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Why startups fail after achieving product market fit?

When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.—Warren Buffet

Product-Market fit is often a good advice. However, product teams should know that there is a second hurdle awaiting them in the form of Product-Economic fit.

Why Groupon Failed
Why Groupon Failed

Product-Economic Fit is the ability for a product to achieve attractive economics at scale. 

This is determined by the overall economics of the product category and the position of the company in the product category.
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