But just like how money can't buy you happiness, it also can't buy you PM fit.
Saturday thoughts on funding: Where it helps. Where it doesn't. And how it affects team, success, and PM fit.
This is just my $0.02 after looking reviewing 30k+ early stage startups personally and having led 350+ investments across 2 VC firms & as an angel.
Let's begin! >>
But just like how money can't buy you happiness, it also can't buy you PM fit.
But for software startups, it's unclear if ppl want your product at your price pt.
But having sales does not mean that you have a repeatable customer acquisition process that can be sustainable
Frankly speaking, finding PM fit is a LOT of luck. This explains why a lot of serial entrepreneurs who were successful on 1 venture have a hard time repeating that.
It's not a lack of capabilities.
This is why SV VCs will often back "failed founders" again, because that failure isn't (always) an indicator of the founder -- there's also that big LUCK component of finding (or not finding) PM fit.
I mentioned 1 way -- experience in seeing and doing a lot. (and learning)
Another way: focusing on only things that matter (mostly derisking sales) & ignoring all else to utilize time and resources efficiently and quickly
But doing just 1 talk feels like nothing but it adds up.
Now where does money come into this?
And that affects runway. Runway affects # of PM fit experiments.
Then, by extension of their runway, they find strong PM fit and the rest is history.
However, I'm very aware that MOST founders don't get 2nd or 3rd chances like this.
Should ppl get more shots on goal? That's a philosophical q above my paygrade. But the way we operate @HustleFundVC is that we just assume that each of our cos will only get 1 shot on goal.
3 addl rounds -> your ROI is cut in half & that may not even return the fund even if the co "wins".
The flip side is if you don't have PM fit, having more ppl on the team makes getting to PM fit HARDER not easier in many cases.
More from Elizabeth Yin
Today's thread is on the affiliate business model. Many years ago, I used to be an affiliate marketer. If there is any way to get schooled in marketing, becoming an affiliate marketer is probably the best way.
What is affiliate marketing and why should you care?
Read on >>
1) Affiliate marketing is selling products or generating leads on behalf of other companies and getting paid a commission for those products.
2) Some notable examples you've seen before:
NerdWallet - you read their articles on best credit cards. You click on a link to one of those cards. You fill out an application. They get paid for delivering that lead to the cc company.
3) In https://t.co/kSfWS69ybp - same thing. Any of their financial products -- you fill out an application, and https://t.co/mCrBT43mOj gets paid for that.
But the affiliate revenue model applies beyond financial services products.
4) Wirecutter -- you see a neat product they review or talk about. You click through and buy.
Wirecutter gets a cut of that transaction.
What is affiliate marketing and why should you care?
Read on >>
1) Affiliate marketing is selling products or generating leads on behalf of other companies and getting paid a commission for those products.
2) Some notable examples you've seen before:
NerdWallet - you read their articles on best credit cards. You click on a link to one of those cards. You fill out an application. They get paid for delivering that lead to the cc company.
3) In https://t.co/kSfWS69ybp - same thing. Any of their financial products -- you fill out an application, and https://t.co/mCrBT43mOj gets paid for that.
But the affiliate revenue model applies beyond financial services products.
4) Wirecutter -- you see a neat product they review or talk about. You click through and buy.
Wirecutter gets a cut of that transaction.
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"I really want to break into Product Management"
make products.
"If only someone would tell me how I can get a startup to notice me."
Make Products.
"I guess it's impossible and I'll never break into the industry."
MAKE PRODUCTS.
Courtesy of @edbrisson's wonderful thread on breaking into comics – https://t.co/TgNblNSCBj – here is why the same applies to Product Management, too.
There is no better way of learning the craft of product, or proving your potential to employers, than just doing it.
You do not need anybody's permission. We don't have diplomas, nor doctorates. We can barely agree on a single standard of what a Product Manager is supposed to do.
But – there is at least one blindingly obvious industry consensus – a Product Manager makes Products.
And they don't need to be kept at the exact right temperature, given endless resource, or carefully protected in order to do this.
They find their own way.
make products.
"If only someone would tell me how I can get a startup to notice me."
Make Products.
"I guess it's impossible and I'll never break into the industry."
MAKE PRODUCTS.
Courtesy of @edbrisson's wonderful thread on breaking into comics – https://t.co/TgNblNSCBj – here is why the same applies to Product Management, too.
"I really want to break into comics"
— Ed Brisson (@edbrisson) December 4, 2018
make comics.
"If only someone would tell me how I can get an editor to notice me."
Make Comics.
"I guess it's impossible and I'll never break into the industry."
MAKE COMICS.
There is no better way of learning the craft of product, or proving your potential to employers, than just doing it.
You do not need anybody's permission. We don't have diplomas, nor doctorates. We can barely agree on a single standard of what a Product Manager is supposed to do.
But – there is at least one blindingly obvious industry consensus – a Product Manager makes Products.
And they don't need to be kept at the exact right temperature, given endless resource, or carefully protected in order to do this.
They find their own way.
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📝 New Emojis: 158
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🗓 Release date: October 30, 2018
📝 New Emojis: 158
https://t.co/bx8XjhiCiB

New in iOS 12.1: 🥰 Smiling Face With 3 Hearts https://t.co/6eajdvueip

New in iOS 12.1: 🥵 Hot Face https://t.co/jhTv1elltB

New in iOS 12.1: 🥶 Cold Face https://t.co/EIjyl6yZrF

New in iOS 12.1: 🥳 Partying Face https://t.co/p8FDNEQ3LJ
