After the consolidation of equipment suppliers, the broadband market has matured with several major players. This has the potential to lead to reduced diversity and creativity in the industry as the barriers to entry are now enormous. Starting a new business in a mature market like this presents significant challenges.
Advice from Experts:
First, if you can start a company, the opportunities are huge because competition for new approaches in mature markets is limited and the big players don't move fast. Their incentive is to change slowly to extend the product life cycle. Fast innovation is their weakness. You can also find the best new venture challenge via https://tmp.ucsb.edu/new-venture/new-venture-competition.
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Given this reality, how do you demonstrate sufficient potential to attract investors? In the hardware space, you need to demonstrate an attractive market entry strategy with simple investments and prices to enter the market. The challenge is this: When the price of success is high, it takes too much investment – and too much risk – before you can accurately assess the likelihood of market success.
* You must be able to show the total available market significantly.
* You must be able to demonstrate that your skills match the demands of the market.
* With fewer investors willing to see your products and technology, it takes more time and effort to find interested investors.
Investors invest in perceived risk, so their job is to demonstrate that the risk is manageable.