5 types of startups that become profitable most quickly
Which types of startups are most often profitable? That is an important question for both entrepreneurs and venture capital firms, as they are both looking to scale the business and potentially exit for a hefty return.
However, it is often unclear which types of startups reach the coveted profitability level more often than others. You do hear buzzwords like artificial intelligence and blockchain, but do they really add value to the business and help them become profitable more quickly?
According to Julian Shapiro, founder of BellCurve.com, a growth marketing agency, the type of company that becomes profitable most quickly are e-commerce businesses.
On average, an e-commerce company is more likely to first reach profitability than an SMB SaaS company.Julian Shapiro, founder of BellCurve.com
In an article he wrote for Techcrunch, he states that “on average, an e-commerce company is more likely to first reach profitability than an SMB SaaS company.” This is partially due to the business model, but also due to the extent to which e-commerce businesses lend themselves to online ads, which is an additional source of revenue for the startups.
Accoring to him, the 5 most types of startups that become most profitable quickly are the following, exactly in the order they are mentioned:
E-commerce
Chrome extensions
Mobile apps
Enterprise SaaS
Small-to-medium business SaaS
