Atlanta is strong at B2B startups and weak at B2C startups. Why is Atlanta strong with B2B startups? In the late 1970s Atlanta was home to the largest software company in the world, Management Science America (MSA), which in turn spawned many other B2B tech companies. Generally, there’s also a more conservative, pragmatic ethos about the region that results in a let’s-solve-a-problem approach to entrepreneurship. So, should much weight be put on growing the B2C startup community?
Here are a few thoughts on the importance of B2C startups in a tech ecosystem:
- B2C startups, when successful, generate significantly more press and media coverage, on average, compared to B2B startups, which in turn makes it easier to recruit talented people and highlights the city
- B2C startups are riskier and more likely of a binary outcome, making it harder to raise capital, providing a virtuous cycle of few B2C startups (people successful in a B2C startup are more likely to invest in other B2C startups)
- B2C startups are seen as cooler because they generally influence a larger number of people and have a greater chance of changing the world
- Several of the largest tech success stories over the past decade are B2C: Facebook, Twitter, Instagram, Zynga, etc
B2C startups aren’t better or worse than B2B startups but they do have different characteristics and fewer strong ecosystems. My belief is that B2C startups are important to support, yet overall, the best thing to do is accentuate the existing ecosystem strengths.
What else? What are your thoughts on the importance of B2C startups in a tech ecosystem?
David Cummings on Startups 
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