How Startups in Out-of-Favor Categories Prove Their Worth

If you’re a Founder building a Startup in an out-of-favor category, the truth is you need to be seen as the exception that proves the rule.

Don’t just be different, be better in ways that matter.

Focus relentlessly on solving real problems for real customers, and do it in a way that’s demonstrably superior to existing solutions.

Deliver proof points that tangibly de-risk the business and increase the odds that you’re on the path to building a large and profitable business. Your learning agenda needs to be focused on “now” proof more than the learning agendas are for Startups building in hot categories.

Your metrics need to sing because being a “solid and improving” company isn’t what’s going to capture attention in an out-of-favor category. Exceptional is the only option.

And your vision needs to be crystal clear. If you can’t paint a picture of becoming an “essential player” in the future state of your ecosystem then it will be challenging to attract the capital or the talent you need to succeed.

Remember, Investors aren’t just betting on a market – they’re betting on you to defy the market’s expectations. So, when the world says your category is dead, make sure your company is undeniably great.