title
How to Find Product Market Fit - Stanford CS183F: Startup School

description
Peter Reinhardt, co-founder and CEO of Segment, shares his experience on finding product market fit.

detail
{'title': 'How to Find Product Market Fit - Stanford CS183F: Startup School', 'heatmap': [{'end': 1477.637, 'start': 1443.775, 'weight': 0.721}, {'end': 1649.424, 'start': 1618.693, 'weight': 1}], 'summary': "Explores the significance of finding product market fit in startups, with insights from peter reinhart of segment, alan kay's vision concept, challenges in achieving product market fit, engineering solutions turning into growth hacks, and the impact of pricing strategies on product valuation, emphasizing the importance of honesty and learning from failure.", 'chapters': [{'end': 47.529, 'segs': [{'end': 47.529, 'src': 'embed', 'start': 11.383, 'weight': 0, 'content': [{'end': 14.206, 'text': "Today we have Peter Reinhart, he's the CEO of Segment.", 'start': 11.383, 'duration': 2.823}, {'end': 19.051, 'text': 'Went through YC when? 2011.', 'start': 14.486, 'duration': 4.565}, {'end': 21.052, 'text': '2011 And now Segment is doing extremely well.', 'start': 19.051, 'duration': 2.001}, {'end': 23.315, 'text': 'Peter is going to talk about product market fit.', 'start': 21.533, 'duration': 1.782}, {'end': 26.958, 'text': "Sort of this magic concept, word people use, I don't think they really understand it.", 'start': 23.895, 'duration': 3.063}, {'end': 30.001, 'text': 'Certainly the first job to get right in any startup.', 'start': 28.039, 'duration': 1.962}, {'end': 33.184, 'text': 'Peter, thank you very much for coming to talk to us and look forward to hearing this.', 'start': 30.462, 'duration': 2.722}, {'end': 33.805, 'text': 'My pleasure.', 'start': 33.204, 'duration': 0.601}, {'end': 36.98, 'text': "All right, so I'm gonna talk about finding product market fit today.", 'start': 34.758, 'duration': 2.222}, {'end': 41.684, 'text': "Segment is a B2B company, so that's probably why none of you have ever heard of us.", 'start': 38.301, 'duration': 3.383}, {'end': 47.529, 'text': "But just to give you a little sense, we're about 150 people and grew from about four people three and a half years ago.", 'start': 42.164, 'duration': 5.365}], 'summary': 'Peter reinhart, ceo of segment, discusses product market fit; segment grew from 4 to 150 people in 3.5 years.', 'duration': 36.146, 'max_score': 11.383, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ411383.jpg'}], 'start': 11.383, 'title': 'Product market fit with peter reinhart', 'summary': 'Discusses peter reinhart from segment, a b2b company that grew from about four people to 150 people in three and a half years, emphasizing the importance of finding product market fit in any startup.', 'chapters': [{'end': 47.529, 'start': 11.383, 'title': 'Product market fit with peter reinhart', 'summary': 'Discusses peter reinhart from segment, a b2b company that grew from about four people to 150 people in three and a half years, who talks about the importance of finding product market fit in any startup.', 'duration': 36.146, 'highlights': ['Segment, a B2B company, grew from about four people to 150 people in three and a half years.', 'Peter Reinhart from Segment discusses the importance of finding product market fit in any startup.']}], 'duration': 36.146, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ411383.jpg', 'highlights': ['Segment, a B2B company, grew from about four people to 150 people in three and a half years.', 'Peter Reinhart from Segment discusses the importance of finding product market fit in any startup.']}, {'end': 495.125, 'segs': [{'end': 76.806, 'src': 'embed', 'start': 48.25, 'weight': 0, 'content': [{'end': 52.533, 'text': 'So growing quickly, and hopefully I can shed some light on finding product market fit for you.', 'start': 48.25, 'duration': 4.283}, {'end': 57.271, 'text': "And I thought, just start by sort of looking back to Alan Kay's lecture last week.", 'start': 53.567, 'duration': 3.704}, {'end': 65.639, 'text': 'I think he had some pretty incredible advice around how to do really amazing research by sort of looking into the future and imagining what that future might be like.', 'start': 57.911, 'duration': 7.728}, {'end': 71.863, 'text': 'And in particular, he had this diagram of sort of exploring the pink plane and sort of testing out different ideas there.', 'start': 66.44, 'duration': 5.423}, {'end': 76.806, 'text': "And then, at some point having a breakthrough and realizing that actually there's a blue plane right?", 'start': 72.684, 'duration': 4.122}], 'summary': 'Tips for finding product market fit by exploring future ideas and breakthroughs.', 'duration': 28.556, 'max_score': 48.25, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ448250.jpg'}, {'end': 114.33, 'src': 'embed', 'start': 85.811, 'weight': 5, 'content': [{'end': 90.274, 'text': 'And in particular, he had this idea of sort of going into the future and imagining yourself there.', 'start': 85.811, 'duration': 4.463}, {'end': 94.476, 'text': 'So he had this Wayne Gretzky idea of skating to where the puck should be or will be.', 'start': 90.314, 'duration': 4.162}, {'end': 98.657, 'text': 'and sort of going there, grabbing that future, and then pulling it back to the present.', 'start': 95.154, 'duration': 3.503}, {'end': 104.482, 'text': 'And the way that he talks about doing this is, I think, amazing for research.', 'start': 100.198, 'duration': 4.284}, {'end': 108.225, 'text': 'He talks about basically going and sort of imagining that future world.', 'start': 104.562, 'duration': 3.663}, {'end': 114.33, 'text': "But I'd actually wager that not a single successful company has actually been founded by doing that.", 'start': 109.025, 'duration': 5.305}], 'summary': 'Imagining the future and pulling it to the present is crucial for research, yet not a single successful company has been founded by doing so.', 'duration': 28.519, 'max_score': 85.811, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ485811.jpg'}, {'end': 270.216, 'src': 'embed', 'start': 202.784, 'weight': 1, 'content': [{'end': 207.085, 'text': 'You actually need to solve a specific problem that customers have today, here, now.', 'start': 202.784, 'duration': 4.301}, {'end': 211.519, 'text': 'And most startups actually fail to do that.', 'start': 209.838, 'duration': 1.681}, {'end': 218.224, 'text': 'Most startups actually build something that looks vaguely futuristic, but is not in fact a real problem that people have today.', 'start': 211.7, 'duration': 6.524}, {'end': 222.167, 'text': 'And it will kill the company every time, right? The market always wins.', 'start': 219.385, 'duration': 2.782}, {'end': 225.07, 'text': "So we're gonna dig into that a little bit more.", 'start': 223.629, 'duration': 1.441}, {'end': 231.274, 'text': 'And this sort of problem of finding product market fit is at 80%.', 'start': 226.691, 'duration': 4.583}, {'end': 233.376, 'text': '80% of all founders fail to find product market fit.', 'start': 231.274, 'duration': 2.102}, {'end': 241.53, 'text': 'So four out of five attempts to found a company just fail at the sort of earliest stage of even finding a problem that you can solve in a unique way.', 'start': 235.222, 'duration': 6.308}, {'end': 247.959, 'text': 'And the last one out of five are gonna sort of struggle through the remainder of actually building that company up from there.', 'start': 242.932, 'duration': 5.027}, {'end': 249.461, 'text': "But that's just the stats.", 'start': 248.6, 'duration': 0.861}, {'end': 259.007, 'text': "I'll share our own story of finding product market fit, but the short version is that it actually