Live or Die by Product-Market Fit: Understanding Financial Indicators of Weak or Lost PMF

Product-market fit (PMF) is the primary determinant of software company survival, with weak or deteriorating PMF manifesting through specific financial indicators including rising churn, declining expansion revenue, sales inefficiency, and margin compression. The article warns that well-funded companies often mistake capital abundance for PMF validation, creating false confidence and unsustainable scaling pressure that accelerates failure when PMF issues remain unaddressed.