Radical Difference Trumps Incremental Improvement

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Successful startups often make a significant impact by offering a product that provides a radical difference rather than simply being incrementally better than existing options. The key lies in appealing to customers’ emotions, evoking a sense of empowerment and urgency that makes them feel they can't live without the new product. Comparisons to established competitors, such as contrasting a new product with well-known brands, can be detrimental, as it invites a competitive framework that favors incumbents. Startups frequently underestimate the level of differentiation needed to inspire people to switch; they mistakenly assume that a mere 20% or 50% improvement will suffice. In reality, achieving a radical difference that reshapes consumer perceptions and expectations is essential for success, as it leads to a transformative vision for the future that users genuinely desire and cannot ignore.

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What mistakes do investors make when trying to predict which startups will succeed? Which matters more: a startup's team or its central idea? How do startup founders differ from other capitalists? What makes something a "pattern-breaking" idea or behavior? Are startup founders less sensitive to negative feedback than the average person? Is it possible to achieve startup success without challenging the status quo? Is it true that 90% of startups fail? What is founder-future match? At their core, what are movements? Can startup founders be too good at storytelling? Has the US become less innovative? What are Singapore and Israel doing right that enables them to have the highest number of "unicorn" startups per million people? What's the right amount of "shaking things up"?

Mike Maples, Jr. is an entrepreneur, venture capitalist, podcaster, and the co-founder of FLOODGATE, a leading seed stage fund in Silicon Valley that invested in companies like Twitter, Twitch, Okta, and Outreach at the very beginning of their startup journeys. An eight-time member of the Forbes Midas List of Top Venture Capital investors, he was one of the pioneers of the seed investing movement, which started in the mid-2000s, and now is a mainstream part of startup funding. Follow him on Twitter at @m2jr.

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