“Adding more money to a situation of lack of product market fit rarely works.” Justin Kan
Well-known Founders in Silicon Valley have recently taken to publicly talking about the failure of their last venture.
Justin Kan, whose love of transparency extended to broadcasting his life 24/7 for 8 months in 2007 (the “lifecasting” platform justin.tv eventually became Twitch and was acquired for close to $1 billion by Amazon in 2014), is no exception.
In a recent Tweetstorm (see the link below), Kan reflected on the Atrium fiasco. The legal tech startup’s operations were stopped in March 2020 after raising $75 million from elite VC firms General Catalyst and Andreessen Horowitz.
The 15-tweet series contains a lot of entrepreneurial wisdom. The common thread seems to be “don’t try to skip the iteration process”: you need to spend time on R&D to make a differentiated product, but also talk to potential clients to make sure the disruptive solution fits with their needs. And iterate ruthlessly to get to the right solution for the right market. In other terms, find product/market fit.
If you’re still not convinced of it, ask Quibi’s Founders.
🗣Which piece of advice from Kan stuck most with you? Do you know other spectacular failures of well-funded startups due to lack of product/market fit?
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🔗 Kan’s tweets can be found here
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