Client Focus, Business Model & Income Stream

Companies whose primary customers are other businesses. Sales cycles tend to be longer, deal sizes larger, and products often require integration or onboarding. The majority of startups on Dealroom are B2B — enterprise software, HR tools, logistics platforms, and developer infrastructure all fall here.

Companies whose primary customers are individual end consumers. Typically involves shorter sales cycles, lower average order values, and large-scale marketing. Common in ecommerce, fintech apps, consumer media, and social platforms — where growth is driven by viral loops and brand awareness rather than a sales team.

Software delivered via subscription over the internet — accessed online rather than bought and installed. Customers pay monthly or annually for access without owning the software outright. Characterised by recurring revenue, high gross margins, low marginal cost to serve additional customers, and strong scalability. The dominant model for B2B software.

A place connecting buyers and sellers where goods or services are bought, sold, or exchanged. The company facilitates transactions and typically earns via commission, listing fees, or subscriptions. Can be product-based (physical goods) or service-based (labour, expertise). Network effects make marketplaces defensible once scale is achieved.

Companies that make physical goods — by hand or machine — and sell the finished product to a customer. On Dealroom, this typically applies to hardware startups, deep tech, and industrial companies with a tangible product at the core. Margins tend to be lower than software, but physical goods can be harder to replicate.

A periodic fee — monthly, quarterly, or annually — paid by the customer to access a product or service. Websites with a pricing page are usually subscription-based. The holy grail for investors: predictable, recurring revenue that compounds over time. Associated with SaaS, media, and membership businesses. Churn is the key risk metric to watch.

Fees earned as a percentage or fixed amount on each sale or transaction facilitated. Revenue scales directly with volume — no transaction, no revenue. The dominant income model for marketplaces, payments companies, and brokerages. Take rate (the percentage kept) and transaction volume are the two levers that determine revenue.

Monetary income earned from displaying paid advertising to users — on websites, apps, social platforms, or any content channel. Revenue depends on user volume, engagement, and the ability to target audiences. Works best when a platform has large, loyal audiences and rich behavioural data. CPM, CPC, and CPA are common pricing structures.