feels when you're not finding product market fit.", 'start': 251.54, 'duration': 7.467}, {'end': 262.309, 'text': 'it feels like sort of a bottomless emotional free fall.', 'start': 259.007, 'duration': 3.302}, {'end': 267.774, 'text': "Not to get too dark, but when you're failing to find it, it sort of becomes a strange obsession.", 'start': 263.671, 'duration': 4.103}, {'end': 270.216, 'text': 'And it could really make you sick, actually.', 'start': 268.435, 'duration': 1.781}], 'summary': "80% of founders fail to find product market fit, leading to company failure; it's a bottomless emotional free fall.", 'duration': 67.432, 'max_score': 202.784, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4202784.jpg'}, {'end': 473.07, 'src': 'embed', 'start': 441.694, 'weight': 4, 'content': [{'end': 446.079, 'text': 'And in reality, But the good thing that was going on here, the reality was that we were a bunch of cockroaches.', 'start': 441.694, 'duration': 4.385}, {'end': 454.906, 'text': "And the reason is that it's very important pre-product market fit to basically save as much cash as possible,", 'start': 447.74, 'duration': 7.166}, {'end': 458.689, 'text': 'spend as little as possible and extend your runway as long as possible.', 'start': 454.906, 'duration': 3.783}, {'end': 465.595, 'text': 'So a lot of founders make a mistake of spending a bunch on sales or marketing or other things as soon as they have an idea.', 'start': 459.23, 'duration': 6.365}, {'end': 473.07, 'text': "But in reality, until you find product market fit, until you find something that people want, You shouldn't be spending any time on that.", 'start': 466.656, 'duration': 6.414}], 'summary': 'Pre-product market fit: save cash, spend little, extend runway to find product market fit before spending.', 'duration': 31.376, 'max_score': 441.694, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4441694.jpg'}], 'start': 48.25, 'title': 'Finding product market fit', 'summary': "Discusses the concept of finding product market fit, drawing inspiration from alan kay's lecture on envisioning the future and inventing it, emphasizing the importance of exploring new spaces and imagining oneself in the future to guide research. it also highlights the struggles in finding product market fit, the significance of conserving cash pre-product market fit, and the emotional toll it takes, with 80% of founders failing to find product market fit.", 'chapters': [{'end': 104.482, 'start': 48.25, 'title': 'Product market fit insights', 'summary': "Discusses the concept of finding product market fit, drawing inspiration from alan kay's lecture on envisioning the future and inventing it, emphasizing the importance of exploring new spaces and imagining oneself in the future to guide research.", 'duration': 56.232, 'highlights': ['Alan Kay emphasized the importance of envisioning the future and exploring new spaces, leading to breakthroughs in understanding and inventing the future.', 'He used the analogy of skating to where the puck should be or will be, to grab that future and bring it back to the present, highlighting the significance of imagining oneself in the future for research.', "Alan Kay's advice provides valuable insights for conducting research and finding product market fit."]}, {'end': 495.125, 'start': 104.562, 'title': 'Building successful startups', 'summary': 'Highlights the importance of focusing on solving current customer problems, the struggles in finding product market fit, and the significance of conserving cash pre-product market fit, with 80% of founders failing to find product market fit and the emotional toll it takes.', 'duration': 390.563, 'highlights': ['80% of all founders fail to find product market fit This statistic emphasizes the difficulty of finding product market fit, indicating that the majority of founders struggle with this crucial stage.', 'Struggles in finding product market fit lead to emotional toll The speaker shares personal experiences of intense emotional stress and physical health issues during the search for product market fit, highlighting the significant impact of this struggle on founders.', 'Importance of focusing on solving current customer problems The chapter stresses the significance of addressing present customer needs rather than envisioning a future world, emphasizing the relevance of solving existing problems for successful startups.', 'Significance of conserving cash pre-product market fit The speaker emphasizes the importance of minimizing expenses and conserving cash until product market fit is found, highlighting the financial discipline required in the early stages of a startup.']}], 'duration': 446.875, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ448250.jpg', 'highlights': ['Alan Kay emphasized the importance of envisioning the future and exploring new spaces, leading to breakthroughs in understanding and inventing the future.', '80% of all founders fail to find product market fit This statistic emphasizes the difficulty of finding product market fit, indicating that the majority of founders struggle with this crucial stage.', 'Importance of focusing on solving current customer problems The chapter stresses the significance of addressing present customer needs rather than envisioning a future world, emphasizing the relevance of solving existing problems for successful startups.', 'Struggles in finding product market fit lead to emotional toll The speaker shares personal experiences of intense emotional stress and physical health issues during the search for product market fit, highlighting the significant impact of this struggle on founders.', 'Significance of conserving cash pre-product market fit The speaker emphasizes the importance of minimizing expenses and conserving cash until product market fit is found, highlighting the financial discipline required in the early stages of a startup.', 'He used the analogy of skating to where the puck should be or will be, to grab that future and bring it back to the present, highlighting the significance of imagining oneself in the future for research.', "Alan Kay's advice provides valuable insights for conducting research and finding product market fit."]}, {'end': 1405.622, 'segs': [{'end': 540.43, 'src': 'embed', 'start': 496.025, 'weight': 1, 'content': [{'end': 498.407, 'text': 'And we stretched out our runway through as many ideas as we could.', 'start': 496.025, 'duration': 2.382}, {'end': 506.391, 'text': 'And so to sort of make this process a little bit more explicit, step one is that you build, launch, and sort of iterate on several different ideas.', 'start': 499.929, 'duration': 6.462}, {'end': 511.313, 'text': "And this is where it's really important to be a cockroach, where you're sort of conserving everything you have.", 'start': 506.631, 'duration': 4.682}, {'end': 515.094, 'text': "Then suddenly something magical happens, we'll talk about that.", 'start': 512.813, 'duration': 2.281}, {'end': 518.835, 'text': 'And this is product market fit, and it really does feel magical.', 'start': 515.953, 'duration': 2.882}, {'end': 521.296, 'text': 'Hopefully I can illustrate to you and help you feel that.', 'start': 519.335, 'duration': 1.961}, {'end': 528.978, 'text': 'And then three, product market fit sort of suddenly turns you into a unicorn slash cockroach.', 'start': 522.916, 'duration': 6.062}, {'end': 538.209, 'text': 'And rather than just surviving, after product market fit, everything gets suddenly easier, right? You can, not easy, but easier.', 'start': 530.666, 'duration': 7.543}, {'end': 540.43, 'text': 'Customers show up and buy your thing.', 'start': 539.03, 'duration': 1.4}], 'summary': 