Every time a founder or founding team pitches a VC inevitably the question of entry barrier comes up. David Cummings wrote this short but very meaningful piece on this very question and how it came up time and again while trying to raise money for Pardot. “What’s stopping Google from assigning 100 engineers to this market and crushing you?”
The answer it seems is simple: “..until there’s a meaningful market, no big company is going to care….Time and effort are the greatest barriers to entry for new markets. Most entrepreneurs aren’t willing to put in the effort”. And large companies would rather buy than build.
It is a super quick read and I think it is great advice to internalize. If you are convinced about an idea and are willing to leave no stones unturned, knowing fully well that at the end you may fail, that attitude is the most effective entry barrier.
Will it get you the investment. Most likely not. Will you build a great company. Possibly.
Where I learnt this #326
Time and Effort are the Greatest Barriers to Entry for New Markets