Researchers have included competitive behavior into models explaining new venture performance. But, although the potential advantage of a carefully set-up competitive strategy has been discussed, still, little is known about the phenomenon competitive strategy within the setting of new ventures. Creating a competitive strategy that allows overcoming the liability of newness and the liability of size is a critical task. To succeed, the competitive strategy needs to address market circumstances and suit the scarce resource base and capabilities. Existing literature does not give much practical and theoretical advice on this topic. Particularly, knowledge is limited regarding the interaction of competitive strategies with environmental circumstances and resource-based capabilities. We pose three questions: How do different types of competitive strategy relate to new venture performance? How do competitive strategies interact with environmental circumstances? How do competitive strategies interact with resource-based capabilities?