Defining Tar Pit Ideas

• Tar pit ideas are consumer ideas that many founders pursue despite a history of high failure rates. They're appealing and seemingly under-explored but are technically challenging and highly competitive.
• These ideas are dubbed "tar pits" because they attract founders with the illusion of freshness or novelty, much like how animals were lured into natural tar pits by the appearance of water.

Common Characteristics of Tar Pit Ideas

• Often consumer-focused, appealing because they reflect problems or desires founders personally experience or observe in familiar environments.
• They may lack differentiation and face immense competition from established players in the market.
• Founders tend to become emotionally attached to these ideas, making it difficult to pivot despite evidence of poor viability.

Examples of Tar Pit Ideas

• Discovery apps for new restaurants, music, or events, based on the false premise that discovery is fundamentally broken and that their solution will meet an unaddressed need.
• Innovations in gambling or stock trading influenced by trends or events, without considering the high competition and regulatory hurdles in these areas.
• Web3 and NFT projects that propose to rebuild everything with blockchain technology, often without a concrete plan or understanding of market demand.

Avoiding Tar Pit Traps

• Focus on problems or industries where there's a significant demand but a low supply of solutions or innovators, indicating a higher chance of success.
• Consider the supply and demand from both the founder's perspective (what they're passionate or knowledgeable about) and the market's needs (what problems require solving).
• Conduct thorough research to understand why previous attempts in your area of interest failed or succeeded.
• Be open to pivoting away from consumer-focused ideas towards B2B or niche markets where your unique skills or insights could provide a competitive advantage.