Startup opportunities: Fitness meets Gaming in the metaverse
💡 How do some startups seem to raise so fast?
💡 When solving problems, there is a conflict between puzzles and mysteries.
➡️ Startups and Investors need to be able to distinguish between them in a world filled with both.
✅ Puzzles are solvable, with clear rules and objective answers.
✅ Mysteries are complex, with unclear rules and no immediate solutions.
The dichotomies appear everywhere, implying two different mindsets of problem-solving.
➡️ Corporate v startup mentality
➡️ Suits v creative
➡️ Quant v qual
➡️ Logic v limbic
But which is correct?
💡 For startups and investors, it is pretty straightforward.
➡️ Identifying the problem is a Puzzle, and there is data to prove that it is slow, expensive, inefficient or whatever other quantifiable metrics can be assigned.
Solving the problem is a mystery; no amount of data about yesterday will solve the mystery of tomorrow.
We can see that most people are puzzle solvers, as the quantity of backwards-looking data approach versus the quality of real-time data is a true pandemic of our time.
➡️ Real innovative Startups are not crossword puzzles with predefined correct answers; they are outliers going into the unknown.
➡️ Startups approaching these two things as the same, will end up with a convoluted solution narrative. It is not a puzzle to solve but a mystery to explore and experiment with to gather and apply more information.
✅ One of the most critical areas to focus on for Investors and Startups is what and how this information will be collected and used to iterate.
➡️ One reason investors find it so hard to invest is their funnel approach to solutions as puzzles, not mysteries.
➡️ Not having a strong ten-year view of the future, where identifying opportunities fall into a strong thesis, investors become historical data-driven trend followers, backing copycat solutions to comfort decisions.
✅ This is not (AD)venture capital in its true meaning; it is just trend following, hoping to make quick financial returns, and there is nothing wrong with that.
💡 We can avoid the misdiagnosis of puzzles and mysteries in two ways.
➡️ See things from the opposite perspective; our biases and desires shape our perception of the situation.
➡️ Apply a heuristic, a mental shortcut to simplify problems and avoid cognitive overload.
💡 Gregory Treverton, a national security expert, drew the distinction between puzzles and mysteries.
for the ❤️ of startups