Understanding the competitive landscape is critical to determining how the early-stage company fits within its market. While competitors are focused on gaining market share from the early-stage company, competitors can also help legitimize a product category and help defray the cost of educating customers. Competitors can also drive up the length of the sales cycle by introducing uncertainty in the minds of customers with future product announcements, undermine pricing power, and compress margins.
Florida Funders seeks early-stage companies that fully understand what potential customers are currently doing, what alternatives they have to the company’s proposed solution, and what benefits (as opposed to features or nuances) those solutions provide customers. Fully understanding the competitive landscape is used to determine how much these alternative solutions matter and ensure the early-stage company’s solutions provide compelling value.