Category creators

What this thesis means

Category creators invent the frame of reference. Investors with this thesis look for products that make customers change behaviour, create a new budget line, or turn an informal process into software. The upside is asymmetric; the risk is that the category never forms.

Diligence here is narrative-heavy: why the old way is broken, why now (regulation, infrastructure, culture), and why your company becomes the default verb. These funds often tolerate early metrics if the insight is non-obvious and the founder can recruit believers.

Pitch category creation carefully. Do not claim a category without naming the customer job and the competitive set you replace. Show one wedge market where you can win first, then explain how the category expands.