Startup Strategy - Monopolize a niche. Expand concentrically from there.

Monopolize a niche. Expand concentrically from there.

Thiel: “Almost all of the successful companies in Silicon Valley had some model of starting with small markets and expanding.”

Amazon started with books. PayPal started with eBay power-sellers. Facebook started with Harvard. Airbnb started with renting air mattresses. Tesla started with high-end electric sports cars.

“You want to be a one-of-a-kind company where it’s the only one in a small ecosystem… large existing markets typically mean you have tons of competition and it’s very hard to differentiate.”