Avoid These Tempting Startup Ideas

Demand Insights

Michael Seibel and Dalton Caldwell discuss the demand side of app development, highlighting the low demand for undifferentiated social apps. They point out that most people don't actively search for new apps in the App Store, making it difficult for new, undifferentiated apps to gain traction. In contrast, they emphasize the high demand for high-quality software that solves significant business problems, such as no-code tools that increase productivity 1.

Let's take your most expensive workers and make them 50% more productive. What do you think?

--- Dalton Caldwell

Seibel notes that products like these have infinite demand, as they address real needs in the market 1.

   

Discovery Startups

Michael Seibel and Dalton Caldwell examine the challenges faced by discovery-based startups, such as apps for discovering new restaurants or music. They argue that while the idea of discovery is appealing, the reality is that the options are often limited and don't meet users' high expectations 2. Seibel shares his experience with music discovery, noting that people often prefer popular options over new, esoteric choices.

People like to say they want to discover new music, but in practice, people like popular music from a small number of bands, just like with restaurants.

--- Michael Seibel

They caution founders to thoroughly research and understand why previous attempts at similar ideas have failed 2.