【V+ Perspective】Product Development Should Not Pursue MVP, But “Validated Iteration”

In the imagination of many founders, venture capital (VC) is a gamble in search of the “next unicorn.” The job of the investor seems to be picking, with vision and luck, the product most likely to succeed among a group of dream-driven entrepreneurs, then hoping it will soar.

This story is only half true. The real truth is: we know that the vast majority of startups will fail.

Precisely because of this, what VCs really invest in has never been the current product, nor the vague probability of success, but a much rarer and more decisive ability—validated iteration.

What is “validated iteration”?

Validated iteration” is not about failing at a larger scale, nor is it about encouraging frequent mistakes. It refers to the ability to continually test directions with the lowest cost, shortest time, and clearest assumptions, and to quickly eliminate the wrong paths. The point is not failure itself, but:

·       Whether the failure comes at low cost;

·       Whether the failure brings actionable knowledge;

·       Whether failure can quickly accumulate into team insights and progress.

“Validated iteration” is a micro, replicable, and scalable mechanism for market validation.

Bad Failure vs. Good Failure (Validated Iteration)

Bad failure: catastrophic failure.

·       Extremely high cost, burning most resources to chase an unvalidated vision;

·       Long cycle, discovering only after 18 months that the market doesn’t need your product;

·       No tested hypotheses, just “build it first”;

·       No learning, the team cannot clearly explain what went wrong after the fact;

·       One failure leads to the end of the company.

Good failure: validated iteration.

·       Extremely low cost (just a few thousand or tens of thousands of TWD);

·       Extremely fast (many experiments completed within weeks);

·       Clear hypotheses (because we believe A, we do B, expecting C);

·       Actionable data returned;

·       Limited scope, a strategic retreat rather than complete failure.

“Catastrophic failure” is like the Titanic hitting an iceberg on its maiden voyage; “validated iteration” is like repeatedly testing paper boats in a bathtub until finding the design that won’t sink.

Why do VCs look for “validated iteration capability”?

The product, financial forecast, and business model of an early-stage startup may all change completely after three months. The only constant is change itself. Therefore, what VCs truly value is: can the team learn quickly and adjust course in the face of high uncertainty. The absolute advantage that brings long-term growth to a company is:

Best capital efficiency.

Teams that understand validated iteration gain the most market insights with the least money, allowing investors’ funds to support more directions and a longer runway.

Extremely high adaptability and resilience.

The market doesn’t follow the script; we need captains who can adjust course in the fog, not sailors who only follow the chart.

The founder’s maturity and self-awareness.

These founders are data-driven, honest about failure, and understand that entrepreneurship is a science, not luck.

How do you prove you have “validated iteration capability”?

Define your progress by “learning rate.”

Don’t just talk about growth—talk about what you have validated and what directions you have ruled out.

Example: “In three months, we validated 5 hypotheses, eliminated 3 market directions, and spent less than XX.”

Build a “failure review culture.”

Review hypotheses, not individuals.

Review validation strategies, not just results.

Tell stories with data.

Not “I think the market will like it,” but “Data shows the market doesn’t like A, but is highly sensitive to type B users.”

Failure is not a bug, but your core feature.

Entrepreneurship is not about avoiding failure, but about managing failure. Your goal is not to build a startup that never fails, but a company that excels at market validation with low cost, high speed, and repeatability.

Show us your validated iteration process:

How do you discover the truth at low cost?

How do you systematically accumulate insights?

From the V+ perspective, what continuously produces survival and growth is not the product, but your validation machine.

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About VENTURE+

VENTURE+ specializes in SaaS and AI investments, offering more than just funding. We provide startups with strategic guidance, corporate partnerships, and capital market planning. We aim to be the "Best Co-Founding Partner" bridging startups, venture capital, and industry leaders in long-term collaboration.