Ask HN: Worth doing a startup in a space saturated with other new startups?
The space in particular is improving language learning with AI. I see 1 or 2 new startups everyday! Not sure what to make of this level of competition. Is it worth entering a market like this and if so any particular things needed to succeed?
19 comments
[ 3.6 ms ] story [ 66.6 ms ] threadDisclaimer: I actually worked for (and helped found) a company that used AI tools as a complimentary piece of the language learning process. The company closed doors early last year. Happy to discuss further if you'd like - our approach was quite radical in nature but the progress our students made was incredible.
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Having lots of non-paying users is a viable approach if your customers will pay for their data, e.g. Google, Facebook, Goodreads, etc.
If nobody is willing to pay, there’s no business value being created.
Goodreads's purpose is to encourage people to read more books, or get excited to buy books they don't read, which benefits the world's largest bookstore, Amazon.
Google doesn't need data to sell you something. It just sells you whatever you type in the box.
- investors may see more options for acquisition exits
- if in a crowded space you still see a gap it's likely real
Cons: - table stakes to reach parity with existing solutions may be higher
- existing entrants may be quick to replicate your killer feature
- with more noise demands more marketing/differentiation/ads/baked-in virality
I'm sure you've already thought of all that jazz. One idea is, if you can find any online communities which overlap with your target demographic maybe develop a survey (crude mockups could be even better in the survey) and ask if that feature set would entice them to switch from their current solution.
Another approach is to use the producthunt "coming soon" with decent mockups / landing page to gauge interest?
Maybe find a content creator that specializes in this space and propose a interview style video where you open the book and bounce ideas for what's missing in the market and what your solution would be. This would likely be the most fruitful move but you'd be putting it all out there which is the only way to make this type of video work for both parties.
Lastly, YC never seems worried about funding startups in a crowded space especially if the market doesn't seem too matured as there's still time for a new entrant to "get it right".
Good luck!
So if you’re dead set on entering this space, I would focus on business-case uses for learning English.
Mandarin is popular for business reasons too.
I think a lot of it is local reasons too - foreigners in Thailand who learn Thai.
Another question to ponder: Who is the audience and what value will they get from learning a language. For example, the audience could be people immigrating to America for college. That is a group of people who have a strong need to learn English.