Art of Investing in Underdog Ventures

We have seen in movies that sometimes underdog characters won the best performance award. Even in the corporate world sometimes underdog companies win races against many established companies in the same product. Underdog ventures seek to set a standard for leadership and a high creative environment through their work with high net-worth social investors or profit minded CEOs. Underdog ventures add two ingredients to their marketing: first is creation of growing and second is the importance of combined work power.

When a customer reads any underdog company’s biography, they feel 2 important components of underdog brands: it highlights a company’s poor starting days and second it shows passion and determination with which the company fought against all the odds. Success of underdog companies show consumers reflect themselves with the company’s character. They feel attached with the process, company took to establish themselves in the market. To understand it more we performed an experiment in which we chose two companies : One with high brand value while other with underdog story. The result shows 80% of the customers choose a product of the underdog brand and their preference relies on the fact that a sense of struggling that the underdog companies have faced.

Even in the real world people feel more bent towards weaker sections of the society like women, children, blue collar workers and minority sections.

The goal of underdog companies is not to make big ventures but to make big differences through little efforts like combined work, financial discipline, creating a big network and customer before any profit.

Is underdog always a best choice

There are sectors like hospitals, software based companies that could run into trouble if people get to know about their disadvantages. Like in hospitals if customers find bad quality or less safety in the past it will affect the hospital’s reputation. Similarly for software companies quality matters a lot. There are other companies too that derive their benefit from being an updog like Jaguar, Mercedes. They drive their strength from being top leaders in the market.


Underdogs, outworking the competition is often the only viable option, Gladwell explains. And the same thing can be said for the business world, he added. Underdog companies that start out small and short of money and resources must often work much harder than larger businesses in order to successfully compete. They have to continuously strategize their process to be in the market.


Author: A.C.

Dr. Chakraborty is a researcher in electronics and has authored numerous articles in the domain. She is also an avid blogger and shares a penchant for domains like technology, business and science.

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