'Iterate on ideas, achieve product market fit, become a unicorn/cockroach, and attract customers.', 'duration': 44.405, 'max_score': 496.025, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4496025.jpg'}, {'end': 704.789, 'src': 'embed', 'start': 676.165, 'weight': 0, 'content': [{'end': 682.37, 'text': 'having some sort of platform that other companies are building on selling and, by nature, that pulls people into your ecosystem.', 'start': 676.165, 'duration': 6.205}, {'end': 684.751, 'text': 'But how do you build a platform like that?', 'start': 683.47, 'duration': 1.281}, {'end': 693.058, 'text': 'I know Peter Thiel may not be the most popular right now, but his opinion is that to build a sustainable and compelling platform,', 'start': 686.573, 'duration': 6.485}, {'end': 695.763, 'text': 'you really need to get to 100 million in revenue.', 'start': 694.022, 'duration': 1.741}, {'end': 704.789, 'text': 'And the reason is just that you need to be at a scale where someone actually can capture a couple percentage points of your customer base and build a real business themselves.', 'start': 695.863, 'duration': 8.926}], 'summary': 'To build a sustainable platform, aim for 100 million in revenue to enable others to build a real business on it.', 'duration': 28.624, 'max_score': 676.165, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4676165.jpg'}, {'end': 763.823, 'src': 'embed', 'start': 737.813, 'weight': 2, 'content': [{'end': 742.015, 'text': 'And he basically breaks down the path to 100 million in revenue in sort of three different steps.', 'start': 737.813, 'duration': 4.202}, {'end': 748.878, 'text': 'He says 0 to 1 million is impossible, 1 to 10 million is improbable, and 10 to 100 is inevitable.', 'start': 742.055, 'duration': 6.823}, {'end': 755.08, 'text': "And he says that 10 to 100 is inevitable, Because at that point, there's just so much momentum.", 'start': 750.078, 'duration': 5.002}, {'end': 757.501, 'text': 'You have customers out there who are singing your praises.', 'start': 755.24, 'duration': 2.261}, {'end': 758.461, 'text': "They're buying.", 'start': 757.941, 'duration': 0.52}, {'end': 759.762, 'text': 'Their companies are going to buy more.', 'start': 758.501, 'duration': 1.261}, {'end': 763.823, 'text': "And it might take you a while, but eventually you're going to get from 10 to 100.", 'start': 759.782, 'duration': 4.041}], 'summary': 'The path to 100 million in revenue: 0-1m impossible, 1-10m improbable, 10-100m inevitable.', 'duration': 26.01, 'max_score': 737.813, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4737813.jpg'}, {'end': 849.455, 'src': 'embed', 'start': 826.051, 'weight': 4, 'content': [{'end': 835.658, 'text': 'And I recently read a pretty good study talking about the stats of sort of actual analysis of failure and success in startups and finding product market fit.', 'start': 826.051, 'duration': 9.607}, {'end': 843.571, 'text': "And basically, the research shows that you're actually no more likely to succeed the second time around if you fail the first time.", 'start': 836.926, 'duration': 6.645}, {'end': 849.455, 'text': 'So if you fail in finding product market fit the first time, your odds of success are still 20% or 22% the second time around.', 'start': 843.691, 'duration': 5.764}], 'summary': 'Study finds 20-22% success rate for finding product market fit after initial failure.', 'duration': 23.404, 'max_score': 826.051, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4826051.jpg'}, {'end': 888.658, 'src': 'embed', 'start': 861.629, 'weight': 5, 'content': [{'end': 866.954, 'text': "And so what I think that means is that there's actually not that much information encoded in failing to find product market fit.", 'start': 861.629, 'duration': 5.325}, {'end': 869.156, 'text': "You don't actually learn that much.", 'start': 868.175, 'duration': 0.981}, {'end': 874.982, 'text': "But there's actually quite a bit encoded in feeling the success of actually understanding what did work.", 'start': 869.797, 'duration': 5.185}, {'end': 883.457, 'text': 'And so when we were struggling to find product market fit in 2011 and 2012, I felt this really acutely.', 'start': 877.535, 'duration': 5.922}, {'end': 888.658, 'text': "We had failed multiple times at this point, but I still didn't feel like I really knew what I was looking for.", 'start': 883.497, 'duration': 5.161}], 'summary': "Failing to find product market fit doesn't yield much information, while success in understanding what worked holds valuable insights.", 'duration': 27.029, 'max_score': 861.629, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4861629.jpg'}, {'end': 1044.904, 'src': 'embed', 'start': 1007.335, 'weight': 6, 'content': [{'end': 1012.498, 'text': 'We were trying to convince, hey, professor, did you get any feedback from your class during this class? No.', 'start': 1007.335, 'duration': 5.163}, {'end': 1014.219, 'text': 'OK, well, we have a solution for you.', 'start': 1012.899, 'duration': 1.32}, {'end': 1018.162, 'text': 'So we were hustling to try to get people to actually use this tool.', 'start': 1015.16, 'duration': 3.002}, {'end': 1024.465, 'text': 'But we were mostly ignoring any test of real product market fit there.', 'start': 1019.703, 'duration': 4.762}, {'end': 1033.152, 'text': 'And so professors would agree to test it out for a few lectures out of pity, maybe, for some students from MIT who were trying to help.', 'start': 1024.986, 'duration': 8.166}, {'end': 1037.199, 'text': "And so basically we thought that this was product market fit, but it really wasn't.", 'start': 1034.537, 'duration': 2.662}, {'end': 1038.54, 'text': "And I'll show you why.", 'start': 1037.839, 'duration': 0.701}, {'end': 1044.904, 'text': 'Because if you stand in the back of the classroom and look at what people actually had on their screens, none of them were using the product right?', 'start': 1038.98, 'duration': 5.924}], 'summary': 'Efforts to promote tool to professors for feedback lacked real product market fit, as evidenced by lack of usage in class.', 'duration': 37.569, 'max_score': 1007.335, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41007335.jpg'}, {'end': 1150.075, 'src': 'embed', 'start': 1125.05, 'weight': 8, 'content': [{'end': 1131.994, 'text': "And I think being dismissive of users and having your clear vision of the future that isn't necessarily solving a problem for your customers,", 'start': 1125.05, 'duration': 6.944}, {'end': 1134.316, 'text': 'is a pretty stunning failure on our part.', 'start': 1131.994, 'duration': 2.322}, {'end': 1138.918, 'text': "And it's like a key thing that founders do again and again and again in their sort of search for product market fit.", 'start': 1134.436, 'duration': 4.482}, {'end': 1144.121, 'text': 'So then we had to do the awkward thing, which by the way is the right thing.', 'start': 1141.179, 'duration': 2.942}, {'end': 1150.075, 'text': "of calling back all the investors and saying this was like four weeks after they'd signed the checks right?", 'start': 1144.631, 'duration': 5.444}], 'summary': 'Founders failing to solve customer problems is a common mistake in the search for product market fit.', 'duration': 25.025, 'max_score': 1125.05, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41125050.jpg'}], 'start': 496.025, 'title': 'Achieving product market fit and building category leaders', 'summary': "Discusses the process of achieving product market fit, emphasizing the importance of iterating on ideas, being a 'cockroach' to conserve resources, and the transformative effect of achieving product market fit. it also explores the significance of category leaders, challenges in reaching 100 million in revenue, and the impact of learning from failure.", 'chapters': [{'end': 557.679, 'start': 496.025, 'title': 'Achieving product market fit', 'summary': "Discusses the process of achieving product market fit, emphasizing the importance of iterating on ideas, being a 'cockroach' to conserve resources, and the transformative effect of achieving product market fit, which leads to easier customer acquisition and team expansion.", 'duration': 61.654, 'highlights': ['After achieving product market fit, customer acquisition becomes easier, and there is a greater interest in joining the team.', 'Product market fit is a transformative stage that makes progress easier and allows for forward momentum.', 'The initial step involves building, launching, and iterating on multiple ideas to ultimately achieve product market fit.', "It is crucial to adopt a 'cockroach' mentality during the process of iterating on ideas to conserve resources and increase the likelihood of success."]