Creating Israeli start-up home-runs, by default
Early-stage investors in Israel, can now take options in the home-runs generated inside Israel’s first Market Category Generator (MCG)
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.
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…
Passing these 8 Product-Category Fit (PCF) tests in sequence, creates start-up home-runs, by default.
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.
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!
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.
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.
www.tmaragroup.com for more on the Market Category Generator (MCG Israel)
Other topics by TMARA, include :
Stop turning friends and family into fools:
Fewer start-up failures, does not mean more winners:
HOW to know, IF and WHEN a startup will reach Product-Market Fit:
The primary cause of startup failure:
Most, if not all, of the great startup successes (home runs) did not solve a BIG PROBLEM for a big market!