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Vishu Bheda
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Medial • 5m
Keith Rabois explains his viral "formula for startup success" tweet In 2017, Rabois had a tweet that went viral. Want to build a billion-dollar startup? Here’s a simple formula: Find a large, fragmented industry with a low NPS (Net Promoter Score), then vertically integrate a better solution. Keith Rabois, a top investor, swears by this strategy. Why? Because fragmented industries have inefficiencies, and low NPS means customers are unhappy. That’s a goldmine for disruption. Take Uber and Lyft—taxis were messy, inconsistent, and customers hated them. Uber stitched everything into one seamless platform and won. Square did the same for payments. Apple? The master of vertical integration—controlling hardware, software, and even chips—making it unbeatable. Most founders ignore this playbook. They chase trends instead of solving real pain points with deep integration. But the biggest wins come from simplifying chaos. So, next time you brainstorm a startup, ask yourself: Is this industry fragmented? Do customers hate the current options? Can I integrate everything for a better experience? If yes, you might be sitting on the next unicorn. Execution is tough, but the rewards are massive. Follow Vishu Bheda for more valuable startup insights from the world's best founders!
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