Milad Alucozai’s Post

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Early-stage Investor | Startup Mentor | Serial Entrepreneur | Scientist | Board Member

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

Mark Webb

VP Engineering at Mekonos

3w

Well 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 ~ 😉

Sai Kamalesh

Entrepreneur; Co-Founder & CEO, HemodynamiQ, Inc., USA & HemodynamiQ Wearables, India

1mo

Competition broken down very well by Milad which is very useful for MedTech startups to address high gain questions from investors.

Amy Baxter MD FAAP FACEP

CEO + Founder @ Pain Care Labs | Healthcare Innovation, Pain Management

1mo

Very helpful framing

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Simon Bachmann

CEO at IDUN Technologies

1mo

Thanks Milad that was actually very helpful!

Julien Ouellet

Chief Executive Officer at OneCare Biotechnologies

1mo

Timely! We'll be using that for our YCombinator application. Thanks!

Cassa Hanon

Innovation Evangelist | CxDesign Consultant| Coach & Facilitator

1mo

Great advice made actionable, Milad Alucozai, as always! Tagging Brandon Fortino

Good insights!

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Tom Tan

Untwist the “DNA” of Stereotype and Unfold the Improbable Possibilities | 製薬ヘルスケア領域エグゼクティブレベル専門コンサルタント

1mo

Well said Milad! Instrumental advice

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Sue Crinnion

Managing Director, Life Sciences | Venture Banking | Banc of California

1mo

Great advice!

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