Product-Market Fit

The percentage of recurring revenue retained from existing customers over a period, including expansion revenue from upsells and cross-sells. NRR above 100% indicates that growth from existing customers outpaces losses from churn, a hallmark of strong product-market fit.

A style of private equity investment focused on mature, profitable, or near-profitable companies seeking capital to accelerate expansion without ceding majority control. Growth equity investors typically target businesses with proven product-market fit and strong intangible asset bases, providing capital for scaling operations, entering new markets, or funding acquisitions.

The percentage of customers (measured by count, not revenue) that remain active over a given period, regardless of changes in their contract value. Logo retention — also called customer retention rate or gross retention by customer count — isolates the frequency of customer loss from revenue expansion or contraction and is a key indicator of product-market fit and customer satisfaction.

The plan a company uses to launch a product or enter a new market, encompassing target customer definition, value proposition, pricing, distribution channels, and sales approach. An effective GTM strategy converts product-market fit into scalable revenue.

Sequential rounds of venture capital financing that follow the seed stage. Series A typically funds scaling after product-market fit; Series B accelerates growth and market expansion; Series C and beyond fund further scaling, internationalisation, or pre-IPO preparation.

The value created through investment in design activities including product design, UX design, service design, and architectural design. Design capital improves customer experience, brand perception, and product-market fit, and is a key intangible asset category in the Opagio framework.

The degree to which a company's operating income changes relative to a change in revenue, determined by the proportion of fixed costs to variable costs. Companies with high intangible asset bases often exhibit strong operating leverage because intangible costs (such as software development and R&D) are largely fixed, enabling profits to scale rapidly with revenue.

The percentage of recurring revenue retained from existing customers over a period, excluding any expansion revenue. GRR isolates the impact of churn and contraction and can never exceed 100%.

What is the path from seed to Series A and what changes do investors expect?

Series A investors expect: product-market fit signals (strong retention, NRR >100%, customer proof points), repeatable sales, and clear go-to-market. Seed was optionality; Series A is traction.

When should you start fundraising and what are the warning signs you're not ready?

You should start fundraising when you have product-market fit signals (retention >40%, viral coefficient >0.5, or clear customer demand) and burn runway for 12-18 months.

What is honesty about product limitations and why does it increase credibility?

Acknowledging what your product doesn't do—and why—builds trust with investors, customers, and partners. Overselling limitations damages credibility permanently.