“It is not the idea, but the execution that matters”
For a long long time, the above principle has been the key to huge success, but for innovative entrepreneurs the above principle is seeing a generational shift.
I am reading a book called ‘The Dhandho Investor‘, written by Mohnish Pabrai - an iconic figure in the investment world, and the Chapter 14 in his book is titled, “Invest in Copycats rather than the innovators“. Simply because copycats are likely to show multiple degrees stronger financial returns to the investors than the innovators.
Despite active participation of people globally in consuming technology innovation at a higher rate than the previous year, stock markets continue to behave absolutely opposite. Such a contrast it is!
Having seen two pioneering software product startup cycles, and having witnessed both web and mobile evolutions very closely over last decade, I have come to believe that it is not the execution that wins the innovators anymore.
It is the “Rocket Execution” that keeps the innovator alive in today’s times.
I often state the term “Rocket Execution” in my conversations, however, people end up misunderstanding/ misinterpreting the term every single time. In a quick succession since yesterday, I read news about two young companies, which I truly admire.
165 countries (presence),
$400 million revenue
750 million monthly active users
2.6 billion app downloads
126 billion monthly ad impressions (which is roughly 170 million impressions per second).
The company was valued at $1b in 2011 (within 4 years of existence). It is aiming to double the valuation in 2014 (within 3 years). Hopefully the next billion would be added in 2016 (within next 2 years). This is a classic example of ‘Rocket Execution’ because if you do not grow at that rate, technology innovation elsewhere will outpace you.
25 cities covered in India
12 co-founders (Whoa!)
2000 houses listed per day
50,000 houses mapped in Bangalore
80,000 houses mapped in Mumbai
If you notice the quality of listings on their website, you will understand the value of listing 2000 houses per day. At this rate, the company will list 700K houses annually, which is not at all a bad number. But just 2 years in operation, the company is aiming to list 10,000 houses per day, 5 times the rate at which it lists today i.e. 3.5 million listings annually. This is another fantastic example of rocket execution. Scale before another technology innovation trumps your innovation.
If that was not enough, an interesting tweet from Navalkant validates the emergence of Rocket Execution little scientifically. It states
1999 – $5M to launch a product, 30M serious computer users.
2014 – $5K to launch a product, 3B serious phone users.
Leverage per $ is up 100,000x
So don’t get excited if you got a million users within a year, until the next million happened in 6 months and the next million in 3 months and so on. Rocket execution is the only way to leverage the never-existed-before power of the connected world.
Disclaimer – The published data is gathered through public sources and it does not reflect actual number that may be relevant now.