}, {'end': 954.341, 'start': 559.639, 'title': 'Building category leaders and product market fit', 'summary': 'Explores the importance of category leaders in large companies, the significance of product market fit, and the challenges and success stories in reaching 100 million in revenue, highlighting the difficulties in finding product market fit and the impact of learning from failure.', 'duration': 394.702, 'highlights': ['Reaching 100 million in revenue is crucial for building a sustainable platform, as it allows other businesses to capture a couple percentage points of the customer base and build a real business, emphasizing the importance of scale in creating a compelling platform. Importance of reaching 100 million in revenue for building a sustainable platform, impact on other businesses building on the platform, and the significance of scale in creating a compelling platform.', 'The path to 100 million in revenue is outlined as 0 to 1 million being impossible, 1 to 10 million being improbable, and 10 to 100 million being inevitable, emphasizing the challenges and momentum in scaling a business to reach the 100 million mark. Outline of the path to 100 million in revenue, emphasizing the challenges and momentum in scaling a business to reach the 100 million mark.', 'Learning from failure in finding product market fit is highlighted, with statistics showing that success in finding product market fit significantly increases the chances of success in subsequent ventures, emphasizing the importance of understanding what works in product market fit. Importance of learning from failure in finding product market fit, impact of success in finding product market fit on subsequent ventures, and the significance of understanding what works in product market fit.', 'The challenges in finding product market fit are described, with the difficulty in identifying positive examples and the struggle in distinguishing between potential fits and actual product market fit, emphasizing the frustration and ambiguity in the process. Challenges in finding product market fit, difficulty in identifying positive examples, and the frustration and ambiguity in the process.']}, {'end': 1405.622, 'start': 954.421, 'title': 'Struggles with product market fit', 'summary': 'Illustrates the struggles faced by the founders as they failed to achieve product market fit, despite investing significant resources and time in developing their tool, due to their failure to accurately assess user needs and market demand.', 'duration': 451.201, 'highlights': ['The founders invested significant resources and time in developing a tool to provide real-time feedback to professors and students, but failed to achieve product market fit. The founders invested 600K and wrote hundreds of thousands of lines of code in their attempt to build a tool that would provide real-time feedback to professors and students.', "The founders' initial approach to testing product market fit involved convincing professors to use their tool, but it did not accurately gauge actual user engagement and value. The founders convinced professors to test their tool, but it became evident that the students did not find much value in using it, and the professors were not fully committed to its use either.", 'The founders realized the need for a new approach to assess product market fit and decided to pivot towards building an analytics tool, based on a flawed understanding of what constitutes product market fit. The founders decided to pivot towards building an analytics tool, believing that it would address the need for product market fit, but this approach was also flawed.', "The founders' misinterpretation of customer interest led to a prolonged period of writing code for a product that did not achieve product market fit. The founders misinterpreted vague customer interest as product market fit, leading to six months of writing code for a product that ultimately did not achieve product market fit."]}], 'duration': 909.597, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ4496025.jpg', 'highlights': ['Reaching 100 million in revenue is crucial for building a sustainable platform, as it allows other businesses to capture a couple percentage points of the customer base and build a real business, emphasizing the importance of scale in creating a compelling platform.', 'After achieving product market fit, customer acquisition becomes easier, and there is a greater interest in joining the team.', 'The path to 100 million in revenue is outlined as 0 to 1 million being impossible, 1 to 10 million being improbable, and 10 to 100 million being inevitable, emphasizing the challenges and momentum in scaling a business to reach the 100 million mark.', "It is crucial to adopt a 'cockroach' mentality during the process of iterating on ideas to conserve resources and increase the likelihood of success.", 'Learning from failure in finding product market fit is highlighted, with statistics showing that success in finding product market fit significantly increases the chances of success in subsequent ventures, emphasizing the importance of understanding what works in product market fit.', 'The challenges in finding product market fit are described, with the difficulty in identifying positive examples and the struggle in distinguishing between potential fits and actual product market fit, emphasizing the frustration and ambiguity in the process.', 'The founders invested significant resources and time in developing a tool to provide real-time feedback to professors and students, but failed to achieve product market fit. The founders invested 600K and wrote hundreds of thousands of lines of code in their attempt to build a tool that would provide real-time feedback to professors and students.', "The founders' initial approach to testing product market fit involved convincing professors to use their tool, but it did not accurately gauge actual user engagement and value. The founders convinced professors to test their tool, but it became evident that the students did not find much value in using it, and the professors were not fully committed to its use either.", 'The founders realized the need for a new approach to assess product market fit and decided to pivot towards building an analytics tool, based on a flawed understanding of what constitutes product market fit.', "The founders' misinterpretation of customer interest led to a prolonged period of writing code for a product that did not achieve product market fit."]