“What’s your protectable advantage?”
It’s often the first question a potential investor asks a startup, but it’s a bad one. Besides being unrealistic and confusing for most companies, attempting to create a protectable advantage stifles creativity, hurts communication and generally diminishes an entrepreneur’s prospects for success.
Here’s what investors mean when they ask for your protectable edge in the market: They want to know if you have any patents or secret algorithms that your competitors can’t touch. It makes sense for them to ask: They want to minimize as much risk as possible, and having an effective monopoly on technology is a great start.
To read the full, original article click on this link: The myth of the protectable advantage | VentureBeat
Author: David Goldenberg