Before we do that, let me give you a brief definition of Full Stack startup that builds on the work of Chris Dixon at a16z.
Definition: A full stack startup is a technology enabled product or service that directly provides the full solution to the end customer unlike other technology startups that sell their product or service as a technology for internal use typically to the CIO.
Typically full stack startups don’t charge for the software but bundle it with the service.
For example, most software companies sell to the CIO or CMO or line of business, and target the IT budget. Full stack companies like Redfin or Wealthfront directly displace incumbents and are not paid for or thought of as a ‘software’. You are paying for real estate transaction, a cab, money management and not separately for software.
The full stack startups are probably the best candidates for “Uber Unicorns” – companies that will be worth more than $10B. I would argue the adjective uber is apt. I am going to kick this off and will keep this updated as time passes.
|Uber||Taxis, Rental Cars and more||$19B|
|Warby Parker||Luxotica “mafia”||$1B+|
|Redfin||Real Estate Agents||Unknown|
|Lyft||Taxis, Rental Cars and more||Unknown|
For those who are skeptical of full stack startups and their valuations, you should take a second look at history. Biggest ‘tech’ winners like Google, Amazon, eBay of last 20 years all attacked industries outside of traditional IT and are worth over half a trillion dollars.
AnshuBlog Full Stack Startup Index
|Amazon||Walmart and other retailers||$150B+|
|Nest||Thermostats, Fire Alarms and more||$3.2B|
Watch this space.