Strategies for scaling a midsize startup

In the dynamic world of entrepreneurship, the spotlight often shines on two distinct categories: venture-scale unicorns and small businesses. However, nestled between these extremes lies a crucial yet underappreciated segment known as 'mighty-middle' startups. These midsize startups aim for valuations in the high single-digit to high tens of millions within a 5-10 year timeframe, carving out a unique niche in the entrepreneurial ecosystem.

Mighty-middle startups focus on midsize niches with considerable growth potential, leveraging internet tools, global advertising, and affordable technology to scale their operations. Unlike their venture-scale counterparts, which aim for billion-dollar valuations by targeting large markets through innovative technologies or business models, mighty-middle startups often bootstrap their operations. This approach involves employing contractors and necessitates that entrepreneurs acquire a diverse skill set to manage various aspects of the business.

One of the most appealing aspects of mighty-middle startups is the favorable risk-reward tradeoff they offer. Founders can retain control over their businesses and begin paying themselves earlier compared to those running venture-scale startups. This control allows for more strategic decision-making and a focus on sustainable growth rather than rapid scaling at all costs.

Investors and corporations are increasingly recognizing the value of mighty-middle startups. These businesses are seen as innovative and capable of delivering substantial returns. However, to effectively support these startups, specialized assistance is necessary. This support should prioritize mentorship and the showcasing of successful mighty-middle examples to inspire and guide new entrepreneurs.

The popular notion of entrepreneurship tends to focus on the extremes: the billion-dollar unicorns and the small businesses that often remain small. However, mighty-middle startups represent a unique blend of size, growth potential, and innovation. By understanding their unique characteristics and providing targeted support, we can help these businesses thrive and contribute significantly to the entrepreneurial ecosystem.