HACKER Q&A
📣 Pedro_Ribeiro

How can my startup break a monopoly?


Hi. I'm a co-founder of a startup focused on anti-money laundering in crypto.

There is a big company in the space called Chainalysis. 70% of the governments that care about these things use them. The other 30% are divided between Elliptic and TRM Labs.

The issue is: when a company is buying AML software, the only real law besides doing KYC is that you must "known-your-transactions".

The only companies that the central banks of each country trust for doing KYT are the three I mentioned earlier because they're the ones working with the banks.

We can't get a central bank to give us the OK because there are no written rules, it's just: "you have to be a trusted source". FYI - the people they rely on to judge the trusted sources are the investors of these three big companies. It's a full-on lobbying effort to keep out any competition.

We can't get a big company to trust us because the central bank of the country they're in hasn't given us the OK.

So where do we even begin?

We have, in my opinion, a very good product that can outperform the competition in a lot of cases, and we've tested it. We've done a few B2C sales and have traction but it doesn't move the needle.

Any advice?


  👤 Eridrus Accepted Answer ✓
It sounds like your target customers do not have a problem to solve: they are meeting their compliance requirements with existing software.

It sounds like central banks don't have a problem because nobody is embarrassing them into action. You could try and make a problem for them, though they will obviously not like that.

You should figure out what the actual problem you are solving for someone is though. Being "better" is not it.