SlideShare a Scribd company logo
1 of 10
CONFIDENTIAL PRESENTATION | PAGE1
The Search for Product-Market Fit
Jeff Bussgang
General Partner, Flybridge Capital
Senior Lecturer, Harvard Business School
March 31, 2016
CONFIDENTIAL PRESENTATION | PAGE2
Concepts
• What people mean when they use the phrase,
“Product Market Fit” (PMF), plus:
– Lean Start-Up Theory
– Customer Development Process
• Help you devise your approach to achieving PMF
and avoid wasting a lot of money
• What is great product management?
CONFIDENTIAL PRESENTATION | PAGE3
The Lean Startup
• Many startups fail because they waste capital and
time developing and marketing a product that no
one wants
• Lean startups rapidly and iteratively test hypotheses
about a new venture based on customer feedback,
then quickly refine promising concepts and cull flops
• Being lean does NOT mean being cheap, it is a
methodology for optimizing—not minimizing—
resources expenditures by avoiding waste
• Being lean does NOT mean avoiding rigorous,
analytical or strategic thinking
Source: Eric Ries
CONFIDENTIAL PRESENTATION | PAGE4
Lean Startup Principles
• No idea survives first customer contact, so get
out of the building ASAP to test ideas
• Goal: validation of business model hypotheses,
based on rigorous experiments and clear metrics
• Minimum viable product (MVP): smallest set of
features/marketing initiatives that delivers the
most validated learning
• Rapidly pivot your MVP/business model until you
have validation and product-market fit (PMF)
• Don’t scale until you have achieved PMF
Source: Eric Ries
CONFIDENTIAL PRESENTATION | PAGE5
“Lessons Learned” Drives Funding
Concept
Business
Plan/Canvas
Lessons
Learned
Series A
Do this first instead of fund raising
(or raise seed round to test hypotheses…rigorously)
Test
Hypotheses
Source: Steve Blank
CONFIDENTIAL PRESENTATION | PAGE6
Where are You?
Before Product-Market Fit:
Search & Validation
• Lean startup approach
• Hunch-driven hypotheses
• Minimum viable product (MVP)
• Customer development process
• Selling to early adopters
• Pivoting
• Bootstrapping
• Small, founding team
• Product-centric culture;
informal roles
• Early in sales learning curve
After Product-Market Fit:
Scaling & Optimization
• Building a robust, feature-rich
product
• Crossing the chasm
• Metrics, analytics, funnels
• Designing for virality &
scalability
• Challenges with corporate
partnerships
• Building a brand
• Scaling the team; more
formal roles
• Scaling a sales force
CONFIDENTIAL PRESENTATION | PAGE7
INBOUND15
Sales team hitting quota
Sales cycles short
40% test – if product disappeared
Product usage high, growing
LTV : CAC > 3
MRR growing > 10% MoM
Churn < 30% / year
NPS > 20
Criteria for Product Market Fit
CONFIDENTIAL PRESENTATION | PAGE8
Product Management Skills
• Responsibilities:
– Define the new product to be built
– Secure the resources to build it
– Manage its development, launch and
ongoing improvement
– Lead the cross-functional product team
• Attributes:
– Ability to influence and lead
– Resilience and tolerance for amibiguity
– Business judgment and market knowledge
– Strong process skills and detail orientation
– Fluency with technology and implications on product design, business
– Design/UX instincts
Mini CEO – with none of the authority
CONFIDENTIAL PRESENTATION | PAGE9
Leading Thinkers/Books/Blogs
• Geoffrey Moore: Crossing the Chasm (read this!)
• Steve Blank: Customer Development Process (read Four
Steps to the Epiphany)
• Eric Ries: Lean Startups (read this too!)
• Marty Cagan: Silicon Valley Product Group (great book
and blog)
• Sean Ellis: Growth Hackers (great blog)
CONFIDENTIAL PRESENTATION | PAGE10
The Search for Product-Market Fit
Jeff Bussgang
General Partner, Flybridge Capital
Senior Lecturer, Harvard Business School
March 31, 2016

More Related Content

What's hot

How To Raise Your First Round of Capital
How To Raise Your First Round of CapitalHow To Raise Your First Round of Capital
How To Raise Your First Round of CapitalJeffrey Bussgang
 
