Pivot vs. Persist: The Framework Investors Use
How to decide if your startup idea is broken or just needs a better execution strategy.
8 min read
The hardest decision for a founder is knowing when to stay the course and when to change direction.
The 3-Signal Test
Investors look for these three signals to determine if a pivot is necessary:
- →Market Pull: Are customers trying to use the product in a way you didn't intend?
- →Retention: Does the small group of people who use it *keep* using it? (If not, the problem might be fundamental.)
- →Distribution: Is the cost of acquisition (CAC) consistently 3x lower than the lifetime value (LTV)?
Reality Check
Persistence is a virtue, but stubborness in the face of data is a death sentence. A pivot isn't a failure; it's a sign of a founder who is listening to the market.
When to Pivot
If you have spent 6 months and have zero customer retention despite "polishing" the UI, it's time to re-evaluate the core problem you are solving.
Stop guessing. Start knowing.
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