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GA

Gustaf Alströmer

06/27/19

@ Y Combinator

When entering new markets, you may initially spend into negative ROI, but understanding the maturation curve of that market is essential for long-term success.

Video

YC

Advice on Organizing and Running Growth Teams from Dan Hockenmaier and Gustaf Alströmer

@ Y Combinator

Advice on Organizing and Running Growth Teams from Dan Hockenmaier and Gustaf Alströmer

06/27/19

Related Takeaways

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Kirsty Nathoo

08/22/19

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In the early stages, it's important to be cautious with spending and have a plan to reach profitability, even if you're reinvesting revenue into growth.

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Alexandr Wang

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Startups should initially focus on narrow markets to gain momentum, but eventually need to identify and build towards infinite markets to achieve significant growth.

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Tom Blomfield

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If you start with negative unit economics, it's critical to have a plan to fix them before scaling your customer base; otherwise, growth can become unsustainable.

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Alex Schultz

03/24/17

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If your retention curve slopes downwards, it indicates a lack of product-market fit, regardless of initial growth metrics.

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Garry Tan

04/22/20

@ Garry Tan

Once you have an initial go-to-market strategy, the real challenge is retaining customers, as many companies experience high churn despite early traction.

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Sam Altman

08/30/18

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Startups should target markets that are either starting to experience or are about to experience exponential growth, as this is crucial for long-term success.

HR

Hosain Rahman

04/26/17

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Expanding into new markets is a mix of deliberate planning and opportunistic decisions, often influenced by partnerships and cultural fit with the product.

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Kalam Dennis

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Understanding your margins and costs is vital; we initially had negative margins due to underestimating costs.

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Eric Migicovsky

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Investors often prefer small markets initially because they allow for easier identification of potential customers and quicker feedback on product viability.