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Sajin
•
Foundation • 1y
Corporates take big risks and have money. Then why startups exist? 1. Corporates hate UNCERTAINTY: They take risk by building scenarios & models, so avoids whats uncertain 2. Less data: Before AirBnB they cudnt model market size of ppl renting beds online bcoz its uncertain 3. Fund: Key assumptions cant be modeled, so corporates dont fund internal projects until uncertainty is fully resolved 4. Strange: Startups look like toys. Its confusing for corporates. It makes them feel startups are silly 5. Delay: By time corporate realizes the certainty of uncertainty, startup becomes too big to kill 6. Niche: Successful startups start with niche markets bcoz obvious problems in big markets are solved by corporates 7. Tech: Startups hardly make new inventions, instead use existing ones, as corporates have big R&D. Odds of startup winning an R&D war is low 8. Startups have inferior alternatives and strong moats until that one uncertainty is resolved How many times did i use 'certain'?
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