The power of simplicity 🪄
People don’t have your time, which is why an entrepreneur must take the time to craft a clear value proposition that solves a problem and to take care of their customers.
Slow and Steady Wins the race: Focus on Core Features First.
In the bustling world of startups, the temptation to offer a multitude of features can be reassuring, making us feel that our product holds real value. However, history shows that simplicity and focusing on customer needs are often the keys to success.
Data indicates that approximately 90% of startups fail, with over 20% not surviving their first year and 50% faltering by the five-year mark. A significant factor contributing to this high failure rate is the lack of a clear, focused value proposition. Startups with a narrow focus can allocate resources more efficiently, iterate based on customer feedback, and establish a strong market presence.
It may seem obvious, but it’s worth repeating: embracing the Minimum Viable Product (MVP) matters. The MVP approach means building just enough to satisfy early adopters and collect valuable feedback. However, an MVP is only as good as the problem it solves. In fact, 42% of failed startups built a product or service that turned out to have no market demand. In short, if you’re not solving a real problem for a sizable market, chances of success are slim.
And In a crowded market, simplicity is often the best differentiator.
Take, for example, a product that is almost universally loved: the burger. 🍔
The Five Guys Phenomenon
Consider the story of Five Guys, four brothers, one father = Five Guys. (A masterclass in simplicity)
In 1986, amidst a saturated fast-food market dominated by giants like McDonald’s and Burger King, the Murrell family decided to open a burger joint. Instead of diversifying their menu, they honed in on perfecting a few items: burgers, fries, and drinks. By prioritizing quality and freshness, Five Guys distinguished itself, leading to a loyal customer base and eventual global expansion and with very little budget for marketing, but rather by relying on word of mouth.
So despite the success, they deliberately took 15 years to grow to only 5 locations.
Then Matt (one of the sons) gifted the book “Franchising For Dummies” to his father to convince him that they can keep the quality even with franchising. As a result, franchising transformed those five locations in 2001 into over 1,700 worldwide by 2023
Resource Allocation efficiency and customer retention:
Keys to Long-Term Viability
70–74% of high-growth startups fail due to premature scaling. Expanding the team, product lines, or marketing spend too rapidly before the fundamentals are proven. That’s why it is important to focus at the beginning.
According to Harvard Business Review, increasing customer retention rates by just 5% can boost profits by 25% to 95%. Acquiring users is only half the battle – keeping them is arguably even more important for long-term viability. In fact, winning a new customer can cost 5× more than retaining an existing one, and satisfied repeat customers tend to spend more with a company over time. The customer is king. 👑
In the startup ecosystem, less is often more. By focusing on a core feature or product, startups can deliver exceptional value, build a loyal customer base, and navigate the challenges of early growth more effectively.
Embracing simplicity isn’t just a strategy, it’s a pathway to sustainable success.
🚨 BREAKING NEWS
HEC Paris Innovation & Entrepreneurship Institute has secured 4th place in the Financial Times ranking of Europe’s leading start-up hubs. This recognition highlights its significant impact on the entrepreneurial ecosystem, fostering innovation and supporting high-potential startups.
A Pawsome Leap into the Future of Pet Tech! 🐶 🚀
Petnow Inc., a pioneering South Korean startup specializing in app-based pet biometric identification, has been selected to join the prestigious UNLEASHED by Purina accelerator program for 2025. This 20-week program offers tailored mentorship and up to CHF 50,000 (approximately $55,000) in funding to innovative pet care startups. Petnow’s enhances pet registration and helps accurately report missing pets, contributing to the safety and well-being of our beloved companions.
Petnow Inc. is also a proud participant in the Korea SMEs and Startups Agency (KOSME) Acceleration Program, powered by the HEC Paris Incubation & Acceleration Center and STATION F. Since 2020, this program has been accelerating Korean startups, providing them with invaluable resources and support to expand their presence in the European market. Discover all the startups in this program here !
Scaling Corporate Innovation the HEC Paris Way 🚀
In an exclusive interview, Mathias Abramovicz, Director of pedagogy at HEC Paris’ Innovation & Entrepreneurship Center, shares his insights on the crucial role of innovation within established corporations. Contrary to common belief, large companies are not falling behind in innovation. By combining academic expertise with real-world business acumen, HEC Paris offers unique approaches to help corporations develop and implement effective innovation strategies.

Innovation at the Service of Beauty 👄
5 new startups have just joined the latest cohort of L’Oréal’s Beauty Tech Atelier!
In partnership with the Incubateur HEC Paris, the L’Oréal Beauty Tech Atelier supports the most promising BeautyTech startups. This 6-month acceleration program empowers visionary entrepreneurs to reinvent the beauty of tomorrow, making it more inclusive, responsible, and transparent.
✨ 100% Tech-driven startups
🚺 100% Female founders
🌍 An international mix with startups from the US, Europe & Asia
🥽 FFFACE.ME | Augmented reality for immersive customer experiences.
This startup is an award-winning Innovation Tech Studio that integrates AR Filters & Mirrors, Digital Clothing, Virtual Influencers, Metaverse into the brand's marketing and PR communications. With over 1,000 projects completed and billions of impressions, FFFACE.ME continues to push the boundaries of technological innovation.
🛍️ Landng | Experiential social commerce for luxury and travel.
