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Hey I am on Medial • 2m

Faced this question from a VC. How would you differentiate in the market? Context: We are currently building a product with a few small incumbents (start-up) who are not big. How do I differentiate if vision for everyone is similar. What would make VCs interested even if there are couple of players who have raised 1-2 millions? Any thoughts?

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Shubham Upadhyaya

FOUNDER & CEO | MENT... • 2m

"Differentiating in a market where visions are similar requires not just innovation but also strategic execution. Here are some insights I’ve gathered from my journey :- 1. Focus on Value Creation: Instead of competing head-on, focus on delivering measurable outcomes for your users. Ask yourself: What pain points are others solving superficially that you can address deeply? 2. Leverage Niche Positioning: Even in a saturated market, there’s room to carve out a niche. Identify micro-segments of your target audience whose needs are underserved or overlooked by your competitors. 3. Showcase Scalability with Traction: Investors want to see a clear roadmap for scalability. Demonstrate how your current product and customer success can be expanded rapidly. Highlight unique approaches to market penetration, partnerships, or operational efficiencies. 4. Technology as a Differentiator: Utilize AI/ML or data-driven insights to provide hyper-personalized experiences. In our case, XS-Ai helped scale education and training in a way that competitors couldn’t replicate due to lack of tech adoption. 5. Build a Moat: This could be in the form of proprietary technology, exclusive partnerships, or community-driven engagement. A strong community or ecosystem around your product is hard to replicate. 6. Clear Long-term Vision: While others might focus on short-term metrics, articulate your long-term strategy. For example, we positioned Xapex Skilsoft to not just provide learning but also to anticipate future trends, creating a unique positioning among users and investors alike. 7. Strong Metrics and Storytelling: Show not just numbers but also the story behind them. For instance, highlighting how you achieved retention rates, adoption growth, or positive user feedback can resonate deeply with VCs. Remember, differentiation is not just about what you do differently but also how you articulate and execute it. I hope this provides a framework for your next VC pitch!" Best of Luck.

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