Do You Know Your Competitors?

You should be able to name your top 3–5 competitors, how much money they've raised, and why your product is better for customers.

What good competitive knowledge looks like

A strong competitive answer is specific and shows you've done the research:

"Roblox takes a 30% fee and focuses on kids. We take a 15% fee and pay creators more than anyone else."

Bonus points if you know ballpark revenue numbers. This information is usually easy to find through Crunchbase or Pitchbook.

"We don't have any competitors" is always wrong

This answer comes up constantly when founders are pitching. It always signals a lack of preparation.

You always have competition. Even if nobody is going after the exact same customer segment, there are still other companies in your vertical competing for attention, budget, or time.

Even Uber — who effectively created a new industry — had competitors. In the beginning, they were competing against yellow cabs.

Why this matters for fundraising

Knowing your competition thoroughly signals credibility. Investors know your market well. If you tell them you have no competitors, they will immediately think of several — and wonder why you didn't.

When you're raising money, credibility is everything. Showing you understand the competitive landscape demonstrates:

• You've done the market research
• You understand where you fit
• You have a clear view of your differentiation
• You're not naive about the challenges ahead