I have been thoroughly enjoying Steve Blank’s How to Build a Startup – The Lean LaunchPad Course on Udacity. One of the segments I was watching today was a talk on New Markets (one of the Market Types).
Here are a few points from the video.
New markets is a market where customers don’t exist today according to Steve. Here are some characteristics of a New Market:
- Customers do not exist today
- Even if they do, your challenge is to let them know that you exist
- Market Size is zero
- The Chasm from visionaries to pragmatists is very big
- If a startup executes as if they are in an existing market (premature spending), they are likely to be killed
- No individual startup can accelerate technology diffusion
- You are likely to be in the valley of death for a long time (may be forever) trying to get out
The rest of the market types – Existing Market, Resegmented Market, Clone Market have a little less risk.
Here is a link to the resources. This course is a must, if you are a startup.