Founder-Market Fit #86

Jason Kirby
Aug 20, 2024

Hi,
In today's edition, I tackle founder-market fit. I've talked about product-market fit before, but are you the right person to build your idea? Also;

📸 - Social Snapshot- getting fired can teach you a lot

📊 - AI dominance continues

🎙️ - Podcast #54 w/ Prateek Joshi- fundraising for your startup with zero connections

🆓 - Free startup resource- Playbook for Setting Up and Sharing Your Data Room 

Welcome to issue #86 and happy fundraising!

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Your Pitch Deck Probably Sucks...

For most first-time founders, the idea of a pitch deck sounds easy, but I often get decks with "v43" in the filename, implying it's the 43rd iteration of a deck 😖

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I use DECKO for my clients to ensure I'm getting the expertise we need to get a great deck turned around quickly. They're a group of active VCs who help founders with their decks, you can't go wrong. And you get 10% off with the link below.

Give them a try.

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Screenshot 2024-08-20 at 14.20.30

Serial founder, Noah Kagan, learned a lot from Facebook founder Mark Zuckerburg, even after getting sacked. Check out his lessons on growth here.
Also:

💬 - What you need to nail before speaking to investors- Investor David Levine on LinkedIn

🙌 - Celebrating the little things- Founder/investor Robin Zander on LinkedIn

💰 - Are capital gains killing Silicon Valley?- Investor/philanthropist Tim Draper on X

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Fundraising Demystified Episode 54 Live Now!

EP Art

This week I chat with Prateek Joshi, the author of 13 books on machine learning who immigrated from India to build an AI startup. Learn more about how he went from zero connections to raising $16M for Plutoshift before getting acquired!

Check It Out

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Data Corner

Screenshot 2024-08-20 at 13.57.00

The AI hype train is not slowing down

Just a couple of weeks ago, I talked about how to differentiate yourself with investors if your venture does not have an AI play in Issue #82. This doesn't mean that AI still isn't attractive to VCs though.

As you can see in this week's chart, investors are still bullish on Artificial Intelligence as AI and ML founders' share of the pie continues to grow. The sector is now attracting a whopping 41% of all funding! Read more on the data from Pitchbook here. 

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We know PMF, what about Founder-Market Fit?

No doubt, you’re a passionate founder with a brilliant idea that you’re convinced is going to change the world. You’ve got the pitch down, your product is shiny and polished, and yet, when you try to sell it, crickets. You’re left wondering, “What gives?” Well, fellow founder, you might be missing that elusive "je nai sais quoi" in the startup world—Founder-Market Fit (FMF).

What is Founder-Market Fit?

We’ve all heard of Product-Market Fit (PMF), which is when your product perfectly meets the needs of a specific market. But Founder-Market Fit? That’s where you, the founder, are the right person to tackle a particular problem in a specific market.

The secret sauce can make or break your startup, but it often flies under the radar.

FMF is that magical alignment between your background, skills, and passion with the market you’re entering. Think of it as your startup spirit animal. If you’re a seasoned chef launching a new restaurant, you probably have FMF. If you’re a tech guru venturing into health supplements because, hey, it’s trending—maybe not so much.

FIT

Why Does Founder-Market Fit Matter?

I've said it before, investors aren’t just betting on ideas; they’re betting on people. They want to know if you, the founder, are the right person to bring this idea to life in a particular market.

If you’ve got FMF, it shows that you have the insider knowledge, connections, and credibility to navigate the industry’s quirks and nuances.

Let’s face it—every market has its quirks. Maybe you need to know the right jargon, understand the customer pain points, or have a Rolodex of industry contacts who can open doors (or at least not slam them in your face). When you have FMF, you’re not just talking the talk; you’re walking the walk with the confidence of someone who’s been around the block a few times.

Take Brian Chesky and Joe Gebbia, the co-founders of Airbnb. Both had a background in design and a knack for hospitality, which gave them an edge in creating a platform that wasn’t just about renting out spare rooms but about creating unique experiences. They understood the nuances of hospitality and used that to shape Airbnb into a market leader.

fmf

Do you have FMF?

So, how do you know if you’ve got it? Here are a few telltale signs:

  • You speak the language: You know the lingo, the key players, and the market’s inner workings like the back of your hand.
  • You’ve lived the problem: You’ve experienced the pain points your product solves firsthand, and you’re genuinely passionate about fixing them.
  • You’re well-connected: You’ve got a network within the industry that you can tap into for advice, partnerships, or just to validate your idea.
  • You’re credible: When you talk, people in your industry listen. Your background gives you an authority that outsiders just don’t have.

Founder-Market Fit isn’t just a buzzword—it’s a crucial piece of the puzzle that can significantly increase your chances of success. Team is a key factor investors consider in their due diligence, especially at early stages.

So before you dive headfirst into your next big venture, take a step back and ask yourself: am I the right person to solve this problem in this market? If the answer is yes, then congratulations—you’re already ahead of the game. If not, it might be time to rethink your strategy or even pivot to something that better aligns with your strengths.

Remember, investors aren’t just looking for a great idea—they’re looking for the right person to make that idea a reality. So, find your fit, and (hopefully) watch your startup scale.

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Happy with Fundraising Demystified?

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Free Fundraising Resources

This week, we share our playbook for setting up your data room to make you investor-ready.

📖 - Playbook for Setting Up and Sharing Your Data Room - Download it Here

Let's stay in touch:
Jason Kirby

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