Product-Market Fit - TEN Capital Network

Product/Market Fit

Identifying your initial niche – you can expand later but it’s best to start focused.
Building an audience – so you can test out your product concept
Identifing prospective customers – so you can prove product-market fit with paying customers

In launching a startup, the first challenge is finding product/market fit.
This means the customers you are targeting are happy with your product AND they will pay for it.
As you seek to raise your first round of funding outside of family and friends, you’ll find investors asking questions about how you can scale the business.
Freemium users count for little with investors so it’s important to find strong validation for your product by knowing customers will pay for it.

Investors look for product validation (customers are happy with the product)
and market validation (customers will pay for it).