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That’s a sizable chunk of the market and a statistic that suggests in most cases owning a category is the only way to reach the level of growth and investment multiples that venture capital demands. It’s about identifying a problem and showing why your product is the only viable solution out there.Īccording to an article in the Harvard Business Review ‘companies that create a new category typically capture 76% of the total category market capitalization.’ This sets your average contract value (ACV), which is a major factor in your valuation further down the line.Ĭreating a category doesn’t necessarily mean you have to have the best product, it’s about positioning your product in a way that differentiates it from everything else on the market. With no direct competitors, customers don’t have a preconceived price point in mind. It’s not hard to see why, creating your own market category means: The concept of category creation has been a bit of a hot topic over the past couple of years, and according to many thought leaders, it’s critical for a new SaaS business to succeed.