Most startups are founded with no moats. But the best ones can prove moat by induction.

Induction is a simple mathematical way to prove statements. An example: *Can you climb a ladder to the top?*

- Base case
`n=0`

*– Can you get on the bottom rung of the ladder?* - Induction step (given
`n=k`

, prove`n=k+1`

)*– At a given rung, can you climb up to the next rung?*

Moat by induction can manifest in many ways. Take network effects:

- Is your product valuable to a single user (
`n=1`

is the base case). - With
`n=k`

users, how much more value does a customer get with`n=k+1`

users?

Sometimes it's about solving zero to one and then one to *n.*