What makes a startup different, the lifecycle from pre-seed to growth stage, business models, product-market fit, unit economics, moats and network effects.
Why a startup is not a small version of a big company
Each funding stage buys proof of something specific — Pre-seed, seed, Series A, Series B and growth rounds each fund a different milestone. Knowing what a stage is meant to prove tells you what evidence to expect at that stage. (11 min)
How a company makes money determines what good numbers look like — Subscription software, marketplaces, transactional businesses, advertising, hardware and services each have different margins, growth patterns and risks. The same metric means different things across them. (11 min)
Product-market fit shows up in behaviour, not in enthusiasm — Product-market fit means a specific group of customers needs the product badly enough to keep using it, pay for it and recommend it. It is visible in retention and organic demand, not in praise. (10 min)
Each customer must be worth more than it costs to win — Unit economics compare what a single customer or order contributes with what it costs to acquire and serve. Growth only creates value when those numbers work. (11 min)
A moat is what stops a competitor copying your success — Competitive advantages come from switching costs, network effects, proprietary data, brand, scale and distribution. Network effects are especially powerful, and especially often claimed without evidence. (11 min)