Lean startup workshop business model generation - northfront 26mar14
Lean startup workshop   business model generation - northfront 26mar14Lean startup workshop   business model generation - northfront 26mar14
Lean startup workshop business model generation - northfront 26mar14boomstartup
 
Intro to Startups and VC
Intro to Startups and VCIntro to Startups and VC
Intro to Startups and VCGuy Turner
 
Startup and Funding - Idea to Billionaire
Startup and  Funding - Idea to BillionaireStartup and  Funding - Idea to Billionaire
Startup and Funding - Idea to Billionairesam ran
 
Ideation, business models; and how and where to start
Ideation, business models; and how and where to startIdeation, business models; and how and where to start
Ideation, business models; and how and where to startSaberi Marais
 
Lessons from an entrepreneur
Lessons from an entrepreneurLessons from an entrepreneur
Lessons from an entrepreneurFábio Póvoa
 
About the lean startup @ gmit programme
About the lean startup @ gmit programmeAbout the lean startup @ gmit programme
About the lean startup @ gmit programmeDonncha Hughes
 
EIA2016Turin - Stephan Reckie. Scalable Business Model
EIA2016Turin - Stephan Reckie. Scalable Business ModelEIA2016Turin - Stephan Reckie. Scalable Business Model
EIA2016Turin - Stephan Reckie. Scalable Business ModelEuropean Innovation Academy
 
International startup expansion Wayra jul/14
International startup expansion Wayra jul/14International startup expansion Wayra jul/14
International startup expansion Wayra jul/14Fábio Póvoa
 
Creating a stand out brand
Creating a stand out brandCreating a stand out brand
Creating a stand out brandLaura Faulconer
 
Pitch Originator Executive Summary Preparation Workshop
Pitch Originator Executive Summary Preparation WorkshopPitch Originator Executive Summary Preparation Workshop
Pitch Originator Executive Summary Preparation WorkshopLaura Faulconer
 
What is social enterprise an irish perspective
What is social enterprise an irish perspectiveWhat is social enterprise an irish perspective
What is social enterprise an irish perspectiveDonncha Hughes
 
EIA2019Italy - Funding & Fundraising Options - Dario Peirone
EIA2019Italy - Funding & Fundraising Options - Dario PeironeEIA2019Italy - Funding & Fundraising Options - Dario Peirone
EIA2019Italy - Funding & Fundraising Options - Dario PeironeEuropean Innovation Academy
 
Fundraising in Pakistan: A how-to
Fundraising in Pakistan: A how-toFundraising in Pakistan: A how-to
Fundraising in Pakistan: A how-toM. Nash
 
SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.
SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.
SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.Ajay Batra
 
From an idea to a startup to a business
From an idea to a startup to a businessFrom an idea to a startup to a business
From an idea to a startup to a businessM. Nash
 
Mastering the VC Game presentation
Mastering the VC Game presentationMastering the VC Game presentation
Mastering the VC Game presentationJeffrey Bussgang
 
EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...
EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...
EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...European Innovation Academy
 

What's hot (20)

How To Raise Your First Round of Capital
How To Raise Your First Round of CapitalHow To Raise Your First Round of Capital
How To Raise Your First Round of Capital
 
Lean startup workshop business model generation - northfront 26mar14
Lean startup workshop   business model generation - northfront 26mar14Lean startup workshop   business model generation - northfront 26mar14
Lean startup workshop business model generation - northfront 26mar14
 
Intro to Startups and VC
Intro to Startups and VCIntro to Startups and VC
Intro to Startups and VC
 
Startup and Funding - Idea to Billionaire
Startup and  Funding - Idea to BillionaireStartup and  Funding - Idea to Billionaire
Startup and Funding - Idea to Billionaire
 
Ideation, business models; and how and where to start
Ideation, business models; and how and where to startIdeation, business models; and how and where to start
Ideation, business models; and how and where to start
 
Lessons from an entrepreneur
Lessons from an entrepreneurLessons from an entrepreneur
Lessons from an entrepreneur
 
About the lean startup @ gmit programme
About the lean startup @ gmit programmeAbout the lean startup @ gmit programme
About the lean startup @ gmit programme
 
