New Ventures in the Age of AI: How to Research the Competition Before You Pitch

In today’s AI-driven world, many industries are ripe for disruption. As an entrepreneur, you might have experienced long-term frustration with a particular product or service and now see an opportunity to create something better with AI. However, you are not alone—countless startups are chasing the same dream, using AI to challenge industry incumbents.

To stand out and make a compelling case to investors, you need to thoroughly research the competition. Many startups have been on this trajectory for a while, giving them an edge in pivoting toward AI solutions. Before you craft your pitch, take the time to identify these key players and understand their positioning. Here’s how:

Step 1: Talk to Your Target Prospects

Before diving into competitive analysis, engage with your potential customers. If you're working in B2B tech, for example, ask your target users if they’re already experimenting with AI-powered solutions. Many enterprises are developing in-house AI models, particularly large language models (LLMs). Can you offer a more cost-effective, customized alternative that competes with their internal efforts? Understanding your prospects’ challenges and needs will refine your competitive positioning.

Step 2: Conduct Online Research

Even if early-stage startups don’t have a strong online presence, you can still gather valuable information. Scour industry blogs, LinkedIn posts, and tech news websites for insights. Founders often share updates about their progress, funding rounds, and AI innovations. Keeping track of these signals will help you map out emerging competitors.

Step 3: Leverage Industry Contacts

If you have connections in your target industry, use them. Industry insiders often hear about promising startups long before they become widely known. Reach out to potential customers, investors, or advisors in your space to see which up-and-coming AI-powered solutions they’re aware of. You might uncover competitors that aren’t yet on the radar of mainstream data sources.

Step 4: Utilize Market Data Providers

Market intelligence platforms can be game-changers when identifying competitors:

- PitchBook has a powerful algorithm for finding similar companies. If you identify at least one competitor, you can work through PitchBook’s database to build a comprehensive picture of the market landscape. The downside? PitchBook is expensive, making it more suitable for well-funded startups or those with investor support.

- Crunchbase is a more affordable alternative, though its algorithm isn’t as precise as PitchBook’s. Still, it can provide a useful starting point for identifying AI-driven startups in your industry.

Step 5: Analyze Your Findings

Once you've gathered competitive intelligence, assess:

- How mature are these startups? Are they early-stage or already scaling?

- What is their AI differentiation? Are they solving the same problem you are but with a different approach?

- What’s their funding status? A well-funded competitor with a strong team may be a formidable rival.

- How can you stand out? Whether through a unique value proposition, better pricing, or a niche focus, define what makes your AI-powered venture the better option.

Final Thoughts

AI is leveling the playing field, making it easier for new entrants to challenge incumbents. But competition is fierce, and understanding the startup landscape is crucial to making a compelling pitch. By engaging with prospects, leveraging insider insights, and using market intelligence tools, you can gain a strategic advantage.

Before pitching your AI-powered startup, make sure you’ve done the homework—because if you don’t, you can bet your investors will.