If I’ve learned anything as an investor over the past few years, it’s that the companies that end up creating the most jobs (and returning the most money) almost always look like products at the beginning.
If I find myself in a meeting where the founder is talking about the product for more than 50% of the allotted time, something’s wrong.
It could be that the founder is overly focused on the product instead of the growth of the product. It could be that I don’t understand enough about the market itself (in which case, I shouldn’t be investing in it anyway). Or it could be something else entirely.
This is exactly why traction matters and why founders should lead with it: traction is the only leading indicator that a product might eventually turn into a company.
The key idea here is to recognize that judging ideas isn’t worth anyone’s time. Especially when we’re talking about companies that can acquire their customers online and/or service their customers online.