EIA2016Turin - Stephan Reckie. Scalable Business Model
EIA2016Turin - Stephan Reckie. Scalable Business ModelEIA2016Turin - Stephan Reckie. Scalable Business Model
EIA2016Turin - Stephan Reckie. Scalable Business Model
 
International startup expansion Wayra jul/14
International startup expansion Wayra jul/14International startup expansion Wayra jul/14
International startup expansion Wayra jul/14
 
Creating a stand out brand
Creating a stand out brandCreating a stand out brand
Creating a stand out brand
 
Pitch Originator Executive Summary Preparation Workshop
Pitch Originator Executive Summary Preparation WorkshopPitch Originator Executive Summary Preparation Workshop
Pitch Originator Executive Summary Preparation Workshop
 
What is social enterprise an irish perspective
What is social enterprise an irish perspectiveWhat is social enterprise an irish perspective
What is social enterprise an irish perspective
 
EIA2019Italy - Funding & Fundraising Options - Dario Peirone
EIA2019Italy - Funding & Fundraising Options - Dario PeironeEIA2019Italy - Funding & Fundraising Options - Dario Peirone
EIA2019Italy - Funding & Fundraising Options - Dario Peirone
 
Fundraising in Pakistan: A how-to
Fundraising in Pakistan: A how-toFundraising in Pakistan: A how-to
Fundraising in Pakistan: A how-to
 
SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.
SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.
SIX QUESTIONS TO ASK YOURSELF BEFORE LAUNCHING YOUR STARTUP.
 
Customer and Market Validation Overview by Jeff Drust v5
Customer and Market Validation Overview by Jeff Drust v5Customer and Market Validation Overview by Jeff Drust v5
Customer and Market Validation Overview by Jeff Drust v5
 
Business Model Design by Jeff Drust v2
Business Model Design by Jeff Drust v2Business Model Design by Jeff Drust v2
Business Model Design by Jeff Drust v2
 
From an idea to a startup to a business
From an idea to a startup to a businessFrom an idea to a startup to a business
From an idea to a startup to a business
 
Mastering the VC Game presentation
Mastering the VC Game presentationMastering the VC Game presentation
Mastering the VC Game presentation
 
EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...
EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...
EIA2017Italy - Mike Lawless - VDD (Value Differentiation Durability) Test for...
 

Similar to Fgvn 3 31-2016 search for pmf

Product Management and the Search for Product Market Fit
Product Management and the Search for Product Market Fit Product Management and the Search for Product Market Fit
Product Management and the Search for Product Market Fit Intelligent_ly
 
MIT Class on Product Management 10-22-2013
MIT Class on Product Management 10-22-2013MIT Class on Product Management 10-22-2013
MIT Class on Product Management 10-22-2013Jeffrey Bussgang
 
Product Management 101: The Search for Product-Market Fit
Product Management 101:  The Search for Product-Market FitProduct Management 101:  The Search for Product-Market Fit
Product Management 101: The Search for Product-Market FitJeffrey Bussgang
 
Intelligently class 12 2012
Intelligently class 12 2012Intelligently class 12 2012
Intelligently class 12 2012Jeffrey Bussgang
 
Product development and life cycle strategies
Product development and life cycle strategiesProduct development and life cycle strategies
Product development and life cycle strategiesShubham Wani
 
Product market fit fgvn 3-2012
Product market fit   fgvn 3-2012Product market fit   fgvn 3-2012
Product market fit fgvn 3-2012Jeffrey Bussgang
 
Motarme Customer Development Workshop for Trinity Launchbox July 2015
Motarme Customer Development Workshop for Trinity Launchbox July 2015Motarme Customer Development Workshop for Trinity Launchbox July 2015
Motarme Customer Development Workshop for Trinity Launchbox July 2015Motarme Marketing Technology
 
Lean Startup in eHealth
Lean Startup in eHealthLean Startup in eHealth
Lean Startup in eHealthforumvirium
 
Mktg. New Product Development Strategy .pptx
Mktg. New Product Development Strategy .pptxMktg. New Product Development Strategy .pptx
Mktg. New Product Development Strategy .pptxAparnaKanchan1
 
Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...
Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...
Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...Saurabh Pareek
 
Industrial Marketing Challenges & Solutions
Industrial Marketing Challenges & SolutionsIndustrial Marketing Challenges & Solutions
Industrial Marketing Challenges & SolutionsIntergage
 
