Varun Varahabhotla
Varun Varahabhotla is a seasoned Software Engineer with a strong background in computer engineering and a wealth of experience in various prominent tech companies. Currently working at Coinbase, Varun has previously held positions at Uber, Amazon Web Services, and a B2B SAAS startup. He studied Computer Engineering at Columbia University in the City of New York and has also been associated with Y Combinator.
Sep 9 · Via TwitterStartups should stop worrying about moats.
Here’s why…
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Most startups fail because they never find product-market fit, not because they lack a moat. When you're just starting out, your focus should be on building something people want, not on creating a strong defense for your business.
DoorDash founder Tony Xu emphasizes this point: "No startup on day one should be thinking about moats." When DoorDash began, they simply aimed to deliver food from restaurants that didn't offer delivery. They focused on solving a real problem for customers and restaurants, not on creating barriers to competition.
This approach isn't unique to DoorDash. Many successful tech companies started without moats. Facebook began as a way for college students to connect, and Amazon initially only sold books. These companies built their defenses over time by continually adding more value to their products and services.
Instead of worrying about defending your business from the outset, concentrate on understanding your customers, improving your product, and proving you're creating value. Your defense will naturally develop as you build something truly valuable and difficult to replicate.
In essence, don't focus on building a strong barrier around your business when you're just starting. At the beginning, your defense doesn't exist - and that's okay. Your priority should be creating something worth defending in the first place.