}, {'end': 2206.463, 'segs': [{'end': 1490.7, 'src': 'heatmap', 'start': 1443.775, 'weight': 4, 'content': [{'end': 1446.476, 'text': 'And we saw basically they have different graphs and different APIs.', 'start': 1443.775, 'duration': 2.701}, {'end': 1449.738, 'text': "But it's actually the same data going into all these tools.", 'start': 1446.876, 'duration': 2.862}, {'end': 1451.499, 'text': "It's just they give you different stuff out the other end.", 'start': 1449.758, 'duration': 1.741}, {'end': 1457.531, 'text': "And we were like, well, we don't really want to make a business decision here about which tool we want to use.", 'start': 1452.426, 'duration': 5.105}, {'end': 1460.153, 'text': "So we'll just solve the engineering problem, because we're engineers.", 'start': 1457.691, 'duration': 2.462}, {'end': 1463.737, 'text': "And we'll just build some code that sends data to all three and does this automatic translation.", 'start': 1460.253, 'duration': 3.484}, {'end': 1465.118, 'text': 'So we put one data point in.', 'start': 1463.917, 'duration': 1.201}, {'end': 1467.941, 'text': 'It gets translated into three API calls that go out to all three services.', 'start': 1465.138, 'duration': 2.803}, {'end': 1472.985, 'text': 'Cool This was like 100 lines of code in the hundreds of thousands that we wrote.', 'start': 1469.762, 'duration': 3.223}, {'end': 1474.246, 'text': 'Set that aside.', 'start': 1473.706, 'duration': 0.54}, {'end': 1477.637, 'text': 'Then about four months later, it gets improved a little bit.', 'start': 1475.356, 'duration': 2.281}, {'end': 1479.157, 'text': 'Four months later, it gets improved a little bit.', 'start': 1477.717, 'duration': 1.44}, {'end': 1484.318, 'text': 'At that point, we are trying to sell our own analytics tool, right? Akin to Mixpanel and Google Analytics.', 'start': 1479.777, 'duration': 4.541}, {'end': 1490.7, 'text': "And we keep encountering this sales objection when we're trying to sell it, which is, I already have Mixpanel installed.", 'start': 1485.398, 'duration': 5.302}], 'summary': 'Engineers built code to send data to 3 tools, reducing sales objections by 100 lines of code.', 'duration': 46.925, 'max_score': 1443.775, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41443775.jpg'}, {'end': 1538.709, 'src': 'embed', 'start': 1512.609, 'weight': 5, 'content': [{'end': 1517.49, 'text': 'And we use it as a growth hack, basically, to get customers to start adopting our tool.', 'start': 1512.609, 'duration': 4.881}, {'end': 1520.271, 'text': 'Okay, great, we start doing that, start sending it out.', 'start': 1518.371, 'duration': 1.9}, {'end': 1525.332, 'text': "People start replying, this is awesome, I love the library, I'm definitely gonna use it.", 'start': 1520.291, 'duration': 5.041}, {'end': 1527.421, 'text': 'A few weeks later, we follow up.', 'start': 1526.34, 'duration': 1.081}, {'end': 1530.826, 'text': "Hey, we saw you're still not sending any data to segment.io.", 'start': 1527.962, 'duration': 2.864}, {'end': 1533.73, 'text': "What's going on? And they're like, oh, well, the library is fantastic.", 'start': 1530.866, 'duration': 2.864}, {'end': 1535.472, 'text': "I just don't really want to use your analytics service.", 'start': 1533.75, 'duration': 1.722}, {'end': 1538.709, 'text': 'We should have taken note right then.', 'start': 1537.688, 'duration': 1.021}], 'summary': 'Using growth hack to get customers, but some reluctant to use analytics service.', 'duration': 26.1, 'max_score': 1512.609, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41512609.jpg'}, {'end': 1649.424, 'src': 'embed', 'start': 1618.693, 'weight': 0, 'content': [{'end': 1619.133, 'text': 'They agree.', 'start': 1618.693, 'duration': 0.44}, {'end': 1619.954, 'text': 'OK, great.', 'start': 1619.493, 'duration': 0.461}, {'end': 1621.794, 'text': "So I'm like, all right, totally done.", 'start': 1620.734, 'duration': 1.06}, {'end': 1623.489, 'text': 'We get ready to launch it on Hacker News.', 'start': 1622.128, 'duration': 1.361}, {'end': 1626.893, 'text': "I'm starting to think about other ideas, and it goes straight to the top.", 'start': 1623.53, 'duration': 3.363}, {'end': 1632.039, 'text': 'So it gets about 300 upvotes on Hacker News, gets a few thousand stars on GitHub.', 'start': 1627.774, 'duration': 4.265}, {'end': 1636.023, 'text': 'We have people reaching out to us on LinkedIn, demanding access to the beta.', 'start': 1632.94, 'duration': 3.083}, {'end': 1639.386, 'text': 'Like this guy says what does a brother have to do to get bumped up on your beta list?', 'start': 1636.543, 'duration': 2.843}, {'end': 1641.429, 'text': 'And there were others like this, right?', 'start': 1640.067, 'duration': 1.362}, {'end': 1643.498, 'text': 'Holy crap.', 'start': 1642.717, 'duration': 0.781}, {'end': 1644.899, 'text': 'so full stop, right?', 'start': 1643.498, 'duration': 1.401}, {'end': 1649.424, 'text': 'Compare this to everything previously, everything changed.', 'start': 1645.7, 'duration': 3.724}], 'summary': 'Product launch receives 300 upvotes on hacker news, thousands of stars on github, and generates demand for beta access on linkedin.', 'duration': 30.731, 'max_score': 1618.693, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41618693.jpg'}, {'end': 1649.424, 'src': 'heatmap', 'start': 1618.693, 'weight': 1, 'content': [{'end': 1619.133, 'text': 'They agree.', 'start': 1618.693, 'duration': 0.44}, {'end': 1619.954, 'text': 'OK, great.', 'start': 1619.493, 'duration': 0.461}, {'end': 1621.794, 'text': "So I'm like, all right, totally done.", 'start': 1620.734, 'duration': 1.06}, {'end': 1623.489, 'text': 'We get ready to launch it on Hacker News.', 'start': 1622.128, 'duration': 1.361}, {'end': 1626.893, 'text': "I'm starting to think about other ideas, and it goes straight to the top.", 'start': 1623.53, 'duration': 3.363}, {'end': 1632.039, 'text': 'So it gets about 300 upvotes on Hacker News, gets a few thousand stars on GitHub.', 'start': 1627.774, 'duration': 4.265}, {'end': 1636.023, 'text': 'We have people reaching out to us on LinkedIn, demanding access to the beta.', 'start': 1632.94, 'duration': 3.083}, {'end': 1639.386, 'text': 'Like this guy says what does a brother have to do to get bumped up on your beta list?', 'start': 1636.543, 'duration': 2.843}, {'end': 1641.429, 'text': 'And there were others like this, right?', 'start': 1640.067, 'duration': 1.362}, {'end': 1643.498, 'text': 'Holy crap.', 'start': 1642.717, 'duration': 0.781}, {'end': 1644.899, 'text': 'so full stop, right?', 'start': 1643.498, 'duration': 1.401}, {'end': 1649.424, 'text': 'Compare this to everything previously, everything changed.', 'start': 1645.7, 'duration': 3.724}], 'summary': 'New project gains traction, 300 upvotes on hacker news, thousands of stars on github, and high demand for beta access.', 'duration': 30.731, 'max_score': 1618.693, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41618693.jpg'}, {'end': 1790.148, 'src': 'embed', 'start': 1751.526, 'weight': 1, 'content': [{'end': 1755.25, 'text': "And again, it's an open source library with 580 lines of code.", 'start': 1751.526, 'duration': 3.724}, {'end': 1761.194, 'text': "That's a foothold, right? And since then, now we've expanded greatly into doing all sorts of things and solving adjacent problems for customers.", 'start': 1755.37, 'duration': 5.824}, {'end': 1766.779, 'text': "But the key is that, again, the market doesn't care at all what your vision of the world is.", 'start': 1762.195, 'duration': 4.584}, {'end': 1769.181, 'text': 'The market wants what it wants, and it will win every time.', 'start': 1767.399, 'duration': 1.782}, {'end': 1773.181, 'text': 'So if you walk away with sort of one thing today,', 'start': 1771.36, 'duration': 1.821}, {'end': 1778.743, 'text': "I think let's be incredibly clear that basically product