The construction of an innovative product does not start with a brilliant idea, but with active listening to the market. That was the premise that guided the most recent episode ofStart Growth TalksStart Growth podcast hosted byMarilucia Silva Pertileand Carlos Castilho, who received economist and investor Léo Jianoti, angel investor at Curitiba Angels and professor at the Federal University of Paraná (UFPR), for a debate on the concept ofProduct-Market Fit(PMF).
The term refers to the stage in which a product effectively meets a latent demand, generating legitimate and sustainable traction. "Product-Market Fit is when your problem and solution thesis are validated in practice. Isolated sales are not enough; it is necessary to observe recurrence, the adoption rate, and the customer's willingness to pay for the actual value of the solution," explains Jianoti, who is also managing partner at Zetta Venture Capital and venture partner at Honey Island Capital.
Only 1 in 10 startups achieve PMF
Although essential, reaching this level of maturity is rare. A CB Insights survey shows that 35% of startups fail due to lack of market demand, meaning they develop solutions for non-existent or irrelevant problems. Another study from Harvard Business School estimates that only 10% of early-stage startups actually achieve PMF before exhausting their financial capacity.
To avoid this outcome, Jianoti argues that the entrepreneur should be more passionate about the problem than about the solution. "You need to be clear about the pain you want to solve and then test until you find a viable way to solve it. Success is a consequence of this process," he/she/they assess.
In practice, the PMF manifests through specific metrics, which vary depending on the business model. In the case of SaaS startups (Software as a Service), for example, Jianoti cites as fundamental theChurn Rate, which indicates customer retention and is one of the best signs that the product creates value; theNet Promoter Score (NPS), which measures the customer's willingness to recommend the service, highlighting satisfaction; and theMRR (Monthly Recurring Revenue), which reveals the scalability of the business and its financial predictability.
"True traction is necessary. It's not enough to have sales driven by bonuses or aggressive marketing. 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 capacity. "You may have the best product, but without a resilient, complementary, and purpose-driven team, there is no business that survives," he says.
The co-founder of theStart GrowthMari Pertile, complements with a practical approach: "When I led a team of 265 salespeople, I realized that engagement came when we connected employees' personal dreams to the company's goals. This applies to any startup that wants to grow with a solid culture."
Furthermore, the economist draws attention to the size of the market as a prerequisite. "Excellent times operating in small markets often fail. Scalability depends on a broad market with significant gaps," he notes.
The role of the investor and the ideal timing
With experience in investments in startups like James Delivery and Contabilizei, Jianoti states that timing is one of the less measurable but most decisive factors. We have already invested in the right businesses at the wrong time. Or worse, we failed to invest in solutions that, years later, became market leaders. Timing is the invisible wind that accelerates or topples a startup.
According to the report dataState of Startups 2024, according to First Round Capital, 42% of founders cite timing as the main reason for their companies' success — above product, team, or business model.
For specialists, Product-Market Fit is not an isolated event, but a continuous journey. "Finding the PMF is just the beginning. Afterwards, it must be maintained, adjusted, and expanded. It can be lost at any moment if the market changes and the product does not keep up," warns Mari.
The episode also brought a series of reflections on organizational culture, purpose-driven leadership, and the importance of constantly communicating with clients. "Great businesses are born from listening. An entrepreneur who doesn't talk to the customer is inventing for himself, not for the market," concludes Carlos.
