Insights from Investor Meetings: The Value of Tackling Hard Problems in Startups

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𝐀𝐈 𝐦𝐨𝐧𝐤𝐬.𝐢𝐨

4 min readJul 3, 2023

Welcome, friends, to the first piece in our blog series, “Insights from Investor Meetings.” Here, we’re going to unpack the wisdom of top investors and share the lessons that can inspire all of us in our startup journey. Today’s focus? The real treasure of diving into big, tough problems.

Like many of us in the startup world, I used to be drawn to easy problems. They were quick to solve, and they promised speedy results. But, my chats with seasoned investors showed me something else. The true gem? It’s in taking on big, tricky challenges. These problems may need lots of creativity to solve, but they also offer a unique chance: they can help us meet a need in the market that’s not being met and set up high barriers for our competitors.

In this piece, we’re going to see why simple problems might not be the best bet for long-lasting success. We’ll also learn why I now focus on big challenges in my own startup. So, let’s begin this exciting journey, and see how embracing big challenges can give our startups a unique edge and boost long-term growth.

Why Simple Problems Might Not Be Enough

To understand why we should take on big challenges, let’s look at my own startup story. I was part of a team that set up a food delivery platform in the Arab society area in Israel. When we started, there was just one competitor, and we thought we had a golden chance.

Things looked good at first. People loved our easy-to-use platform and our reliable service. Our growth was fast, and we had big dreams for the future. But less than a year later, lots of other companies set up similar platforms. The market became crowded, and we struggled to stand out. What went wrong?

Solving a simple problem — making food delivery easy — seemed great at first. But it had its downsides. Here’s what I learned:

Easy to Copy: Simple problems are easy to understand and solve, so our competitors could copy our solution. This made it hard to stay unique and keep our customers loyal.

Hard to Stand Out: When many companies solve the same simple problem, it becomes tough to be different. Without a unique selling point, we risk getting lost in the crowd.

Limits Long-Term Growth: Simple problems might meet immediate needs. But as more companies offer the same solution, the market becomes too crowded. To unlock new opportunities and keep growing, startups must look deeper and solve bigger problems.

Lessons from the Big Leagues

Simple problems might give quick wins, but the real gold is in big, tough problems. Even though these challenges can seem scary, they can make a huge difference and lead to long-term success. Let’s look at one famous company that chose to tackle big challenges and won big: Tesla.

When Elon Musk invested in Tesla, he didn’t just want to build an electric car. He wanted to change the entire car industry and speed up the world’s shift to green energy. This wasn’t an easy task. He had to overcome many hurdles, like creating better batteries and setting up charging stations around the world. But by solving these big problems, Tesla set itself apart from traditional car companies and made it harder for other companies to compete.

By focusing on innovation and solving big challenges, Tesla has become a leader in its market and a symbol of progress. Tesla’s success reminds us that taking on big problems is not just rewarding but also critical for creating a lasting impact and dominating the market.

As startup founders, we should embrace the big challenges instead of only the simple ones. Yes, they take more time, effort, and creativity, but they also offer unique opportunities for standing out and meeting currently unmet needs. By focusing on these big challenges, we can create real, lasting value and build businesses that grow over time.

That wraps up our exploration of why we should take on big challenges in startups. Stay tuned for the next piece in our “Insights from Investor Meetings” series. Remember, the path to success is full of challenges, but overcoming them is what makes us shine as entrepreneurs.

Now, over to you. Share your stories about times when focusing only on easy problems didn’t work out. If you enjoyed this piece, consider sharing it with your friends and colleagues who might find it helpful. Let’s learn together from our shared experiences!

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Insights from Investor Meetings: The Value of Tackling Hard Problems in Startups

Why Simple Problems Might Not Be Enough

Lessons from the Big Leagues

Written by Sohel Kanaan