market fit doesn't feel like vague idle interest.", 'start': 1773.181, 'duration': 5.562}, {'end': 1782.324, 'text': "It doesn't feel like sort of a glimmer of hope from some early conversation.", 'start': 1779.643, 'duration': 2.681}, {'end': 1784.845, 'text': "It doesn't feel like a trickle of people signing up.", 'start': 1783.185, 'duration': 1.66}, {'end': 1790.148, 'text': 'It really feels like sort of everything in your business has gone totally haywire.', 'start': 1786.046, 'duration': 4.102}], 'summary': 'Open source library with 580 lines of code led to expanded solutions for customers, emphasizing the importance of product market fit.', 'duration': 38.622, 'max_score': 1751.526, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41751526.jpg'}, {'end': 2140.192, 'src': 'embed', 'start': 2110.278, 'weight': 3, 'content': [{'end': 2114.721, 'text': "And so what does product market fit look like at that point? So we're introducing a second product, basically.", 'start': 2110.278, 'duration': 4.443}, {'end': 2116.803, 'text': 'Well, it looks like this.', 'start': 2115.802, 'duration': 1.001}, {'end': 2119.144, 'text': 'So you can tell when we introduced Redshift.', 'start': 2117.343, 'duration': 1.801}, {'end': 2124.175, 'text': 'And basically again, almost every metric in the business goes nuts right?', 'start': 2120.15, 'duration': 4.025}, {'end': 2132.323, 'text': "So it's very, very clear whether or not you have something that is really transformative for your customers or not.", 'start': 2124.315, 'duration': 8.008}, {'end': 2134.786, 'text': "One more story and then we'll open it up for Q&A.", 'start': 2132.563, 'duration': 2.223}, {'end': 2140.192, 'text': 'This is maybe about five months ago.', 'start': 2137.95, 'duration': 2.242}], 'summary': 'Introducing redshift led to transformative impact on metrics, indicating strong product market fit.', 'duration': 29.914, 'max_score': 2110.278, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42110278.jpg'}], 'start': 1406.242, 'title': 'Engineering problem turned growth hack', 'summary': 'Discusses how an engineering solution turned into a growth hack, leading to customer adoption, positive feedback, and impacting business growth and user engagement.', 'chapters': [{'end': 1564.522, 'start': 1406.242, 'title': 'Engineering problem turned growth hack', 'summary': 'Discusses how a simple engineering solution turned into a growth hack, leading to customer adoption and positive feedback, ultimately impacting business growth and user engagement.', 'duration': 158.28, 'highlights': ['Realization of a growth hack from an engineering solution, leading to positive customer adoption and engagement.', 'Utilizing an open-source library as a growth hack, resulting in customer interest and adoption of the tool.', 'Initial development of code to send data to multiple analytics tools, eventually leading to the creation of an open-source library that attracted user attention and contributed to business growth.']}, {'end': 2206.463, 'start': 1567.301, 'title': 'Finding product market fit', 'summary': 'Discusses the journey of finding product market fit, including the initial rejection of an open-source library idea, the breakthrough in product market fit with a landing page, the transformation in customer engagement metrics, and the iterative process of identifying customer needs and building products to match them.', 'duration': 639.162, 'highlights': ['The breakthrough in product market fit with a landing page The decision to build a landing page for an open-source library led to 300 upvotes on Hacker News and a surge in customer interest, indicating the achievement of product-market fit.', 'Transformation in customer engagement metrics The shift from limited customer interest to thousands of sign-ups, pull requests, and demand for additional features demonstrated the significant impact of achieving product-market fit.', 'Iterative process of identifying customer needs and building products to match them The examples of finding product-market fit, such as introducing a Redshift integration based on customer feedback, highlighted the iterative nature of understanding and meeting customer needs to achieve product-market fit.']}], 'duration': 800.221, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ41406242.jpg', 'highlights': ['The decision to build a landing page for an open-source library led to 300 upvotes on Hacker News and a surge in customer interest, indicating the achievement of product-market fit.', 'The shift from limited customer interest to thousands of sign-ups, pull requests, and demand for additional features demonstrated the significant impact of achieving product-market fit.', 'Utilizing an open-source library as a growth hack, resulting in customer interest and adoption of the tool.', 'The examples of finding product-market fit, such as introducing a Redshift integration based on customer feedback, highlighted the iterative nature of understanding and meeting customer needs to achieve product-market fit.', 'Initial development of code to send data to multiple analytics tools, eventually leading to the creation of an open-source library that attracted user attention and contributed to business growth.', 'Realization of a growth hack from an engineering solution, leading to positive customer adoption and engagement.']}, {'end': 2880.503, 'segs': [{'end': 2274.627, 'src': 'embed', 'start': 2207.997, 'weight': 0, 'content': [{'end': 2213.603, 'text': "That, again, that is the feeling of product market fit, which is like, you're like, wait, wait, wait, no, no, no, it doesn't exist yet.", 'start': 2207.997, 'duration': 5.606}, {'end': 2218.087, 'text': 'These are ideas we might, all of a sudden, the customer is just gonna rip it out of you.', 'start': 2213.743, 'duration': 4.344}, {'end': 2221.871, 'text': "And so now you're on a tight timeline because the customer expects that it already exists.", 'start': 2218.728, 'duration': 3.143}, {'end': 2227.286, 'text': "So again, that's what product market fit actually feels like.", 'start': 2224.025, 'duration': 3.261}, {'end': 2235.268, 'text': 'And I think if you want to find product market fit and build one of these category leading companies,', 'start': 2229.426, 'duration': 5.842}, {'end': 2238.749, 'text': 'become one of the one out of five founders that actually does succeed in finding this.', 'start': 2235.268, 'duration': 3.481}, {'end': 2241.449, 'text': 'I think you just need to be really honest with yourself.', 'start': 2239.869, 'duration': 1.58}, {'end': 2247.811, 'text': 'That the sort of glimmers of false hope that you have are not the same as customers actually ripping something out of your hands.', 'start': 2242.049, 'duration': 5.762}, {'end': 2251.312, 'text': 'And so yeah, you just need to be honest with yourself.', 'start': 2249.531, 'duration': 1.781}, {'end': 2252.672, 'text': "That's the message.", 'start': 2251.332, 'duration': 1.34}, {'end': 2259.757, 'text': 'So, questions? Yeah, Sam.', 'start': 2254.133, 'duration': 5.624}, {'end': 2263.259, 'text': "I certainly agree and it's been my experience that, that is what product market fit is like.", 'start': 2259.777, 'duration': 3.482}, {'end': 2269.644, 'text': "But when you're trying to find it, how do you even like have guideposts for what kind of ideas to try??", 'start': 2263.359, 'duration': 6.285}, {'end': 2274.627, 'text': "When you're just sort of casting around, looking for an idea?", 'start': 2272.746, 'duration': 1.881}], 'summary': 'Feeling of product market fit is when customers expect a non-existing product, honesty is key.', 'duration': 66.63, 'max_score': 