I look at around 2,000 startups a year. Certain ideas pop up over and over — and keep failing.
Today, I thought I'd break down a few common startup ideas I see, and why they tend to go wrong.
1) Geolocation - "An app to find your friends and hang out" is everyone's first startup idea.
You see where your friends are on a map. Turns out Jim is around the corner from you — let's hang out!
The problem is that nobody wants this. Most people don't want others knowing where they are all the time, even friends.
What's more, if I want to hang out with Jim, I can just text him! I don't need your app.
2) Event tech - Platforms to find local events are everywhere. The problem is, the biggest winner, Eventbrite, is worth less than $1B.
This is a small and crowded market. It's hard to create a unicorn here.
There are some unique spins on event tech. But most of the platforms are Eventbrite with a different name, and there's just no reason for anyone to try them.
3) Dating apps.
Just about every conceivable variation on a dating app has been tried. There are apps for Christians, apps for group dates, and apps for short guys.
Hardly any of them ever catch on.
You need a critical mass of people to get a dating app going. And if everyone's already meeting people on Hinge or Tinder, who needs a new app?
The revenue model is usually ad supported with some paid users. The lifetime value of each customer is so low that you can't afford paid ads.
This means you have to go viral — easier said than done.
I sense enormous dissatisfaction with dating apps. But all in all, the existing ones seem to be serving people well enough.
It's kind of like McDonald's. Everyone says they hate it, but they sell a billion hamburgers a day.
Wrap-Up
In the end, startupland is like Hollywood: nobody knows anything.
You could build a geolocation app, pitch it to me, and I could pass. It could go on to become a $100 billion company, and I'm left crying in my cold brew, wondering how I missed it.
If you have a unique spin on one of these areas, and you can honestly say your experience is 10x better than the competition, go for it! And if it starts to catch on, save a slice for Francis, won't you?
What are some common startup ideas you see? Leave a comment and let us know!
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