Investor question 4 of 50 · Market & business model
“Who are your competitors and why do you win?”
Short answer: the investor is really asking do you understand the market, and is your edge durable? Answer in three steps: (1) name the 2-3 alternatives customers really use (including spreadsheets); (2) give one measurable reason customers pick you; (3) show it in your numbers: win rate, CAC, retention.
What they're really asking
Do you understand the market, and is your edge durable? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.
How to answer, step by step
- Name the 2-3 alternatives customers really use (including spreadsheets).
- Give one measurable reason customers pick you.
- Show it in your numbers: win rate, CAC, retention.
An example answer
Customers usually switch from shared inboxes. Our CAC payback of about five months suggests we're winning without heavy discounting.
Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.
The answer that loses trust
Avoid
"We have no competition."
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: Unit Economics - CAC by Channel. If you can open that tab and point to it, the follow-up question is easy.