How can investors win big with B2B startups?

Investors are after B2C unicorns, but B2B companies are killing it.

Investors focus on B2C startups because:

↪ Scale more quickly

↪ Target a wide range of demographics

↪ Generate revenue because of faster sales cycles

↪ Benefit from direct interactions with their end users

↪ Focus on building strong brand recognition and loyalty among consumers

But if investors lean towards B2B startups:

↪ Lower marketing costs

↪ Significant impact on the broader economy

↪ Generate big revenues with larger transactions

↪ Establish long-term relationships with the clients

↪ Less affected by the rapid changes in consumer preferences

↪ Strategic partnerships with other businesses, including customers

↪ Focused customer base for targeted marketing and sales strategies

Why B2B is less risky?

↪ Better LTV (Lifetime Value) to CAC (Customer Acquisition Cost.)

↪ Easy communication through a Google search, phone, or email.

↪ Businesses are open to solutions that increase their profits and are likely to listen and provide honest feedback.

The challenge is having enough understanding of these industries to pick these winners.

What do you think?