It's common for entrepreneurs who have never met to come up with the exact same startup at the exact same time.
It happened to "what should I wear" apps Fashism and GoTryItOn. It also happened to group texting startups GroupMe and Fast Society.
"The first time [I met GroupMe cofounder Jared Hecht] was three days before GroupMe launched. Jared asked what I was doing and I showed it to him. I saw his face," recalls Fast Society cofounder Matt Rosenberg.
Entrepreneurs usually don't copy each other on purpose. Oftentimes, founders think their idea is original. Instead, they've merely connected dots and come up with an obvious solution to a common problem.
Many of today's startups fall into one of seven idea buckets. If you've launched a company in any of these areas, you'll need to have a truly interesting twist to fend off the competition and get investors excited.
One or two winners will emerge in each space. But based on sheer odds, the winner probably won't be you.
1. Daily Deals
Startups already in the space: Groupon, LivingSocial, Group Commerce, SignPost, Yipit
Why you should stay away from it: Groupon and Living Social have all but won the space.
"With Groupon being a billion-dollar valuation and LivingSocial raising $400 million, an entrepreneur would need to raise $100 million just to to compete against them," General Catalyst Partners' Nitesh Banta says.
2. Dating
Startups/companies already in the space: Match, JDate, eHarmony, OkCupid, Clique, HowAboutWe, Ignighter, Moonit, Luv@FirstTweet
Why you should stay away from it: How many different ways can matchmaking be spun? Match.com and eHarmony are already clear winners.
HowAboutWe lets users pick suitors based on proposed dates, Ignighter covers group dating, and Clique hones in on the matchmakers themselves. There's even a site for adultery, Ashley Madison.
The chances an entrepreneur will stumble across something both unique and necessary in the already disrupted dating space are slim to none.
3. Social Travel and Events
Startups already in the space: Nextstop (acquired by Facebook), Sonar, SpotOn
Why you should stay away from it: According to TechStars NYC Managing Director David Tisch, “We’ve seen a ton of social travel and event applications. They cover anything having to do with people and travel and matching them together, whether that's telling people who to meet at events or recommending [group travel destinations].
"When a startup recommends you go meet Fred Wilson at a conference you think, ‘Obviously I’d like to, but it’s not that easy.’"
Another problem is that internet service is spotty when traveling, so Tisch isn't sure that the two ideas naturally go together.
See the rest of the story at Business Insider
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