In Q3, ICO markets finally developed a demand for traction.
The ICO market has experienced a sudden cultural shift that has left concept-stage blockchain founders grappling with the same increased demand for evidence of traction that has long stymied founders trying to raise capital in traditional VC markets. The median ICO dollar size and overall volume of deals have dropped by half since a peak in Q1 of 2018.
Pressure for earlier validation has mounted from their blockchain peers as well. At cryptocurrency conferences, technologists from established initiatives have been exhibiting an ostensible lack of acceptance for concept-stage projects. Blockchain thought leaders openly share their consensus view that projects launching large public ICOs, without any proof-of-concept or market adoption, are drawing negative attention to the entire cryptocurrency movement.
Dramatically improve the odds of your venture’s success by rooting out and mitigating knowable risks with a premortem.
In startup culture, optimism tends to flourish at the expense of honest pessimism. At Foundational, we embrace this by starting our strategy engagements collaborating with our clients to agree on how the world must be changing, what their teams are doing to bring about that change, and how we will measure the achievement of their inevitable success… we also use a novel process that quickly identifies the likely causes of failure well before they occur. It’s a simple and impactful technique that any team can do for themselves in under an hour.
Trust is the missing feature your customers demand.
Foundational has found that most healthcare technology startups’ greatest business challenges are fundamentally related to building trust with their end-users. While all startups face the challenge of trust, the healthcare space most clearly illustrates the need to interweave it throughout a product’s value proposition and core values. We’ve seen the impact of fine-tuning these two specific areas improve first-time user onboarding completion by as much as 300%.
What is Traction? Where does it come from? And, most importantly, how do you generate it?
Startups are in an endless pursuit of product-market fit. If they are very young, they might still be defining their vision of what the world will look like should they find it. If they are more mature, they are justifying to their next round of investors and strategic hires that they are strengthening their understanding of the early fit they’ve already established. This road is so well-traveled that the industry has adopted a name for the story of this pursuit: traction.
How to eliminate the #1 killer of startups
I recently I wrote about the Product Management Gap: the period of time between having a successful demonstration of a technical innovation (the proof-of-concept) and when a full-time team member is assigned to focus on managing the product(s) that feature it.
The Product Management Gap is a pervasive and deadly problem in the VC-backed startup space that I feel accounts for over half of the ventures that succumb to the dreaded Series A Crunch. Although it’s easy to identify, and affects nearly every startup, the Gap is also stubbornly difficult to fix without access to the talent, and budget growth-stage companies have at their disposal to hire qualified Product Managers
Our perspectives, learnings, and insights on Traction Science, venture capital, product-market fit and startup best practices.