2207.997, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42207997.jpg'}, {'end': 2324.877, 'src': 'embed', 'start': 2295.015, 'weight': 3, 'content': [{'end': 2297.536, 'text': 'But they legitimately tried them, and they killed them so fast.', 'start': 2295.015, 'duration': 2.521}, {'end': 2303.118, 'text': 'And then four days before demo day, they started a new idea, which was Codecademy.', 'start': 2298.276, 'duration': 4.842}, {'end': 2304.638, 'text': 'And then it worked.', 'start': 2303.898, 'duration': 0.74}, {'end': 2309.16, 'text': 'And on Codecademy, on launch day, on demo day, they had 300, 000 users or something like that.', 'start': 2305.258, 'duration': 3.902}, {'end': 2312.841, 'text': "Again, that's the landmine effect of nothing, nothing, nothing, nothing, nothing, nothing.", 'start': 2309.8, 'duration': 3.041}, {'end': 2321.855, 'text': "And they were so good about killing the ideas, they had no problem throwing out something that wasn't going to work.", 'start': 2313.689, 'duration': 8.166}, {'end': 2324.877, 'text': "I don't think there's any magic to finding the right idea.", 'start': 2321.875, 'duration': 3.002}], 'summary': 'Codecademy had 300,000 users on launch day, after discarding unsuccessful ideas.', 'duration': 29.862, 'max_score': 2295.015, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42295015.jpg'}, {'end': 2379.439, 'src': 'embed', 'start': 2349.002, 'weight': 4, 'content': [{'end': 2353.643, 'text': "uh, the question is like how do you go about pricing something uh like this where it's 500 lines of code?", 'start': 2349.002, 'duration': 4.641}, {'end': 2355.184, 'text': 'It seems like it solves a small problem for people.', 'start': 2353.663, 'duration': 1.521}, {'end': 2361.656, 'text': 'We thought it was a small problem for people, and we underpriced hugely for a long time.', 'start': 2356.995, 'duration': 4.661}, {'end': 2368.617, 'text': 'It turns out that that problem that the 500 lines of code solves is actually really valuable.', 'start': 2361.976, 'duration': 6.641}, {'end': 2372.478, 'text': 'We have lots of customers now that pay over $100, 000 a year to solve that problem.', 'start': 2368.997, 'duration': 3.481}, {'end': 2379.439, 'text': "And there's more to the product now than the 500 lines of code, a lot more.", 'start': 2374.198, 'duration': 5.241}], 'summary': 'Underpriced 500 lines of code, now valued over $100,000 a year.', 'duration': 30.437, 'max_score': 2349.002, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42349002.jpg'}, {'end': 2418.537, 'src': 'embed', 'start': 2392.117, 'weight': 5, 'content': [{'end': 2396.318, 'text': 'But to answer your question most directly, we spent the first year just accumulating customers.', 'start': 2392.117, 'duration': 4.201}, {'end': 2397.918, 'text': 'So we just had lots of people adopting it.', 'start': 2396.378, 'duration': 1.54}, {'end': 2400.978, 'text': 'We got to maybe 1, 000 or 2, 000 companies sending data through Segment.', 'start': 2397.938, 'duration': 3.04}, {'end': 2404.219, 'text': 'And then we tried experimenting with pricing.', 'start': 2401.899, 'duration': 2.32}, {'end': 2408.94, 'text': "And then I'd say the biggest kick in the butt we had to actually get to the right point.", 'start': 2405.499, 'duration': 3.441}, {'end': 2414.321, 'text': 'here is we had a sales advisor who said there were reasonably sized companies using us.', 'start': 2408.94, 'duration': 5.381}, {'end': 2418.537, 'text': 'like Live Nation and RDO and stuff like that.', 'start': 2416.496, 'duration': 2.041}], 'summary': 'In the first year, accumulated 1,000-2,000 companies as customers, experimented with pricing, and received validation from reasonably sized companies like live nation and rdo.', 'duration': 26.42, 'max_score': 2392.117, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42392117.jpg'}, {'end': 2517.748, 'src': 'embed', 'start': 2490.357, 'weight': 6, 'content': [{'end': 2495.239, 'text': "Yeah, this is actually why it's so hard to find product market fit the first time and why it's so much easier the second time,", 'start': 2490.357, 'duration': 4.882}, {'end': 2496.7, 'text': 'once you have some product market fit.', 'start': 2495.239, 'duration': 1.461}, {'end': 2505.038, 'text': 'Because once you do have a defined customer set that you sell to, you can pretty easily figure out, by going back to the same people,', 'start': 2497.952, 'duration': 7.086}, {'end': 2506.819, 'text': "whether or not you're solving an adjacent problem for them.", 'start': 2505.038, 'duration': 1.781}, {'end': 2509.001, 'text': "But it's really hard.", 'start': 2508.02, 'duration': 0.981}, {'end': 2517.748, 'text': "The thing that makes it super hard at the beginning is it's like you have two things and you can either slide the product or you can slide the market by talking to different people.", 'start': 2509.261, 'duration': 8.487}], 'summary': 'Finding product market fit is difficult initially, but becomes easier with a defined customer set, enabling adjacent problem-solving.', 'duration': 27.391, 'max_score': 2490.357, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42490357.jpg'}], 'start': 2207.997, 'title': 'Product market fit and pricing strategies', 'summary': "Covers the pursuit of product market fit, emphasizing the challenge and the importance of honesty, along with insights on killing bad ideas and the impact of underpricing on product valuation, exemplified by codecademy's experience.", 'chapters': [{'end': 2274.627, 'start': 2207.997, 'title': 'Understanding product market fit', 'summary': 'Discusses the feeling of product market fit, the challenge of finding it, and the importance of being honest with oneself in the process, emphasizing the need for founders to be part of the one out of five who succeed in finding it.', 'duration': 66.63, 'highlights': ['Product market fit is the feeling that the customer is just gonna rip the product out of your hands, creating a tight timeline as the customer expects it to already exist.', 'To become one of the one out of five founders that succeed in finding product market fit, one needs to be really honest with oneself and differentiate between false hope and actual customer demand.', 'The challenge of finding product market fit lies in identifying guideposts for the kind of ideas to try when casting around for an idea.']}, {'end': 2880.503, 'start': 2274.647, 'title': 'Killing bad ideas and pricing strategies', 'summary': "Discusses the importance of swiftly discarding bad ideas, illustrated by codecademy's rapid idea experimentation and eventual success, along with insights on pricing strategies, highlighting how underpricing led to undervaluing a solution which later proved to be highly valuable.", 'duration': 605.856, 'highlights': ["The Value of Killing Bad Ideas Codecademy founders' rapid experimentation with 12 ideas in seven weeks, leading to the successful launch of Codecademy with 300,000 users on demo day, emphasizes the significance of swiftly discarding bad ideas.", 'Underpricing and Undervaluing Solutions The underpricing of a solution, initially perceived as solving a small problem, led to undervaluing it, but later, the same solution turned out to be highly valuable, with some customers paying over $100,000 a year.', "Pricing Strategy Evolution The evolution of pricing strategy, from underpricing to experimenting and eventually reaching the right pricing point, was catalyzed by a sales advisor's insistence on asking for $120,000 a year, leading to a revaluation of the product's value.", 'Challenges of Finding Product-Market Fit The difficulty in finding product-market fit is attributed to the challenge of determining whether to shift the product or the market, with founders often being unclear about which shift they are making, making it crucial to be honest about the direction of the shift.', 'Customer Discovery and Sales Approach The shift from initial product-market fit to building a company around it involves a transition in sales approach, where product managers focus on understanding and solving customer problems, leading to the need for training and customer interaction strategies.']