The Startup Velocity Question: Innovator’s Dilemma Kills Fundability

Say, you have a non-AI SaaS product with a $5M ARR. 

A competitor has come into the market with a new AI SaaS product addressing the same target customer.

You have to defend your turf and refurbish your SaaS product with AI to get the renewals. 

Otherwise, churn is going to play havoc with your revenue line.

If this isn’t doable and you have to introduce a new product, then you are in for an Innovator’s Dilemma situation.

You have to cannibalize your old product, AND compete to sell the new product.

It’s almost like building a new business.

If you need funding, this is a tricky situation as your existing investors are looking at a potential down round.

Your old product will churn.

Your new product hasn’t achieved velocity.

Your valuation tanks as a result.

Key Takeaways:

• AI can disrupt existing markets, requiring startups to adapt quickly.
• AI competitors can create Innovator’s Dilemma situations.

My Question to You:

How will you defend your business against AI competitors?

If your startup is facing competitive challenges, you can explore 1-on-1 Private Consulting with me. I will assess your options in an hour and give you actionable feedback.

Photo credit: Sylvain SECHET/Flickr.com

This segment is a part in the series : The Startup Velocity Question