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Book · How companies get built

The Lean Startup

Eric Ries · 2011

The book that made "minimum viable product" a phrase every founder uses — worth reading mostly so you can tell who has understood it.

Why it is here

The argument is that a startup is an experiment in conditions of extreme uncertainty, and that the job is to test the riskiest assumption as cheaply as possible rather than to execute a plan. It has been enormously influential and is now so absorbed into startup vocabulary that people quote it without having read it.

That is precisely why it is useful to an angel. A founder describing an MVP that took eighteen months and full engineering resource has not understood the idea, and being able to tell is a genuine diligence signal.

The methodology is stronger on how to test than on what to test, and it is at its weakest in domains where a minimum product is not a coherent concept — regulated medicine, hardware, anything where the first version must be safe.

Watch alongside it

Michael Seibel - How to Plan an MVP

What a minimum viable product is actually supposed to be. Useful as a yardstick: a founder describing an eighteen-month MVP has not understood the idea, and that gap is a diligence signal.

Published by Y Combinator. Channel verified from ycombinator.com, and YouTube's own oEmbed response names that channel as this video's author. Pressing play loads content from YouTube.

Read it if

You want to be able to tell whether a founder actually operates the way they say they do.

Skip it if

You invest mainly in deep tech, hardware or regulated healthcare, where the framework applies badly.

Pair it withThe Mom TestRob FitzpatrickA short book on how to talk to customers without getting useless answers — and the best possible training for how to talk to founders.

The Lean Startup: common questions

Is the lean startup method still the standard?
Its vocabulary is universal and its application is inconsistent. Most founders use the terms; considerably fewer run the cheap tests the method actually prescribes, and telling the difference is a useful diligence signal.
Where does the method break down?
Anywhere a minimum viable version cannot safely exist — medical devices, aviation, regulated finance, most hardware. In those domains the first release must be complete and the iterative approach has to happen before the product touches a customer.