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Evaluation Area:

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Solution

Competition

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What are we evaluating?

Is this a solution that can deliver the outcomes desired better than all alternatives, scale appropriately if needed, will win vs competition, and be able to sustain this advantage

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Solution → Problem Solver

  • They should have a direct solid line between their solution and the benefits they’re trying to deliver (value prop). Dotted / swirly lines are a no.
  • Tech (especially “sexy new” tech) can be a roadblock (blockchain, crypto, complexity) rather than a “market wave”
    • Adoption understanding and risk
    • Talent
  • Their customers do not care about the tech

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The “10x” Concept vs Better Than Concept

  • Solution should be “10x better” than the alternatives (let’s come back to this later) for big market results
  • Deliver VALUE and OUTCOMES 10x better, not more features

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  • Alternative 2: Just be better than the next guy (swimming / shark reference) can get you to a single/double

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What is the “Moat” (“IP”)

  • Moat Types
    • Legal IP, customers (first to market), distribution (think Amazon), trade secrets
    • Execution/Traction

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  • There is (mostly) no IP on software except…execution
  • There is (mostly) no IP on most early stage companies except…execution

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How to evaluate a solution?

Frequently:

  • Ask a customer (is there a line from problem to solution)
  • Ask an expert (software developer, engineer, researcher)
  • Ask a lawyer (if needed for patents)

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Company vs Competition

How can you depict evaluating them?

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Obnoxious 2x2 Matrix

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Obnoxious Feature / Competitor Only Grid

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Competition Matrix - What Good Looks Like

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You

Competitor 1, 2

Incumbent 1, 2

Alternative 1, 2

Value Delivered A

Check or data

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Value Delivered B

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Value Delivered C

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Value Delivered D

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Other Data (capital raised, links, etc.)

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Don’t Underestimate the Competition of the Status Quo

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See You Next Time