When the Competition Is the Status Quo

And what to say when investors use it as a reason to pass.

Author

Raaise HQ
July 15, 2025

Hi ,

You’ve just delivered a tight pitch. The problem is clear, your traction’s building, and the need for change couldn’t be more urgent.

Then the investor leans back and says:

“It’s a compelling solution, but honestly, your biggest competition is the status quo.”

It’s one of the most common passes founders hear and one of the most frustrating.

Why? Because it sounds reasonable but often masks a lack of imagination.

Reading Between “The Status Quo” Lines

When an investor cites “status quo” as your biggest challenge, they may be saying one (or more) of the following:

  • “Customers aren’t actively looking for a solution yet.”

  • “It sounds like a pain to get people to change behaviour.”

  • “This doesn’t look like a ‘category winning’ play… yet.”

  • “We’re not sure how big this can get, or how fast it can get there.”

Sometimes, it’s fair.

Markets do resist change. Habits are sticky. Adoption curves are real.

But sometimes, it’s lazy, a polite way to say “we don’t see it yet”, without digging deeper.

Here’s the Reframe

When you hear “status quo,” don’t panic. You’re in good company.

  • Uber’s competition: The convenience of car ownership, the habit of hailing taxis, and an entire regulatory framework built to protect incumbents.

  • Canva’s: The complexity of professional design tools, gate-kept by specialists, and the belief that good design isn’t accessible to everyone.

  • Tesla’s: A century of petrol infrastructure, policy inertia, and the deeply embedded assumption that electric cars could never outperform combustion.

Every startup challenging entrenched behaviour hits this wall.

The trick isn’t to avoid it, it’s to show investors why that wall is your biggest opportunity.

Acknowledge the friction, then own the opportunity.

1. Validate, Then Flip

Investors respect founders who see the risks clearly — and build around them.

Try something like:

“We agree the status quo is sticky — and that’s why there’s an opportunity here.”

“You’re absolutely right — behaviour change is a challenge. But here’s what we’re seeing in the market…”

“The fact that people still rely on broken systems isn’t a reason to walk away. It’s the wedge.”

Then share:

  • Data on emerging demand signals

  • Case studies of adoption in early markets

  • Shifts in policy, regulation, or tech that create a wedge

You’re not denying inertia. You’re showing the cracks in it.

2. Position the Status Quo as the Problem, Not Just the Competitor

If people are sticking with what they’ve always done, the job of your startup is to reveal the hidden cost of doing nothing.

Ask yourself:

  • What is the environmental, social, or economic cost of the status quo?

  • What happens if this problem persists 5–10 more years?

  • Who pays for the inertia and who’s ready to solve it?

Bring that urgency forward. Make staying the same look riskier than making the leap.

3. Map the Adoption Curve and Your Strategy

Help investors see the path, not just the gap.

“We’re not trying to convert the mainstream overnight. We’re starting with X, a segment with high urgency, low switching costs, and clear ROI. That gives us the traction to move into Y.”

The more you can de-risk the go-to-market, the more that “status quo” objection disappears.

4. Respect the Concern, But Share the Vision

Ultimately, investors want to back people who see further than they do.

Don’t let “status quo” feedback pull you into defensiveness. Use it to show your clarity:

  • You know it’s hard

  • You’re already testing the wedge

  • You’ve built the product, strategy, and pricing to fit

And you’ve seen what happens when markets shift — fast.

❝

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Final Thought: The Best Founders Don’t Just Compete with the Status Quo, They Redefine It

If your biggest challenge is “people still doing what they’ve always done,” you’re probably working on something important.

That’s not a reason to fold. That’s a reason to double down.

The solutions that change the world usually start with a few brave people willing to do things differently and a few bold investors willing to back them.

Keep going.

Working on a pro-planet venture and tired of the status quo? Start here to find investors who see what you see.

Here’s to raising capital on your terms.

Amy and the Team @ Raaise

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