Saturday, February 19, 2011

"Fred's Five Rules for Product/Market Fit"

That'd be Fred Wilson, a VC @ Union Square Ventures, and a list that's built off his somewhat more meandering post here. They're a few ideas that have been occupying my mind lately - ideas that apply especially towards web startups. (h/t Paul Kedrosky):

  1. Early in a startup, product decisions should be hunch driven. Later on, product decisions should be data driven.

  2. Hunches come from being a power user of the products in your category and from having a long standing obsession about the problem you are solving.

  3. Domain expertise to the point of obsession is highly correlated with the most successful entrepeneurs in our portfolio.

  4. Ideas that most people derided as ridiculous have produced the best outcomes. Don't do the obvious thing.

  5. Monetization should be native and improve the experience for users.

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