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How to Set Goals Before Product-Market Fit

Do you need to grow 7% week over week? Dalton and Michael discuss how founders should set goals for pre-product market fit startups. The classic YC advice of growing 7% every week works but you can't cheat the data. Discussion includes: making products people actually love, why founders shouldn't worry about graphs in the very early days, why founders tend to cheat the data, how Paul Buchheit built Gmail very slowly over months to focus on the users loving it, why you should focus on love not like, not focusing on investors, how Stripe built slowly, why focusing on investors is habit forming, doing research on your favorite companies, building enduring companies, why customers loved Whatnot DoorDash & Twitch, and why you need to get to 100 customers that love you before you graduate to graphs. Dalton + Michael is brought to you by @Standard_Cap. Standard Capital is the AI-native Series A fund. Learn more at standardcap.com – About Dalton: Dalton Caldwell is Co-Founder and Partner of Standard Capital. He spent 12 years at Y Combinator, where he served as Managing Partner, worked across 25 YC batches, and advised more than 1,000 startups. His investments include Whatnot, Brex, GitLab, PostHog, Stock Space, Rappi, Razorpay, and Oklo. Before becoming an investor, Dalton founded imeem and App.net. About Michael: Michael Seibel is a Partner Emeritus at Y Combinator, where he served as Managing Partner of the early stage accelerator from 2014 - 2024. Michael also serves on the board of three companies: Reddit, Dropbox, and Kalshi. He moved to the bay area in 2006, and was a co-founder and CEO of two Y Combinator startups Justin.tv/Twitch (2007 - 2011) and Socialcam (2011 - 2012). In 2012 Socialcam sold to Autodesk Inc. for $60m and in 2014, under the leadership of Emmett Shear (CEO) and Kevin Lin (COO) Twitch sold to Amazon for $970m. – Are you an AI builder? Check out StandardDB. Discover offers, credits, tools, and partner programs from the StandardDB ecosystem.

Dalton CaldwellhostMichael Seibelhost
Sep 28, 202615mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Pre-PMF goal-setting: stop chasing graphs, build something users love

  1. Dalton Caldwell and Michael Seibel argue that pre-product-market-fit startups should not manage by weekly growth charts when they have only a few users, because analytics practices from large companies don’t translate to zero-to-one stages.
  2. They explain that the famous “7% week-over-week growth” idea is only meaningful when it reflects genuine retention and value, and founders often sabotage themselves by gaming metrics instead of improving the product.
  3. They propose early-stage goals centered on finding a small set of users who truly love the product—scaling from 1 to 10 to 50 to 100—before “graduating” to graph-based optimization.
  4. They caution that building primarily to raise money trains a company to optimize for investors rather than users, which may win a seed round but reduces long-term success odds.
  5. They highlight Gmail and Stripe as examples where slow, customer-obsessed iteration and measurable customer benefit preceded breakout growth and durable businesses.

IDEAS WORTH REMEMBERING

5 ideas

Pre-PMF, “graphs are a waste of time” when you have near-zero users.

At very small scale (e.g., a handful of users), growth charts and A/B tests create false confidence and distract from the real work: learning whether anyone is getting meaningful value.

Healthy growth is the result of doing things right—not the cause.

The “7% WoW” heuristic is useful as an outcome signal of retention and value creation, but founders often treat it as a lever and then game definitions (cumulative signups, vanity metrics) to hit targets.

Set goals around user love first: 1 → 10 → 50 → 100 users who love it.

A practical pre-PMF goal is to get a small number of real users who genuinely “love” the product; once that base exists, traditional metrics become more informative.

Define the value threshold and verify users are actually reaching it.

If you believe users need heavy usage to get value, reconcile that with reality (time spent, retention, outcomes). The mismatch often reveals you effectively have “zero users” getting value.

Don’t turn investors into your real customers.

Building to impress investors can work short-term (e.g., a seed raise) but becomes a damaging habit and lowers the odds of building an enduring business.

WORDS WORTH SAVING

5 quotes

And I'm like, "How many users do you have?" And they're like, "Three."

— Michael Seibel

And I'm like, "Okay, never show me these graphs again." Like, graphs are a waste of time.

— Michael Seibel

Whereas they think it is the cause of the company... working, and it's just like, th- ah. Like, when you mix those things up, you really screw up.

— Michael Seibel

And nothing good will come of that.

— Dalton Caldwell

And if you could get 100 users or customers that love you, that is an awesome goal, and that's when I would start to graduate to graphs.

— Dalton Caldwell

Pre-PMF goal-settingMisuse of analytics and A/B testing at low scale7% week-over-week growth heuristicVanity metrics and metric gamingUser love vs. investor opticsGmail and Stripe early growth storiesMeasuring customer benefit (GMV, revenue impact)

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