Competition Is Not Market Validation
A post on the ABLG blog challenges the common startup assumption that having competitors in a space constitutes market validation. The author argues that many founders use the presence of other companies as a substitute for rigorous market research, which can lead to flawed business strategies and wasted resources.
The piece contends that competitors may be surviving on venture capital, serving a different customer segment, or simply failing slowly — none of which validates a new entrant's specific value proposition. Instead, founders should focus on direct evidence of customer demand and willingness to pay. The Hacker News discussion explored additional nuances, with commenters debating when competition is a positive or negative signal.
The piece contends that competitors may be surviving on venture capital, serving a different customer segment, or simply failing slowly — none of which validates a new entrant's specific value proposition. Instead, founders should focus on direct evidence of customer demand and willingness to pay. The Hacker News discussion explored additional nuances, with commenters debating when competition is a positive or negative signal.