Sequoia's Jess Lee explains how early-stage startups can identify product-market fit | TechCrunch
๐ Abstract
The article discusses the concept of product-market fit and how startups can be categorized into three archetypes - "Hair on Fire", "Hard Fact", and "Future Vision" - to help founders better understand their challenges and opportunities.
๐ Q&A
[01] Startup Archetypes
1. What are the three startup archetypes described in the article?
- "Hair on Fire" - Startups that address an urgent problem
- "Hard Fact" - Startups that solve an existing problem better than what's already out there
- "Future Vision" - Deep tech, moonshot, and out-of-the-box startups
2. How can identifying the archetype help startups?
- It can help founders focus and develop their business
- It can help investors evaluate potential startup investments
- It can help founders better anticipate and articulate the challenges and opportunities in their space
3. What are the key considerations for each archetype?
- "Hair on Fire": Need for ruthless execution and high velocity to stay ahead
- "Hard Fact": Need to be good at marketing the problem as well as the solution
- "Future Vision": Fundraising may have been easier in a low-interest rate environment
4. What did the Sequoia partner say about the different archetypes?
- Sequoia does not have a favored category among the three
- Certain types of companies (e.g., deep tech, moonshots) may find it especially challenging to raise money in the current climate
[02] Founder-Market Fit
1. What is the relationship between founder-market fit and product-market fit? The article suggests that there is a "little bit of founder-market fit that goes into each of these product-market fit categories", implying that the founder's fit with the market is an important factor in achieving product-market fit.