When Axonius's founder discovered a major breach, the security team was surprisingly nonchalant. They couldn't act because they lacked basic asset visibility. This customer acceptance of a huge, unsolved problem was the signal for a massive market opportunity.
Competitors would simply alert clients to a security threat, leaving them to investigate. eSentire differentiated by handling the entire incident response: investigating the threat, kicking out the attacker, and providing an "all clear." This deeper service commitment was their key competitive advantage.
Instead of inventing new features, Prepared identified its most lucrative expansion opportunity by seeing users' painful workarounds. They noticed 911 dispatchers manually copy-pasting foreign language texts into Google Translate—a clear signal of a high-value problem they could solve directly.
Assembled knew they had a real business when they discovered that Stripe, Casper, and Grammarly—all unaware of each other's efforts—had independently built the same color-coded spreadsheet to solve workforce management. This pattern of convergent, homegrown solutions signals a powerful, unmet market need.
VCs struggled with Axonius's pitch because the problem had existed for years with no solution (a "why now" issue). The founder overcame this by having the VC put him in front of Fortune 500 CISOs. When every CISO told the VC it was a top, unsolved priority, the market validation was undeniable.
After a buggy POC, the founder presented the economic buyer with a simple slide: a timeline showing every issue raised and how quickly it was fixed, often in days. This demonstration of extreme responsiveness and partnership outweighed the product's imperfections and built the trust needed to close the deal.
Palo Alto Networks pursued cloud cybersecurity when experts claimed no one would trust it. Founder Nir Zook saw this skepticism not as a warning, but as a sign of a wide-open market with a significant competitive moat if they could prove the doubters wrong.
StatusGator discovered a core use case by observing user inaction. When customers turned off the primary alert feature, the founders realized the 'single pane of glass' dashboard had standalone value, which led to the development of public status pages.
When OpenSea faced rampant NFT theft, the team shifted focus from mitigating symptoms on their platform (a 'whack-a-mole' problem) to addressing the root cause with external wallet providers. This ecosystem-level thinking led to a far more impactful, lasting solution.