ASSESSING A STARTUP'S DEFENSIBILITY

Summary from the TLDR Founders newsletter

Assessing a startup's defensibility focuses on evaluating its economic moat, product-market fit, and competitive advantage. Key factors include cost advantages, intangible assets, network effects, switching costs, and efficient scale for economic moat; strong retention rates, NPS, and usage metrics for product-market fit; and intellectual property, team capability, and scalable business models for competitive advantage. Investors use these criteria to determine if a startup can sustain market share and scale effectively against competition.