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.
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Assembled initially replaced a manual spreadsheet process. Their success came from understanding the spreadsheet was a symptom of deeper pains like headcount planning, real-time dashboards, and agent utilization. The real value was in solving these complex operational problems, not just digitizing a spreadsheet.
Investors don't need deep domain expertise to vet opportunities in complex industries. By breaking a problem down to its fundamentals—such as worker safety, project costs, and labor shortages in construction—the value of a solution becomes self-evident, enabling confident investment decisions.
While the goal is to build a platform (second-order thinking), initial single-purpose app ideas (first-order) are critical. They serve as your "golden evaluation set"—a collection of core use cases that validate your platform is solving real user problems and is truly useful.
Canva's success wasn't from targeting competitors but from identifying a real market gap through their first niche product (a yearbook tool). When users asked to use the tool for newsletters, it validated a larger, unsolved pain point that Canva then focused on exclusively.
Convex built 'Chef', a functional AI coding app, not to win end-users, but as a marketing tool. By open-sourcing it and demonstrating the power of their backend, they successfully attracted other AI coding platforms to build on their technology, turning potential competitors into customers.
Instead of searching for a market to serve, founders should solve a problem they personally experience. This "bottom-up" approach guarantees product-market fit for at least one person—the founder—providing a solid foundation to build upon and avoiding the common failure of abstract, top-down market analysis.
Loom was founded on the observation that easy video sharing was ubiquitous in personal life but painfully complex at work. This gap between consumer-grade user experience and clunky enterprise tools highlighted a massive, latent demand. Entrepreneurs can find opportunities by bringing consumer ease-of-use to the workplace.
Seeing an existing successful business is validation, not a deterrent. By copying their current model, you start where they are today, bypassing their years of risky experimentation and learning. The market is large enough for multiple winners.
StatusGator became a marketplace by first building a valuable single-sided tool. Data from free users searching for outages (one side) became the valuable product—early warnings—sold to paying enterprise customers (the other side), validating the model before fully committing.
