Even with existing ideas, execution beats originality in many real-world cases. Here’s why they can succeed:
1. Better Execution
- Faster, smoother UX (e.g. Zoom vs. Skype)
- Simpler onboarding, better customer support, cleaner UI
- Example: Canva wasn’t the first online design tool, but made design easy for non-designers.
2. Better Timing
- Market maturity matters. Early entrants often educate the market, latecomers monetize it.
- Example: Facebook wasn’t the first social network, but launched when broadband and college email access became common.
3. Focused Niche / Geography
- Localisation or niche adaptation often wins.
- Example: Ola in India (Uber clone), or Coupang in South Korea (Amazon model).
- A company that copies an idea and focuses on a neglected audience can dominate.
4. Superior Distribution / Growth Engine
- Better SEO, viral loops, referral systems.
- Example: TikTok (ByteDance) cracked short-form video virality far better than Vine did.
5. Brand Positioning or Pricing
- Slight tweaks in value prop (e.g. “ethical”, “cheaper”, “premium”) can shift the whole market.
- Example: Trader Joe’s and Aldi – same owners, very different market positioning.
Why VCs Often Don’t Like “Copycat” Models
They are playing a different game:
1. VCs Seek Asymmetric Upside
- They want outlier outcomes (10x+ returns). A crowded idea with thin margins or low moat isn’t likely to provide that.
- Hence the obsession with “moat”, IP, network effects, and scalability.
2. Replicability = Low Defensibility
- If anyone can copy you, you’re replaceable.
- VCs ask: what protects you once others see you’re profitable?
3. Fund Size Constraints
- Large funds need startups that can become billion-dollar companies. A modest copycat doing £10M/year isn’t enough.