How long does it take to find PMF

(this is focused on marketplaces – mileage may vary for other segments)

The time it takes for marketplaces to get going and find product-market fit (PMF) also isn’t any different than non-marketplace startups. Marketplaces certainly have huge benefits over non-marketplaces (e.g., cost efficiency, scalability, network effects), but they aren’t magical.

Takeaways

1. The average time from launch to PMF is around 1.5 years. This doesn’t even include the time it takes to build the v1, which is often another 1+ years of work. So expect to put in at least two years before you get to the feeling of “This is working!”
2. The amount of time it takes for a marketplace to find PMF is no different from the timelines for non-marketplace startups. Except for the occasional consumer social apps.
3. Just like in my previous post on PMF, getting to PMF is generally described as (1) a clear and sudden inflection in growth, (2) steady and compounding growth/retention, or (3) hitting an important milestone. For many founders, raising their Series A was the milestone where they finally felt like it was going to work. Validation from smart investors is a powerful thing.
4. Local marketplaces (e.g., Lyft, DoorDash) often got a hint of PMF early but then needed to see if they could replicate it in a second city before feeling confident that they had something durable.
5. Every marketplace started off by concentrating on just a single city or category (except Thumbtack, for better or worse).