Durable Growth Moats: The New Shield for Disruptive Tech

Credit: Véronique Deshayes for D’Ornano + Co.

Introduction

In May 2023, Chegg’s stock plunged 48% in a single day. The company had built what seemed to be an impregnable position in online education through years of content development and network effects. Yet a single technological shift threatened to undermine these traditional defenses. Just weeks later, Pluralsight, valued at $3.5 billion with 1,700+ enterprise customers, faced similar questions about its moat’s durability.

This wasn’t just about AI — it revealed a deeper truth about how competitive advantages must be rethought in an era of rapid change. The strongest moats today require both rock-solid fundamentals and resilience to technological disruption. Our analysis of over 650 deals in disruptive technology companies has revealed a stark reality: traditional competitive advantages are increasingly vulnerable to technological shifts. Yet the most resilient companies manage to maintain strong growth trajectories even during peri…