[throwaway_law]

>If your best answer is "We are adding diversity to the marketplace", then you're probably doomed. If you aren't better in some way (faster, cheaper, better tech, etc...)

We have seen it over and over in tech though...some small time founder starts something and then a VC back startup eats their lunch and takes the market (of course rewriting history along the way to say they invented/disrupted the market).

The sad truth is the answer to why a customer will choose us over established competitor is because...VC capital/your money. We will use VC capital/your money to out spend/out market our competitor because they can only grow as fast as their revenue, whereas we can artificially grow using your VC money, even to the point we can subsidize the price of our widget which the established competitor can't, we will grow our market share, even if at a loss because at any time we can "flip the switch and its all profit."

[jandrese]

That's a completely valid reason. If the competition is underserving the market and you think you can outgrow them because you have an aggressive growth plan then that's something.