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23 April 2015

Grow fast or die slow: Pivoting beyond the core

By Rishi Kant, Eric Kutcher, Mitra Mahdavian, and Kara Sprague
April 2015

Turbocharged initial growth is essential to surviving in the software industry. But what comes next? Here are four lessons so leaders can write their organizations’ second act.

Software companies must constantly evolve and capture new growth opportunities or risk slowly declining into irrelevance. Only 3 percent of start-ups grow into companies boasting annual revenue of at least $1 billion.1 Yet that achievement is only the end of the beginning. Act II involves developing into a multibillion-dollar company, and the odds are slim: our latest research shows that of the 3,197 public software companies launched between 1980 and 2013, just 19 have reached $4 billion in annual revenue (Exhibit 1).

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