Y-Combinator’s Framework for Building a Successful MVP.
Use this GPT prompt stack to validate your startup idea & Template need to raise seed round.
👋 Hey, Sahil here — Welcome back to Venture Curator, where we explore how top investors think, how real founders build, and the strategies shaping tomorrow’s companies.
Y-Combinator’s framework for building a successful MVP.
Raising a seed round 101: Templates, Tips and Strategy to Raise.
Use this 30-minute GPT prompt stack to validate your startup idea.
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📜 DEEP DIVE
Y-Combinator’s framework for building a successful MVP.
When it comes to building a startup, one of the things that comes to a founder’s mind is creating a Minimum Viable Product (MVP) to test whether their solution to a particular problem is valid or not. However, one of the common mistakes I observe founders making is forgetting about the “Viable” part and just focusing on the product.
This common mistake is observed in 90% of startup founders and the rest 10% of founders who know how to build MVP become startups like Airbnb, twich & stripe etc.
Also, most of the founders mistaken the meaning of MVP that it’s about considering one feature and building a product. Actually, It’s more than that!
So - In this, we will deep dive into -
Real Meaning of Building a Minimal Viable Product (MVP)
How did Airbnb, Twitch, and Stripe build their MVPs?
How did these startups use the Y-Combinator MVP building strategy?
How can you build the MVP for your startup?
So grab your coffee and let’s deep dive into it!
What is an MVP (Minimum Viable Product)?
A minimum viable product (MVP) is a version of a product with just enough features to be usable by early customers …— Wikipedia
What should be your MVP mindset In the Pre-Launch Stage?
Let’s start with the meme above. It’s called the midwit meme.
Many first-time founders (the guy to the left of the bell curve) launch quickly and iterate (continue launching quickly). This is the same for the expert founder (the guy to the right of the bell curve).
But the guy in the middle is the “smart founder”. Let’s call him Benny. Benny wants to do surveys, raise money, build a team, etc. He wants to do it all. Benny learns after a while he should have been like the “dumb guys”.
As a founder, you want to build an MVP, get it to customers, and learn if it helps them or not. Then iterate.
You only really start learning about your users when you put a product in front of them. Not by doing 1000 surveys, gathering a mailing list, or fundraising for half a year.
The amazing thing, your MVP might not even work how you want it to.
Your goal as an early-stage founder:
Launch quickly. (MVP)
Get your first customers.
Talk To Customers & Get Feedback
Iterate (Improve the product)
These goals need to be your guiding principle.
Expect that after 3–5 iterations, your MVP would have changed so much. But that’s a good thing. It means you’ve been listening to your customers.
Try and remember that you are not the hero of your customer’s story. You’re not Harry Potter, you’re Dumbledore who gives him the tools to be the hero of his own story. You serve at the pleasure of the customer.
Is an MVP really the way to go?
Many founders want to build a product (like the iPhone) that blows people out of the water at once. That’s a very steep hill to climb though.
The MVP approach is best. You might have a question that -
But What If My MVP Is Rubbish and they Never Want To Talk To Me Again?
Even the biggest startups had this same fear. YC deals with it every time. It’s okay that you feel this fear. But never act on it.
FEAR- False Expectations Appearing Real
Think about it. If one customer doesn’t like your product, does that kill your startup? No. You can reach out to another customer. You can reach out to the same customer after you’ve made the product better.
The more amazing thing is that most people who speak with startups at an early stage are early adopters. They try out products that are in their rubbish phase. They are used to products not working quite as well as they should.
Early users usually have a problem. They are the only ones brave enough to try untested products that could solve the problem. They are usually there for the long haul to give you feedback on how to make the product better.
Fake Steve Jobs -
These types of founders think they know exactly what the customer needs. Let’s call them fake Steves.
In their minds, Steve Jobs built the iPhone and iPod, such amazing products in one go. The mistake they’re making is that’s not true. Many of them remember the 3rd or 4th iteration of these products. The first iPhone had 2G internet, no app store, etc.
You don’t know what the customer needs. The customer alone knows what they need. If you ask them, they will tell you. How you ask them is by showing them your MVP.
Examples of Successful MVPs
1. Airbnb:
This is the first version of AirBnB. They didn’t have a lot of features. If you were an early adopter, here was what you enjoyed.
No payment system.
No map view. You couldn’t see where the house was in the city.
You had to sleep on an airbed. The whole house could not be rented to you.
It was only for conferences.
