The Startup Playbook, 2nd Edition

Chapter 9Your Market

As an early investor in FitnessKeeper (the makers of the well-known Runkeeper app), I (Will) got to see the founding team turn their passion for running into one of the world's leading fitness trackers. While FitnessKeeper was relatively early to the market, they weren't the first ones to arrive. There were other running apps with established markets and a few general fitness apps that also tracked running. So, one of my first questions of the founders was: How are you going to differentiate Runkeeper?

Their answer was that the existing apps didn't offer everything that the runner needs. There was GPS tracking for sure. Both the specific running apps and the general purpose fitness apps had that. But, for example, there was no coaching or music playlist integration and these offered opportunities for their app. Their enthusiasm and what seemed like huge market potential convinced me to invest.

As the company grew, I kept asking the question about how the team would continue to differentiate the product and make it stand out from its competition. The founders never wavered—by focusing on the runner. They did that and their market share continued to grow. Even when, as a cyclist myself, I pressed for integration of specific tracking functions dedicated to cycling, they stood firm. I argued that by expanding their functionality, they could get access to a ...