SaaS investor Jason M. Lemkin says competitive advantages that once lasted years now evaporate in months. A startup he backed was cloned four times in two weeks, with a major corporation launching its own version within a year. Companies must move faster or face zero growth.
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Just realize that like your competitive edge is shrinking in time, shrinking in time. When I started in SaaS, you basically had— you build something really slick and then you'd have about 18, 12 to 18 months until you were copied by a startup. Then you'd have like 5 years until a big company copied you. Okay. Like that's the way it used to happen. Not too recently, I invested in a startup that I love. Incredible, incredibly powerful startup. Within 2 weeks, they had like 4 clones. 2 weeks. And then I talked with a massive company that's building a clone themselves. It'll be out this year. So the rate at which that— this is where I think it's not that we're going to rebuild Workday and Salesforce and Oracle, but our competitive edges are going to be measured in months. And when they used to be years. And that compounds, that compounds. And if you can't run at that pace, I don't see how you're going to— you're going to— you're going to fall to 0% growth.