The Product Market Fit Game

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Salutations, Olio aficionados! 👋

Midweek greetings to all, as we unveil the 113rd chapter of Weekly Olio—a delightful concoction of laughter, insight, and a sprinkle of mystery. Within these pages, you'll discover a handpicked selection of fascinating finds from the vast realms of the internet.

Keep your eyes peeled for this week’s Publisher’s Parmesan, arriving this Sunday!

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The Quote󠀢 💭

The Tweet 🐦

A few weeks ago, Google’s breakthrough in quantum computing grabbed all the headlines in the world of tech. Google claimed that its quantum computing chip called Willow ran a quantum computation in 5 minutes that would take a normal computer 10^25 or 10 septillion years. This thread unpacks the paper in more detail - while the breakthrough is commendable, there is still a long way to go before quantum computing becomes a part of daily life.

The Infographic 💹

China is moving from technological imitation to technological innovation. A long history of investment in education and R&D seems to be paying off with the number of patents from China threatening to outpace the US in key sectors. Growth in China has been accompanied by a drop in the number of patents being published out of the USA.

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The Short Read 📝

How a Mao-era system creates second class citizens in modern China - by Financial Times

Since Mao’s time, China has used a system called ‘hukou’ to regulate migration form rural areas to large cities. In China’s first tier cities, a hukou grants citizens access to about 20 privileges including access to the nation’s best schools that are often clustered around the Shanghai-Beijing area and offer superior preparation for attending top universities. A hukou from Beijing, for example, allows students to write the gaokao (China’s university entrance exam) from Beijing and universities often allow higher entrance quotas for students from these cities.

Usually, the hukou is granted by birth or by marriage rules. A Beijing or a Shanghai hukou is so coveted that employers have started offering it as part of pay packages. Beyond the top cities, this system does not add much value. Often times, people living in rural areas have declined a hukou from a larger city since it would mean giving up land holdings. But over time, getting a hukou from a top city like Beijing or Shanghai has become increasingly difficult. A system like this throttles growth imposing higher costs on people from lower tier cities. Of late, in the midst of an economic slowdown, calls to scrap this system have been growing across China. Read more…

The Long Read 📜

The Product Market Fit Game - by James Hawkins

James Hawkins is the co-founder and CEO of PostHog. PostHog offers and integrated open source platform with tools for developers building products. Till date they have raised over $39M in venture capital with the last round being a $15M series B raised in 2021. They have a very active blog with tonnes of content for builders, founders and developers. Read more…

In this post, James talks about Product Market Fit - the elusive magic that every founder is hunting for. In his mind, finding product market fit is akin to playing an iterative game with five levels - each with increasing complexity. As a founder, you need to go through these levels sequentially to build a product that is valuable. In case you are not able to cross a level, you’ll need to pivot your entire company and re-start at level 1. For anyone building or thinking of building a company, this is a great mental model. The article also talks about what defines success/failure at each stage and what are common pitfalls for most players. Must read!

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That’s all for this week. If you enjoyed this edition, we’d really appreciate if you shared it with a friend, family member or colleague.

We’ll be back in your inbox 2 PM IST next Wednesday. Till then, have a productive week!

Peeyush and Mohit

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.