Avoid the mistake of assuming that having no competition is a good sign. Stating that there are no competitors in the market conveys two things to potential investors: either you have not conducted thorough market research, or there is no demand for your product, which suggests there are no businesses that offer a similar product. Both of these scenarios are deal-breakers.
Instead, identify your main competitors and clearly explain how your product differs and why you have a competitive advantage. A comparison table is a common way to achieve this quickly and efficiently.
Additionally, keep in mind that investors are influenced by social proof and the fear of missing out is a major factor in the startup investment landscape. Having other startups in your industry that are successfully raising funds at high valuations and growing rapidly can help you benefit from this factor.
Crunchbase is an excellent resource for finding this information. Remember, in future negotiations with investors, you can use fundraising information on other startups to your advantage.
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