The “Red Queen Affect” is a reference to the evil queen from Alice in Wonderland, but it’s a powerful and archetypal story element because it references a natural real world phenomenon: As you are racing to compete with your competitors, they aren’t just standing still. Your competitors are also racing, so you have to forever outpace their innovation if you want to have any chance of catching up, staying ahead, and otherwise being successful against them.
For early stage startups, the founding team is primary identifier of future success. Investors need to deeply respect you and your cofounders before they make any investment decisions.
Often times, a business can succeeds even when they are losing market share to thier competition. That’s because even if you can’t get a bigger “piece of the pie” you might be sharing a pie thaf is growing bigger fast!