Read on Twitter
"Who are your main competitors (and how are you different)?"
One way or another this questions will likely occur in most discussions between VCs and founders.
So how should you talk about competitors to your potential investors.
5-step path below:
One way or another this questions will likely occur in most discussions between VCs and founders.
So how should you talk about competitors to your potential investors.
5-step path below:
1. Acknowledge that you have competitors
Your company might have a very unique offering but one way or another you are competing after the same resources; time (and money).
Communicating that you don't have any competitors just makes investors question your judgement.
Your company might have a very unique offering but one way or another you are competing after the same resources; time (and money).
Communicating that you don't have any competitors just makes investors question your judgement.
2. But don't spend too much time talking about them
On the other hand you should not spend too much time speaking about other companies.
I have seen pitch decks with 50% of slides mentioning competitors, which is not in the company's best interest.
On the other hand you should not spend too much time speaking about other companies.
I have seen pitch decks with 50% of slides mentioning competitors, which is not in the company's best interest.
3. Instead talk about: Positioning, user personas, early customer love
So what to talk about?
* Customer personas that love using your product
* How you are targeting the market
* Which verticals you could grow into later down the line
* How your market is growing
* etc.
So what to talk about?
* Customer personas that love using your product
* How you are targeting the market
* Which verticals you could grow into later down the line
* How your market is growing
* etc.
4. What if X (X = Google, Amazon, other Incumbent) does this?
A question that is often asked by VCs (which I am sure I have been guilty of)
The easy (and often times correct answer is) is: "Yes they could but it is not likely they would do it as well / prioritise it"
The end.
A question that is often asked by VCs (which I am sure I have been guilty of)
The easy (and often times correct answer is) is: "Yes they could but it is not likely they would do it as well / prioritise it"
The end.
5. Understand what competitors do well (and don't do well)
As @gaganbiyani points out - understanding what competitors didn't do well was paramount for their success.
See competitors as someone you can learn from - both for the good and bad. https://twitter.com/gaganbiyani/status/1361470731738087424?s=20
As @gaganbiyani points out - understanding what competitors didn't do well was paramount for their success.
See competitors as someone you can learn from - both for the good and bad. https://twitter.com/gaganbiyani/status/1361470731738087424?s=20
+ Final comment:
There is a fine balance of being aware of your competitors and becoming obsessed with them.
Having an understanding of the learnings you can draw whilst still working on your own positioning is likely a good balance (but easier said than done!)
There is a fine balance of being aware of your competitors and becoming obsessed with them.
Having an understanding of the learnings you can draw whilst still working on your own positioning is likely a good balance (but easier said than done!)
