Today’s startups face a new game, as investors are no longer swayed by vanity metrics.
Instead, they’re laser focused on a product’s actual ability to turn a profit. More attention is going toward undervalued companies, as this can signal more room for growth.
That’s why startups with long payback periods (except for those in AI), have become too high risk, even for VCs. In this column, I’ll dive into how my company, Intch, quickly adapted to these new rules — from rapid hypothesis testing to highly strategic hiring.
Conduct aggressive hypothesis testing
To adapt to market shifts and make the most of limited resources, hyperfocused hypothesis testing is more crucial than ever.
Don’t spend more than one or two weeks on validation — make bold iteration decisions when needed.
For example, run quick tests on a bigger audience than yours, using focused ad sprints across platforms like Facebook and Instagram. This rapid approach allows you to quickly abandon low-performing tactics and double down on strategies that yield immediate, tangible results.
Validate what your users are willing to pay for in your product instead of building on long-term or midterm assumptions. In a volatile market, deprioritize ideas that require external funding and zero in on the features that are in highest demand — this focus can get you to break-even faster than expected.
Here’s an example: When Intch’s venture funding ran dry, we switched to ultra-lean hypothesis testing. Initially, our platform was all about networking, but after a few quick tests, we discovered that users actually see “networking” as a tool to tackle specific business challenges (e.g. hiring, sales), not just a social platform. This insight allowed us to pivot and address real user needs.
Emphasize specialized, targeted hiring
A key step to implement aggressive testing of marketing strategies is hiring part-time specialists with highly relevant experience. Tactical hiring can speed up your adaptation process and improve testing efficiency.
This focused approach can save costs, streamline your testing and allow you to validate strategies quickly. Use platforms to find niche experts, such as a B2C mobile ads manager for Instagram, rather than a broad marketing manager.
From my experience, I advise startups in ways that may be partially contrary to Y Combinator‘s recommendations that urge founders to do everything in-house.
Instead, I suggest hiring experts who have a proven track record in your area of expertise. To avoid guessing whether the strategy is ineffective or whether the problem is market fit, bringing in experts will give you the knowledge you need right away.
Face the profitability paradox
I began this column by discussing how to make a startup attractive to investors in today’s climate. But here’s the paradox: When you become profitable, you often find you no longer need investment. Many startups rely on venture capital to fuel growth, yet we achieved venture-scale expansion — 70x growth — in 10 months thanks to the two steps described above.
Once you understand how your product fits into the market, scaling becomes a matter of expanding your reach and solving user problems effectively. Prioritizing profitability over funding allows you to grow sustainably and impress investors on your own terms.
Adaptation lessons in the startup environment
Founders used to chase investor-friendly metrics like user growth, but now it’s all about revenue and sustainable growth. In a fast-changing market, understanding your user needs and adapting quickly is key.
To keep up, know what users want, test fast and hire flexibly. Today’s hiring shift is like the cloud servers revolution — it’s making startups more agile, and this trend is only growing.
Yakov Filippenko is a seasoned entrepreneur with more than 10 years of experience in IT and technologies, as well as scaling businesses internationally. As a product manager at Yandex, he led a team that grew the product’s user base from 500,000 to 1.2 million and secured its entry into the international market. Subsequently, he co-founded SailPlay, which he scaled to 45 countries and eventually exited, after it was acquired by Retail Rocket in 2018. In 2021, Filippenko launched Intch, an AI-powered platform connecting part-time professionals with flexible roles.
Illustration: Dom Guzman
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