Fit, have a clear sense of wh…k on your early product — then what? It is incredibly difficult to then build a repeatable process. Our belief is that this should always be founder led as nobody understands the problem/solution and your product as well as you. Enterprise founders should remain in charge of sales until you’ve moved beyond Product Market Fit, have a clear sense of why customers buy and not delegate the building of the sales process too soon.
are not relevan… best founders we’ve worked with are constantly iterating their product based on customer feedback. We believe this to be the number one reason most enterprise start-ups fail is the founder(s) failing to listen to customers and instead believing their perceived solution to the problem is what the customer needs. If you’re not solving a “hair on fire” problem for a customer, then you are not relevant.
…ompelling apps: Facebook had its core socializing features and the iPhone had a number of key apps. Decentralized platforms, by contrast, often launch half-baked and without clear use cases. As a result, they need to go through two phases of product-market fit: 1) product-market fit between the platform and the developers/entrepreneurs who will finish the platform and build out the ecosystem, and 2) product-market fit between the platform/ecosystem and end users. This two-stage process is what causes many people — including sophisticated technologists — to consistently underestimate the potential of decentralized platforms.
…ave that foothold is a far more linear task than the black magic of solving that initial problem.
The difference then between the companies that get trapped in niches, and those that become strategic, are the teams that have the ambition to keep growing the problem, and the agility and talent to keep attacking it. At the Series A, initial market size is often irrelevant, and eventual market size is hard to see…ave that foothold is a far more linear task than the black magic of solving that initial problem.
The difference then between the companies that get trapped in niches, and those that become strategic, are the teams that have the ambition to keep growing the problem, and the agility and talent to keep attacking it. At the Series A, initial market size is often irrelevant, and eventual market size is hard to see.
It would have been easy to write off Airbnb as attacking a niche: creatives who were willing to r…
rom a tactical feature in a space full of problems. Initially, they must fight to kee…? how many of those customers are there?) you should be able to answer before you build anything.
Great entrepreneurs can change and expand markets, even consumer attitudes. Total focus on solving a problem for a customer you understand helps you dominate a “small market,” and dominance of a tactical, small market gives an agile and ambitious team a wedge to grow from. Many great companies start from a tactical feature in a space full of problems. Initially, they must fight to keep maintain focus and simplicity, and solve a single problem well. That is often their competitive advantage vs. large incumbents. The deepening of product value and expansion of surface area and customer base that happens once yo…
When do you start the process of raising your Late Seed (or for that matter Series A) round? Answer — The day you close your Seed (or Late Seed) funding and not when you have 6 months of runway. Plant the seed then and nurture it in the intervening period so that when you hit the “6 month runway” point, you have a pre-selected pre-primed group of potential investors who are familiar with your story, have seen you progress and who have been socialising your company within their firms.