- Sequoia unveils a framework to navigate the dilemma of product-market fit.
- Framework categorizes startups as “Hair on Fire,” “Hard Fact,” or “Future Vision” archetypes.
- Archetypes guide strategy, execution.
For founders in the trenches building early-stage startups, a burning question looms: Have they cracked the coveted product-market fit?
The venture gurus at Sequoia have cooked up a handy framework to help navigate this make-or-break dilemma.
The three archetype avatars of the startup realm
Sequoia’s system breaks down the landscape into three distinct molds. The “Hair on Fire” category encompasses startups addressing urgent pain points, like those parachuting in to fix security breaches or enabling WFH during COVID peaks.
Then there’s “Hard Fact” – companies bringing superior solutions to existing problems (think Square revamping stale POS systems).
Finally, the “Future Vision” archetype covers audacious moonshots – from quantum computing to flying cars and everything in between. Each category demands tailored approaches to customer mindsets, competition, challenges, and more.
Alchemy towards startup ascension
Identifying the right bucket empowers startups to laser-focus strategy and execution.
So much so that Sequoia itself utilizes this framework within its Arc program to guide fledgling founders. Beyond that, the archetypes aid internal decision-making, fundraising pitches, and the works.
While all three archetypes can mint winners, Sequoia’s Jess Lee acknowledges certain categories face fundraising headwinds lately.
Ultimately though, she emphasizes that product-market fit hinges on that elusive “founder-market fit” – the ethereal alchemy separating game-changers from also-rans.
