Glasp vs. Matter: When to Dig a Moat

Glasp vs. Matter: When to Dig a Moat

In the digital age, we are constantly bombarded with information from various sources. Whether it's web articles, PDF files, or YouTube transcripts, finding a way to organize and highlight important information is crucial. This is where apps like Glasp and Matter come into play. Both apps offer highlighting features, but they differ in their approach and functionality. In this article, we will explore the strengths and weaknesses of Glasp and Matter, and discuss when it might be necessary to dig a moat for your own business.

Glasp is an app that allows users to highlight all kinds of web articles on the spot. What sets Glasp apart is its ability to preserve the original article's formatting, unlike other apps that use a reader view. Additionally, Glasp allows users to import highlights and notes from Kindle, making it convenient for avid readers. Exporting highlights and notes is also made easy with Glasp, as it offers multiple file formats to choose from.

On the other hand, Matter offers a unique feature that allows users to sync their highlights and notes directly to popular apps like Roam, Obsidian, Notion, and Readwise. This integration makes it seamless for users to organize and access their highlights across different platforms. While Glasp focuses on the individual user experience, Matter takes it a step further by incorporating a community-focused approach. All highlights and notes on Matter are public, encouraging users to share their insights and learn from like-minded individuals.

Now, let's shift gears and discuss the concept of moats in business. In his book "7 Powers," Hamilton Helmer defines moats as barriers that protect a business' margins from the erosive forces of competition. He identifies seven types of moats, including economies of scale, network effects, counter-positioning, switching costs, brand, cornered resource, and process power. These moats are essential for companies that have the best products, talented people, and fast growth. Success accelerates the need for moats, as startups lose their training wheels moat of uncertainty once success becomes evident.

However, moats are not a one-size-fits-all solution. In fact, the need for moats depends on the level of uncertainty surrounding a business idea. As Jerry Neumann explains in his article "Productive Uncertainty," uncertainty is the only moat that can create excess value for a new startup. The more obvious and easy-to-build an idea is, the faster moats need to be established. Conversely, if an idea is less obvious and harder to build, there is more time to dig moats. This concept of uncertainty can be broken down into two categories: novelty uncertainty and complexity uncertainty.

Novelty uncertainty refers to the uncertainty faced by deep tech companies, where the question arises of whether they can actually build what they claim to build. On the other hand, complexity uncertainty assumes that the product can be built, but questions whether there will be a big and profitable market for it. Understanding the level of uncertainty surrounding your business idea is crucial in determining the depth of moat needed.

In the startup world, raising money is often a significant challenge. The easier it is for a startup to raise money, the more immediate the need for moats. This was evident in the case of Airbnb, which struggled to raise money initially. However, the complexity uncertainty surrounding the market gave Airbnb the time it needed to develop the brand and network effects moats that have protected it to this day.

In contrast, generative AI has been a hot topic recently, with concerns about the lack of moats in this field. The absence of uncertainty in generative AI makes it difficult for startups to establish moats before serious competition emerges. Therefore, the early stage startup strategy revolves around directing limited resources towards digging moats before enough uncertainty is removed to attract significant competition.

To conclude, Glasp and Matter offer different approaches to highlighting and organizing information. Glasp focuses on the individual user experience, while Matter incorporates a community-focused aspect. When it comes to business strategy, the need for moats depends on the level of uncertainty surrounding a business idea. The more obvious and easy-to-build an idea is, the faster moats need to be established. Conversely, if an idea is less obvious and harder to build, more time can be dedicated to digging moats. Before worrying about moats, however, it is crucial to achieve product-market fit.

Actionable Advice:

1. Assess the level of uncertainty surrounding your business idea. The more certain and easy-to-build it is, the faster you need to establish moats.
2. Consider the community aspect of your product or service. Incorporating a social component, like Matter's public highlights and notes, can enhance the user experience and foster a sense of community.
3. Prioritize raising funds strategically. If it is challenging to raise money initially, focus on developing moats that can protect your business in the long run.

In the ever-evolving digital landscape, tools like Glasp and Matter can be invaluable in organizing and highlighting important information. Understanding the importance of moats in business strategy is equally crucial. By assessing uncertainty, prioritizing moats, and considering the community aspect, businesses can position themselves for long-term success and growth.