Why the Best Startups Start with a Sin

The Moral Imperative Behind Breakthrough Businesses

In partnership with

WELCOME TO

Estimated Read Time: 4 - 5 minutes

Today’s Docket

News Stories:
SandboxAQ Publishes Massive AI Dataset to Accelerate Drug Discovery (Reuters)
Coralogix Becomes Unicorn with $115M Series E Round (Globes)

Startup Insight:
Why the Best Startups Start with a Sin

Resources:
Simon Sinek's "Start With Why"
Peter Thiel’s “Zero to One
Clayton Christensen’s “Disruption Theory” 
The Airbnb Story by Leigh Gallager

By the way, if you have been enjoying our newsletter so far, we think you might like this one as well!

Sponsored
WithinStartup advice for purpose-led founders. Actionable ideas to scale your impact without burning out.

Latest News from the World of Business

  • SandboxAQ Publishes Massive AI Dataset to Accelerate Drug Discovery (Reuters)

    SandboxAQ, a Google- and Nvidia‑backed AI spin‑out, released a synthetic dataset featuring around 5.2 million 3D molecular structures tagged with experimental binding data. This resource enables researchers to train AI models to predict protein–drug interactions much faster than traditional lab or physics‑based methods .

  • Coralogix Becomes Unicorn with $115M Series E Round (Globes)

    Observability and security platform Coralogix secured $115 million in Series E funding, reaching a valuation exceeding $1 billion. Led by NewView Capital and joined by CPPIB and NextEquity, the round underscores growing demand for AI‑powered enterprise monitoring tools .

The Sin Theory of Entrepreneurship

Walk into any venture capital pitch meeting and you’ll hear founders obsessing over TAM, CAC, and LTV. They’ll present pristine market analyses and growth projections that would make McKinsey proud. But the best startups don’t begin with spreadsheets. They start with sin.

Every breakout product exists to correct a moral wrong—an inefficiency, injustice, inconvenience or exclusion. The most successful entrepreneurs play the role of moral crusaders, identifying societal sins and positioning their companies as the salvation.

What is it?

A startup sin is a problem that makes people genuinely angry, frustrated, or morally outraged. When you identify a sin your business fights, you instantly become relevant to a broader ecosystem that includes your customers, employees and investors.

"A great company is a conspiracy to change the world; when you share your secret, the recipient becomes a fellow conspirator."

- Peter Thiel

This moral foundation creates something that no amount of marketing budget can buy: authentic passion. Customers can smell authentic mission from miles away, and they're willing to pay premium prices and forgive early-stage hiccups when they believe you're fighting the good fight.

For example, take Airbnb. When Brian Chesky and Joe Gebbia started the company, they were fighting against the sin of exclusion rather than solving a mere booking problem. The hotel industry had created a system where only those who could afford premium accommodations could travel comfortably, while countless homeowners sat on unused space. Traditional hospitality was guilty of artificial scarcity, gatekeeping experiences based on economic status.

Airbnb’s mission was “belong anywhere,” a direct assault on the exclusivity that defined travel. This moral positioning allowed them to weather countless crises, from regulatory battles to safety concerns, because their community believed in the underlying righteousness of their cause.

Start learning AI in 2025

Keeping up with AI is hard – we get it!

That’s why over 1M professionals read Superhuman AI to stay ahead.

  • Get daily AI news, tools, and tutorials

  • Learn new AI skills you can use at work in 3 mins a day

  • Become 10X more productive

Actionable lessons: 

  • Language matters: Notice how Airbnb never talks about disrupting hotels, and bring a sense of belonging and community.

  • Embrace the opposition: When hotels lobbied against them, Airbnb framed it as incumbent gatekeepers trying to preserve artificial scarcity.

  • Extend the narrative: Every product decision reinforced the anti-exclusion mission, from neighborhood guides to experiences that connect travelers with locals.

The same story applies to Stripe as well. It came into existence when accepting payments online was an exercise in bureaucratic torture. The Collison brothers saw a moral failing beyond a market opportunity. The unnecessary complexity of the existing payment infrastructure was essentially taxing innovation through friction.

Stripe’s famous seven lines of code came in as a moral statement which democratized commerce, making it possible for any developer to start a business without navigating payment purgatory. 

Finding Your Sin

The most compelling startup sins share three characteristics:

  • Widespread Impact

  • Persistent Duration

  • Moral Outrage

Your sin might be hiding in plain sight. What makes your customers genuinely angry about your industry? What processes exist purely to benefit incumbents at the expense of everyone else? What exclusions seem arbitrary and outdated?

