STARTUP DEVELOPMENT PHASES

Vision & Mission Minimum Viable Product Scale

Growth

Product Market Fit

(MVP)

-2 -1 0 1 2 3
Time

PRE-STARTUP STARTUP GROWTH

Ideation Concepting Commitment Validation Scaling Establishing

Potential scalable Having clear and Committed & skills Can already show Showing clear, growing Achieved great growth,
product/service meaningful target balanced founding some user growth and measurable that can expected to
idea for big enough with clear direction team. Able to develop and/or revenue (initial user/market traction in continue strong. No
target market. for min. 3 years with the product/service traction). AND/OR big or rapidly growing longer need to "try" get
Some initial milestones to get (Minimum Viable continue to attract target market. Can and resources and can get
revenue models for there, -> 3, 6, 12, 24, Product) without additional resources want to scale fast. those easily. Continue
how it would make 36 months… Having dependency of (money or sweat AND/OR is able to to grow and often
money. One team of two or three uncommitted external equity) for equity or attract significant wants to culturally
person OR only core founding people resources OR already future revenues. funding. continue behaving like
vague team; no with balanced have initial product/ Looking for clear a "startup" for as long
confirmed ownership. Can also service developed. market validation as possible. Founders
commitment and/or already have some Have signed (Product Market Fit), make exit or continue
no right skills extended team with shareholder agreement to be able to move into biz as usual.
balance in the lighter commitment between founders, with scaling.
team structure yet (stock options and/or milestones, committed
cash compensation) time and money usage,
for min. 2+ years with
vesting etc.