}], 'duration': 672.506, 'thumbnail': 'https://coursnap.oss-ap-southeast-1.aliyuncs.com/video-capture/_6pl5GG8RQ4/pics/_6pl5GG8RQ42207997.jpg', 'highlights': ['Product market fit is the feeling that the customer is just gonna rip the product out of your hands, creating a tight timeline as the customer expects it to already exist.', 'To become one of the one out of five founders that succeed in finding product market fit, one needs to be really honest with oneself and differentiate between false hope and actual customer demand.', 'The challenge of finding product market fit lies in identifying guideposts for the kind of ideas to try when casting around for an idea.', "The Value of Killing Bad Ideas Codecademy founders' rapid experimentation with 12 ideas in seven weeks, leading to the successful launch of Codecademy with 300,000 users on demo day, emphasizes the significance of swiftly discarding bad ideas.", 'Underpricing and Undervaluing Solutions The underpricing of a solution, initially perceived as solving a small problem, led to undervaluing it, but later, the same solution turned out to be highly valuable, with some customers paying over $100,000 a year.', "Pricing Strategy Evolution The evolution of pricing strategy, from underpricing to experimenting and eventually reaching the right pricing point, was catalyzed by a sales advisor's insistence on asking for $120,000 a year, leading to a revaluation of the product's value.", 'Challenges of Finding Product-Market Fit The difficulty in finding product-market fit is attributed to the challenge of determining whether to shift the product or the market, with founders often being unclear about which shift they are making, making it crucial to be honest about the direction of the shift.', 'Customer Discovery and Sales Approach The shift from initial product-market fit to building a company around it involves a transition in sales approach, where product managers focus on understanding and solving customer problems, leading to the need for training and customer interaction strategies.']}], 'highlights': ['Segment, a B2B company, grew from about four people to 150 people in three and a half years.', 'Peter Reinhart from Segment discusses the importance of finding product market fit in any startup.', '80% of all founders fail to find product market fit This statistic emphasizes the difficulty of finding product market fit, indicating that the majority of founders struggle with this crucial stage.', 'Importance of focusing on solving current customer problems The chapter stresses the significance of addressing present customer needs rather than envisioning a future world, emphasizing the relevance of solving existing problems for successful startups.', 'Struggles in finding product market fit lead to emotional toll The speaker shares personal experiences of intense emotional stress and physical health issues during the search for product market fit, highlighting the significant impact of this struggle on founders.', 'Significance of conserving cash pre-product market fit The speaker emphasizes the importance of minimizing expenses and conserving cash until product market fit is found, highlighting the financial discipline required in the early stages of a startup.', 'Reaching 100 million in revenue is crucial for building a sustainable platform, as it allows other businesses to capture a couple percentage points of the customer base and build a real business, emphasizing the importance of scale in creating a compelling platform.', 'After achieving product market fit, customer acquisition becomes easier, and there is a greater interest in joining the team.', 'The path to 100 million in revenue is outlined as 0 to 1 million being impossible, 1 to 10 million being improbable, and 10 to 100 million being inevitable, emphasizing the challenges and momentum in scaling a business to reach the 100 million mark.', "It is crucial to adopt a 'cockroach' mentality during the process of iterating on ideas to conserve resources and increase the likelihood of success.", 'Learning from failure in finding product market fit is highlighted, with statistics showing that success in finding product market fit significantly increases the chances of success in subsequent ventures, emphasizing the importance of understanding what works in product market fit.', 'The challenges in finding product market fit are described, with the difficulty in identifying positive examples and the struggle in distinguishing between potential fits and actual product market fit, emphasizing the frustration and ambiguity in the process.', 'The decision to build a landing page for an open-source library led to 300 upvotes on Hacker News and a surge in customer interest, indicating the achievement of product-market fit.', 'The shift from limited customer interest to thousands of sign-ups, pull requests, and demand for additional features demonstrated the significant impact of achieving product-market fit.', 'Utilizing an open-source library as a growth hack, resulting in customer interest and adoption of the tool.', 'The examples of finding product-market fit, such as introducing a Redshift integration based on customer feedback, highlighted the iterative nature of understanding and meeting customer needs to achieve product-market fit.', 'Product market fit is the feeling that the customer is just gonna rip the product out of your hands, creating a tight timeline as the customer expects it to already exist.', 'To become one of the one out of five founders that succeed in finding product market fit, one needs to be really honest with oneself and differentiate between false hope and actual customer demand.', 'The challenge of finding product market fit lies in identifying guideposts for the kind of ideas to try when casting around for an idea.', "The Value of Killing Bad Ideas Codecademy founders' rapid experimentation with 12 ideas in seven weeks, leading to the successful launch of Codecademy with 300,000 users on demo day, emphasizes the significance of swiftly discarding bad ideas.", 'Underpricing and Undervaluing Solutions The underpricing of a solution, initially perceived as solving a small problem, led to undervaluing it, but later, the same solution turned out to be highly valuable, with some customers paying over $100,000 a year.', "Pricing Strategy Evolution The evolution of pricing strategy, from underpricing to experimenting and eventually reaching the right pricing point, was catalyzed by a sales advisor's insistence on asking for $120,000 a year, leading to a revaluation of the product's value.", 'Challenges of Finding Product-Market Fit The difficulty in finding product-market fit is attributed to the challenge of determining whether to shift the product or the market, with founders often being unclear about which shift they are making, making it crucial to be honest about the direction of the shift.', 'Customer Discovery and Sales Approach The shift from initial product-market fit to building a company around it involves a transition in sales approach, where product managers focus on understanding and solving customer problems, leading to the need for training and customer interaction strategies.']}