Welcome to Daivik’s Newsletter!

If you are new around here, this is a bi-weekly newsletter about IRL events, startups and building products! If you find this useful, feel free to refer a friend or subscribe for future newsletters using this link: Subscribe

Featured Events

Events that I host, will be at or think might be worthwhile to check out

👋 - I plan to be there, feel free to say hi!

🎊 - I am hosting! Please feel free to swing by!

Toronto

11/29 - The Lunar Circle Mixer - Aceocial - Register

12/12 - Founder Poker 👋 - Register

San Francisco

11/29 - the intersection of art & technology - Register

12/05 - AI and Longevity- Gen AI Collective - Register

12/06 - Demo Faire - South Park Commons -  Register

New York

11/28 - November Junto Club - Register

11/29- Falling For Tech – Andrew Yeung- Register

Want to see your event here? Is there something going on that I should be highlighting? Feel free to reach out and I would be happy to feature them!

The Hunt for a Purple Cow

On the surface, many people tend to believe that initially acquiring users is the most challenging part of building a startup. Once the first couple of users are acquired, it’s often thought that exponential growth will naturally follow. However, this belief couldn’t be further from the truth. At a certain point, the initial acquisition strategy will plateau, and the company will stagnate. By this point, one can’t comfortably rest on the work done before and likely needs a “Purple Cow.”

So what is a Purple Cow? 

Coined by Seth Godin, a Purple Cow refers to something remarkable, unique, and truly extraordinary in the business world. It’s a concept that encourages entrepreneurs and companies to stand out from the crowd, to be remarkable in a way that captures people’s attention and sets them apart from the competition.

The metaphor is rooted in the idea that if you were to drive through the countryside and see a herd of brown cows, they might be interesting at first, but the novelty would wear off quickly. However, encountering a purple cow in that same herd would be so remarkable and out of the ordinary that it would grab your attention and be memorable.

Godin uses the concept of the Purple Cow to convey the importance of businesses and products standing out in a crowded marketplace. In a world where consumers are constantly bombarded with information and choices, being remarkable and unique is essential for capturing attention, generating interest, and ultimately achieving success. The idea is to be the Purple Cow in a field of brown cows — something that people notice, talk about, and remember.

In the context of startups, reaching a plateau in user acquisition means that the initial strategies that helped attract the first users are no longer sufficient for sustainable growth. This is where the need for a Purple Cow becomes crucial. To break through stagnation, a startup must innovate, differentiate, and offer something so extraordinary that it captivates and resonates with its target audience.

So What Does a Purple Cow Look like? 

It could take various forms — a groundbreaking product feature, an exceptional user experience, a unique value proposition, or a disruptive business model. Essentially, it’s about creating something that is not just good or better than the competition but something that is remarkable, memorable, and stands out in the market. Something that can propel growth from 2–3x to 10, 100, or even 1000x.

Finding your Purple Cow is not just a matter of thinking outside the box and challenging the status quo but also taking advantage of massive shifts happening in the outside world. Many startups found their Purple Cow with the introduction of the App Store or with the shift to work from home during the pandemic.

Examples of Purple Cows

Spotify Free Music Service (2009)

Shift happening in the outside world: The widespread adoption of high-speed internet and the need for a more convenient and legal way to access music. 

The Purple Cow: Spotify’s Purple Cow was its freemium model, providing free access with ads and premium subscriptions for an ad-free experience, making legal music streaming accessible to a broad audience. The ability to listen to music for free like this was something completely new and unheard of in the music industry, leading to the massive growth of Spotify.

Snapchat’s Disappearing Messages (2011)

Shift happening in the outside world: Increasing desire for more ephemeral and private forms of communication, especially among younger users.

The Purple Cow: Snapchat introduced a platform where messages and images disappear after being viewed, something that no other messaging company had. This became a viral sensation.

Toms’ One for One Business Model (2006)

Shift happening in the outside world: Growing interest in socially responsible business practices and a desire for consumers to contribute to charitable causes through their purchases.

The Purple Cow: Toms introduced the One for One business model, where for every pair of shoes sold, another pair was donated to a child in need. This meant customers could feel good about their purchase and led to Toms growing exponentially.

Robinhood’s Commission-Free Stock Trading (2013)

Shift happening in the outside world: The democratization of finance, increased interest in stock trading, and the desire for more accessible investment platforms.

The Purple Cow: Robinhood disrupted the industry by introducing commission-free stock trading. This unique proposition could only be found on Robinhood’s platform and led to exponential growth.

I am excited to see how startup founders find their unique Purple Cows, especially as the market becomes hyper-saturated. Two massive ones on the horizon are found in OpenAI’s marketplace and the introduction of Apple Vision Pro. It’ll be exciting to see how entrepreneurs capitalize on these opportunities.

Check out this Podcast Episode!

You can also listen on Spotify, Apple Music, and Google Podcasts

Ido is currently the Director of Product at Datagen, a company focused on providing high-performance synthetic data, with a focus on data for human-centric computer vision applications In 2022, Datagen closed a 50 million dollar Series B funding round and has been working with clients across the world like Nvidia, Google, IBM and Intel. We dive deep into Ido's vast experience as a Product Manager and the nuances of using Synthetic Data to train AI models. We go through how Datagen goes about sourcing its data sets, how they go about curating their initial training set, how the evaluation of the AI models and the future of the platform.

Thanks for reading,

Daivik Goel