How to Build a Startup That Solves Real Problems

Look around. What do you see? Bold and flashy trends tend to dominate the business space. Investment funds are rushing to invest in AI, blockchain and big data projects, while media attention is concentrated on just a few industries where the hype sets sky-high expectations. However, the real market is much broader than this narrow focus on “trendy” technologies.

It includes countless traditional industries and niche sectors that haven’t yet undergone major transformations but are in urgent need of innovation — and they can be just as profitable as the most advanced solutions.

From my experience, I’ve seen how the obsession with hype-based products creates a weird paradox — startups with real and practical value often struggle to get the resources they deserve and end up overlooked. I’ve come to realize that many traditional markets and industries still haven’t undergone their “digital revolution” or are in need of straightforward yet highly effective solutions.

These products might not steal the spotlight at AI conferences, but they have the potential to build real, long-term stability for founders, employees and investors alike.

When a startup doesn’t fit into the latest trends, there are two options. One is to reshape the product to align with the trends, adapting it to match what’s currently in demand. The other is to stay true to the original idea, trusting that the market genuinely needs the solution you’re building. In some cases, the first approach can work — especially if your product is already close to trending technologies and can integrate them naturally.

But more often than not, these “make-up adjustments” dilute focus, evoking the feeling of being scattered. You end up chasing trends instead of standing out with a unique, well-defined vision. Not really professional, right?

The second approach focuses on real value and economic efficiency. Not every niche comes with a flashy tech narrative, but many can generate substantial revenue if you offer a solution that really simplifies life for customers. Take agribusiness automation, for example — it may not sound as exciting as an AI system that generates text or images. However, for farm owners struggling with ongoing costs from manual record-keeping and production analysis, a tool that eliminates this burden is an easy sell. A startup like this might not fit the hype cycle, but it can deliver a steady, reliable cash flow.

Looking at real examples, much of the investment and innovation in logistics is focused on large-scale platforms managing global supply chains. But there’s also a massive untapped market in local transportation and micro-logistics, where outdated, low-tech processes still dominate. A team building a service to help small and medium-sized businesses manage local freight operations might not seem particularly “trendy.” Yet this kind of solution directly addresses the needs of regional players, cutting costs and speeding up deliveries.

To win over investors, it’s crucial to communicate your startup’s value effectively. The “wow” companies often sell their vision on emotion — promising that AI is the future or that big data will transform entire industries. Your goal is to show that, while your product may not be as flashy, it solves real problems and has clear demand. Three key arguments can help make your case:

1. Tangible results. Share success stories from clients who have already benefited from your solution. If your startup is still in the prototype stage, present solid projections that clearly demonstrate its potential impact. Investors want to see measurable progress, not just an idea.
2. Clear financial model. If you’re working in a less obvious market, your revenue structure needs to be airtight. Investors will look for details on how you plan to generate income, the costs of scaling and the product’s profitability.
3. Proven demand. You may not attract those chasing the latest cutting-edge tech, but there are investors and strategic partners who value stable business models and long-term growth. Emphasize how your product opens up new market segments or expands an existing one, making it an attractive opportunity for those looking beyond short-lived trends.

After years in this field, I’ve realized that effective communication is just as important as the product itself. It’s not enough to say, “We’re solving problems no one is talking about.” You need to explain the value in a way that even someone unfamiliar with your industry can immediately understand why your project matters. Jargon and overly technical details can alienate potential investors, especially those from funds that don’t specialize in your sector. What’s more important is proving that your product works — or, at the very least, has a clear and viable roadmap.

Sometimes, the key to success lies in finding the right allies. If founders struggle to reach major investment funds due to a lack of visibility, partnering with established companies in their industry can be a strong alternative. Larger players often recognize that a startup can address specific pain points they don’t have the resources to tackle themselves. These partnerships create opportunities for joint market expansion, technology integration, and pilot projects in real-world environments. Moreover, having a well-known corporate partner signals to other investors that your product isn’t just theoretical — it has real demand and practical applications.

If you’re confident that your idea has real market demand, don’t dismiss it just because it doesn’t fit the mold of the “next big thing.” While others pour resources into hyped-up marketing, you could carve out a stable and profitable niche where competition is lower and customers are more open to new solutions. No, you might not make headlines as a “game-changing technology,” but you’ll build a sustainable path for yourself and your team — and eventually, investors will come to you.

At the end of the day, the most critical quality of any startup is the ability to identify and solve real problems. Trends rise, peak, and often fade into obscurity. However, business and societal challenges remain, and people need to be willing to tackle them with practical, effective solutions.