In winner takes all market there are huge benefits associated with size and network effects. Think of Windows, the more people use it the more people will use it, because they know the system. Think of Facebook, there more people sign up, the more will sign up, because the value of the platform grow with number of friends that I can find there. Think of Amazon, the bigger it becomes the lower are the prices that it pay for gooda and the higher the numver of goods you can find the store.
Of course it is, just not in winner takes all markets, where you need to grow incredibly fast.
Ahrefs is bootstrapped and makes $40 millions in ARR. I don't know its valuation but it is still growing incredibly fast.
Quest nutrition is a billion dollar brand. Zoho is a unicorn. Spanx is worth several billions. James Dyson still owns 100% of his company.
These are some examples that came to my mind.
Thanks Luqa! This is what I was looking for.
Just curious - How can we identify that which market is not 'winner takes all'?
In winner takes all market there are huge benefits associated with size and network effects. Think of Windows, the more people use it the more people will use it, because they know the system. Think of Facebook, there more people sign up, the more will sign up, because the value of the platform grow with number of friends that I can find there. Think of Amazon, the bigger it becomes the lower are the prices that it pay for gooda and the higher the numver of goods you can find the store.