2. Twitch:
Twitch was the world’s leading video platform and community for gamers.
They began as Justin TV with one page.
Only 1 streamer, Justin.
Their video was low res.
But they’re now one of the most popular streaming websites in the world.
Do you know what thing they focused on at the pre-launch stage?
Software MVP
Very fast to build (weeks not months)
Very limited functionality
Appeal to a small set of users
They built a product that people loved, not one that everyone loved. It didn’t solve all the problems. Solve problems step by step.
Who Are These Early Adopters? Why Do They Want To Go Through So Much Pain?
“You want to build your product for customers who have their hair on fire.” What product would you want to buy from me?
Maybe a hose, bucket of water, or something that can bring water. Well, all I have is a brick (my MVP). Walking away won’t even cross your mind. You’re desperate, you’ll buy the brick and hit yourself on the head to kill the fire.
The early adopters are the desperate ones. Forget the ones that are not desperate.
Why surveys don’t work.
You might have had a formal business school education. Now you’re thinking let’s do a survey and learn everything the user needs. Then we build it.
That won’t work either. The customer doesn’t know everything about the answer to their problem. They don’t even know everything about the problem itself. If they did, don’t you think they would build the solution on their own or hire people to do it for them?
It’s your job to know. Surveys help you find out your users’ pain but not how to solve it. Only a product can do that.
You give them a product and ask, does this solve your problem? Yes or no and
you go down the scientific method flow chart from there.
How To Build An MVP Quickly!
Set a specific deadline for completion.
Give yourself a timeframe. It’s easier to move on if you do. If you allow endless time to build, you’ll never stop building the MVP.
Write down the MVP features.
Don’t keep doing a double take while building. Write everything you want to build down now. Then you won’t have to rethink everything later.
Cut unnecessary features.
At this point, you will cut many features. Think how important is this to solve the user’s problem.
A startup to solve overseas payments doesn’t need a chat feature in the MVP. Neither does it need APIs connected to every bank in the world. Both are important but can be skipped for the MVP.
Don’t fall in love with your MVP.
Have you heard married couples say something like: this is not the person I married or fell in love with?
Please please please don’t fall in love with your MVP.
It will change so much as you’re iterating.
If you’re in love with it, you won’t want it to change. You’re building an emotional barrier to your growth.
Final Thoughts
“It’s better to have 100 customers that really love your product than 100k that are just ok with it.” — Michael Seibel, Y-Combinator
Those 100 will give you rich feedback that you need to grow. Build for them, and the others will come when you have a shiny product.
All these concepts are covered in the Video by Michael Seibel!
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📃 QUICK DIVES
Raising a seed round 101: Templates, Tips and Strategy to Raise.
Founders often ask: how much should I raise, what do I need to prove, and how do I actually close a great seed round? Here’s a practical playbook you can use:
Figure out how much to raise
Model for a 24–36 month runway. Median time from seed to Series A is ~23 months (Carta data).
Add a 25% buffer. Unexpected things always happen.
Example: If your burn is $60k/month → $1.8M for 30 months → round up to ~$2.25M with buffer.
Simple spreadsheet - how does this model work out?
Prove the basics before you pitch
Proof of commitment: quit your job, show you’re all in.
Proof of work: talk to 30+ SMB buyers or 100+ consumers. Listen for 40%+ saying “wow, when can I get this?”
Proof of insight: either a working prototype with early users or a clear memo/deck that explains your unique thesis.
Run a compressed fundraising process
Block 2–3 weeks on your calendar. Speak to as many investors as possible in that window.
The compression creates FOMO and scarcity, which pushes decisions.
Do your homework on investors
Build a target list with check size, sectors, whether they lead, and reputation with other founders.
Use Crunchbase, LinkedIn, and backchannel references to prep. Or you can download the investors’ contact database here.
Polish your materials
Keep it minimal: a clear deck or memo, a budget, and a simple model.
Make it visually sharp — good design = signal of quality.
Line up strong intros
Best: portfolio founders of the VC, respected operators, or other active investors.
Avoid: intros from lawyers/service providers or investors not investing in your round.
If you don’t have an intro, send a crisp cold email — low hit rate, but worth trying.
Practice your pitch
Write a memo, even if you don’t share it. It sharpens your story.
Rehearse with “B-list” investors first. Iterate before you hit your top targets.
Expect investor questions to carry more weight than your slides. Prepare FAQs.