In a world where authentic recommendations matter more than ever, Landng is redefining how luxury travel brands collaborate with content creators. With its platform, Landng enables brands to create affiliate links, offer paid collaborations to influencers, and accurately measure the impact of their campaigns. Meanwhile, content creators monetize their recommendations by sharing their favorite places and products with their audience.
TheSEA | Creative AI for high-performance beauty content. 🎨
TheSEA is a Tokyo-based startup specializing in custom AI solutions for global beauty brands. Founded in 2023, it develops bespoke AI algorithms and large vision models (LVMs) to create high-quality, AI-powered commercial content.
SPATE – Trend analysis to anticipate the market. 📊
Spate is a New York-based startup using AI to track emerging beauty and wellness trends. Founded by ex-Google Trendspotting experts, it analyzes 20B+ search signals and 40M+ TikTok videos to help brands identify trends, key players, and strategic positioning. Trusted by Estée Lauder, L’Oréal, and P&G, Spate delivers data-driven insights to stay ahead in the beauty industry.
VIOLA – Enhanced personal safety through innovation.
VIOLA is an Italian tech startup enhancing personal safety for pedestrians. Founded in 2022, its app connects users with trained volunteers via real-time video calls, offering assistance in risky situations. Features include geolocation, video recording, and emergency contact access. Available in multiple languages, VIOLA offers a free version and a premium corporate plan for advanced safety features.
THE FUTURE OF YOUR HEALTH: AI, XR & TELEPORTATION
The HEC Alumni Digital Hub is delighted to invite you to an exceptional event. Join top experts to explore how AI, immersive imaging, and responsible AI are revolutionizing healthcare, surgery, and patient care worldwide.
Additionally, three startups from the Incubateur HEC Paris will also be speaking at this event: IOLOKIS | Agent T | ALDEBARAN
📅 March 12th, 2025 | 6:30 PM (GMT+1)
📍 HEC Alumni House, Paris & Online
👉 Register now!
Real Estate & Energy Renovation: Action Over Words! 🏡
Two entrepreneurs from the HEC Paris Launchpad, Thomas Reynaud (Founder of Garantme) and Emma Freyd (Founder of Optimmo), are shaking up the real estate sector! Together, they dive into one of today’s biggest challenges: making energy renovation accessible and equipping real estate professionals with the right tools to accelerate the transition.
In this new episode of IMMOSTORIES, Emma Freyd shares how Optimmo is bridging the gap between legislation, property owners, and professionals to make renovation simpler and more effective.
Veridi Technologies BV secured €2.5 million to revolutionize soil biodiversity diagnostics. 🌍
By combining AI-powered imaging and automated microscopy, Veridi Technologies BV makes soil analysis faster, more accessible, and cost-effective, directly addressing the €50 billion annual soil degradation problem in the EU. 🤯
A huge congratulations to Ziad Matar. and the entire Veridi team for this achievement! We’re proud to have been part of their journey through Hectar x Incubateur HEC Paris and can’t wait to see their impact grow. 🌱
AyoLab is a B2B SaaS solution that helps major brands optimize their marketplace presence by tracking true sell-out per seller and product.
👉 Customer Success Manager
Toore is an operations management software that streamlines the refurbishment of electrical products, machinery, and vehicles with traceability.
👉 Sales
HermineIA is revolutionizing legal AI by helping legal professionals draft faster and more efficiently with AI.
👉 Internship
Deardot is eco-friendly and vegan cosmetic brand, pioneering sustainable beauty with waterless formulas and innovative plastic-free, water-soluble packaging.
👉 Marketing/communication (intership)
Because we know a lot of VCs follow us, here are some job boards just for you!
👉 see opportunities
AI Pin’s Fall: A Lesson in Overpromising and Under-Delivering
The AI Pin aimed to advance the concept of voice assistants by integrating generative AI, primarily through a connection to ChatGPT developed by OpenAI. It offered functionalities like answering questions, summarizing missed emails and messages, real-time translation replicating the user’s voice, and object identification via its camera. But things didn’t go as planned. The AI Pin’s failure exemplifies the dangers of launching an ambitious product without ensuring its core functionalities are solid.
1. Unpolished Core Features – Slow response times, incorrect answers, and overheating made the AI Pin frustrating to use. Instead of perfecting the basics, the company prioritized futuristic capabilities.
2. High Cost, Low Value – At $699 plus a $24/month subscription, the AI Pin was priced similarly to high-end smartphones yet offered a fraction of their reliability and functionality.
3. Lack of an App Ecosystem – The absence of an app store limited the device’s flexibility, preventing developers from improving or expanding its capabilities.
4. Consumer Trust Erosion – Early adopters lost faith when the device failed to meet expectations, leading to poor reviews and a lack of word-of-mouth adoption.
5. Premature Market Exit – With the AI Pin being discontinued after barely a year, Humane’s rapid downfall highlights the risk of bringing a product to market before its core features are fully refined.
The Takeaway: Slow and Steady Wins the race.
Humane’s AI Pin serves as a cautionary tale for startups. Despite raising $230 million in funding, the company struggled to gain traction and was ultimately acquired by HP for $116 million, marking the end of its independent journey. This failure highlights the risks of trying to redefine an entire industry too soon instead of first ensuring a solid foundation. Startups should prioritize delivering a reliable, functional, and valuable core experience before expanding into ambitious features.
After all, innovation alone isn’t enough—execution and usability are what truly drive adoption.
“There is no use in running; one must leave on time.”
Jean de La Fontaine
(The Tortoise and the Hare)