Jason Lemkin explains why achieving product-market fit is harder today than in prior technology booms and why it’s the main challenge facing enterprise SaaS startups.
The Challenge of Product/Market Fit
What are the main challenges that startups face, it’s a broad question. But I’ll throw out the one learning. So what we see today is the very best SaaS startups grow than ever, the Slack’s, the Zenafits, the TOPdesks. These are folks that can go from one to 10, 1 to 50, 1 to 20 million in cases in 12 months, right. That’s a breathtaking pace.
So, the best ones are faster than ever, but on the flip side of that this product market fit is harder than ever. So a great idea that used to be a dime a dozen, now I think they are like a penny a dozen, right. So product market fit is actually more elusive than ever when there’s 100 billion folks doing every SaaS idea instead of just five or 10.