Product-Market Fit (PMF)

Definition

Product-market fit is the point where a product satisfies real market demand: retention flattens instead of decaying, growth compounds organically, and demand starts pulling.

How it comes up in fundraising

PMF separates seed from Series A narratives: seed money searches for it, A money scales it.

Frequently asked questions

How do investors detect product-market fit?

Cohort retention that flattens, organic growth share rising, usage deepening over time, and customers reacting badly to the idea of losing the product.

Is product-market fit binary?

No; it arrives by segment. Many companies have strong PMF in a niche while still searching in adjacent markets.

Cite this term

Round Funded. "Product-Market Fit (PMF)." Startup Fundraising Glossary.

Stable URL, it will not change: https://www.roundfunded.com/en/glossary/product-market-fit

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