While declaring “competition is for losers” has become fashionable among unicorn-chasing VCs, most founders still reject this line of thinking. They know there is a gray area, and that large markets with multiple similar companies can produce multiple success stories.

Nevertheless, any startup that can’t explain why they will be 10x better versus their competition on a meaningful, tangible, difficult-to-copy parameter will have a hard time fundraising. Below are a few common examples of how startups trip up when facing VC doubt about whether they are adequately differentiated and how they can improve.