This doesn't strike me as a common failure path for startups, hence not super helpful advice. Being awesome is always a prerequisite. But, being first does offer huge advantages. First movers often have a surprising amount of of staying power and really raise the bar on subsequent offerings.
doesn't this conflict with "Release early and often" mantra?
Not really. Releasing early doesn't necessarily mean releasing first. Moreover, by exposing you to the demands of real customers, releasing early is often the best way to make an awesome product.
