Why You Need to Obsess Over Product-Market Fit
As Head of MDR LAB, Dan oversees a series of programs that launch, improve, and scale the next generation of LegalTech. In the three years, it has been operating, MDR LAB has worked with 17 LegalTech companies from around the world, and is currently a customer of seven, and investor in four of those businesses. Dan works across all investment and growth activities across the portfolio and also leads the firm's engagement with startups and the wider ecosystem of investors and academic institutions.
Dan has also designed an internal capability that programmatically builds standalone scalable businesses for the Firm that can deliver new revenue streams. He works with cross-functional teams from around the organization to explore opportunities to bring new products or services to the market. Dan is a certified product manager and sits on the screening committee of the 'Harvard Business School Angels of London' network. He is also a Venture Scout for Mountside Ventures.
Andy Rachleff who first introduced the term ‘product-market fit’ describes it like this: A value hypothesis is an attempt to articulate the key assumption that underlies why a customer is likely to use your product. Identifying a compelling value hypothesis is what I call finding product/market fit. A value hypothesis identifies the features you need to build, the audience that’s likely to care, and the business model required to entice a customer to buy your product.” Since then, the definitions have evolved and then evolved some more. Marc Andreeson in his famous post "The only thing that matters" came up with a slightly more succinct definition: Product/market fit means being in a good market with a product that can satisfy that market.“
But what is product-market fit, what does it actually mean? And why should you care?
In short, because despite it being one of the most rereferred to concepts in the startup ecosystem, it is still the number 1 reason that startups fail.
Join Dan as he runs through some of the fundamentals behind product-market fit and shares some key insights and tips that will hopefully increase your chance of success!
- Think about product-market fit when you are launching and building a business.
- Know when you have product-market fit.
- Avoid some of the common pitfalls that kill companies.