Market dynamics are not static. What was once a 'wave'—a new, urgent problem for everyone—can evolve into a series of 'dams' and eventually a stable 'river.' A common mistake is to build for the hype of a wave after it has crested, by which point it no longer provides the same opportunity for explosive growth.
Founders mistakenly believe large funding rounds create market pull. Instead, raise minimally to survive until you find a 'wave' or 'dam.' Once demand is so strong you can't keep up with demo requests, then raise a large round to scale operations and capture the opportunity.
A common startup failure is building a solution for a problem that doesn't have meaningful pre-existing demand. This happens when founders start with a product vision instead of observing market pull. They arrive with a fully-built 'submarine' but find no 'water,' looking foolish for not checking for demand first.
A 'dam' represents pent-up demand where users are frustrated and merely 'coping' with the status quo. Introducing a 10x better solution, often via new tech, doesn't create demand; it bursts the dam, releasing a flood of customers who see it as a magical fix for a problem they already have.
Startups often fail by targeting abstract concepts like 'markets' or 'personas,' neither of which actually buys products. The fundamental unit of demand is a specific project on a single person's to-do list. Solve for one person's tangible need, then see if that need replicates across many others.
The vague advice to 'live in the future' becomes practical when you use emerging tech (like AI agents in 2022) to solve your own business problems. By being an early adopter, you encounter the novel challenges that the mass market will face in 1-2 years, revealing the next wave of demand before it's obvious.