What actually creates a competitive moat?

For years, founders believed the answer was simple: build a better product.

Today, venture investors increasingly believe the answer is distribution.

In this episode of High Stakes, Paige Soya and Nick Duafala are joined by Mark Schacknies, CEO & Co-Founder of NFTYDoor—a company K Street backed in its earliest stages after recognizing the strength of its distribution strategy. NFTYDoor went on to become one of the country's leading white-label HELOC platforms, serving 500+ lenders, 36,000+ mortgage loan officers, and approaching $7B in annual run-rate volume before its successful exit.

Using NFTYDoor's journey as a case study, they explore why venture investors increasingly evaluate go-to-market execution alongside technical differentiation, how AI is reshaping startup defensibility, and what founders should focus on to build businesses competitors can't easily replicate.

In this episode:

• What venture capitalists mean by a competitive moat
• Why product-market fit comes before scalable distribution
• How distribution becomes a durable competitive advantage
• The role of network effects and switching costs
• Why founders should understand—not avoid—the competition
• How focus creates defensibility in crowded markets
• Why customer discovery matters more than the perfect pitch
• Practical advice for founders raising venture capital

Whether you're building a startup, evaluating investment opportunities, or interested in how venture capitalists think about competitive advantage, this episode provides actionable insights into building durable businesses in the AI era.

Topics: Venture Capital • Startup Fundraising • Competitive Moats • Startup Strategy • Product-Market Fit • Distribution Strategy • Network Effects • Switching Costs • Founder Advice • Go-to-Market Strategy • Startup Growth • Venture Investing