This presentation was used for my talk at HowToWeb 2014 in Bucharest Romania and is the updated presentation to my blog post on the subject - http://thedrawingboard.me/2013/05/03/the-product-market-fit-cycle/
1. The Product Market Fit
Cycle
Carlos Eduardo Espinal (@cee)
Partner | @seedcamp
2. Since 2007
Over 140+ Companies
Focusing on Product Market
Fit
Pre-Seed & Seed Investments
3. It’s human nature to focus on what
you are good at not on what you suck
at
and…
Most Founders/Hackers love building
product
Therefore…
4. Founders Sometimes
· Get stuck optimizing a product’s features
· Have metrics, but not deriving the right
conclusions
· Failing to hit Product Market Fit before cash
runs out
6. What is Product / Market Fit?
Poor conversions, no word of mouth, slow usage
growth, long sales cycle, and high churn
|
“Customers are buying the product as fast as you
can make it, or usage is growing as fast as you
can add more servers.” - Marc. A.
7. Why do you want to create a company?
· What is your vision?
· What are your values?
· What company culture do you want to instill?
8. Other than for making money…
· On what basis will you make decisions?
· What will you be looking for in people you hire?
· what will motivate you through the hard times?
12. Identifying a Minimum Viable Segment
· Allows for better differentiation with out-group
competing products
· Allows for easier referrals in-group
· Allows for efficient capital use in reaching your
market
26. Picking up where we left
off…
What can sometimes be the problem?
27. It’s easy to miss one/all of these:
1. Identifying a Minimum Viable Segment
2. Defining a clear positioning strategy + MVP that
represents it
3. Testing of a complimentary go 2 market
strategy
4. Tracking the right metrics to refine your value
proposition
28. Define a “target” (MVS)
Create a “bullet” to hit it
(positioning + product + go-2-market strategy)