Marketing Productivity
Marketing ProductivityMarketing Productivity
Marketing ProductivityDave Birckhead
 
EIS-PM-Devt-Services-Boot Camp_Combined (1)
EIS-PM-Devt-Services-Boot Camp_Combined (1)EIS-PM-Devt-Services-Boot Camp_Combined (1)
EIS-PM-Devt-Services-Boot Camp_Combined (1)Thomas Squeo
 
Keep Your Customers Coming Back for More
Keep Your Customers Coming Back for MoreKeep Your Customers Coming Back for More
Keep Your Customers Coming Back for MoreMarketo
 
How to Be A Successful Agile Product Manager
How to Be A Successful Agile Product ManagerHow to Be A Successful Agile Product Manager
How to Be A Successful Agile Product ManagerThoughtworks
 
How to Know You are Building the Right Thing by Zalando Sr PM
How to Know You are Building the Right Thing by Zalando Sr PMHow to Know You are Building the Right Thing by Zalando Sr PM
How to Know You are Building the Right Thing by Zalando Sr PMProduct School
 
Innovation Demystified - Patrick Hogan
Innovation Demystified - Patrick HoganInnovation Demystified - Patrick Hogan
Innovation Demystified - Patrick HoganPatrick Hogan
 

Similar to Fgvn 3 31-2016 search for pmf (20)

Fgvn 3 25-2015
Fgvn 3 25-2015Fgvn 3 25-2015
Fgvn 3 25-2015
 
Product Management and the Search for Product Market Fit
Product Management and the Search for Product Market Fit Product Management and the Search for Product Market Fit
Product Management and the Search for Product Market Fit
 
MIT Class on Product Management 10-22-2013
MIT Class on Product Management 10-22-2013MIT Class on Product Management 10-22-2013
MIT Class on Product Management 10-22-2013
 
Product Management 101: The Search for Product-Market Fit
Product Management 101:  The Search for Product-Market FitProduct Management 101:  The Search for Product-Market Fit
Product Management 101: The Search for Product-Market Fit
 
Intelligently class 12 2012
Intelligently class 12 2012Intelligently class 12 2012
Intelligently class 12 2012
 
Product development and life cycle strategies
Product development and life cycle strategiesProduct development and life cycle strategies
Product development and life cycle strategies
 
Product market fit fgvn 3-2012
Product market fit   fgvn 3-2012Product market fit   fgvn 3-2012
Product market fit fgvn 3-2012
 
Motarme Customer Development Workshop for Trinity Launchbox July 2015
Motarme Customer Development Workshop for Trinity Launchbox July 2015Motarme Customer Development Workshop for Trinity Launchbox July 2015
Motarme Customer Development Workshop for Trinity Launchbox July 2015
 
Lean Startup in eHealth
Lean Startup in eHealthLean Startup in eHealth
Lean Startup in eHealth
 
Mktg. New Product Development Strategy .pptx
Mktg. New Product Development Strategy .pptxMktg. New Product Development Strategy .pptx
Mktg. New Product Development Strategy .pptx
 
Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...
Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...
Product Management for Beginners by Saurabh Pareek [Senior PM PayPal]-Session...
 
Industrial Marketing Challenges & Solutions
Industrial Marketing Challenges & SolutionsIndustrial Marketing Challenges & Solutions
Industrial Marketing Challenges & Solutions
 
Marketing Productivity
Marketing ProductivityMarketing Productivity
Marketing Productivity
 
EIS-PM-Devt-Services-Boot Camp_Combined (1)
EIS-PM-Devt-Services-Boot Camp_Combined (1)EIS-PM-Devt-Services-Boot Camp_Combined (1)
EIS-PM-Devt-Services-Boot Camp_Combined (1)
 
4.3 lean startup
4.3 lean startup4.3 lean startup
4.3 lean startup
 
Keep Your Customers Coming Back for More
Keep Your Customers Coming Back for MoreKeep Your Customers Coming Back for More
Keep Your Customers Coming Back for More
 
How to Be A Successful Agile Product Manager
How to Be A Successful Agile Product ManagerHow to Be A Successful Agile Product Manager
How to Be A Successful Agile Product Manager
 
