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> You need to avoid things like winner take all markets. i love this idea. yet, it seems like the whole point of startups nowadays is to become the winner in
by HillaryBriss 8y ago
> You need to avoid things like winner take all markets.
i love this idea.
yet, it seems like the whole point of startups nowadays is to become the winner in the winner-take-all market. and VCs seem to be looking for that kind of play mainly. and markets become winner-take-all with alarming frequency.
so, it's like, how do we get to the kind of market with room for multiple long-term, profitable players?
- creaghpatr 8y agoMarkets that have a high barrier of entry and products that require a certain degree of in-house customization. The trade-off is scalability but the gain is that your space won't get slammed (or is less likely to get slammed) with VC-flash funded 'start up' versions of your start up in the medium run.
- seem_2211 8y agoThat's basically the thesis of Zero To One, and yet it's responsible for burning how much Venture Capital? One of the interesting things is how companies like CB Insights seem to have built quite successful mid-sized startups with very little funding (CB Insights are at $11.7m in funding), or Atlassian who didn't raise until they were pretty close to IPO. Compared to Uber at the opposite end - how much capital has been squandered on making very marginal gains in the name of growing market share? It'd be an interesting research project to compare outcomes against funding raised, over say a 10-15 year period.