Understanding Product Market Fit

Product market fit is defined as the moment when a startup successfully identifies a demand within the market and develops a product that meets that demand. This crucial milestone indicates that the business is positioned for growth, allowing it to focus on scaling and selling more effectively. The concept, coined by Marc Andreessen, suggests that reaching product market fit is a top priority for startups as it signifies that they are on the right track toward establishing a sustainable business. Without achieving this fit, companies may find themselves creating offerings that do not resonate with consumers, ultimately leading to failure.