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Most of the startups we cover here on ArcticStartup are somehow affiliated with the consumer internet or disrupt their market in such a way that small businesses can do something that was previously available to only larger companies.

Naturally – many of the companies fail, because they are unable to find product-market fit. In other words, there is no real demand for their solution or they aren’t solving a big enough problem for enough many people with their solution.

Needless to say there is nothing wrong in failing, far from it.

However, it would be great to see more companies try to innovate inside existing industries and helping those industries to become even more productive and effective.

A couple of weeks ago I was helping out with one of our clients, Lappeenranta University of Technology, with pitching and understanding the whole process there. It was refreshing to see that many of the products that were pitched had absolutely nothing to do with consumers. They were all quite heavily researched solutions that had benefits for large, existing industries where the cost-savings or benefits where evident.

Why is it that we see so few startups with these kinds of approaches where the potential to make money and disrupt the market is perhaps slightly easier?

One of the reasons is clearly that to succeed in an existing industry, you need to understand all the small details and dynamics of that industry to really understand the problem and thus create a solution for it.

While sales are usually harder in B2B-relations, there is almost always more money involved in those relationships.

Facebooks and Twitters are clearly the types of companies that are able to radically disrupt the way we communicate and thus have the possibility of creating completely new industries in themselves. However, it would be refreshing to see more companies try to tackle the clearly evident challenges large industries face in their own transformations where the closing of a deal is easier than the next round of government support funding.

What are your thoughts – are we just blind to these companies? Or are entrepreneurs overlooking the lucrative unsexy opportunities in comparison to the crowded sexy industries?

Image by d6v1d.

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