We're done. We should just shut it down. A founder told me this over coffee. It was year 10 of his startup. Most would've quit. Today, its worth >$1B. Here's the story. Sometimes being "too early" isn't a bug. It's your biggest competitive advantage. 🧵 For a decade, this company was everything VCs hate: "Market is too small" "Won't scale" "Consumers won't pay" Then he said something I'll never forget: "If everyone thinks the market is small, they won't compete with us. We'll own it before they realize how big it really is." He wasn't delusional. He was dangerous. While the market chased hype: - He stayed close to customers when metrics were bad - He kept innovating when resources were tight - He maintained vision when others lost faith The real story: Year 11: Still no rocket ship Year 12: Competitors moved on Year 13: Market started shifting Year 15: Growth accelerated Year 17: IPO The truth about startup timing? Markets evolve slower than VCs want Time kills more competitors than strategy Early builders learn what money can't buy The $1B lesson: The best moat isn't always technology or talent. It's the stubborn refusal to quit. 💡 Save this for when you need it most. 🔄 Share it with a founder who's "too early." Building something everyone thinks is dead? Drop a 🌱 below. #StartupAdvice #VentureCapital
Itamar Novick What kept you motivated during those tough times? That's something worth learning from.
Well, you know me...
Itamar, thank you for continuing to inspire us! I totally agree that there isn't one formula for success. Finding a strong need in the market that is not met or an arbitrage is never a clean and simple process. Otherwise, someone would have already solved it and the opportunity wouldn't be there.
Which means most VCs actually don't invest in the next $1B startups
Such great advice.
The best moat is not better technology or talent or stubborn refusal to quit, rather obviously it is that no one else thinks that what you are doing is worth doing. Why they think that - they are doing something smarter, you're doing something too small or too early or too hard - is irrelevant, but their 'meh' is your moat.
Stubborn refusal to quit is the formula for success … good one. Thanks
Itamar Novick deep conviction is definitely important. Long term vision is necessary for true sustainability. VCs almost never understand this and their win is usually if can catch the company right before it becomes hype. Sometimes, I concede to the opinion of: "knowing when to give up is an important skill". Because there are actually dead ends and causes that will never succeed in the long term market test. But I've learned that giving up too early feels much worse than giving it your all and then failing either way. To never giving up even if it is to our own detriment 🙏🏼
Timing!! You can get everything wrong but be sure to position for timing.
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1dHow many such startups has Recursive Ventures invested in?