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Probably not, and that’s OK. Start with a competitive edge and build from there.
Founders love to talk about their “unfair advantage.” Investors love to ask about it too. But here’s the truth: most early-stage startups don’t have one. And that’s not a dealbreaker- it’s reality.
We see it all the time: founders get pressed on their “unfair advantage” and default to saying “our team” or “we execute fast.” Those are fine answers, but they’re not unfair--they’re table stakes.
The key is to stack the deck, one card at a time. So instead, we coach teams to identify early, acquirable competitive advantages - things you can influence in the first 12-18 months.
If you’ve got genuine insight and the ability to sell, you’re already ahead. Add in a strategic partner or choose a less crowded market, and you’re further along. Then move fast. Over time, that stack becomes hard to copy. And that’s when you’ve got something truly unfair.
Venture studios should deliver competitive (or potentially, unfair) advantages through the assets they bring to the startup and venture building process. Those assets may include capital, access to customers, partner networks, access to acquirers, domain expertise, technology and/or data. Consider these “shortcuts” that allow startups to iterate and learn faster, secure early traction and put themselves in a better position to win.
Q: What’s the difference between a competitive advantage and an unfair advantage?
A: A competitive advantage helps you do something better or faster than others. An unfair advantage is something others can’t easily copy - like proprietary data, a deep moat, or a network effect. Most unfair advantages start life as competitive ones.
Q: What if I don’t have a competitive advantage yet?
A: That’s fine - but don’t wait to develop one. Insight through research, selling fast, and learning deeply from your market are all within reach. You don’t have to be born with it - you can build it.
Q: Is the team really a competitive advantage?
A: Only if it has specific, demonstrable leverage: deep domain experience, strong execution habits, or exceptional founder-market fit. “Great team” on its own isn’t enough.
Check out our Renewed Strategy, Highline Beta 3.0.
Read the full article on Focused Chaos
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