The New Wedges for Beating Incumbents and Taking Over Your Category

The tech establishment has never been more vulnerable. Read on for our framework that runs down all the ways you can win.

For years, advice to founders and entrepreneurs looking to create iconic companies has been to create their own category. Over the past two decades at Emergence, we’ve seen thousands of companies attempt category creation, some successful, and some not. Ultimately, we believe that creating a new category is not the only (or the best) path to building an iconic, enduring company. In fact, we’d argue that challenging complacent incumbents is a stronger strategy. 

We observed with front-row seats how Salesforce took over the existing CRM category in the early 2000s and how Zoom took over the video conferencing category in the 2010s. But how were these small startups in the early days able to outcompete their incumbents in different eras, and what can entrepreneurs learn from these stories as they take on other incumbents in the eras to come?

There are a few characteristics that make existing markets fertile ground for disruption… read on for our deep dive list and new framework from Emergence General Partner Santi Subotovsky, who led the investment in Zoom, and our new category warrior, Logik.

EmCap News Corner 📣

• Our General Partner Gordon Ritter shared his perspective on how AI is impacting creativity at work with Forbes: “"As the rise of AI in the workplace continues, managers need to look for more creative and non-consensus people around them, and avoid those that will be more complacent." Read the rest here.

• And GP Jake Saper also joined Bloomberg’s The Tape Podcast to offer his outlook for artificial intelligence in 2024. Listen in here.

• We have a couple “best place to work” winners! Hi Marley made both “best startups” and “best places” lists in Boston. And Upkeep was named one of the best startups to work for in Los Angeles.

• Zipline was named “Retailers’ Favorite” by the Vendors in Partnership Awards.