The Mean Startup: Start Fast and Own the Market

For years, I was a devotee of the Lean Startup method: starting low and slow, spending the minimum required to test client needs, developing a minimal viable product (MVP), and carving out a small niche to grow from. But the biggest opportunities today demand something entirely different. They demand speed, audacity, and the ambition to reshape industries rather than merely competing within them.

I call this The Mean Startup.

It's about identifying a huge problem in a massive market, moving aggressively, and forcing the entire industry to adapt to you.

There's never been a better time to build this way. AI is forcing huge market resets. Incumbents are more vulnerable to newcomers than ever before. This is true for any market segment, from enterprise software to cybersecurity, finance, defense, and beyond. Incumbents are on the defensive. Moreover, substantial capital is available to the right entrepreneurs. Good investors are eager to invest in big and innovative opportunities. While raising early-stage funding is never easy, if your idea is big enough, funding will come.

The Mean Startup Strategy: Five Principals for Aggressive Market Domination

1. Find a Massive Problem, Not Just a Cool Idea

●????The best Mean Startups don't start with a product—they start with a market in that has an urgent pressing need.

●????Look for markets where customers are frustrated and actively seeking new solutions, incumbents are slow or outdated, and the stakes are high.

●????Don’t ask, “what is the next step?”, ask: "What problem is so big that the world will pay anything to solve it?"

2. Move (Very) Fast

●???? When a market is in flux, speed is critical.

●???? Launch fast and evolve based on what customers actually need.

●???? The goal is to become indispensable to clients before anyone else does.

3. Own the Market by Evolving with It

●???? Your first product version won't be the final one—and that's fine.

●???? Become the default choice for solving the problem, then keep expanding your offering.

●???? Evolve as the market evolves; don't fall in love with your original offering.

4. Don't Just Compete—Make Incumbents Irrelevant

●???? Competing with big players is a great sign that you're in the right place.

●???? Reshape entire industries rather than simply competing within them.

●???? Change the rules of the game by introducing disruptive innovations that force the entire market to adapt.

5.??? Aggressive Financing

●???? Raise more than you think you actually need. Allow yourself to do more; more than others, more than the your original plan, more than is what seems obvious.

●???? Bring on investors with deep pockets that have the passion, desire, and need to build big companies.

●???? Raise when you can, always be ready for the next round of financing.

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Examples of Mean Startups;

1. OpenAI – Redefining Enterprise AI

Moved fast with ChatGPT, becoming the AI company enterprises trust. Allowing OpenAI to own a huge market as it was created and put incumbents on the defensive from day one.

Enabled OpenAI to dominate a massive market from the start, putting incumbents on the defensive.

2. Anduril Industries – Owning the Future of Defense

Built AI-powered defense systems, winning huge contracts while legacy contractors lagged. By moving fast, Anduril became a major force shaping modern military technology over shadowing huge companies with years of experience and billions of dollar of contracts values.

3. Snowflake – Redefining How Enterprises Handle Data

Challenged traditional database companies with cloud-native solutions. Used speed and focus to revolutionize enterprise data management and transformed into a data cloud giant,

In recent years, we are using this methodology and seeing great results. Take Noma Security , that takes on tackling the entire AI and Data security domain or Sweet Security , that is taking on cloud security, Guardz that is reshaping SME security market, ScaleOps - Cloud-Native Optimization that is redefining cloud cost management, and LayerX Security that is providing a wide powerful browser security platform. They all started fast and are moving even faster, to create a big impact on a massive market.

And of course, we have a handful of stealth mode companies that are following the same approach.

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The #MeanStartup method isn't for the cautious and it’s not the right approach for every founder in every domain. It requires vision and courage. But for those who can execute it, the rewards are immense. As we've seen with our portfolio companies and other successful examples, this approach can lead to rapid growth, substantial funding, and the potential to reshape entire markets.

In today's fast-paced, AI-driven world, the Mean Startup might just be the most effective way to build a company that doesn't just succeed, but dominates.