“You’ve got to start with the customer experience and work back toward the technology — not the other way around.”
— Steve Jobs, 1997

This advice is even more relevant today as AI reshapes how we build consumer experiences. Starting a consumer tech company has never been easier—but scaling one has never been harder. Fierce competition, high user expectations, and distribution challenges make this a complex game.

As a consumer tech investor, I try to use a mental model to simplify the chaos. It’s a framework I apply when evaluating new ideas and advising founders. It focuses on four core questions that drive clarity in the early days.

While all the 4Ws are critical, the Why deserves particular attention early on. The Why is your core value proposition—why the customer cares, why they’ll switch from an existing solution, or why they’ll take a bet on something new. Your Why has to be both strong and differentiated.

I’ve observed that community-first startups frequently underestimate the importance of the Why. They do an excellent job attracting like-minded people around a shared interest (health goals, small business collaboration, parenting, etc.), but often mistake engagement for product-market fit. Just because a community gathers doesn’t mean they have a burning pain point you can monetize. Sometimes, founders try to sell adjacent services—health communities offering diagnostics, or SMB groups offering loans—but the Why isn’t clear to the user. The customer isn’t necessarily finding the product compelling enough to make the switch from their regular provider to the community-offered service. This can lead to false positives in early traction.

How to Use This Framework Today

• If you’re validating an idea, answer the 4Ws before building anything.
• If you’re launching, obsess over the Who and Why. Distribution (Where) comes next.
• If you’re scaling, revisit What you’re monetizing—expand or deepen as trust grows.

I’ve adopted this framework for a few companies that we are familiar with at the time when they started.

Examples of domestic / global scaled up consumer tech companies

	Who to monetize [Who is the ICP, who is feeling the pain today]Going after tech savvy urban residents – business travellers , tech professionals. Started with the premium Uber Black driven by professional drivers.What to monetize [What is the smallest unit of monetization – product, service, community] Uber monetised the service of fulfilling the ride from the early days itself. They charged a commission ranging from 20-30% of the ride. The ride itself was the smallest unit of monetisation. This was clear from the beginning itself.Why to monetize [What is your value proposition] The alternatives of hailing a cab off the street was unreliable, had opaque pricing and was a poor user experience. There was an inherent customer dissatisfaction, which meant that a marginally better service would also find appeal. There was also a deep revenue pool that could shift to the new model. What may have not been clear then, was that Uber would create a new revenue pool from car owners who would sign up and drive for Uber[1]. Where to monetize [How do you crack distribution]  This is the holy grail for a consumer tech startup – how to get the initial distribution going. Uber leveraged multiple strategies right from offering free rides at SXSW to delivering kittens Summary ICP was sharp and focused from the beginning Monetisation unit was clear, even if they may have subsidised it in the beginning, pathway was clear. Pain point was real since alternatives were abysmal Hacky distribution strategies
	Who to monetize [Who is the ICP, who is feeling the pain today]Focused on budget-conscious travelers, young backpackers, and people seeking unique stays. Targeted hosts in need of extra income in cities where hotels were expensive or limited.What to monetize [What is the smallest unit of monetization – product, service, community]Monetized the booking of stays from the start. Airbnb took a commission from both sides—guests paid a 6–12% fee, while hosts were charged around 3% per booking. The smallest unit of monetization was an individual stay or night booked.Why to monetize [What is your value proposition]Alternatives were expensive hotels or unreliable, informal vacation rentals with no easy way to find or book them. Travelers were looking for cheaper, local, and unique places to stay. Hosts had extra space but no simple way to monetize it. Airbnb created a trust-based marketplace, which unlocked a previously untapped supply of lodging. Where to monetize [How do you crack distribution] Airbnb cracked distribution by leveraging events (e.g., Democratic National Convention 2008), running referral programs, and attracting early adopters from tech communities. They also capitalized on word-of-mouth marketing and PR from their unique story (AirBed & Breakfast idea during a convention). Summary ICP was well-defined – travelers looking for affordable options and hosts needing extra income. Monetization was embedded into the marketplace model from the start. Pain point was real – expensive or unavailable hotel options. Early traction through event-driven marketing and referrals.
	Who to monetize [Who is the ICP, who is feeling the pain today]Initially started in 2008 as a restaurant discovery & reviews platform (Foodiebay). This was targeting tech savvy young population looking to decide which restaurant to visit.What to monetize [What is the smallest unit of monetization – product, service, community]As Foodiebay, while it was a nice to have feature but it was still a passive platform and would have been hard to monetise as is. Neither the restaurant nor the customer would pay for this service. This triggered the transition to food ordering and delivery in 2015 and Zomato as we now know. The unit of monetisation then became the service of delivery. Since the restaurants were now getting additional orders, they would pay a commission for the same. This was a clear monetisation path from the start. With time, as the customer became dependant on Zomato, they started charging delivery fees as well. This was an added revenue stream, that might have not been visible in the beginning.Why to monetize [What is your value proposition]As a food delivery platform the value proposition to both the restaurants and the customer is clear. Current alternatives were either pizza delivery or nearby restaurants thereby limiting variety. Zomato was solving a deep pain point and providing an additional revenue stream for the restaurants. Whether there was a large enough revenue pool would not have been as clear then, as is now, with Blinkit now growing faster. How deep would the revenue pool be has been a question for some time. Where to monetize [How do you crack distribution] This is a hyperlocal scaling play. Hence, in the initial days, Zomato started with areas with high density of restaurants like in Delhi -NCR, Mumbai and Bangalore. Once the supply is onboarded, then hyperlocally one can target for demand both digitally and offline. Summary As a listing platform, while it was solving a pain point, there was no revenue pool to target. Once the pivot to food delivery happened, then the unit of monetisation is clear from Day 1. Limited options in food delivery meant that a service like Zomato would find traction. Hyperlocal activation starting with supply (restaurants) first.
	Who to monetize [Who is the ICP, who is feeling the pain today]Focused on urban households (largely professionals and immigrants to bigger cities in gated communities) who sought reliable, high-quality home services (electrician, plumber, carpenter). With time, they found a gap in the salon services at home market and managed to become dominant in that space.What to monetize [What is the smallest unit of monetization – product, service, community]Monetized individual services from the start— appliance repairs, plumbing fixes etc. UC took a commission (ranging from 20-25%+) on each service transaction. Smallest unit of monetization was a single service booking which was happening from the start. While UC would have subsidised the price they charged from the consumers initially till they built trust and stickiness, the pathway to monetisation was evident from the early days.Why to monetize [What is your value proposition]Alternatives were fragmented, hyper-local service providers found through word of mouth or classifieds (Justdial), often unreliable, inconsistent quality, no guarantees, and no accountability. UC brought quality assurance (trained professionals, background checks), convenience (app-based booking, fixed pricing), and trust (guarantees, customer service). Where to monetize [How do you crack distribution] Given the services are extremely hyperlocal in nature, UC also started with pockets in NCR. Summary ICP was clear—affluent, time-constrained urban users in gated communities who needed reliable services and professionals needing steady income. Monetization unit was always clear—individual service bookings with commissions. Pain point was deep—fragmented, unreliable service options. Hyperlocal distribution—starting with supply aggregation, then demand generation in high-density urban pockets

Final Thought

The most successful consumer tech startups today obsess over solving deep pains or unlocking new behaviors, not just cool tech. Founders who win are clear on Who they serve, What they monetize, Why customers care, and Where they scale. If you’re building in this space, reach out to sunitha@kae-capital.com.

[1] Read the famous exchange on market sizing for Uber between Benchmark Investor Bill Gurley and Prof Ashwath Damodaran.