Early-stage investors in Israel, can now take options in the home-runs generated inside Israel’s first Market Category Generator (MCG)

Context:

The power law governing early-stage venturing and investment, implies that PREDICTING home-runs will yield (on average) no more than a 1 in 20 home-run wins.

In other words, PREDICTING the winners, will always follow the power law.

New rule:

STOP predicting (you won’t beat the power law), and START creating home-runs where the odds improve to 1 in 3.

Israel’s first Market Category Generator (MCG) contains a scientific Product-Category Fit (PCF) process, that creates market MUST-HAVEs, by default.

This allows early-stage investors to STOP needing to predict, and to rather enable the CREATION of home-runs, then invest only in the winners coming through the process…

HERE'S HOW:

Passing these 8 Product-Category Fit (PCF) tests in sequence, creates start-up home-runs, by default.

Viable Market:

1. Removing a significant limitation for a market, by default, results in the creation of a new market category (Why = it opens up uncontested market space)

Test = Show a common clear way of how the market is currently coping with the limitation you intend to remove. Lack of a strong coping way will be a showstopper here.

2. If the market adopts the new rule then by default it makes your invention a market MUST-HAVE (Why = your invention is the only one that can enable the new rule)

Test = Can the market easily adopt the new way (rule) or is it going to take a long time? Is adoption within the control of the market or not? We are looking for rule adoption showstoppers here.

Viable Product:

3. Being able to remove the limitation technically for the market, by default, satisfies the objective of the old rule sufficiently

Test = A sample of customers experiencing the new way must confirm that after what they have experienced the old objective & old rule serve no further purpose. Any further need for the old objective and old rule will be a showstopper here.

4. By adopting the new rule the market will realise value by default

Test = A sample of customers indicate how much value they realise by just adopting the new rule (the default value). Lack of default value will be a showstopper here!

Viable Offer:

5. Where the cost of coping (penalties) is greater than the price of the new solution, the market is already paying for it, by default

Test = Confirm with the market that the cost of coping is greater than the cost of the new solution. A higher solution price tag will be a showstopper here.

6. Having serious skin in the game by default attracts more buyers. 

Test = Does the value guarantee counts? Achieving a below par sales conversion rate will be a showstopper here.

Viable Traction:

7. A lightning strike event is, by default a category defining event.

Test = Emerging category king – The new way must be associated with the company. Lack of recognition of ownership of the new way will be a showstopper here.

8. Achieving more than 40% market relevance (the PCF or growth hacker test), by default, cause market push to become market pull (ready to scale)

Test = Conduct the growth hacker test. Anything below 40% will be a showstopper here.

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www.tmaragroup.com for more on the Market Category Generator (MCG Israel)

Other topics by TMARA, include :

Stop turning friends and family into fools:

https://www.linkedin.com/pulse/stop-turning-friends-family-fools-anthony-nathan/

Fewer start-up failures, does not mean more winners:

https://www.linkedin.com/pulse/fewer-failures-do-mean-more-winners-start-ups-anthony-nathan/

HOW to know, IF and WHEN a startup will reach Product-Market Fit:

https://www.linkedin.com/pulse/know-when-you-could-reach-product-market-fit-pmf-anthony-nathan/?published=t

The primary cause of startup failure:

https://www.linkedin.com/pulse/simply-true-anthony-nathan/

Most, if not all, of the great startup successes (home runs) did not solve a BIG PROBLEM for a big market!

https://www.linkedin.com/pulse/non-consensus-piece-info-changes-game-early-stage-venturing-nathan/