Prediction certainty 3/5 debate potential 2/5

Drury: Economic Downturn Will Expose Vaporware Apps and Ineffective Rollups

Laura Lynn Drury · Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital · Jul 6, 2022 · at 22:56

StayTuned VP Laura Lynn Drury discusses how tightening economic cycles and inflation will impact e-commerce software developers and app aggregators.

0:00 / 0:13exact quote · 13.0s
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“And I think we're going to see a lot of like, what are the apps that are just like vaporware and not really doing anything to contribute to a merchant's bottom line? What are the companies that haven't been able to add value when they buy up these apps?”

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More from Laura Lynn Drury

Prediction Not checkable as stated
Drury: More Shopify stores will close, affecting ecosystem apps
“And I think we're going to see a change in the merchant behavior on Shopify, which will of course have a trickle down effect into the apps. I think we're going to see a lot more stores closing, sadly.”
Laura Lynn Drury Jul 6, 2022 ▶ 20:18 Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital
Disclosure
Drury: StayTuned rejects high-MRR Shopify apps if merchant utility is weak
“Basically if we don't think the product is good, it's a total no-go. Like even if the revenue is off the charts, you know, one example would be if your app makes a red button on a site, That just says click me, and people click it, and you get a dollar every t…”
Laura Lynn Drury Jul 6, 2022 ▶ 5:02 Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital
Insight
Drury: Evaluate customer tenure separately from churn due to seasonality
“And the reason I'm calling out tenure and churn differently Is because some apps are so cyclical and seasonal.”
Laura Lynn Drury Jul 6, 2022 ▶ 7:37 Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital
Insight
Drury: Software founders should state their desired post-acquisition role upfront
“Be really upfront about what you're looking for because there are no issues with that. If you want to sell and have nothing to do with it, that's totally your prerogative. If you want to sell to someone who's going to partner with you in some way to carry it t…”
Laura Lynn Drury Jul 6, 2022 ▶ 11:53 Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital
Disclosure
Drury: StayTuned prefers acquisitions structured with seller earnouts
“What we like to do most, like we really like when sellers want to do an earn out, and why? Because they have so much of the knowledge in their head about what works and what doesn't, and we love partnering and working with great people.”
Laura Lynn Drury Jul 6, 2022 ▶ 12:41 Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital
Insight
Drury: Founders claiming they ignore competitors are a major acquisition red flag
“We were on a call recently with a company that, like, tell us about your competitors. What are they doing well? Like, we don't look at competitors. And to me, like, that's a huge red flag of even talking about disclosures. Like, think about what your competito…”
Laura Lynn Drury Jul 6, 2022 ▶ 17:39 Startup Acquisition Stories with Lauralynn Drury - VP of Experience, StayTuned Digital
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