7 Strong Moats for a Tech Startup
Find out 7 secrets that will help your startup grow & defend your position as you grow.
What can be strong moats for a tech startup?
Moats are strengths that help startups grow and defend their position as they grow. It becomes hard for others to copy.
Startup founders who succeed, execute a dual-pronged strategy:
1) Attack legacy player moats
2) simultaneously build their own defensible moats
👉 Few Moats I know:
1. Network Effect - When the value of product/service increases as more users use that product/service.
2. Intellectual Property - Patents to defend your innovative tech, and prevent your competitors to copy.
3. Economy of Scale - As your production grows, the cost of production reduces exponentially.
4. Exclusive Partnerships with partners and customers, to prevent competitors from accessing the same distribution channel or supply side.
5. Brand - People/businesses choose what they know and trust. Building a brand with huge following & trust will snatch away market from competitors.
6. Capital - The more capital you will have, the deeper fight you can have with competitors, in terms of tech, patents, innovation, new products, attracting talent, building brand, etc.
7. Speed by high growth rate - You can fend off competition by blitzscaling.