At Shasta Ventures, we focus on investing at the early stage, so we studied 32 high value consumer companies to see what they looked like around their Series A. Our research included 25 billion dollar companies (as measured by $1 billion+ last round valuations, acquisition prices, or public market caps) and 7 high-flying private companies with billion dollar potential.
Our analysis discovered that many billion dollar companies have ideas that were easy to dismiss at first. How many people really ride in black cars? Who really wants to watch live video streaming of people playing video games? Why does anyone care about yet another cloud backup and sync service? Photo messages… that disappear?!?! How many people are interested in renting a couch in someone’s home?
It turns out that the biggest ideas are not clear when you first see or hear them, either because the idea seems small, regulations are high, or the fundamental assumption seems flawed. However, successful companies often start with executing very well on an initial concept that is the beginning to a much bigger offering.