Know IF, and WHEN, you could reach Product-Category Fit (PCF)

TMARA brings the new science of Product-Category Fit (PCF) to Consilience Ventures UK

Product-Category Fit (PCF) can be measured, and should be measured on an ongoing basis.

Do you have PCF or NOT? (See the test below)

If NOT, then allow TMARA to see IF and WHEN you could reach PCF. 

Engagement Process: 

The startup must first test their own PCF current-reality, ideally showing:

A market-related compound revenue growth rate, and

A suitably high Word-of-Mouth density.

If the startup does not pass the PCF current-reality test, TMARA has a roll to play, as follows…

TMARA completes a scientific PCF analysis, to determine if the startup has the DNA to reach PCF, in other words, that success is a possible outcome.

A PCF path of success is then presented to the founders, and upon agreement the PCF test program begins, as follows:

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1.   Viable Market Category Target

·     Test 1: Category Test (Validate there is a big enough, clearly identified target market)

·     Test 2: MUST-HAVE Test (Validate that the innovation can become a MUST-HAVE, in other words, reach PCF in the target market)

2.   Viable Market Category Product

·     Test 3: 10X Technical Test (Validate the feature set can perform to the MUST-HAVE spec)

·     Test 4: Value Rule Test (Validate customers are able to realise the full value)

3.   Viable Market Category Offer

·     Test 5: Guarantee Test (Validate that the offer, a value guarantee, hits the market’s sweet spot)

·     Test 6: Conversion Rate Test (Validate the value guarantee offer, results in a consistently high sales conversion rate)

4.   Viable Market Category Traction

·     Test 7: Ignite Test (Validate that a promotional event ignites the attention of the target market, to the degree that the startup is recognised as the emerging new market category king)

·     Test 8: WOM Test (Validate that Word-of-Mouth has become more effective than self-promotion and PMF has been reached)

PMF Program Rules:

  • The program is managed test by test.
  • Each test is scoped and resourced
  • Each test must be completed within a reasonable time line
  • Success criteria are agreed before starting each test
  • Test results are captured in a way that supports the next funding /testing rounds
  • Failure to pass a test will be investigated to see if a fatal flaw has been identified. 
  • Strict adherence to the following guiding rule: Do not predict the winners (those that can reach PCF), allow the test to reveal the winners.

Success is defined as:

The startup has reached PCF by successfully passing all 8 tests

Became a market MUST-HAVE in a big enough market

An agreed minimum valuation

Attracted Series A investment.

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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!

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