Clayton Christenson model of disruptive innovation

Overview

Start with a big market that's ripe for disruption. Look for industries where customers are underserved or overcharged. Then, build something that's initially worse but cheaper or more accessible. The incumbents will ignore you until it's too late. This is the Y-Combinator Favourite.

Company examples

• Robinhood - Disrupted stock trading by offering commission-free trades to underserved younger investors
• Oscar Health - Targeted underserved segments in health insurance with a tech-enabled approach
• SoFi - Disrupted student loan refinancing for young professionals underserved by traditional banks

Questions to consider

• What are the biggest markets and most inefficient markets in the world (Ex: Healthcare, financial services)?
• Who in these markets is underserved? What are the biggest pain points