METHODOLOGY

How we score a startup's competitive moat

A moat is an advantage that protects a business after competitors copy its product. Moat Check assesses an idea in two steps: research into the companies already active in the space, and a structured assessment against 10 defensibility tests.

1. Competitive research

We search the web for companies already addressing the idea, and for the incumbent best positioned to replicate it: a company that already has the users, data or distribution to launch a similar product quickly. Competitor links are shown only when they come directly from the search results.

2. The 10 defensibility tests

Each test is marked pass (10 points), partial (5) or fail (0), with one line of evidence. The score is the sum, out of 100.

1. 01Network effect

   Does each new user make the product better for other users?

   When each new user increases the value for existing users, a later entrant must recreate the whole network, not just the product.

   PASS

   Users get more value as more people join (marketplaces, messaging, shared data).

   FAIL

   Each user gets the same value regardless of how many others use it.

2. 02Winnable starting market

   Is there a small, self-contained market it can dominate first (a team, a school, a city, a niche)?

   Durable networks start by dominating a small, self-contained group before expanding.

   PASS

   A clearly defined first market (a team, campus, city or niche) that can be won on its own.

   FAIL

   Value only appears at large scale, with no realistic way to start small.

3. 03Owned customer relationship

   Do the relationships and transactions live inside the product, rather than in WhatsApp, Slack, email or a marketplace someone else owns?

   If the relationship or transaction happens on another platform, that platform holds the leverage.

   PASS

   Core interactions, payments or records happen inside the product.

   FAIL

   Users connect, then move to WhatsApp, email or a marketplace someone else owns.

4. 04Competitive resilience

   Could a rival with $50M and a better AI model, launching in 12 months, fail to win the same users?

   Funded competitors and better AI models arrive quickly. The question is whether they could win the same users.

   PASS

   A well-funded rival launching later would still struggle to attract the same users.

   FAIL

   A competitor with more capital could rebuild it and win users within months.

5. 05Proprietary data

   Does normal use create data competitors can't buy, scrape or synthesize?

   Data that only you collect cannot be bought, scraped or synthesised by a competitor.

   PASS

   Normal use generates outcome-labelled, local or perishable data that is unavailable elsewhere.

   FAIL

   The data is public, purchasable or easily generated.

6. 06Data flywheel

   Does that data measurably make the product better as usage grows?

   Data only creates a moat if it measurably improves the product as usage grows.

   PASS

   A named metric (accuracy, match rate, relevance) improves with more usage.

   FAIL

   More data does not visibly improve the product.

7. 07Switching costs

   Would leaving mean losing history, integrations, workflow or reputation?

   Accumulated history, integrations and workflows make customers reluctant to leave.

   PASS

   Leaving means losing history, integrations, reputation or established workflows.

   FAIL

   Customers can export everything and switch in an afternoon.

8. 08Distribution advantage

   Is there a distribution channel it owns that rivals can't simply buy?

   Owned distribution lowers acquisition cost permanently; rented channels can be bought by anyone.

   PASS

   An owned channel such as a community, partnership, embedded integration or audience.

   FAIL

   Growth relies only on paid ads, app stores or channels any competitor can buy.

9. 09Platform independence

   Is it safe from Apple, Google, OpenAI, Meta, Shopify or another platform shipping it as a feature?

   Products built on a platform can be replaced when the platform ships the same feature.

   PASS

   No single platform could replicate the product as a feature.

   FAIL

   Apple, Google, OpenAI, Meta, Shopify or similar could ship it natively.

10. 10Beyond the AI model

    Would it stay valuable if a competitor plugged in the same AI model with an empty database?

    If the value comes only from an AI model, anyone with the same model can match it.

    PASS

    The product stays valuable when a competitor uses the same model with an empty database.

    FAIL

    The product is mainly an interface on top of a general-purpose AI model.

3. Ratings

Limitations

The assessment relies on public information and an AI model applying a fixed framework. It can miss private competitors or recent launches, and it cannot judge execution, team or timing. Treat the result as a structured starting point, then validate it with customers. It is not investment advice.