MarketScope AI
Chris Simmance

Chris Simmance

Chris Simmance is a seasoned business growth consultant and founder of The OMG Center, where he has spent over a decade guiding digital agencies and tech-focused companies toward sustainable growth. Known for his strategic insights and results-driven approach, Chris is highly respected in the digital marketing industry for his hands-on experience and leadership. His background spans building high-performing teams, scaling operational processes, and crafting bespoke growth strategies that help companies thrive in competitive markets. In addition to his work at The OMG Center, Chris also leads Venture Catalysts, connecting early-stage startups with essential funding and expert advisory boards to bridge the gap from initial rounds to significant institutional backing. He frequently shares his expertise through public speaking, webinars, and podcasts, where he addresses key topics such as team dynamics, critical thinking, and leadership in fast-growing companies. With a focus on data-backed insights and a knack for identifying growth opportunities, Chris is passionate about empowering founders and business leaders to unlock their venture’s full potential.
More by Chris

Reading Progress:

Back to all insights

Competitive Benchmarking for Growth: How to Position Your Startup for Investment and Market Success

In today’s competitive startup ecosystem, differentiation is crucial. With thousands of new businesses launching each year, investors are inundated with pitch decks that often fail to clearly articulate why one startup stands out over another. Without a compelling competitive advantage, securing funding becomes significantly more challenging.

Competitive benchmarking is a strategic process that allows startups to assess their position in the market, identify gaps, and refine their go-to-market strategy. Done effectively, it provides a strong foundation for attracting investors and gaining market traction. Through benchmarking, startups can:

  • Identify market gaps and unique areas for differentiation.
  • Refine product positioning based on competitor strengths and weaknesses.
  • Strengthen investor pitches with data-backed insights.
  • Stay ahead of industry shifts by tracking market leaders and disruptors.

Startups that successfully define their competitive advantage in pitch decks raise significantly more funding than those that do not. This article provides a structured approach to competitive benchmarking, outlining best practices and actionable steps to improve market positioning and investor appeal.

What is Competitive Benchmarking & Why It Matters to Investors?

Definition: Competitive benchmarking is the process of analysing competitors’ market positioning, performance, and key business metrics to inform strategic decision-making.

Why It’s Important for Startups & Investors

Investors look for startups with a well-researched and realistic understanding of their market. A vague or unsubstantiated competitive advantage raises red flags. Competitive benchmarking enables startups to:

  • Differentiate themselves in investor pitches by clearly articulating their unique value proposition.
  • Make realistic market claims that align with investor expectations.
  • Develop a data-backed foundation for pricing, marketing, and go-to-market (GTM) strategy.

For example, when a VC assesses two similar startups, the one with a clear, well-supported competitive positioning strategy is more likely to secure funding.

Key Metrics for Competitive Benchmarking

A structured benchmarking process includes analysing the following key metrics:

1. Market Share & Growth Rate

  • How much of the market do competitors control?
  • Is the market expanding, stagnant, or declining?

Sources: Industry reports (CB Insights, Gartner, Statista), competitor financial statements.

2. Pricing Strategy & Revenue Model

  • What pricing models do competitors use? (Subscription, freemium, enterprise deals)
  • How does their Customer Lifetime Value (LTV) compare to their Customer Acquisition Cost (CAC)?

Sources: Competitor websites, customer reviews, investor reports.

3. Product Features & Differentiation

  • What are competitors’ core product offerings?
  • Are they innovating faster than your startup?

Sources: Product demos, feature comparison grids, customer feedback.

4. Funding & Valuation Insights

  • How much investment have competitors secured?
  • Which investors have backed them, and at what valuation?

Sources: Crunchbase, PitchBook, investor reports.

5. Marketing & Customer Acquisition Strategies

  • What channels do competitors use for customer acquisition?
  • What is their brand positioning and messaging?

Sources: SEO tools (SEMrush, Ahrefs), competitor ad libraries, LinkedIn insights.

Example: Slack positioned itself as a more startup-friendly, easy-to-use alternative to Microsoft Teams. This differentiation, informed by competitive benchmarking, was key to its success.

How to Conduct Competitive Benchmarking (Step-by-Step Guide)

Step 1: Identify Your Competitors

  • Direct competitors: Companies offering similar solutions to the same customer base.
  • Indirect competitors: Companies solving the same problem differently.

Tools: Google search, LinkedIn, industry directories, investor reports.

