When to Dig a Moat

If moats are the what, strategy is the how.

Every startup has a window of time during which they must simultaneously build something worth defending and build defenses around it.

For new startups, strategy is deciding how to use the window wisely. It’s about directing your limited resources towards digging moats before you’ve removed enough uncerta... See more

Disruption Theory & risk-aversion don’t apply

Incumbents typically cede market space to startups wherever there’s new, unproven technology or a new, unproven market, especially in spaces where they can’t use past data to predict the future. But in AI, they’re rushing to embrace new technology and uncertain markets, spending historic amounts of ... See more

in systems defined by uncertainty and competition, better shovels - or superior tools - are irrelevant. What matters far more is knowing where to dig.

So before you launch, and definitely before you raise money, figure out whether you think you can create scale economies, switching costs, maybe network effects, or mayyybe cornered resources before your uncertainty window closes.

If the blockchain and AI take hold, those moats will no longer be data and content creation. Which seems like a bad thing–but what’s left? From my perspective as a nascent entrepreneur, future moats fall into three broad categories: proprietary technology, supply chain innovations, and media that can’t be replaced by AI because it comes from a stro

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And for the rare successful operators who do go on to start a new company, most opt to copy a successful product and compete for market share. Today, the market is overrun with luxury credit cards and task management tools. While often lucrative, these are also generally  bad quests . While the players may profit from winning market share from

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