How startups grow in fragmented niches by Dru Riley from

Dru publishes, a report on trends shaping the tech ecosystem. In one of his latest reports (Feb 2021), he focused on what he calls competitor risk. Here are my key takeaways from that report. At the end of this post I have added the video where he presents this report in greater detail as a podcast.

1/ Competitor risk is better than “new market creation” risk

2/ Incumbents leave room for new competitors after 10+ years

3/ Micro-SaaS = fragmented. No-Code might be winner take most.

4/ Switching costs are dropping

5/ No more technical moats

6/ Distribution is the name of the game

7/ Easy APIs + productized services = smaller headcount

Originally published at on February 27, 2021.

Always learning. 2x founder. 1x VC-backed.

Always learning. 2x founder. 1x VC-backed.