VC Firm Target Global on Standout Startup Strategies

Is your startup struggling to break through the noise generated by the competition? Is it looking for something, anything, to stand out and get noticed by future customers, investors and strategic partners?

“Successful startups are built by founders who not only create exceptional products but also grow into leaders capable of steering teams of thousands—all while surrounding themselves with the right experts to thrive at every stage,” says Shmuel Chafets,co-founder of Germany-based venture capital firm Target Global, which has invested in dozens of B2B and B2C startups that have collectively created billions of euros in value.

There’s a bit more to the story, of course. Here’s what leaders at investment firms like Target Global look for in future portfolio companies.

1. Have a Concise and Compelling Elevator Pitch

The best way to break through the noise is to do it quickly. A concise, compelling elevator pitch can help with that.

Your elevator pitch should sum up precisely what your company does in 30 seconds or less, ideally less. It should hit the “high points” and avoid getting bogged down in any details. It should be delivered in plain English, such that anyone remotely familiar with your industry can understand it. And it should be repeatable — and repeated — whenever and wherever you have the opportunity to do so.

2. Solve for Something That Annoys People

Your startup doesn’t have to reinvent the wheel to succeed. All it needs to do is solve for a problem that actually needs to be solved, with bonus points if it can address something that truly annoys your prospective customers.

“Of the thousands of new products that are released in the U.S. each year, about 85% of them fail, often due to poor research and planning as well as failure to listen to feedback,” according to HubSpot.

In other words: Let your future users guide you toward the solution that was always hiding in plain sight.

3. Do One or Two Things Better Than Anyone Else

This is directly related to your startup’s ability to solve a problem that annoys its potential customers. While the foregoing is necessary for success, it is not sufficient; an effective early-stage team also knows how to execute better than its competitors. Demonstrate this ability on a consistent basis and you’ll find the road ahead remarkably smooth.

4. Stay in Stealth Until You’re Ready to Make a Splash

It’s natural for founders to want to make a big splash, but lower-key startups may have a better shot at success. That’s because these startups keep a low profile and focus on building a solid foundation before exiting “stealth mode.”

And what is that, exactly?

Stealth mode is “a strategic phase for startups that minimizes public exposure and media attention, allowing them to focus on their research and development (R&D) and drive forward innovative technologies without external distractions,” says Willow Shah-Neville, resident expert with biotech business consultancy Labiotech.

It’s difficult to argue with that logic.

5. Don’t Chase the “Current Thing”

Another very tempting prospect for a certain type of founder is chasing the “current thing.”

A few years ago, the “current thing” was crypto. Then, it was the metaverse. Now, it’s AI.

No matter how impactful each of these verticals may ultimately prove to be, trying to chase investment dollars by aligning your company with them only works in the long run if you can back up your assertions. Calling your startup “an AI company focused on x” or “the OpenAI of x” does it no favors otherwise, and in fact could actively harm its long-term prospects.

What’s Your Standout Startup Strategy?

These five strategies will help your startup stand out no matter what it aims to solve or which industry it operates in. However, they are not the only ingredients to success as an early-stage company, nor even for crossing the infamous “valley of startup death” to begin earning revenue on the other side.

Some of the most crucial ingredients will not help your startup stand out, or not directly at least. It’s better to think of them as the basic building blocks of an effective organization: competent execution, meticulous diligence, sound risk management. They are the opposite of flashy, and they won’t earn you much attention in their own right, but they could make the difference between ultimate success and failure.

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