Product life cycle
Product life cycle Product life cycle
Product life cycle
 
How to Know You are Building the Right Thing by Zalando Sr PM
How to Know You are Building the Right Thing by Zalando Sr PMHow to Know You are Building the Right Thing by Zalando Sr PM
How to Know You are Building the Right Thing by Zalando Sr PM
 
Innovation Demystified - Patrick Hogan
Innovation Demystified - Patrick HoganInnovation Demystified - Patrick Hogan
Innovation Demystified - Patrick Hogan
 

More from Jeffrey Bussgang

Product Market Fit Presentation - May 2023 - Jeff Bussgang
Product Market Fit Presentation - May 2023 - Jeff BussgangProduct Market Fit Presentation - May 2023 - Jeff Bussgang
Product Market Fit Presentation - May 2023 - Jeff BussgangJeffrey Bussgang
 
What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?Jeffrey Bussgang
 
Venture Capital Financing Basics
Venture Capital Financing BasicsVenture Capital Financing Basics
Venture Capital Financing BasicsJeffrey Bussgang
 
Product Market Fit - Harvard Business School
Product Market Fit - Harvard Business SchoolProduct Market Fit - Harvard Business School
Product Market Fit - Harvard Business SchoolJeffrey Bussgang
 
The Community Playbook for Founders (from Flybridge)
The Community Playbook for Founders (from Flybridge)The Community Playbook for Founders (from Flybridge)
The Community Playbook for Founders (from Flybridge)Jeffrey Bussgang
 
How to Raise Your First Round of Capital - January 2020
How to Raise Your First Round of Capital - January 2020How to Raise Your First Round of Capital - January 2020
How to Raise Your First Round of Capital - January 2020Jeffrey Bussgang
 
Civic Entrepreneurship - A Theory of Change
Civic Entrepreneurship - A Theory of ChangeCivic Entrepreneurship - A Theory of Change
Civic Entrepreneurship - A Theory of ChangeJeffrey Bussgang
 
Entering StartUpLand presentation
Entering StartUpLand presentationEntering StartUpLand presentation
Entering StartUpLand presentationJeffrey Bussgang
 
What Makes Boston's Startup Scene Special - fall 2017
What Makes Boston's Startup Scene Special - fall 2017What Makes Boston's Startup Scene Special - fall 2017
What Makes Boston's Startup Scene Special - fall 2017Jeffrey Bussgang
 
What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?Jeffrey Bussgang
 
Boston startup scene fall 2016 (final)
Boston startup scene fall 2016 (final)Boston startup scene fall 2016 (final)
Boston startup scene fall 2016 (final)Jeffrey Bussgang
 
Boston Startup Scene - Fall 2015
Boston Startup Scene - Fall 2015Boston Startup Scene - Fall 2015
Boston Startup Scene - Fall 2015Jeffrey Bussgang
 
Mastering the VC Game - Quebec City Conference Presentation
Mastering the VC Game - Quebec City Conference PresentationMastering the VC Game - Quebec City Conference Presentation
Mastering the VC Game - Quebec City Conference PresentationJeffrey Bussgang
 
Boston Startup Scene Presentation fall 2014 final
Boston Startup Scene Presentation   fall 2014 finalBoston Startup Scene Presentation   fall 2014 final
Boston Startup Scene Presentation fall 2014 finalJeffrey Bussgang
 
Boston startup scene presentation fall 2013
Boston startup scene presentation   fall 2013Boston startup scene presentation   fall 2013
Boston startup scene presentation fall 2013Jeffrey Bussgang
 
Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013Jeffrey Bussgang
 
Boston startup scene presentation fall 2012
Boston startup scene presentation   fall 2012Boston startup scene presentation   fall 2012
Boston startup scene presentation fall 2012Jeffrey Bussgang
 

More from Jeffrey Bussgang (17)

Product Market Fit Presentation - May 2023 - Jeff Bussgang
Product Market Fit Presentation - May 2023 - Jeff BussgangProduct Market Fit Presentation - May 2023 - Jeff Bussgang
Product Market Fit Presentation - May 2023 - Jeff Bussgang
 
What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?
 
