One of the biggest mistakes I see founders make is how they describe their competition. It's crucial to frame this with the investor's perspective in mind. When investors inquire about your competition, this is what they actually are asking: 1. Who are the other VC-Backed Startups? Start by identifying any other VC-backed startups in your space. Detail how much they have raised, from whom, and when. This helps investors understand the competitive landscape, assess the financial intensity of the space, and see how your startup compares in terms of approach and traction. 2. Primary Product Competition: Highlight any major private or public tech companies offering a core product that competes with yours. This suggests a sufficiently large market and provides a clear comparison for differentiation in terms of resources and strategies. 3. Secondary Product Competition: Don't overlook where large tech companies or other startups have secondary products that compete with yours. This forces investors to consider why those products aren't core, the less visible aspects of their strategy, what their plans are, and how you plan to outperform them. 4. Legacy Competitors/Manual Processes: While often overemphasized, it's still important to compare your offering with legacy solutions or manual processes. This shows how your innovation stands out against traditional methods. However, please do not let this be the only focus of your narrative. Remember, every investor has their own comfort zone. Some may avoid startups with multiple VC-backed competitors or those competing directly with a large tech company's core product. As a founder, it's crucial to understand each investor's preferences. When done correctly, a well-crafted competition narrative and slide can tell you if a VC is the right partner for you and whether you have effectively articulated your competitive landscape. #vcs #founders #venturecapital #startups #founderadvice #fundraising
Competition broken down very well by Milad which is very useful for MedTech startups to address high gain questions from investors.
Very helpful framing
Thanks Milad that was actually very helpful!
Timely! We'll be using that for our YCombinator application. Thanks!
Good advice
Great advice made actionable, Milad Alucozai, as always! Tagging Brandon Fortino
Good insights!
Well said Milad! Instrumental advice
Great advice!
VP Engineering at Mekonos
3wWell said Milad! As an entrepreneur you must know-your-business - competition - in and out - and how you are differentiating your value. I also might add how important it is to not let competition scare you away from executing a great idea. It is one thing to have a great business idea but it is another thing to have the right market framing and team to execute on it. Valuable insights on capitalization status and leadership structure of competition is invaluable in knowing where in the race you stand - really highlighting the value of pitchbook access and the value the right investor insights can bring with said pitchbook access ~ 😉