What it means to be a compound startup

Startups traditionally focus on perfecting a single solution to a major problem, but the "compound startup" model embraces creating a suite of interconnected products, each addressing different problems yet working cohesively as a part of a larger ecosystem. This approach allows companies like Atlassian, Hubspot, and Apple to innovate continuously and maintain relevance in dynamic markets. Atlassian exemplifies this by expanding from its initial product, Jira, to a portfolio of 16 products, including acquisitions like Trello, aiming to provide comprehensive solutions for various stages of product development. While the compound startup model offers significant advantages in terms of growth and market presence, it also introduces complexities in product management, resource allocation, and maintaining a unified brand identity. Despite these challenges, the model's focus on creating an ecosystem of independent yet complementary products enables companies to capitalize on cross-product synergies and sustain their competitive edge.