Use angels to build momentum
Open a SAFE and let smaller checks come in early.
This creates social proof that makes bigger VCs move faster.
Manage the close carefully
Don’t reveal names of other investors — just describe in general terms.
A round isn’t closed until funds are wired. Push for quick close dates.
Treat verbal commitments as meaningless until you see a signed SAFE/term sheet.
If you take away one thing: seed rounds are less about a perfect business and more about running a tight, well-planned process that creates momentum and scarcity.
Use this 30-minute GPT prompt stack to validate your startup idea.
Too many founders spend weeks polishing ideas the market doesn’t want. You don’t need perfect data to spot a weak bet; you need a fast, honest pass that forces clarity on market reality, customer truth, positioning, and go-to-market.
Below is a tight, copy-paste stack you can run in ChatGPT to pressure-test any idea in under 30 minutes.
How to run the 30-minute sprint:
Set the mode (3 minutes)
Market reality check (8 minutes)
Define the customer (6 minutes)
Write value props (4 minutes)
Find the wedge vs competitors (6 minutes)
Pick GTM mode (3 minutes)
Outcome: a cold recommendation (Go / No-Go) with enough evidence to kill weak ideas quickly or move strong ones to deeper work.
Prompt 1 — set the operating mode, Copy-paste:
You are my marketing strategist, growth specialist, creative director, and positioning expert. For every response:
• Think critically.
• Challenge assumptions.
• Speak like a seasoned operator. When you use an acronym, include the full form in brackets (e.g., CPL (cost per lead)).
• Offer structured feedback, not just answers.
• After each output, add a short “Teach me” paragraph explaining the why.
Commit this business to long-term memory:
“My business is called [INSERT BRAND NAME]. I help [AUDIENCE] solve [CORE PROBLEM] by offering [PRODUCT/SERVICE]. You will build on each new detail as we go.”
My marketing skill level is [BEGINNER/INTERMEDIATE/ADVANCED]. Adapt technical depth to my level but keep the strategist’s viewpoint. If I’m beginner or intermediate, define acronyms briefly in-line.
Do not suggest next prompts unless asked. Always revert to this role for all future replies in this chat.Prompt 2 — market reality evaluator
Purpose: remove optimism bias, ground the idea in public knowledge and business logic. Copy-paste:
Enter Market Reality Evaluator mode. Do not soften bad news or over-validate weak markets. Use credible public knowledge (2023+), trained inference, and structured business logic.
Evaluate my market and tell me if it’s worth entering.
What I sell:
[One-line product summary — e.g., “A digital course that helps freelancers write faster with GPT.”]
Who I sell to:
[Target audience in plain terms]
What I know (optional edge data):
[Competitor prices, COGS (cost of goods sold), ad costs, performance signals, user data, internal benchmarks]
My estimated pricing:
[If you have it]
Return the following, with concise evidence under each:
• Estimated Total Addressable Market (TAM)
• Category maturity (Emerging / Growth / Plateau / Decline)
• Market saturation level (Low / Medium / High)
• Dominant players (Top 5) with market share/gross revenue/costs/margins (best available estimates)
• Market growth rate (% or trendline)
• Buyer sophistication (Impulse / Solution-aware / Skeptical)
• Purchase frequency (One-off / Repeat / Recurring)
• Pricing ceiling (based on value and competition)
• Viable acquisition channels (SEO, Paid, Organic, Influencer, Partnerships, etc.)
• Estimated CAC ranges per viable channel
• Suggested CLV target for sustainable CAC
• Strategic opportunity mode (Steal / Expand / Defend / Stimulate)
• Overall difficulty score (1–10)
• Clear recommendation: Go or No-Go, with brief, cold reasoning
Bonus (if I provide margin data like “COGS = $22”):
• Profit per sale
• Breakeven CAC
• Minimum conversion rate needed from ads
End with a brief “Teach me” note explaining how you arrived at each call.Prompt 3 — define the customer (use only the frameworks that fit)
Purpose: capture reality, not fantasy; choose frameworks by model. Copy-paste:
Based on the product above, define the ideal customer using only the most relevant frameworks. Choose from:
• SaaS/service: Jobs to Be Done (JTBD), Awareness Levels (Schwartz), Hormozi first principles
• DTC/brand-led: Brand Archetypes, Psychographics, Empathy Map
• High-ticket B2B: First Principles, Awareness Levels, Moat Thinking
• Content/influencer: Psychographics, Brand Archetypes, Traffic Temperature
Return the sections below. Label a section with the framework used if helpful (e.g., “(JTBD)” or “(Awareness: Problem-aware)”). Be clear, concise, and non-customer-facing.
