Building an innovative product doesn’t start with a brilliant idea, but with active market listening. This was the premise that guided the latest episode of Start Growth Talks, a podcast by Start Growth hosted by Marilucia Silva Pertile and Carlos Castilho, featuring economist and investor Léo Jianoti, an angel investor at Curitiba Angels and professor at the Federal University of Paraná (UFPR), for a discussion on the concept of Product-Market Fit (PMF).
The term refers to the stage where a product effectively meets an existing demand, generating legitimate and sustainable traction. ‘Product-Market Fit is when your problem and solution thesis are validated in practice. A one-time sale isn’t enough—you need to observe recurrence, adoption rates, and the customer’s willingness to pay for the solution’s real value,’ explains Jianoti, who is also managing partner at Zetta Venture Capital and venture partner at Honey Island Capital.
Only 1 in 10 startups achieves PMF
Despite being essential, reaching this maturity stage is rare. A CB Insights report shows that 35% of startups fail due to a lack of market demand—meaning they develop solutions for non-existent or irrelevant problems. Another Harvard Business School study estimates that only 10% of early-stage startups actually achieve PMF before exhausting their financial capacity.
To avoid this outcome, Jianoti argues that entrepreneurs should be more passionate about the problem than the solution. ‘You need clarity about the pain you want to solve and then test until you find a viable solution. Success is a consequence of this process,’ he states.
In practice, PMF is reflected through specific metrics, which vary by business model. For SaaS (Software as a Service) startups, for example, Jianoti highlights key indicators like the Churn Rate, which measures customer retention and is one of the best signs that the product delivers value; the Net Promoter Score (NPS), which gauges customer willingness to recommend the service, reflecting satisfaction; and MRR (Monthly Recurring Revenue), which reveals business scalability and financial predictability.
‘You need real traction. Sales driven by bonuses or aggressive marketing aren’t enough. A customer who returns, recommends, and pays again is the best validation,’ emphasizes the investor.
Another highlight of the episode was the importance of team formation. For Jianoti, the founding team is the first thermometer of execution capability. ‘You may have the best product, but without a resilient, complementary, and purpose-driven team, no business survives,’ he says.
The co-founder of Start Growth, Mari Pertile, adds a practical approach: ‘When I led a team of 265 salespeople, I realized engagement came when we connected employees’ personal dreams to business goals. This applies to any startup looking to grow with a solid culture.’
Additionally, the economist highlights market size as a prerequisite. ‘Great teams operating in small markets often fail. Scalability depends on a broad market with relevant gaps,’ he notes.
The role of investors and the ideal timing
With investment experience in startups like James Delivery and Contabilizei, Jianoti states that timing is one of the least measurable but most decisive factors. ‘We’ve invested in the right business at the wrong time. Or worse, missed investing in solutions that later became market leaders. Timing is the invisible wind that accelerates or sinks a startup.’
According to data from the State of Startups 2024 report by First Round Capital, 42% of founders cite timing as the main reason for their company’s success—above product, team, or business model.
For the experts, Product-Market Fit is not a one-time event but a continuous journey. ‘Finding PMF is just the beginning. After that, you must maintain, adjust, and expand it. It can be lost at any moment if the market changes and the product doesn’t adapt,’ warns Mari.
The episode also sparked reflections on organizational culture, purpose-driven leadership, and the importance of constant customer dialogue. ‘Great businesses are born from listening. Entrepreneurs who don’t talk to customers are inventing for themselves, not the market,’ concludes Carlos.
