Any start-up which has gone on to become highly successful does fall under one of these criteria:
- They found a solution to a problem everyone knew but no one had solved till then.
- They found a potential problem not known to the market till then and tried to solve it first
- They found ways to solve a known problem dramatically (5x times) better/faster/cheaper.
There are a lot of start-ups which achieve decent success just by adding new functionality to an existing product/service as well. They thrive till the overall market grows and then inevitably stagnate for growth. The one’s which get out of the stagnation either do so by repeating the same strategy for a different product/service or end-up in one of the above situations.