Geoffrey A. Moore
Most high-tech startups fail because they mistakenly assume the visionary early adopters who bought their prototypes share the same buying motivations as the pragmatic mainstream majority.
A fundamental disconnect exists between early adopters who tolerate bugs for a strategic leap and the pragmatic majority who demand reliable, industry-standard solutions.
Attempting to sell to multiple disparate markets simultaneously prevents startups from building the concentrated word-of-mouth reputation necessary to influence risk-averse mainstream buyers.
Companies must execute a highly targeted invasion strategy by dominating one specific beachhead niche completely before expanding into adjacent market segments.