Considering Porter’s competitive strategy framework, we differentiate products and services and focus on narrow customer segments that generate above-market margins, rather than low-cost leadership.

Economies of scale will not fix broken business models. Too often startups grow by using investor funds to subsidize growth with prices too low and marketing expenses too high, building an irrelevant discount brand and customer base with inefficient sales and marketing. All of our startups figure out how to market and sell products and services at healthy margins. The early-stage customer profile matches the late-stage customer profile, building a premium brand and generating a profit as it grows.