GM. This is Needs to Exist (aka NTE), delivering daily startup ideas—today’s is about building a better vice. Because if you are gonna have one, it might as well feel like a luxury.

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Here’s what we’ve got for you today.

• Daily Idea - Luxury nicotine reimagined

• The Startup Moat

Sophisticated, Premium, Modern Nicotine Pouches

Inspired by this tweet by @nateliason

The One Liner

Luxury nicotine pouches designed for modern lifestyles.

The 140 character tweet (or X) version

Upscale, tobacco-free nicotine pouches in sleek, refillable containers. A premium, harm-reduction alternative built for discerning adults.

The Longer Story Version - That Maybe You Will Read

Nicotine products are stuck in the past.

Sentiment around nicotine has shifted, with more consumers prioritizing harm reduction. However, the market remains dominated by low-quality experiences: flimsy plastic containers, a gas station-only buying process, and products that lack sophistication.

Competitors like Zyn and On! offer convenience and functionality but fail to elevate the experience. Their packaging feels disposable, their flavors often uninspired, and they don’t address the needs of consumers who value elegance, discretion, and quality.

For adults who demand more—better design, premium materials, and a refined experience—there’s a massive gap in the market.

The Solution
A premium, DTC nicotine pouch brand that elevates the entire experience.

Here’s how it’s better:

• Refined Design: Forget flimsy plastic. These pouches come in sleek, metal, refillable containers that exude sophistication and durability.

• Premium Ingredients: Tobacco-free, smooth, spit-free pouches crafted with high-quality ingredients in curated flavors to appeal to modern palates.

• DTC Convenience: Skip the gas station. A direct-to-consumer model ensures discreet delivery, subscriptions, and a personalized shopping experience.

• Sustainability: Recyclable, refillable containers and a commitment to eco-friendly materials make this a guilt-free choice for the conscious consumer.

This isn’t just nicotine—it’s nicotine redefined for the modern adult.

How We’d Build It

• Flavor Development: Partner with flavor houses to create a curated range of pouches that balance satisfaction with sophistication.

• Premium Packaging: Source sleek, durable, and refillable metal containers. Tools like CAD software (e.g., SolidWorks) can design prototypes, and manufacturers like PakFactory can produce high-quality packaging at scale.

• Sustainability: Collaborate with vendors specializing in eco-friendly materials for a more sustainable product line.

• DTC Platform: Build an intuitive e-commerce experience using platforms like Shopify or BigCommerce. Integrate features like subscription management and customer profiles for personalization.

• Data-Driven Personalization: Use tools like Segment or Klaviyo to track user preferences, purchasing behavior, and feedback, enabling hyper-personalized recommendations.

• Compliance and Regulation: Leverage legal tech platforms like RegTech or VComply to ensure the brand meets all regulatory standards for nicotine products.

Why It Needs to Exist
The nicotine market is overdue for a revolution.

While competitors focus on utility, they’ve missed the opportunity to innovate on design, user experience, and sophistication. For adults who prioritize harm reduction and demand premium products that fit their lifestyle, this is the solution.

This isn’t just a better product—it’s a better experience. Elevated, discreet, and modern, it transforms nicotine from a basic habit into a refined choice.

The time is ripe for someone to take this concept and make it real. The market—and the consumers—are ready.

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Building a Startup Moat in the Age of AI

AI and Startup Moats by Unzip.dev explored what makes a startup moat durable in today’s AI-driven world. It got me thinking: if AI is upending industries and breaking down traditional barriers, how do you not just survive but thrive? How do you uncover startup ideas that can stand the test of time?

The Real Work Behind Startup Ideas

The article compared moats to the water around a castle—designed to keep competitors out. But here’s the thing: many of the moats that protected businesses in the past are drying up. AI is rewriting the rules, making it easier and faster for competitors to replicate and improve on what you build.

Your job as a founder isn’t to wait for inspiration. It’s to systematically search for ideas that solve real problems, create value, and build new kinds of moats—ones that AI can’t easily erode.

Where to Look for Startup Ideas

The article highlighted several ways to think about opportunity. Here’s my take on where you should be looking:

1. Find the Pain
   The best ideas come from solving painful problems—especially the kind people can’t ignore.

   Example: Calendly didn’t just make scheduling easier. It eliminated the pain of back-and-forth emails, saving people hours.

   Questions to ask:

   • What’s something you hate doing?

   • What problems are people complaining about but not solving?

2. Chase the Dollars
   Pain is great, but expensive pain is better. The article noted that startups solving problems businesses already spend money on have a huge advantage.

   Example: Monday.com carved out a space in project management—a category where businesses were already spending billions.

   Questions to ask:

   • Where are businesses spending inefficiently?

   • What problems do people pay to solve even when the solutions suck?

3. Ride the Trend
   Timing is everything. They emphasized how AI is creating new opportunities every day. If you can ride the wave early, you can win big.

   Example: Runway is riding the AI wave by making creative tools for video production accessible to non-professionals.

   Questions to ask:

   • What’s the biggest shift happening in your industry?

   • What new problems are emerging because of it?

How to Filter Ideas

Not all ideas are good ideas. Their insights on “dead moats” are a good lens for filtering:

1. Avoid Commodity Ideas
   If AI can copy it overnight, it’s not worth pursuing.

2. Check for Moats
   Can you build a moat—like proprietary data, unique partnerships, or trust?

3. Validate Timing
   Good timing is a cheat code. If the market isn’t ready, even the best idea can fail.

4. Test Demand Early
   Before you build, talk to potential customers. If they’re not willing to pay, move on.

Tools to Speed Up the Process

AI and other tools can give startups an edge. Here’s how you can use them:

• OpenAI: Brainstorm ideas, generate marketing copy, or even prototype concepts.

• MidJourney: Quickly mock up visual ideas.

• Zapier: Automate repetitive workflows to save time.

• Bubble: Build MVPs without writing code.

• Notion: Organize your research, insights, and experiments in one place.

These tools aren’t just accelerators—they’re idea generators. Play around with them and see what sparks.

What Won’t Work Anymore

Don’t relying on moats that AI is eroding:

• Better product alone: AI levels the playing field for features.

• Big teams: Smaller, agile teams now have the advantage.

• UI/UX as a differentiator: Tools like Figma AI make it easy for competitors to catch up.

Instead, focus on moats like trust, physical goods, unique data, and industries where accountability matters (e.g., healthcare, legal, finance).

The Narrow Window to Build

Here’s where this hit home: we’re in a narrow golden window to build. AI is breaking down barriers and creating opportunities for smaller, faster startups to win big. But this window won’t last forever.

To seize it, you need to:

• Solve real, painful problems.

• Build moats that can endure AI disruption.

• Move quickly—speed is your superpower.

Your Next Move

So, what’s the problem that’s been bugging you? What’s the pain point you see but haven’t tackled yet?

Take this framework, mix in some tools, and start experimenting. Remember: good ideas aren’t plucked out of the air—they’re uncovered by doing the work.

Have an idea or want help refining one? Reply to this email—I’d love to hear it.

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