Why the Smart Money Invests B2B, Not B2C

By Sam Hogg Jun 13, 2016
d3sign | Getty Images

This story appears in the June 2016 issue of Entrepreneur. Subscribe »

I get it: You want to build a consumer product that will wow your friends, and that maybe even your mom will use. You want to join the herd of unicorns roaming the venture-backed pastures of Silicon Valley. But thanks to some painful and costly lessons, I’ve learned to mostly pass on business-to-consumer companies — or B2C, as we call them. These days, my colleagues and I are more excited to hear about startups building often boring solutions for other companies — and that means you should be excited to create these business-to-business (B2B) companies. Here’s why.

I get it: You want to build a consumer product that will wow your friends, and that maybe even your mom will use. You want to join the herd of unicorns roaming the venture-backed pastures of Silicon Valley. But thanks to some painful and costly lessons, I’ve learned to mostly pass on business-to-consumer companies — or B2C, as we call them. These days, my colleagues and I are more excited to hear about startups building often boring solutions for other companies — and that means you should be excited to create these business-to-business (B2B) companies. Here’s why.

The rest of this article is locked.

Join Entrepreneur+ today for access.

Subscribe Now

Already have an account? Sign In

Sam Hogg

Entrepreneur Contributor
Sam Hogg is a venture partner with Open Prairie Ventures, a Midwest-based venture-capital fund investing in agriculture, life-science and information technology.

Related Content