Why Product Differentiation Outweighs Market Size And Growth In Early Stage Investing

  •  Jul 25, 2018
Why Product Differentiation Outweighs Market Size And Growth In Early Stage Investing

Prioritizing Product Differentiation


In my past career as a strategy consultant, one of the key components of every private equity due diligence project we conducted was to analyze the market size and growth applicable to the target company.

Market size and growth for many bankers, PEs and VCs alike is a key element in their decision making process. Phrases like, “If the market isn’t big enough, why would I pursue it?,” or “the last place I want to be is in a market that is declining,” are commonplace.


In many ways these are valid statements, especially when considering an investment in a well established company that has already proven what it can do within a certain market.


However, when...

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