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21.03.2021-hole-in-the-market.html
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21.03.2021-hole-in-the-market.html
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<!DOCTYPE html>
<title>Giant Holes in the Market</title>
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<a href="blog.html" class="link">< Blog</a>
<h1>Giant Holes in the Market</h1>
<div class="content-container">
<p>
There’s currently giant holes in the market waiting to be filled. Those
holes are niche software products that serve a market that is smaller
than $100 million dollars. Let me explain…
</p>
<p>
In the past, to build a software company it required money just to get
off the ground. There are some exceptions, but for the most part one
needed to hire a small team to build the initial idea and that’s before
you even find product market fit. If you didn’t have the money to fund
it yourself, you’d have to go look for funding - usually from a VC.
</p>
<p>
Everyone knows that when VCs invest in 10 companies they only expect 1
of them to succeed. They bank on having 1 of the 10 being such a giant
success that it pays for the other 9, which will likely fail. When
evaluating potential companies to invest in, the first thing they ask
themselves is: what’s the best case outcome here? If this thing does
succeed will it pay for the other 9 failures.
</p>
<p>
What this meant was, even if your idea was amazing and they thought you
could execute on it, if there was no possibility of building a $100
million business the VC was forced to pass. If you couldn’t find money
elsewhere, that would be the end of your startup.
</p>
<p>
This is no longer the case. It’s a combination of amazing tooling
and 3rd party services solving all the hard problems. With tools like
React.js you learn once and build+launch on basically any platform. That
and most of the hard problems have been solved by 3rd party SaaS
companies, you just need to glue them all together and you’ve got
yourself a product.
</p>
<p>
Combine the fact that in the past ideas that didn’t have the potential
to grow larger than $100 million would have died in the cradle with the
fact that it’s now possible to do amazing things with no investment but
your time - and what you have is thousands of niche market products that are,
for the first time, viable to be scooped up by the first entrepreneur
who’s willing to build them.
</p>
</div>
</main>
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