We get asked a lot about why we shut down Psychic, the previous iteration of our startup, after 8 months of work. From the outside it looked like things were going well. We were an open source company with 3000 Github stars just a couple months after launching. We had a small but rapidly growing community, and VCs were reaching out to us daily. We had even started charging our customers, and our MRR was doubling MoM. But we never had conviction in the idea. This expressed itself in two ways: - We couldn't agree on a north start metric. Was it revenue? Was it open source adoption? We didn't know, because we had no idea who our ICP was. - We were selling SaaS, but spending about 5 hours per week on custom development for each customer. We were afraid if we didn't do the heavy lifting, they wouldn't use it. This turned out to be true. Our biggest takeaway is that while engagement and hype are correlated with product market fit, it does not cause it. People thought Psychic was "cool", but it wasn't solving a real problem.
Takes serious balls to have that recognition and do something about it. No every entrepreneur would do that
Hey Jason, thanks for sharing. Curious to know how you came across the idea for Dealwise and what you did to build enough conviction to pivot to it?
Navigating the startup journey means embracing change - Elon Musk. Kudos for prioritizing real value over hype! 🚀 #Innovation #Growth
True product-market fit is key for sustainable success. Lessons learned are invaluable for future endeavors.
Cofounder at a Finic (YC W23) | Ex-Robinhood
9moSix months into Dealwise, we have a clear north star metric. Our customers are so motivated they're literally taking work off our plate to speed things up (which means there's still room for us to improve). But I remember one meeting with a VC the week we decided to pivot. We weren't raising but took the meeting since they seemed cool. They asked what we were pivoting to. When I said "a M&A marketplace" I think they stared us for a full 5 seconds before going "Oh...". Meeting ended not long after that 😂 But hey, it's not up to VCs to figure out what people want. That's our job as founders!