How To Compete With Amazon and Google

Harj says founders can lose excitement about a promising company when a competitor raises money or attracts attention. Brad warns that copying competitors or trying to take their customers can pull founders away from understanding their own customers. He also points out that most startups fail to make something people want, and that many markets support multiple successful businesses.

The partners say founders often assume a competitor is winning based on fundraising, press coverage, or hiring. Michael recommends checking whether customers mention the competitor, whether deals are being lost, and how the products compare. Brad recalls that Justin.tv, later Twitch, copied Ustream and Livestream until its founders focused on talking with users instead.

The partners say claiming to have no competitors can signal that a founder does not understand how customers currently solve the problem. A competitor with a better product deserves attention, as does a structural advantage: Facebook became a direct threat to Perfect Audience when it launched Custom Audiences on its own platform. Microsoft Teams is an example of how strong sales distribution can make a good-enough product a serious rival.

The partners argue that a structural advantage does not guarantee success if the product is poor, and say large companies often fail to match a startup's product quality. Instacart faced doubts about competing with Amazon, yet grocery shopping details such as choosing ripe avocados proved difficult for Amazon to handle well. Their advice is to stay informed about competitors without letting them distract from delivering more value to users.