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Validation Pyramid for Early Stage Founders

What to Look for before Product-Market Fit

November 22, 2024

The Situation: Every first-time founder has been there

You have an idea... You’ve talked it over with a few friends, maybe even showed an early MVP around, and the response has been encouraging. But now you’re wondering if this initial buzz translates to something deeper—something like Product-Market Fit. How do you know if you’re truly on the right track, or if you're just riding a wave of polite enthusiasm?

One of the key challenges for early founders is understanding how to validate an idea effectively. Too often, founders get stuck overthinking the process, craving validation but not knowing what really counts. Many mistake surface-level interest for genuine traction. To provide a structured path forward, we’ve created a Validation Pyramid to help gauge real interest and commitment—offering a practical guide for evaluating your startup's progress.

The Challenge: Why Validating an Idea Feels So Difficult

Validation can be ambiguous, confusing and terrifying. Let's dig into each aspect:

  1. The Process: First-time founders might not even know where to start. Who should they talk to? Where do these users come from? What questions should they ask? It’s easy to get overwhelmed with feedback, making it hard to identify what's meaningful.
  2. Fears of Many Kinds: Putting your idea out there means exposing it to criticism. Many founders fear their idea isn’t ready, worry about theft, or simply don’t want to hear negative feedback. This discomfort often leads to delaying real-world input.
  3. Vague or Polite Feedback: People generally want to be supportive and may offer encouragement rather than genuine critique. While this feels good initially, it lacks the depth needed to validate market fit.

These 3 challenges often lead to confusing interest with genuine traction. Casual likes and compliments might reassure you, but they don't equate to true commitment. The Validation Pyramid helps founders overcome these obstacles by moving from initial interest to deeper customer commitment, providing a clear framework for progression.

Traction is the ultimate goal—it shows your idea has a real demand. Yet many founders, however, fall into the trap of vanity metrics—likes, shares, and vague comments that may look good but lack substance. Traction means actual commitment from your audience. So true growth only comes when you seek real signals of validation rather than easy reassurances.

The Framework: Validation Pyramid

We created this as a tool for assessing the depth of engagement as we're pitching. Each level up requires a greater degree of commitment:

  1. Someone Likes Your Idea: Many people don't know how else to respond so it doesn’t require any real effort or investment. It’s nice to have, but really not enough.
  2. Asks a Question: This may indicate interest, but more than that, their curiosity reveals their expectations, goals and pain-points. Use this insight!
  3. Offers their Contact Information: Great! While your product might not be ready, this shows they want to follow the progress. Collect these contacts to build a lead list for later.
  4. Shares a Friend’s Contact: This is valuable as this person is willing to trade their social capital in association with you/your idea. Again, collect these!
  5. Gives Deep Feedback on a Prototype: We’re all busy people and this shows they care enough to spend their valuable time in shaping your product.

    This is where it really begins:
  6. Joins the Team: Someone believes in your vision enough to commit their time or skills by becoming part of the team. This is a major level of engagement.
  7. Partners with Your Startup: This might be an accelerator or incubator or some other organization who believe in your idea's future success and want to be part of it.
  8. Sales & Pre-Orders ($): Even if it's small, sales are a sign that they believe your product solves their problem. Without sales, the startup is nothing more than an idea.
  9. Invests in the Startup: This means they see potential returns. It’s a clear statement that your startup has a path to meaningful growth and success in their eyes.
  10. Repeat Customer: Regular usage / Repeat customers are the strongest sign of product-market fit. It means that your solution delivers value repeatedly.

Next: Leveraging the Pyramid

To avoid being misled by false indicators of traction, use the Validation Pyramid to focus on actions that involve commitment:

  1. Keep It in Mind When Pitching: Use the pyramid as a lens to evaluate feedback—discount casual compliments, emphasize deeper actions.
  2. Define Metrics for Your Experiment: Establish clear goals for what action counts as validation. Is it a sign-up, a pre-order, or a partnership?
  3. Aim for 100 Points: Treat each step up the pyramid as a point system—likes are 1 point, while continuous users could be 10 points each. Aim for 100 points to gauge meaningful progress toward traction.
  4. Focus on the Users: Because while well meaning, the feedback from friends, family and even potential investors isn't always valuable. Your users will lead the way.

 

Final Thoughts: Beyond Validation

Validation is challenging because it requires more than just hearing people like your idea—it demands seeing them take real action. The Validation Pyramid serves as a guide to navigate the journey from casual curiosity to genuine belief in what you are building.

It’s important to seek actions that clearly show your solution is making a meaningful impact. Once you’ve found those signals and achieved Product-Market Fit, you’re ready to embark on the next phase: scaling. This is when the challenge shifts from proving value to growing that value—building systems, expanding your reach, and creating a sustainable foundation.

Remember, the journey doesn’t end with validation; it evolves. As you scale, keep refining, keep listening, and keep challenging yourself. Growth is not a single destination—it’s a continuous process of pushing boundaries, learning, and laying down each brick of sustainable success.

 

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Brian Tam
Thinking Partner for Thoughtful Founders