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Growth-stage: a key inflection point

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Growth-stage can mean lots of different things to different parties. For Kobolt this means companies that have:

  • Achieved product-market fit to a greater or lesser extent; 

  • Have moved into the commercial ramp-up stage; &

  • Are demonstrating dynamic revenue growth

Growth-stage: typical characteristics​:

  • A proportionately over-powered technical organisation, which has driven successful development & release of the product(s); 

  • An under-powered go to market organisation, which needs to be developed to scale the customer base & revenues; 

  • An inexperienced or unbalanced Board and Senior Leadership team, which needs to be strengthened and built-out for the next stages of growth;

  • Relatively immature structures and processes that need to be built to enable scalability, and to support greater complexity of operations;

​Growth-stage cannot necessarily be defined by the following:

  • Revenues; a growth-stage company can cover a broad range of revenues, but typically we are operating in the $5m to $100m range; 

  • Profitability: growth-stage companies can be profitable, but especially with smaller businesses can still be operating in cash-burn mode; &

  • Ownership: growth-stage companies are often founder run and owned. There is typically either a majority or minority investor supporting the expsnion of the business. 

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