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by ExitPlatosCave 1855 days ago
He's just saying...

Two ways to learn about the market.

1 - Analysis He's defining as using data from existing companies, economic trends, etc. Much of this data is relatively low cost and can be fine quickly.

Analysis tends to provide insight into existing supply and demand. E.g. How many companies are selling electric cars? How much did the sales increase/decrease this year?

Based on analysis, a startup might want to create a new charging station.

2 - Experiments This is where someone puts an offer into the market and sees if there are buyers.

Usually these are for unique features, or possibly new products.

Example: clubhouse was an experiment

He's saying experiments usually cost more, because in theory you are at least prototyping + spending money on marketing/sales + support of early buyers.

____ Analysis looks to identify useful patterns in what is already happening, so factual.

Experiments try to find gaps that look for needs that aren't being met, so no behavior yet... So "counter factual".

____ Possibly he's also saying that deeper innovation happens based on experimentation.

And he's further asking: Do angel investors support experimentation more than other types of investors.