It is a landmark moment in the history of any business, but it isn’t always easy to tell if or when it has happened – when is a start-up no longer a start-up but a scale-up, or a growth company. This transition is a pivotal moment that reflects not only organisational evolution but also the successful navigation of challenges and the realisation of ambitious goals.
As I reflect on the trajectory of Strohm, a company at the forefront of revolutionising the energy industry with its groundbreaking Thermoplastic Composite Pipe (TCP), it's evident there are several key signposts that a business must pass along this transformative journey.
First and foremost is revenue growth. In the case of Strohm, we anticipate an impressive 200% revenue growth in 2023, with a trajectory that promises continued rapid expansion into 2024. This growth isn't simply a matter of numbers either, it represents the increasing global demand for our sustainable solutions and the trust in our scope of TCP products.
Integral to this expansion is the development of both our market reach and customer base. Strohm proudly operates in every region across the globe and has become a trusted supplier to numerous major operators in the energy sector. With growing pressure to decarbonise oil and gas operations, more than ever these companies appreciate the proven 50%+ reduction in CO2 footprint achieved by utilising TCP rather than conventional technologies. Additionally, our move into supplying TCP for hydrogen and carbon-dioxide (CO2) transport underscores our commitment to driving innovation and supporting, enabling even, the energy transition.
Another telltale sign of a growth company is the maturity of its product offering and services. Strohm's product portfolio which comprises jumpers, flowlines and risers, for use in shallow and deep waters, and we are constantly looking to develop our TCP operating envelope. Our efforts were acknowledged recently when our 6-inch EGF-PE pipe received a first-of-its kind accreditation from DNV. We also developed the industry’s first TCP with an integrated weight coating to give greater stability, further evidence of our entrepreneurial streak.
Beyond product delivery, Strohm’s commitment is demonstrated through our extensive Field Service Group activities to support clients globally. Intertwined with this is production scalability and Strohm's state-of-the-art factory in the Netherlands serves as a blueprint for our international expansion, something we are currently putting into practice.
Market recognition is a further cornerstone of growth and, in this regard, Strohm stands as a recognised global leader. As the first company worldwide to develop TCP we brought this transformative technology to the market, with a commitment to trust, transparency, and a robust set of values. Our leadership in the field is a testament to the impact we've made and the standards we've set.
While start-ups are often expected to prioritise growth over profitability, growth companies are typically expected to show a path to profitability or positive cash flow in the near future. They then become scale-ups after having experienced a period of exceptionally rapid expansion. With a compounded average growth rate beyond 100%, our journey at Strohm from 2007 to now signifies not just progress, but an exceptional and sustainable expansion into the future.
It is important to note that there isn't a universally agreed-upon definition for when a startup becomes a scale-up and this framework is just one tale. Opinions may vary, and other factors may be at play. Yet, beyond definitions and metrics, it is important to remember that it's the journey that truly counts. I take pride in being part of Strohm and relishing every moment of this exhilarating ride, where innovation, sustainability, and global impact converge to shape the future of the energy industry. Strohm's road from start-up to scale-up and beyond is not just a corporate evolution; it’s a testament to the power of vision, perseverance, our people, and transformative technology.
By Martin van Onna, CEO, Strohm