Thread by @peteflint

The path to the TAM in your pitch deck starts at seed with a "killer wedge."

It's not a GTM strategy or PMF, but it sets the direction for both.

It's a critical point that's worth thinking through deeply. NFX has been doing a deep dive into this strategy.

Our findings below:

A killer wedge can be either a market segment or a product feature. It's a tightly defined "world" that your startup aims to completely dominate.

However, it must act as a springboard toward a larger market.

Many companies miss this point and get stuck.

A killer wedge guarantees you gather data that drives your long-term success.

Classic mistake: Dominating a wedge misaligned with your target market. Systems break down as you scale.

Good strategy: A well-chosen wedge ensures your learnings remain relevant as you grow.

Choosing right accelerates your learning curve, and saves you trouble down the road.

We've analyzed patterns and identified 12 archetypes of killer wedges to help you move faster.

See these wedges differently if you like. But if they make you think, this work has done its job.

1. The Viral Network Wedge

Start in tight, high-affinity spaces where people are eager to experiment and share. Like college campuses. Learn fast, then expand outwards.

2. The Instant Liquidity Wedge

Provide means for immediate cash or faster payment cycles in slow ecosystem.

*Don't get stuck here. Use the momentum you gain to provide other services outside of liquidity.

3. The Rapid Feedback Wedge

Target SMBs or other markets with highly accessible decision-makers for rapid iteration. Bonus: perfect your sales cycle with many at-bats.

4. The Complementary Customer Wedge

Focus on parallel markets to existing incumbents. Ensure these complementary customers have similarities with ultimate goal but don't directly compete.

(A good way to avoid incumbent detection at early stages).

5. The 10x ROI Wedge

Instantly increase ROI or cut costs. Everyone thinks they can do this, few actually can prove it. Make sure you can prove it.

A vein where this seems particularly effective is the rise of "software-as-a-service, or "AI workers."

6. The Underserved Needs Wedge

Every system is broken for someone. Look past how things are supposed to work, and see how they are actually working. Many accept inconveniences as the norm – show your customers it doesn't have to be this way.

There's your foothold.

7. The Premium Launch Wedge

Target buyers with high willingness to pay. Sometimes you can grow faster upmarket, and learn how to reach mass market scale later.

8. The Compliance Wedge

Simplify crucial processes that businesses can’t afford to get wrong, like legal or tax compliance.

Reducing those headaches often makes for very loyal customers.

9. The Repurposed Asset Wedge

Transform underutilized assets into valuable ones. You don't need to discover something new, you just need to reposition it in the mind of your market.

Find something abundant, convert it into something covetable.

10. The Frictionless Integration Wedge

Fill gaps between existing processes. Sometimes, filling the cracks between incumbents is the best way to gain a foothold. Learn and build your own solutions over time.

11. The Status Wedge

Launch among high-status segments to build a bandwagon effect.

12. The Transparency Wedge

Provide hidden or difficult to access information and showcase it.

Ask yourself: what piece of information do my users crave, but can't access?

Moving beyond the killer wedge is essential. But these are proven starting points.

For more, here's our detailed guide on finding your killer wedge: nfx.com/post/finding-y…