Step 2: Gather Data on Competitor Performance

  • Use public data sources (annual reports, SEC filings, industry databases).
  • Analyse customer reviews (Trustpilot, G2, social media).
  • Monitor funding rounds and investor activity.

Step 3: Benchmark Against Key Metrics

  • Create a competitive matrix comparing pricing, features, and market positioning.
  • Identify opportunities where your startup can outperform competitors.

Step 4: Translate Insights into Actionable Strategies

  • Adjust pricing models or marketing strategies based on competitor weaknesses.
  • Highlight unique advantages in investor decks (e.g. lower CAC, superior technology).
  • Develop a GTM strategy that leverages market gaps.

Example: Spotify positioned itself as a freemium, AI-driven recommendation platform, distinguishing itself from Apple Music’s premium-only approach.

Using Competitive Benchmarking to Strengthen Your Investor Pitch

1. Proving Market Opportunity with Data

Investors expect realistic market assumptions backed by data. Presenting insights on how your startup’s pricing, growth rate, and customer acquisition strategy compare to competitors enhances credibility.

2. Articulating Your Competitive Advantage

Startups must answer the fundamental investor question: Why you, why now? Competitive benchmarking helps craft a compelling narrative around your unique value proposition.

3. Demonstrating Scalability & Defensibility

Investors favour startups with barriers to entry and sustainable differentiation. Showing how your startup can scale faster or more efficiently than competitors increases investor confidence.

Example: A fintech startup competing against Revolut must showcase differentiation – whether in user experience, regulatory compliance advantages, or a more attractive pricing model.

Case Studies: Startups That Used Competitive Benchmarking to Win Investment

Winning Case: Canva’s Disruption of Adobe

  • Canva identified Adobe’s complexity as a weakness and positioned itself as a simpler alternative.
  • Leveraged a freemium model and viral marketing, while Adobe remained subscription-based.
  • Result: Raised $570M+, now valued at over $25B.

Failed Case: Quibi’s Inability to Compete with YouTube & Netflix

  • Overestimated demand for short-form paid video streaming.
  • Ignored consumer preference for free content from TikTok and YouTube.
  • Result: $1.75B wasted due to lack of competitive differentiation.

Lesson: Startups that successfully benchmark their competitors position themselves for long-term growth and investor success.

Final Takeaways & Best Practices

  • Investors expect startups to thoroughly understand their competition.
  • Competitive benchmarking helps refine pricing, positioning, and marketing strategy.
  • Successful fundraising relies on proving differentiation with data-backed insights.
  • Continuous tracking of competitors ensures startups stay ahead of market shifts.

Startup founders should begin benchmarking their competitors today to refine their market positioning, strengthen their investor pitches, and accelerate growth. By leveraging competitive insights, startups can build a stronger foundation for both funding and market success.

Running a business that’s prime for growth? 

Apply for Support
Chris Simmance

Chris Simmance

Chris Simmance is a seasoned business growth consultant and founder of The OMG Center, where he has spent over a decade guiding digital agencies and tech-focused companies toward sustainable growth. Known for his strategic insights and results-driven approach, Chris is highly respected in the digital marketing industry for his hands-on experience and leadership. His background spans building high-performing teams, scaling operational processes, and crafting bespoke growth strategies that help companies thrive in competitive markets. In addition to his work at The OMG Center, Chris also leads Venture Catalysts, connecting early-stage startups with essential funding and expert advisory boards to bridge the gap from initial rounds to significant institutional backing. He frequently shares his expertise through public speaking, webinars, and podcasts, where he addresses key topics such as team dynamics, critical thinking, and leadership in fast-growing companies. With a focus on data-backed insights and a knack for identifying growth opportunities, Chris is passionate about empowering founders and business leaders to unlock their venture’s full potential.
More by Chris

Are You a Fit to Talk with Us?

  1. Post-Friends and Family Round:
    1. You’ve raised initial capital and are now seeking your first significant funding (e.g., £1-2 million).
  2. Customer Traction:
    1. You have Letters of Intent or an early customer base that validates your product or service.
  3. Scalability Potential:
    1. Your business has a clear path for growth but requires strategic guidance and funding to accelerate.
  4. Open to Expert Guidance:
    1. You’re willing to work with a board of experienced professionals to refine your strategy and pitch.
  5. Ready for Funding:
    1. You need support not only in securing funds but also in preparing your business for investor confidence.
Apply Now