• Demographics (only if decision-relevant): age/role/income/industry/location
• Psychographics: beliefs, values, aspirations, fears, identity drivers (who they want to become)
• Core frustrations: what they want to stop feeling/doing/struggling with
• Primary goals: outcomes, progress, or emotional relief they actively seek
• Current alternatives: what they use today (including workarounds or “do nothing”)
• Resonant messaging: tone/promises/insights that land; the beliefs or objections we must shift
Avoid repeating product features. Focus entirely on the customer. Close with a short “Teach me” note on why these choices matter.Prompt 4 — three value propositions under 20 words
Purpose: make the promise crisp and believable. Copy-paste:
Write 3 value propositions under 20 words each:
We help [AUDIENCE] go from [BEFORE STATE] to [AFTER STATE] using [PRODUCT].
Use the modular logic that fits:
• SaaS or B2B services: Hormozi’s value equation (dream outcome vs. friction), April Dunford positioning (Alternative → Unique → Value), Awareness Levels (Problem/Solution-aware)
• DTC/brand-led: Brand Archetypes, Empathy Map + Emotional Ladder, Blair Warren persuasion triggers
• High-ticket B2B/consulting: First Principles (pain → path → belief shift), Andy Raskin narrative (enemy → promised land), Hormozi objections
• Creator/influencer: Tribal logic (“people like us…”), identity shift, StoryBrand clarity (hero meets guide)
Ensure emotional clarity, outcome specificity, and believability. End with a brief “Teach me” note.Prompt 5 — pick a defensible wedge vs competitors
Purpose: find a clear, ownable position with proof. Copy-paste:
Operate as a Competitive Strategy Analyst.
Competitors (add if you have them):
[Competitor 1], [Competitor 2], [Competitor 3]
Websites:
[URL 1], [URL 2], [URL 3]
Analyse each competitor’s homepage and core product messaging. Summarise:
• Primary value prop (headline + implied promise)
• Likely axis of competition (e.g., speed, price, power, simplicity, brand)
• Who they’re really speaking to (persona insight)
Then propose 3 positioning axes that are unclaimed or under-leveraged. Return a table:
| Axis | Emotional benefit | Who it’s for | How to prove |
| --- | --- | --- | --- |
| [e.g., Simplicity at scale] | [Control, calm, clarity] | [Teams with tool fatigue] | [One dashboard; one prompt; full funnel] |
| [ ] | [ ] | [ ] | [ ] |
| [ ] | [ ] | [ ] | [ ] |
Close with: “Of these 3, lead with [X] because [strategic rationale].”
Bonus: include a sharp one-liner to communicate this wedge. End with a “Teach me” note.Prompt 6 — choose the GTM mode
Purpose: align go-to-market with structure, not vibes. Copy-paste:
Enter GTM Mode Selector. Use prior outputs (market, pricing, positioning, TAM, growth, CAC, wedge).
My product:
[Insert if single product]
Answer:
1) Most viable GTM mode: Steal, Expand, Defend, or Stimulate
2) Strategic rationale (structural, not tactical): why this mode fits margins, market shape, and model
3) Optimise for:
• Speed vs margin?
• Awareness vs conversion?
• Breadth vs depth of messaging?
4) Modes I should not pursue—and why
5) GTM difficulty (1–10) with blind spots
Do not recommend specific tactics yet. End with a “Teach me” note.Decision rules (kill or keep)
Kill if growth is flat/declining, saturation is high, or the wedge is trivial.
Kill if CLV (customer lifetime value) can’t support CAC (customer acquisition cost) at 3:1 within 6–12 months.
Kill if pricing ceiling leaves unsustainably low margins after COGS (cost of goods sold) + discounts.
Proceed if there’s a provable wedge, at least one efficient channel with viable CAC, and a path to repeatable revenue.
Good output looks like
Crisp numbers with sources or reasoned estimates
Competitor reads that reveal the true audience
Value props sceptics would believe
A wedge provable in product/experience
A defendable Go / No-Go call
Pro tips
Bring one edge metric (COGS, CPC, or baseline conversion) to anchor the math
Ask for ranges/sensitivity if early (e.g., “show outcomes if CPC is +30%”)
Save the chat—compounds as you add more data
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