Startups Should Focus On Their Core Technology Instead of Strictly Users
A small Rhode Island startup demonstrated how superior technology can be just as powerful as a huge marketplace
Building a marketplace app is hard. It requires a great concept; sales and business development teams and a comprehensive marketing strategy.
And all of this can be expensive. The average cost to acquire a user who registered with an app or created an account was $4.58 as of August 2018, according to Statista.
But creating a startup with millions of users isn’t the only way to exit.
Take the tiny Rhode Island startup NowRenting, a web-based software platform that automates the entire rental process for landlords, leasing agents and tenants.
A few weeks ago, NowRenting was acquired by the San Francisco-based rental search startup Zumper, the fastest growing residential rental software startup on the market.
While NowRenting is in the same vertical, it was too small and didn’t have enough users to be considered a competitor to Zumper, which has raised $90 million in venture capital funding to date.
Zumper’s decision to purchase NowRenting ultimately boiled down to one thing: Technology.