Investor Connect Podcast

Competitive Advantages

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In the pitch, investors look for the startup’s competitive advantage.

"Me too" companies are more difficult to fund because they have few if any competitive advantages.

A true competitive advantage increases your revenue by 30% or reduces your cost by the same amount.

Here’s a short list of potential competitive advantages you can build into your startup:

  • Unique and compelling technology. This gives your product or service additional features and capabilities.
  • Intellectual property including patents, trade secrets, and trademarks. This provides legal protection for your product.
  • Network effects. This can come from a platform approach, data collection, or marketplace creation which both reduces costs and increases awareness.
  • Strong brand. This provides better name recognition resulting in a lower cost of customer acquisition.
  • Virality. This increases sales without an equivalent increase in costs.
  • Exclusive channel access. Access to customers that competitors do not have is also a competitive advantage.

Consider how you can incorporate one of these into your startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Direct download: Competitive_Advantages.mp3
Category:general -- posted at: 6:00am CST