are about 500 organisations to which I could market this product. I am planning to contact 100 of these organisations for idea validation to gather initial feedback.

Considering a very optimistic scenario, if I only manage to secure 100 customers, and charge 89$ per month for subscription which would result 8900$ a month. Is this enough to run a small SaaS company?

Now I am wondering if 500 organisations is too little? I could potentially market it to other organisations. Should I also include other potential organisations in my idea validation process?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

YC to cut the size of its investment in future YC startups

In a blog post this Friday afternoon, Y Combinator’s president Geoff Ralston said that the accelerator would make two changes to its terms for startups.

The first would see the size of the standard deal for YC startups decline from $ 150,000 for 7% (roughly a $ 2.1 million post-money valuation) to $ 125,000 for the same equity (or roughly a $ 1.79 million post-money valuation). The deal will continue to be offered using a SAFE, which YC and a group of others pioneered as a simpler investment option compared to convertible notes.

Interestingly, the firm is always writing into its terms that it will only take pro rata up to 4% of a subsequent round’s size, which is obviously smaller than the 7% ownership that the company is buying in its financing. That 4% number is a ceiling — in cases where the accelerator has less ownership than 4%, the smaller percentage applies. Full terms of Y Combinator’s deal are available on its website.

The new deal will apply to startups who join Y Combinator in the Winter 2021 batch, and doesn’t include startups in the current summer batch (who have already presumably been funded)

YC’s deal has varied over the years. When it first launched more than a decade ago, it offered terms of $ 20,000 for 6%.

A Y Combinator spokeswoman said that the change was in line with the fundraising and budget realties of the accelerator going forward. “The future of the economy is unpredictable, and we feel it is prudent during these times to switch to a leaner model,” she said. “In our case, we want to be set up to fund as many great founders as possible — especially during a time that is creating an unprecedented change to consumer and business behavior; with these changes comes endless opportunities for startups. And with the changes made to our standard deal, we can fund as many as 3000 more companies.”

Outside of budget, at least a couple of factors are potentially at work here. One is the increased use of Work From Anywhere, which presumably can help lower some of the running costs of a startup, particularly in its earliest days (e.g., no need to pay for that WeWork flex desk).

Y Combinator has also invested more of its funds into emerging markets startups, which can have dramatically lower costs of development given prevailing wages for talent in local markets.

Yet, the cutback is also a sign that the flood of capital entering the Valley in recent years has receded — if ever so slightly — in the wake of COVID-19. Valuations are depressing, and while $ 25,000 is not a massive loss considering the scale of later venture financings, the 16% valuation haircut is in line with other numbers we have seen in the Valley in recent weeks.

Startups – TechCrunch

Converting global market size to country market size

Anyone have any ideas for converting a global market worth $ X billion to a specific country.

To make a best guess, would it be unreasonable to pro-rata based on the country's share of world GDP?

So say a global market is worth $ 2 billion and that a country has a share of world GDP of 5%. Would it be unreasonable to say that the same market in that country is worth an estimated $ 100 million?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Dental Implant market size

I am looking for a report that would provide me with information regarding market shares of dental implant manufacturing companies not in USD but in number of users. (worldwide would be great)

E.g.: USA has X number of dentists Y% of these dentists are placing implants and the company ABC is supplying implant to Z% of those.

Any idea where I could find that? Many thanks everyone!

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Market Size Estimate Doubts

Not sure if this is the right subreddit for this question.

I'm working on estimating the market size for our startup and have run into some doubts. We are based in the UK, and one theory we'd like to test is to target mid-size UK companies in the financial services, health and tech sectors.

  • I have found a reliable source for the average annual spend in our category by size. (i.e. a company with 250-499 employees spends £900k annually on average on x).
  • I have the total number of mid-size companies in the UK. And I have a sector breakdown (i.e. the Information and Communication sector represents 8.3% of total UK businesses).

My plan is: # of midsize companies * % in our target sectors * average annual spend

The problem is that the sector breakdown is for total UK companies, and not broken down by company size.

I was wondering, for the sake of estimating, if it's accurate enough to apply the total sector percentages on mid-size companies even though it wouldn't be 100% accurate. What do you all think? Alternatively, I was wondering if anyone knew a free or cheap source of the missing information.

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Startups – Rapid Growth and Innovation is in Our Very Nature!