Wed, 21 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
In pitching investors, you must have a competitive advantage and be able to demonstrate it.
It’s not enough to say your product is better or your team will execute faster.
You must identify your core competitive advantage and show how it gives you at least a 30% cost reduction or a 30% revenue increase over the traditional methods.
This could be through network effects, virality, channel access, or monetization.
If you are concerned about protecting your business idea, then focus on the benefits of your competitive advantage such as, “our software reduces cost by 30% through better algorithms than the competition.”
You don’t have to go into the details.
In due diligence, investors can sign NDAs to see the detailed workings.