Sunday, September 22, 2019
"The Founder's Guide to Markets" - Brief Notes
The Founder's Guide to Markets - Erik Torenberg & Anuj Abrol
Brief notes for future reference.
Thiel: dominate an initial niche, then expand
- best suited to monopolistic mkts
- pick an initial niche that you can monopolize
- GTM in that niche with durable assets
- Once in mkt, deliberately expand to adjacent niches
Rabois: target massive markets w/ general, vertically integrated solutions
- best suited to oligopolistic mkts
- target all cust. with gen. solution
- GTM solving for all; build accumulating advantages, watch for anomalies
- Once in mkt, double down on anomalies & capture value
Similarities across frameworks
- Timing: Both frameworks need a compelling answer to ‘why now.’
- Secrets: Compelling ‘why now’ answers need a ‘secret.’
- Assets: Both frameworks promote building assets that make your business more powerful and defensible.
- Solve biggest risks first
- N of 1: unique product-market fit. The product defies typical categorization for its market.
- Consumption markets: pre-existing and well-known. Demand already exists. These opportunities are well defined and likely to be huge
- Non-consumption markets: There are no pre-existing products nor direct demand.
Items to be aware of
- The Peter Thiel (niche) framework: Going to market is easier as one can get a customer adoption flywheel going with a narrower segment. As hard as Rabois approach. Can take longer. Regardless of outcome, it can be hard to understand why the result occurred
- The Keith Rabois (general) framework: While this approach is riskier, the companies that do succeed will be bigger and better run. The tough parts all deal with execution. This approach also requires much more capital.
A collection of links/notes re: evaluating crypto/DeFi projects for investment.
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