PMF before scaling: Numbers deliver - Retention, Ellis Score, real revenue
Product-Market Fit must be proven with hard data. Studies show clear patterns: retention rates, Ellis scores and real revenue predict success better than growth metrics alone.
PMF measurement framework
| Metric | Threshold | Source |
|---|---|---|
| Retention (Week 1) | >40% | pmfsurvey.com |
| Ellis Score | >40% would be disappointed | Ellis Method |
| Revenue growth | 3x month-over-month | Segment data |
GTM trimmed for efficiency: NRR 100%+, CAC payback short, PLG elements
Go-to-Market strategy must prove efficiency. Net Revenue Retention above 100%, short CAC payback periods and Product-Led Growth elements drive sustainable scaling.
GTM efficiency metrics
- Net Revenue Retention >110%
- CAC Payback <12 months
- Product-Led Growth elements implemented
- Sales efficiency measured by CAC/LTV ratio
EU funding criteria: What really matters
Horizon Europe requirements
- TRL 5/6+ maturity level proven
- Commercial plan detailed
- Predictable revenue to reduce risk
Evaluation checklist
- Market size >€1B TAM
- Technical moat defensible
- Team execution track record
- Financial model realistic
Common evaluation mistakes
- Vanity metrics instead of retention
- Growth without unit economics
- Missing competitive analysis
- Unrealistic market projections
Action framework
For founders:
- Prove PMF with hard data
- Build efficient GTM engine
- Show clear path to profitability
For evaluators:
- Focus on retention over growth
- Demand unit economics proof
- Verify market assumptions