I think you should pitch your product to VCs (Explaining that it's a new market with really few competitors; BUT, still serious enough that there's already a team with million in funding.) Meanwhile, build your awesome team. Then, your competitor will come on HN saying: "Crap, I was first but a guy with a better product and an awesome team just got funded. What should I do?"
Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
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Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#12It proves your idea has promise.
Read this -
http://www.ribbonfarm.com/2010/08/03/down-with-innovation-up...
Copy their best ideas, do the core things better, and kick their asses. Good luck.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#13I would learn from them. I am sure they are going to make as many mistakes as they make great decisions. Having someone out there with funding figuring out the space can be a real advantage if you can learn from what they do and bring your own sense of the marketplace to bear. Look at Wesabe, who launched with funding a year before mint...
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#14I have encountered a similar situation and here are my thoughts, just for your reference:
1. Is competition really bad? Not necessary. Some times competitions are good. As I was working on a product of a relatively new area. One of the problem was that people were not aware of the importance of the product. Our competitor had done a good marketing job, widely promoting the concept and got reported by several media. After that, we found it much easier for us to convince people of our product.
2. It's good to have a mirror. If you have got a competitor, watch closely what they are doing and try to learn from their experience. The two products might look similar at first but you might be able to differentiate from them after several iterations. If launching a startup is like trying out new clothes, it is much better to have a mirror.
3. You have to share the market anyway. You cannot be the monopoly, or even oligopoly. Sharing the market with your competitors is inevitable. Even if you were the first to launch, there might be strong late-comers. So do not panic when you see competitors coming.
4. Learn to differentiate. Tell the difference between your product and your competitors'. Trust me, there are no identical products in the world. Highlight the (even the smallest) difference and tell people why they should choose your product.
5. Focus on what your competitor might ignore. You should try out your competitor's product and record your experience in details. Then check the flaws you have found to see whether the same can be seen your product. This is an effective way to differentiate your product, especially your competitor is large and strong. If you cannot have more functions, then optimize your user experience.
6. Do not pivot so early. I wouldn't recommend to pivot right away. Even if you plan to pivot, please at least wait for a few months - after you have made sure that you have no chance. After all your team have spent a lot of time on your product. If you give up so easily, it is hard to cheer up your team for your new product. Do not simply give up, face competition and you will never regret your decision.
7. Any chance to cooperate? If you can cooperate with your "competitor", things would be easier. But this might not be a good choice since your competitor is well funded and two teams might not get along with each other. Also you might lose your control of your product.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#15Take it as confirmation that your market is there, and make sure you have a clear idea of what your differentiator is going to be.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#16Is this a social app? If so, you can win through the culture of the community that uses your app. Today, social is not as much about the technology or product, it is about the people that use it.
For example, I use hackernews not only because it is simple and easy to see others' contributions, but because of the content that people produce and the intelligent conversations the community creates on the site. That aspect of a product is invaluable and more difficult than any technology problem you will encounter.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#17It proves your idea has promise. Read this - http://www.ribbonfarm.com/2010/08/03/down-with-innovation-up... Copy their best ideas, do the core things better, and kick their asses. Good luck.
agree on this. be remarkable. most likely you will approach it differently than they do. And boot strapping has its own benefits.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#18It proves your idea has promise. Read this - http://www.ribbonfarm.com/2010/08/03/down-with-innovation-up... Copy their best ideas, do the core things better, and kick their asses. Good luck.
Thanks for sharing that link. Interesting to learn that imitation (when done well and with some form of twist) is not always a bad thing. We really do overvalue originality.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#19Every good niche has competition. Being first to market doesn't mean much (remember GeoCities? Six Degrees? Friendster? MySpace? and these guys were in a space where the first mover has an even bigger advantage.) You just don't know who will win.
Killer features aren't usually obvious, except in retrospect. Google didn't know that its algorithm would make it king of search, or they wouldn't have tried to sell so soon, for so little. Facebook didn't know that real names and a clean design would get your grandma to sign up. And you don't know which subtle design edge will make the difference in your niche. Neither do your competitors (those you know about, and those still working on launching), or the VCs.
What you should be doing (launching and getting funding) hasn't changed one bit. I don't know the secret recipe for success, but I can tell you lots of ways you can fail. Not launching would be the easiest.
Re: Ask HN: A Well Funded Competitor Has Launched Before Me What Should I do?
#20Look at Duckduckgo they have a competitor who launched years earlier and has a hell lot more funding.