According to Marc Andreesen, “product/market fit means being in a Good Market with a product that can satisfy that market.”
We know the importance of PMF but what defines a Good Market?
Good markets are big.
Arthur Rock, Fairchild Semiconductor: “Give me a giant market — always.”
Sequoia Capital: A market on the path to a $1B potential allows for error and time for real margins to develop.
Don Valentine, Sequoia Capital: Target big markets - If you don’t attack a big market, it’s highly unlikely that you’re going to build a big company.
Alex Taussig: The qualitative differences between Mega’s and Steady’s are a bit murkier. At the risk of seeming reductionist, it might all come down to a market size measured in trillions, not billions.
Good markets are growing.
Masayoshi Son, SoftBank: And I wanted to pick a business where the business category itself would be growing for the next 30 to 50 years. I didn’t want to choose a sinking ship.
Marc Andreesen: And the market will range from booming to comatose.
Nicolas Bustamante: The market is growing and so the problem increases.
Sahil Lavingia: It doesn’t matter how amazing your product is, or how fast you ship features. The market you’re in will determine most of your growth.
Good markets are rich and hungry.
Steve Blank: Customer Validation proves that you have found a set of customers and a market who react positively to the product: By relieving those customers of some of their money.
Sequoia Capital: Target customers who will move fast and pay a premium for a unique offering.
Andy Rachleff: “If you address a market that really wants your product — if the dogs are eating the dog food — then you can screw up almost everything in the company and you will succeed.
Good markets have existing solutions.
Don Valentine, Sequoia Capital: A lot of successful products are knock offs of products with huge market shares held by companies like Sony (iPod vs. walkman )
Andy Rachleff, CEO Wealthfront: “First to market seldom matters. Rather, first to product/market fit is almost always the long-term winner.” “Time after time, the winner is the first company to deliver the food the dogs want to eat.” “Once a company has achieved product market fit, it is extremely difficult to dislodge it, even with a better or less expensive product.”
Good markets fit their founders.
Paul Graham, YC: The best way to come up with startup ideas is to ask yourself the question: what do you wish someone would make for you?
Masayoshi Son, SoftBank: One success measure was that I should fall in love with a particular business for the next 50 years at least. Very often, people get excited for the first few years, and then, after they see the reality, they get tired of the business. I wanted to choose one that I would feel more and more excited about as the years passed.
Chris Dixon, a16z Crypto: You should fit your market not only because you understand it, but because you love it — and will continue to love it as your product and market change over time.