ABSTRACT
The key step in the innovation process is the product–market fit (PMF) concept. Fortunately, the PMF concept can be sequentially applied by startups in their initial stages by the W. Aulet method. The chapter shows that a graphical representation of the PMF used by Turbo Tax to become the market leader in the tax software business segment. It also shows that a graphical representation of the PMF used by eBay to become the market leader in the online selling business segment. A phenomenon of social media is the extraordinary power it confers to the consumer and it has a strong influence on business activities and business performance. Separate social influencers online into three types: referent, expert, and positional. The chapter summarizes factors most relevant in a venture capitalist's assessment of social media startup companies and also summarizes the challenges to startups and social media according to M. Christos.