Venture Capital Financing Basics
Venture Capital Financing BasicsVenture Capital Financing Basics
Venture Capital Financing Basics
 
Product Market Fit - Harvard Business School
Product Market Fit - Harvard Business SchoolProduct Market Fit - Harvard Business School
Product Market Fit - Harvard Business School
 
The Community Playbook for Founders (from Flybridge)
The Community Playbook for Founders (from Flybridge)The Community Playbook for Founders (from Flybridge)
The Community Playbook for Founders (from Flybridge)
 
How to Raise Your First Round of Capital - January 2020
How to Raise Your First Round of Capital - January 2020How to Raise Your First Round of Capital - January 2020
How to Raise Your First Round of Capital - January 2020
 
Civic Entrepreneurship - A Theory of Change
Civic Entrepreneurship - A Theory of ChangeCivic Entrepreneurship - A Theory of Change
Civic Entrepreneurship - A Theory of Change
 
Entering StartUpLand presentation
Entering StartUpLand presentationEntering StartUpLand presentation
Entering StartUpLand presentation
 
What Makes Boston's Startup Scene Special - fall 2017
What Makes Boston's Startup Scene Special - fall 2017What Makes Boston's Startup Scene Special - fall 2017
What Makes Boston's Startup Scene Special - fall 2017
 
What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?What Makes the Boston Startup Scene Special?
What Makes the Boston Startup Scene Special?
 
Boston startup scene fall 2016 (final)
Boston startup scene fall 2016 (final)Boston startup scene fall 2016 (final)
Boston startup scene fall 2016 (final)
 
Boston Startup Scene - Fall 2015
Boston Startup Scene - Fall 2015Boston Startup Scene - Fall 2015
Boston Startup Scene - Fall 2015
 
Mastering the VC Game - Quebec City Conference Presentation
Mastering the VC Game - Quebec City Conference PresentationMastering the VC Game - Quebec City Conference Presentation
Mastering the VC Game - Quebec City Conference Presentation
 
Boston Startup Scene Presentation fall 2014 final
Boston Startup Scene Presentation   fall 2014 finalBoston Startup Scene Presentation   fall 2014 final
Boston Startup Scene Presentation fall 2014 final
 
Boston startup scene presentation fall 2013
Boston startup scene presentation   fall 2013Boston startup scene presentation   fall 2013
Boston startup scene presentation fall 2013
 
Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013Boston Startup Scene Guide - Fall 2013
Boston Startup Scene Guide - Fall 2013
 
Boston startup scene presentation fall 2012
Boston startup scene presentation   fall 2012Boston startup scene presentation   fall 2012
Boston startup scene presentation fall 2012
 

Recently uploaded

PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOne Monitar
 
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdfChris Skinner
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Associazione Digital Days
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxmbikashkanyari
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreNZSG
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfJamesConcepcion7
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...SOFTTECHHUB
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024Adnet Communications
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...ssuserf63bd7
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerAggregage
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdfMintel Group
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesDoe Paoro
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingrajputmeenakshi733
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMVoces Mineras
 
Appkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxAppkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxappkodes
 

Recently uploaded (20)

PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
 
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
20220816-EthicsGrade_Scorecard-JP_Morgan_Chase-Q2-63_57.pdf
 
WAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdfWAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdf
 
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
Lucia Ferretti, Lead Business Designer; Matteo Meschini, Business Designer @T...
 
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptxThe Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
The Bizz Quiz-E-Summit-E-Cell-IITPatna.pptx
 
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptxThe-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
 
Jewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource CentreJewish Resources in the Family Resource Centre
Jewish Resources in the Family Resource Centre
 
WSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdfWSMM Media and Entertainment Feb_March_Final.pdf
WSMM Media and Entertainment Feb_March_Final.pdf
 
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
How To Simplify Your Scheduling with AI Calendarfly The Hassle-Free Online Bo...
 
