2 builders who never spoke to each other · contested
Outlast the funded competitor instead of outspending them
A venture backed rival burns capital across several markets at once and often leaves, is acquired or pivots, so persistence in one place is itself a strategy. Whether a solo operator should enter a crowded funded category at all is argued the other way by someone who lost hundreds of hours proving it.
Where this splits
One builder held a market for two years against a twenty person funded team and another concluded that a solo operator should never enter a category hundreds of funded companies are contesting.
3 claims against 1
Nathan Barry · Pieter Levels
Outlast the funded rival, they leave or pivot
- 01A single operator can hold a market against a funded competitor by outlasting them rather than by outspending them.
- 02Expect better-funded competitors to spread themselves thin chasing other markets, and win by simply still being there.
Stay out of a crowded, well funded category
A solo operator should not enter a category being contested by hundreds of funded companies, and should stay out of segments whose sales motion does not suit them.
- 03Expect large incumbents to copy a small product that works, and answer by moving faster than they can rather than by defending features.
What it returned
Two years head to head with a twenty person venture funded team on the same product.
Competitors that were taking his customers later closed, were acquired, or moved to other markets, and creators who chose them years ago now switch across
Wayfair built its own version of the AI interior design tool.
Zue shelved Scriv after hundreds of hours and thousands of dollars lost, citing an overcrowded AI chatbot market and his own move into corporate B2B as the mistake.
Sources
- @levelsio's blogPieter Levels · levels.io · I battled a 20-ppl million-dollar VC-funded team building the same product for 2 years · 2017-04-03
- Stay in your lane and outlast your competitionNathan Barry · nathanbarry.com · 2019-08-05
- Narrowing FocusCory Zue · coryzue.com · Scriv · 2024-01-24 · dissenting
the second source
Three plays a week, for the phase you are in
No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.
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- Pick the fight the incumbent cannot win6 unconnected
- Pick the market nobody is excited about6 unconnected