Carlos Eduardo Espinal, Seedcamp: How To Reach Product Market Fit Phase? - Netokracija CEE

Carlos Eduardo Espinal, Seedcamp: How To Reach Product Market Fit Phase?

Carlos Eduardo Espinal, partner at Seedcamp and the organizer of Mini Seedcampu during the Zero Day of RockPaperStartups, took the stage again on Day One to talk more about the Product Market Fit term, how to reach that phase and what are some of the things startups should pay attention to.

SeedcampDay02WEB
Carlos Eduardo Espinal, partner at Seedcamp (Photo: Marina Filipovic Marinshe)

Carlos Eduardo Espinal, partner at Seedcamp and the organizer of Mini Seedcamp during the Zero Day of RockPaperStartups, took the stage again on Day One to talk more about reaching Product Market Fit, how to reach that phase and what are some of the things startups should pay attention to.

Carlos first explained what is exactly Product Market Fit phaseIt’s the moment when companies finally find a way to scale their business. He quoted Marc Andreessen:

When people buy your product at exactly the same rate you are producing it or when the increase of usage is complementary to your server expansion.

Company however, is not in this phase if it’s experiencing bad conversion rate, has no WOM (word of mouth) impact and sales cycle is too long.

Positioning and repositioning

For starters, it’s important to start working on MVS (Minimum Viable Segment) – MVP designed for smaller market segment. There are three reasons to do so: such method allows for a better differentiation from competition, easier recommendation (within the group) and far better use of recourses to meet the final goal.

Carlos then explained the difference between positioning and repositioning. While positioning determines how you are different from others in the eyes of potential customers, repositioning indicates a way of modifying the perception of yourself and/or competition.

RPSPublika5WEB
MVP? MVS? Go2Market? Carlos made sure to explain everything (Photo: Marina Filipovic Marinshe)

After understanding your positioning strategy, Espinal suggested that you should create a MVP (Minimum Viable Product), i.e. to make a product which is good enough to test the hypothesis you are trying to prove. It is most essential to measure the customer interaction and to draw conclusions from those results which will then lead to alterations of your product.

Carlos also explained what Go2Market stands for. It’s a method which includes key partnerships and distribution channels in order to achieve the MVS. All this includes product price point and marketing methods (online and offline).

It is in human nature to focus on things we are good at, not the ones we are not. Founders and hackers love creating new things, but sometimes they get stuck at the MVP phase. Maybe they were creating and measuring a lot, but that doesn’t necessarily mean that they draw any conclusions from that process. Maybe they haven’t found a market big enough before the funds ran out.

How to fix it?

Choose your MVS. Not everything is for everybody, therefore choose something for somebody. Then target it with your “bullet”, which is the combination of your positioning strategy, your mvp, and your go2market strategy.

Carlos concluded by saying: Identify MVS, design the “bullet” of your company, test and measure, change only one variable in the “bullet”, rinse and repeat – or pivot.

Local startups should cooperate!

He also gave several tips specific for local startups:

The barriers in this region are high. U.S. companies tend to receive more funds. You have to have to nail it the first time because you are not a startup in the U.S. that can afford mistakes. You guys, here, are like a big family and events like these should bring you together even more. You must be mutually supportive.

Carlos finished his lecture by saying that local founders should get together and talk, without the fear of somebody stealing their idea.

For more reading about the Product Market Fit Cycle Carlos spoke about, visit his blog where he goes into detail about the terms and phases.

Leave a Reply

Your email address will not be published.

Popular

Enterprise

Cenosco: A Dutch company that prevents explosions on oil platforms from Pula, The Hague and Zagreb through software, VR and AR

Applications that control the operation of oil platforms and plants for the processing of derivatives are directly responsible for a safer and cleaner world, and one of the best is created largely in Croatia.

What you missed

Enterprise

Cenosco: A Dutch company that prevents explosions on oil platforms from Pula, The Hague and Zagreb through software, VR and AR

Applications that control the operation of oil platforms and plants for the processing of derivatives are directly responsible for a safer and cleaner world, and one of the best is created largely in Croatia.

Startups

Blockchain from the Bloc(k): Listen to the 1st podcast dedicated to Balkan blockchain scene (by æternity and Netokracija)

We are delighted to present you Blockchain from the Bloc(k), the first podcast about Balkan's blockchain scene by Netokracija and æternity Ventures, asset management company investing in Blockchain startups.

Tech

We found out what’s happening in the Rimac Automobili office in Osijek

Rimac Automobili’s expansion is in full swing. After the opening of a development office in Split, a similar one has opened in Slavonia, or in Osijek’s Esseker center to be exact. To see the story behind the new office and the things being developed inside it, I’ve decided to simply – visit. My host was […]

Enterprise

6 Important Areas Often Overlooked by Product Leaders

Attending Product Management Festival 2017 (PMF 2017) in Zurich, Switzerland, and meeting amazing product professionals inspired me to go deeper into six important areas that are often neglected or entirely overlooked by product leaders.

Enterprise

The Latest Mind Innovations in Product Management

Announcing the 2-day conference showcasing top notch topics in product management.

Startups

US Outbrain acquires Slovenian Zemanta

At their 10th anniversary, the Slovenian high-tech company Zemanta d.o.o. announced that it was entirely acquired by Outbrain from the US, the world’s largest premium content discovery platform. The sum that Outbrain paid for Zemanta’s technology, products and team remains a business secret, and Zemanta’s co-founders Andraž Tori and Boštjan Špetič will join Outbrain. After becoming part of Outbrain Zemanta’s platform will continue to operate as a standalone product.