Competition. Unless you’re Microsoft selling an OS for a PC you probably have some. And even then Microsoft has substitute products as anyone who has taken Econ 101 will tell you.
So if you’re raising money – from angels or VCs – you’re going to have to address the question of whom you’re competing against. And the reality is that if you have no competition it will likely be perceived as a negative, not positive. Why? Because if you’re truly that early / novel there’s a good chance that you’re too early and will spend lots of time / money educating the market. Remember: being too early is the same as being wrong.
More likely if you say you have no competition you’re either not thinking hard enough or you’re being coy and avoiding the question. With VCs my strong suggestion is that you be open & realistic. Leaving your real competitors off of you presentation to a VC is not recommended.
To read the full, original article click on this link: How To Talk to Investors About Your Competitors | Both Sides of the Table
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