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Six Product Market Fit Principles That Drive Startup Success | by Paul Asel | Medium

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The Board room fell silent. How could a rapidly growing company with $50M revenues in a hot category not have product market fit? Yet having invested over $100M, we as a Board had just realized that lack of product market fit imperiled the business. Product market fit (PMF) has evolved as a concept over time. Moreover, PMF requirements increase as a business matures. Here is a schematic that we use to assess PMF prior to investment and among our portfolio companies: We think of PMF in three stages: Product Validation, Business Validation and Financial Validation. In our experience, these distinctions are meaningful. Across over 100 investments and over 50 exits at NGP Capital, we found that, unsurprisingly, company success is correlated with PMF. It was striking to observe the extent to which company success differed across these three PMF stages. Among our exited companies, those with Product Validation when we initially investment ultimately had a 25 percent success rate with success

Product Market Fit Startup Technology Founders Entrepreneurship Six Product Market Fit Principles That Drive Startup Success Paul Asel 5 min read · Nov 30, 2023 -- Listen Share “We don’t have product market fit.” The Board room fell silent. How could a rapidly growing company with $50M revenues in a hot category not have product market fit? Yet having invested over $100M, we as a Board had just realized that lack of product market fit imperiled the business. Product market fit (PMF) has evolved as a concept over time and PMF requirements increase as a business matures. Here is a schematic that

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