Why we are big believers in B2B

If you talk to the average person about which types of start-ups have gone on to be most successful, they’ll likely mention the Apples, the Amazons and the Microsofts of this world. These are all giant consumer-facing brands that, through their innovation and ease of use, have earned the right to be in all our homes.

But the success of these business-to-consumer (B2C) companies is very much the exception rather than the rule. It’s not easy to become a global household name, and it’s getting even harder. If you want to back tomorrow’s big winners, we at Triple Point believe you need to look at business-to-business (B2B) instead.

The perception versus reality

As an investor in portfolios of start-ups, we have seen that over time B2B business models tend to have the edge over B2C. In B2B businesses, well established playbooks exist for sales, management and customer success. There is a clear understanding of what good looks like, from how sales teams are structured and customer success functions are run, to how retention and expansion are measured. Consumer businesses are often less predictable. A product may achieve rapid uptake, or even go viral, but sustaining that success is harder. Building repeatable processes and a durable operating model around early momentum is typically less straightforward.

Performance metrics also tend to be more stable in B2B companies. This stability reflects the nature of their revenue models. B2B businesses typically operate on annual or multi-year contracts, which provide greater visibility over future revenues. Once a company has committed to a particular software or service, it is usually locked in for a defined period. Switching costs are often high. Software is embedded into day-to-day operations, staff are trained to use it, and processes are built around it. As a result, changing providers is disruptive and rarely done without strong reasons. This creates a more predictable operating environment than one shaped by shifting and often unpredictable consumer behaviour.

The ‘sticky money’ earned by B2B firms

B2B companies tend to have recurring revenue models that are genuinely recurring. Software-as-a-Service (SaaS) businesses, for example, typically see annual churn rates in the single digits if they’re performing well. This gives these companies some confidence in what their revenue base looks like for the next 12 months. That predictability is both incredibly valuable for running the business and for investors trying to underwrite growth.

And there’s another layer to this. The buyers of B2B products and services tend to make rational decisions based on return on investment, efficiency, and cost savings. They’re not buying on emotion or impulse. So, if a B2B company’s product works and delivers value, they are more likely to retain customers. That relationship often grows over time, selling more seats, more modules, more services.

B2B has the larger economic footprint

But for us, the most interesting factor is that while B2C is highly visible to individuals, it really represents only the tip of the iceberg when calculating total economic value. In fact, the majority of private sector employees work in businesses whose primary revenues come from selling to other businesses, even in sectors that appear mixed, such as software, automotive, healthcare or logistics. Investing in B2B therefore gives us investors exposure to a much larger share of the real economy.

With a broader pool of companies, there is more variation in business models, end markets and growth paths, all of which increases the likelihood of successful investment outcomes. In other words, investing in B2B is closer to investing in the economy as a whole, giving us greater diversity and opportunity and increasing the range of potential outcomes. For venture capital in particular, this matters because exits ultimately drive returns and define the health of the asset class. A broader B2B universe creates more opportunities for those realisations to occur.

Exits are essential

For all of the reasons highlighted – predictable revenue, stronger customer relationships, healthier unit economics and a more diverse opportunity set – B2B start-ups tend to achieve higher exit success rates than B2C. Our own research in partnership with Beauhurst told us that over a ten-year period (2015-2024), B2B companies consistently achieved exits at around double the rate of B2C companies.¹

For a VCT portfolio, we focus on investing across a broad pool of B2B companies, each operating in markets with a strong underlying chance of success. Rather than relying on the occasional consumer-led home run, we look to back businesses where consistent progress and steady execution allow more of them to make it safely round home plate. Because ultimately that’s better for us, for the companies we back, and for the investors who trust us with their money.

Important information

This article is an advertisement for the purposes of the Prospectus Regulation Rules and is not the prospectus. Potential investors should refer to the information within the Prospectus which is available via the website. Potential investors must only subscribe for, or purchase shares based on information contained within it. The Triple Point Venture VCT invests in smaller companies, which can involve a higher degree of risk than investing in companies listed on an exchange. Investors’ capital is at risk and dividends are not guaranteed. Past performance and forecasts are not a reliable indicator of future performance. Tax treatment depends on the individual circumstances of each client and is subject to change. Tax reliefs depend on the VCT maintaining its qualifying status. This article has been approved by Triple Point Administration LLP, which is authorised and regulated by the Financial Conduct Authority.

¹ Source: Beauhurst (2025).