Link
https://www.zaxis.page/p/hidden-layers
Everyone loves building fancy consumer-facing products that get all the attention. But there’s tremendous value in building in the hidden layers. You can take one step back and focus on areas where there’s less competition and build the infrastructure that allows others to succeed.
For example, battery companies that supply EVs, chip companies like Nvidia that supply AI companies, etc.
There’s a couple of reasons why there are advantages even beyond lack of competition
- Security: You don’t need to know which company will succeed. You just need to have a strong conviction that this is a market that will grow. (Nir did this with the podcasting market)
- Scalability: It’s easier to scale from part of the industry to many other parts of the industry when you’re in the hidden layers.
- Established Connections: 10 years from when you enter the industry, it’s unlikely that most of the companies you were servicing initially will still be in it, but most of the major players will be some of the few that survived. This means that often you can cultivate great relationships with the companies that later become major players.