Durable Growth Moats: The New Shield for Disruptive Tech
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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…
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