The Only Thing That Matters
TL;DR
The foundational essay introducing product-market fit: the single most important factor in startup success.
The foundational essay that introduced 'product-market fit' to the startup lexicon. Andreessen argues that in a great market with a mediocre product, the market wins; with a great product in a terrible market, the market still wins. Product-market fit—when a product satisfies strong market demand with sustainable growth—is the single most important factor in startup success. This concept has biological parallels: niche fit describes when an organism's traits precisely match environmental demands, determining survival during resource scarcity.
Key Findings from Andreessen (2007)
- Product-market fit is the most important factor in startup success
- A great market pulls product out of the startup
- Without PMF, nothing else matters; with it, many mistakes can be overcome
- You can always feel when PMF isn't happening and when it is
- Don Valentine of Sequoia originated the market-first insight