Product Market Fit for Consumer Startups: All you should know

Andrew Chen has pretty much covered it all:


10 magic metrics indicating a consumer tech startup probably has product/market fit:

  1. cohort retention curves that flatten (stickiness)
  2. actives/reg > 25% (validates TAM)
  3. power user curve showing a smile – with a big concentration of engaged users (you grow out from this strong core)
  4. viral factor > 0.5 (enough to amplify other channels)
  5. dau/mau > 50% (it’s part of a daily habit)
  6. market-by-market (or logo-by-logo, if SaaS) comparison where denser/older networks have higher engagement over time (network effects)
  7. D1/D7/D30 that exceeds 60/30/15 (daily frequency)
  8. revenue or activity expansion on a per user basis over time – indicates deeper engagement / habit formation
  9. 60%+ organic acquisition with real scale (better to have zero CAC)
  10. For subscription, > 65% annual retention (paying users are sticking)
  11. 4x+ annual growth rate across topline metrics

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