Your Sin-Finding Playbook 

Here is a systematic approach to identify your startup sin:

Step 1: Map the Rage

List every complaint you've heard about your industry in the past year. Not feature requests or minor inconveniences—genuine expressions of anger and frustration. What makes people actually upset?

Step 2: Follow the Money Trail

Where are incumbents making profits that feel fundamentally unfair? What costs exist purely to benefit gatekeepers rather than end users? These economic inefficiencies often reveal underlying sins.

Step 3: Identify the Excluded

Who is your industry currently not serving well? What groups are being systematically disadvantaged by how things currently work? Exclusion is often the most powerful sin because it creates clear heroes and villains.

Step 4: The Dinner Party Test

Explain your business at a dinner party. If people immediately start sharing their own horror stories about your industry, you've found a sin. If they nod politely and change the subject, you haven't.

Step 5: The Employee Test

Would someone take a 20% pay cut to work at your company? If the answer is no, your sin isn't compelling enough. The best sins create true believers who see their work as a moral calling.

Remember: the best startups don't just solve problems—they right wrongs. In a world full of incremental improvements and feature factories, moral clarity is your ultimate competitive advantage.

Find your sin, articulate it powerfully, and build everything around fighting it. Your customers, employees, and investors will thank you.

Learn AI in 5 minutes a day

What’s the secret to staying ahead of the curve in the world of AI? Information. Luckily, you can join 1,000,000+ early adopters reading The Rundown AI — the free newsletter that makes you smarter on AI with just a 5-minute read per day.

You Might Want to Read:

Pregnancy can be a wonderful experience but also comes with various challenges, including finding comfortable and stylish clothing that fits as the body changes. Many pregnant women struggle to find maternity wear that is both fashionable and affordable. A startup could offer a subscription-based service that provides a curated selection of maternity clothes tailored to each woman's style preferences and size throughout their pregnancy. By offering a convenient solution that eliminates the need to constantly shop for new clothes to accommodate the changing body, this service could alleviate a significant source of stress for pregnant women. The market size for maternity wear is substantial, with the global maternity apparel market expected to reach $16.6 billion by 2027, according to a report by Grand View Research.

StartEngine’s $30M Surge — Own a Piece Before June 26

Private markets are having a moment, thanks to companies like StartEngine.

The leading alternative investing platform is helping everyday investors like you access deals once reserved for VCs and insiders, including exposure to private market titans like OpenAI, Databricks, and Perplexity.¹

How’s it going? In Q1 2025, StartEngine pulled off $30M in revenue, its biggest quarter ever (based on unaudited financials).²

But StartEngine isn’t just a middleman. The company earns 20% carried interest on select pre-IPO offerings, unlocking value for shareholders when these deals succeed.³

How can you tap into this diversification play? By investing in StartEngine.

StartEngine has crowdfunded $85M+ to date, and you can join 45K+ shareholders before the company’s current round closes on June 26.

Reg A+ via StartEngine Crowdfunding, Inc. No BD/intermediary involved. Investment is speculative, illiquid & high risk. See OC and Risks on page.

Was this Newsletter Helpful?

Login or Subscribe to participate in polls.

Put Your Brand in Front of 15,000+ Entrepreneurs, Operators & Investors.

Sponsor our newsletter and reach decision-makers who matter. Contact us at [email protected]

Image by Anastasiya Badun on Pexels.

Disclaimer: The startup ideas shared in this forum are non-rigorously curated and offered for general consideration and discussion only. Individuals utilizing these concepts are encouraged to exercise independent judgment and undertake due diligence per legal and regulatory requirements. It is recommended to consult with legal, financial, and other relevant professionals before proceeding with any business ventures or decisions.

Sponsored content in this newsletter contains investment opportunity brought to you by our partner ad network. Even though our due-diligence revealed no concerns to us to promote it, we are in no way recommending the investment opportunity to anyone. We are not responsible for any financial losses or damages that may result from the use of the information provided in this newsletter. Readers are solely responsible for their own investment decisions and any consequences that may arise from those decisions. To the fullest extent permitted by law, we shall not be liable for any direct, indirect, incidental, special, or consequential damages, including but not limited to lost profits, lost data, or other intangible losses, arising out of or in connection with the use of the information provided in this newsletter.