PMF = Product-Market Fit in Fundraising? More Like Person-Market Fit !
Investors love to throw around the buzzword “product-market fit.” It’s the holy grail of startups, the magic potion that transforms ideas into billion-dollar empires.
However, in today’s competitive landscape, a mere market-fitting product isn’t enough. Enter the rising star: Person-Market Fit!
Person-Market Fit isn’t just about solving a problem — it’s about who is solving it. It’s the narrative arc of the founder, the “oomph” in their character setting that captivates investors and sparks user loyalty.
In an age saturated with similar solutions, your personal story becomes the secret sauce, the X-factor that propels your product to success.
Investors would have most likely heard 1000 other similar ideas or products within the past two months. If you want to stand out, pitch yourself, make it personal, charm them as if you’re someone whom they can never find in the market.
Why You, Not Just What You Do:
Let’s face it, investors get pitched to all day. Yet, some founders leave a lasting impression.
Maybe it’s the fire in their eyes, the scars from battles fought, or the unexpected twist in their journey.
These are the qualities that transcend market research and financial projections.
They tell a story of resilience, passion, and a unique perspective on the problem at hand.
The Fresh Eyes Advantage:
Consider this: you build a tech solution for a centuries-old industry. You’re not an insider, bogged down by traditional practices.
Instead, your outsider status grants you fresh eyes, a vantage point that allows you to see possibilities others miss.
You become the disruptor, the innovator, the one with the bold vision to shake things up.
The Founder as Narrative Hero:
Think of yourself as the protagonist of your startup’s epic tale. Your story begins with a challenge, a void in the market you yearn to fill.
You face obstacles, naysayers, and moments of doubt. But your unwavering passion and a touch of serendipity guide you through.
This narrative, woven into your pitch, resonates with investors and early adopters alike.
They connect with your struggles, celebrate your triumphs, and become invested in your journey.
Understanding Person-Market Fit means going beyond the product itself and focusing on the founder/team and their alignment with the target market. Here are some key aspects to consider:
1. Your Story and Background:
- Uncover your “why”: What drives your passion for this problem? What personal experiences shaped your vision? Nobody has the same background, culture, or upbringing. A Harvard computer science graduate isn’t necessarily the deal closing factor. What makes YOU unique?
- Embrace your “not the norm”: How does your outsider perspective give you an edge? What unique experiences equip you to lead this disruption? Perhaps some people are stuck in their own industry for too long to even see the possibilities out there.
- Turn setbacks into stories: Don’t shy away from challenges. Share how you overcame obstacles, demonstrating your resilience and problem-solving skills. People love learning about how you overcome challenges, not how you’ve never made a single mistake, which is not possible anyways.
- Be the hero of your own tale: Inject your personality into your story. Let your passion and enthusiasm shine through, making your pitch as captivating as your product. Charm them! Imagine you going on a date, you only have one chance to succeed. Think about what captures your date’s attention within five minutes.
2. Your Connection with the Market:
- Deeply understand your target audience: Conduct research, interviews, and user testing to truly empathize with their needs, frustrations, and aspirations.
- Identify your authentic voice: How does your personal story resonate with your target market? Can you connect with their emotions and challenges on a personal level?
- Demonstrate expertise and credibility: Do you have the skills and knowledge to solve the problem your product addresses? Can you build trust and confidence with your audience?
3. Aligning Your Story with Your Product:
- Articulate a clear brand story: How does your personal narrative support your product’s vision and mission? Show how you are the embodiment of the values you represent.
- Communicate with authenticity: Be genuine and transparent in your communication. Use your story to connect with your audience on a human level, not just a sales pitch.
- Show, don’t tell: Instead of simply stating your qualifications, use your story to showcase your capabilities. Share examples of past successes that demonstrate your expertise and passion.
Additional Tips on Elevator Pitches:
- Always record your own pitches and review it constantly to see if the story flows. It’s an ongoing practice that you must revisit from time to time.
- Simplify the language but make it sophisticated — ie. minimal transition words.
- Work on your eye contact and pauses.
- Work on the tonality.
- Work on the hand and body language.
- Work on the stage presence.
- Stay true to yourself: Don’t try to be someone you’re not. Embrace your unique strengths and personality, and let it shine through your story.
- Continuous evolution: Person-Market Fit is a dynamic process. As you learn more about your market and yourself, adapt your story to reflect your experiences and growth.
Craft your story well and tailor it for different audience crowd.
If you’re talking to corporate venture arms, be professional, show your resume like an employee that they cannot turn down. Tell them how you and your company can help them capture market share and take it to the next level.
If you’re talking to angel investors or venture capitals, be bold and show them the exponential growth they would see if they invest in you. Tell them all the mistakes you’ve learnt from and how you can utilize these bad experiences in making sure they are investing at the right time with the best deal.
Here’s a quick example:
“ My name is John Doe and I’m a sufferer from recurrent depressive disorder and anxiety for the past decade. During the toughest times I figured there isn’t a single solution in the market that could help cure my conditions. Most pharmaceutical companies are only targeting the profit they generate from drugs but the side-effects are what makes things even more difficult for patients. Therefor my partner and I have developed this solution that could replace the drugs that we’re all dependent on. I am here to introduce to you….”
By focusing on your story, your connection with the market, and the alignment between the two, you can create a powerful narrative that drives investor interest, customer loyalty, and ultimately, long-term success.
Person-Market Fit isn’t a replacement for a great product-market fit. It’s the emotional layer, the human element that connects you to your audience.
It’s the story that makes your pitch stick, that turns investors into believers and users into evangelists. So, don’t just talk about your product, tell the story of the person behind it. That’s where the real magic happens.
Most importantly, when you review your pitching videos, ask yourself: If I have a billion dollars, would I ever invest in this person?
What are your thoughts? I’d love to hear more! Feel free to reach out to me via LinkedIn or Twitter for shorter tips on how to craft the next viral product.
Moon is the Founder & CEO of DigitSense, a digital product studio that designs, develops, and markets digital products like a tech startup on its own, where we blend cutting-edge tech with user-centric magic to transform your vision into reality.
