5 Reasons Disruptive Pitches Get Funding
At Oxygen Ventures we fund disruptive digital ideas, and there’s a reason for that. Super-scalable and often primed for rapid growth, disruptive innovations are ideal investments. Below we explore the reasons disruptive technology always piques our interest.
They’re on the cutting edge
Disruptive technologies, by their very nature, are centred around an opportunity which is of the moment.
It’s for this reason multiple innovators claim the invention of the telephone, lightbulb and television; disruptive technologies are enabled by a contemporary technological landscape. The reason digital businesses are so reliably disruptive is because the extraordinary pace of change means the landscape is constantly changing – opening up new, lucrative opportunities.
They overtake existing markets
Disruptive technologies overtake existing markets by providing an alternative to sustainable technologies.
Sustainable technology only changes through expensive evolutionary development. Often undercutting the costly R&D-fuelled products of market-leaders, disruptive products are usually relatively inexpensive to develop. That’s because founders deliver expert insights into simple efficiencies which more well-established companies are incapable of exploiting.
They compete with the big boys
Even when the market’s players seem untouchable, disruptive innovators are more than capable of holding their own.
The advantage disruptive businesses have is that everyone else plays catch up. Consumers rightly see the originator as the market leader and gravitate towards what’s usually a more advanced solution. In some cases that initial magnetism can turn a startup into a giant. One great example of this is Facebook, by the time behemoths like Google showed up, the battle was already won.
They respond to pain points
Innovators respond to industry pain points with simple solutions that upset the balance of the market.
Disruptive technologies are almost exclusively concerned with responding to industry pain points. That means making the case for consumer interest is a much simpler equation. Often displacing more cumbersome solutions, their simplicity and business integration stems from the industry experience of their founders and is highly desirable for customers and investors.
They target well-defined audiences
Because disruptive technologies are often niche products, they feature targeted marketing audiences.
Reaching the right audience is easier when the product responds to a specific need. Disruptive digital solutions, particularly those in the B2B sector, can be marketed efficiently with the enhanced buy-in from prospective clients leading to more stable businesses. It’s a very attractive proposition to investors, with targeted audiences usually reflecting efficient and focused businesses.
Our experience nurturing effective go-to-market strategies means we can comprehensively support disruptive businesses. If you have a disruptive digital business idea, we’d love to hear about it. Tell us about your idea at: www.oxygenventures.com.au/application