there is a common narrative that is repeated in the technology industry. A burgeoning startup emerges with an innovative concept, successfully attracts incredible venture capital funding, and skyrockets to unicorn status. The company then fails to generate sustainable profits and falls from glory within a few years (or even months, in some cases). Despite the relative slowdown in venture capital activity, that story has still played out over the past year and usually comes to the same end: 90% of startups fail. 10% of which succumb within the first year.
While the numbers paint a bleak picture, one thing we recognize as innovators is that every challenge harbors a unique solution. In many cases, it's not funding that holds entrepreneurs back but rather a hyper-fixation on rapid growth and flashy technology. This leads to a disregard for solving key business challenges, ultimately resulting in a lack of long-term stability and profitability. It is essential to change this approach and prioritize providing replicable solutions to relevant problems before investing in attractive technological products.
Suppose the goal is to introduce an innovative solution to specific new problems in a way never seen before in the market. In that case, you don't need to be bold: you need to be bold enough to believe in the prescient of your company and have enough knowledge about the space you're in to hold yourself to that level of self-confidence, even face to face. . of intense headwinds.
Here's how to start your own category to solve niche problems
Identify your unique value proposition
When faced with seemingly insurmountable obstacles or a potential unexpected investment, the most important thing is to stay true to your company's mission.
The most loved and valued companies created categories where none existed to offer solutions that others could not even imagine. There's a reason why Apple has maintained its presence as the most valuable company in the world: the emergence of the iPhone came at a time when users needed to carry their iPods, cell phones, laptops, and planners individually. For the first time, there was a single device that could contain all of these elements.
Compare this to a product like Threads, which offers a simple alteration to an existing product and has users could not be maintained. The sales pitch of “We offer the same product that is already on the market, just a little different” is much weaker than “Here is a solution that didn't exist before.” In my career helping brands connect with their communities on their platforms, I have witnessed how this strategy generates greater rewards than copying existing solutions.
In 2018-2019, I began a journey to take on traditional social giants and provide an alternative way for brands to build brand-centric online communities. At that time, Facebook had several notorious scandals regarding the misuse of personal data, so Friendship set out on a mission to improve and democratize social media, hoping to build it in a better way that encourages positive user interaction while respecting the privacy of user data.
