Dear SaaStr: What Should I Do When VCs Ask About The Competition?

Dear SaaStr: What Should I Do When VCs Ask About The Competition?

Embrace it. This is your chance to shine.

Not Truly Great Founders:

• Hide from the competition and an accurate description of the competition
• Don’t actually know the competition
• Don’t actually know the competition that well
• Say only negative things about the competition
• Say things about the competition that aren’t 100% correct
• Don’t really know the “10x Features” that help them beat the competition

But The Very Best Founders:

• Know the Competition Cold
• Know where and when they win, and when they don’t
• Know why they will win more and more over time
• Know the “10x Features” they have today to win — and the top 3–5 ones they plan on building to win even more
• Respect the competition

**Embrace it. VCs know there is competition in every segment, category and industry. **

And that new startups disrupt every segment, category and industry, as well. The Best Founders embraced competition and know it cold. And know how to beat it.

In fact, I always do a deep dive here with every founder I meet with. I love to hear how they think about a competitor or two, especially a much bigger ones. The best ones blow you away with their answers. The rest … stumble.