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
 
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
 
Driving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon HarmerDriving Business Impact for PMs with Jon Harmer
Driving Business Impact for PMs with Jon Harmer
 
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdftrending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
trending-flavors-and-ingredients-in-salty-snacks-us-2024_Redacted-V2.pdf
 
Unveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic ExperiencesUnveiling the Soundscape Music for Psychedelic Experiences
Unveiling the Soundscape Music for Psychedelic Experiences
 
digital marketing , introduction of digital marketing
digital marketing , introduction of digital marketingdigital marketing , introduction of digital marketing
digital marketing , introduction of digital marketing
 
NAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors DataNAB Show Exhibitor List 2024 - Exhibitors Data
NAB Show Exhibitor List 2024 - Exhibitors Data
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
 
Appkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptxAppkodes Tinder Clone Script with Customisable Solutions.pptx
Appkodes Tinder Clone Script with Customisable Solutions.pptx
 

Fgvn 3 31-2016 search for pmf

  • 1. CONFIDENTIAL PRESENTATION | PAGE1 The Search for Product-Market Fit Jeff Bussgang General Partner, Flybridge Capital Senior Lecturer, Harvard Business School March 31, 2016
  • 2. CONFIDENTIAL PRESENTATION | PAGE2 Concepts • What people mean when they use the phrase, “Product Market Fit” (PMF), plus: – Lean Start-Up Theory – Customer Development Process • Help you devise your approach to achieving PMF and avoid wasting a lot of money • What is great product management?
  • 3. CONFIDENTIAL PRESENTATION | PAGE3 The Lean Startup • Many startups fail because they waste capital and time developing and marketing a product that no one wants • Lean startups rapidly and iteratively test hypotheses about a new venture based on customer feedback, then quickly refine promising concepts and cull flops • Being lean does NOT mean being cheap, it is a methodology for optimizing—not minimizing— resources expenditures by avoiding waste • Being lean does NOT mean avoiding rigorous, analytical or strategic thinking Source: Eric Ries
  • 4. CONFIDENTIAL PRESENTATION | PAGE4 Lean Startup Principles • No idea survives first customer contact, so get out of the building ASAP to test ideas • Goal: validation of business model hypotheses, based on rigorous experiments and clear metrics • Minimum viable product (MVP): smallest set of features/marketing initiatives that delivers the most validated learning • Rapidly pivot your MVP/business model until you have validation and product-market fit (PMF) • Don’t scale until you have achieved PMF Source: Eric Ries
  • 5. CONFIDENTIAL PRESENTATION | PAGE5 “Lessons Learned” Drives Funding Concept Business Plan/Canvas Lessons Learned Series A Do this first instead of fund raising (or raise seed round to test hypotheses…rigorously) Test Hypotheses Source: Steve Blank
  • 6. CONFIDENTIAL PRESENTATION | PAGE6 Where are You? Before Product-Market Fit: Search & Validation • Lean startup approach • Hunch-driven hypotheses • Minimum viable product (MVP) • Customer development process • Selling to early adopters • Pivoting • Bootstrapping • Small, founding team • Product-centric culture; informal roles • Early in sales learning curve After Product-Market Fit: Scaling & Optimization • Building a robust, feature-rich product • Crossing the chasm • Metrics, analytics, funnels • Designing for virality & scalability • Challenges with corporate partnerships • Building a brand • Scaling the team; more formal roles • Scaling a sales force
  • 7. CONFIDENTIAL PRESENTATION | PAGE7 INBOUND15 Sales team hitting quota Sales cycles short 40% test – if product disappeared Product usage high, growing LTV : CAC > 3 MRR growing > 10% MoM Churn < 30% / year NPS > 20 Criteria for Product Market Fit
  • 8. CONFIDENTIAL PRESENTATION | PAGE8 Product Management Skills • Responsibilities: – Define the new product to be built – Secure the resources to build it – Manage its development, launch and ongoing improvement – Lead the cross-functional product team • Attributes: – Ability to influence and lead – Resilience and tolerance for amibiguity – Business judgment and market knowledge – Strong process skills and detail orientation – Fluency with technology and implications on product design, business – Design/UX instincts Mini CEO – with none of the authority
  • 9. CONFIDENTIAL PRESENTATION | PAGE9 Leading Thinkers/Books/Blogs • Geoffrey Moore: Crossing the Chasm (read this!) • Steve Blank: Customer Development Process (read Four Steps to the Epiphany) • Eric Ries: Lean Startups (read this too!) • Marty Cagan: Silicon Valley Product Group (great book and blog) • Sean Ellis: Growth Hackers (great blog)
  • 10. CONFIDENTIAL PRESENTATION | PAGE10 The Search for Product-Market Fit Jeff Bussgang General Partner, Flybridge Capital Senior Lecturer, Harvard Business School March 31, 2016