When Founders Fall in Love: The Blind Spot That Kills Startups
"We built something the market wasn't ready for."
Last week, I had coffee with a founder/friend I've known for years. After building his startup for two years, he made the bold decision to pivot completely. When I asked him what went wrong, his answer was simple:
"We built something the market wasn't ready for."
Those words have been echoing in my mind ever since. They carry a truth that too many entrepreneurs, myself included, often ignore until it's too late.
The market readiness disconnect
According to CB Insights, "no market need" ranks as the number one reason startups fail, accounting for over 35% of shutdowns. Yet founders consistently underestimate this risk factor, with a First Round Capital survey suggesting that the majority remain confident in their vision even when they face significant market resistance.
This disconnect raises some uncomfortable questions:
Do we fall too deeply in love with our own ideas?
Are we deliberately ignoring market timing signals?
How often do we mistake our passion for market validation?
The "too early" trap
Being "too early" to market isn't just bad timing - it's a structural business problem. Airbnb's Brian Chesky once said that their concept was rejected by investors multiple times because "the potential market is not big enough." The difference between Airbnb and thousands of failed startups? They found a way to survive the years it took for the market to catch up.
The reality is sobering: premature scaling - building ahead of market readiness - dramatically increases the failure rate. Products launched before their time often face an uphill battle that even the most passionate founders can't overcome.
Balancing your passion with reality
The best founders I've met have developed a remarkable skill: they balance passion with brutal market realism. They regularly ask themselves:
Would I pay for this if I hadn't built it myself? Too few founders regularly use their own products as a genuine customer would, exposing the gap between creator passion and actual utility.
Does it solve a real, urgent problem right now? A significant portion of built features are rarely or never used. That's weeks or months of engineering time solving problems that customers don't actually have…
Am I creating features no one is asking for? Product teams often spend substantial time on features that don't meaningfully impact customer outcomes -a clear sign of founder passion overriding market reality.
The pivot reality check: 3 questions every founder should ask
1. The stranger test
If a stranger told you about this problem (not your solution), how badly would you want it solved?
If it doesn’t feel urgent, customers probably won’t care either.
2. The budget test
Are people already spending money to fix this problem? Even if it’s clunky or expensive?
If not, it’s hard to build a business here.
3. The timing test
What needs to be true in the market for this to take off? Is that true today?
Building for a future 3-5 years away? You might run out of time and money.
How to use it:
Be honest. Score each question 1-10. Anything below 7 means pause and rethink.
The courage to change
The hardest part of his story wasn't the pivot itself - it was overcoming the sunk cost fallacy after two years of work. Many founders stick with failing business models too long, primarily due to emotional attachment and fear of admitting failure.
That's why I found his decision so admirable. It takes tremendous courage to say: "The market isn't ready, and we need to build something different."
Finding the balance
At the end of the day, successful entrepreneurship isn't just about building what you love. It's about creating something that intersects with what the market is ready to embrace. This isn’t about giving up. It’s about making sure you’re building something people want, right now.
Sometimes the most successful founders aren't the ones with the most brilliant ideas or the most passion. They're the ones who can read the market winds better than everyone else.