Fluency Score reports provide actionable insights on Product-Market Fit
Lack of product-market fit accounts for 75% of the primary reasons startups fail.
The Fluency Score algorithm quantifies business model risk across 300 data points and produces a report with a standardized score and visualization of business model risk for fast, accurate, and strategic decision-making across the innovation stack.
What is a Fluency Score report?
Fluency Score reports provide a current snapshot of a startup’s risks and opportunities as they work to achieve Product-Market Fit.
- Standardized company level data on business model risk
- Efficient, consistent reporting of stage and progress
- Visualization of risk and recommendations for next steps
Risk Vector Breakout
The Fluency Score measures product-market fit across five vectors of risk.
This vector visualizes the extent to which problem and customer segment assumptions have been tested in the market with customers.
This vector visualizes the extent to which assumptions about the product/solution and customers’ willingness to buy have been tested.
This vector visualizes the extent to which a repeatable, scalable growth strategy has been developed and tested.
How fast is the company de-risking the most important assumptions and risks in its business model?
- 89% 89%
- 43% 43%
- 10% 10%
- 77% 77%
- 20% 20%
The Fluency Score algorithm measures, analyzes, and reports on business model risk with laser focus
Data is collected to understand the company’s business model and the steps they have taken to de-risk core assumptions in the market with customers.
For example, if they believe their customers need help with a particular problem, the Fluency Score process collects and evaluates the ways in which they have worked to understand this problem from their customer’s point of view.
Following the principles of design thinking and Lean startup methodology, the Fluency Score captures the quality of the approach to validation, specifically with the targeted customers.
The Fluency Score also measures and visualizes the velocity with which the company is tackling all remaining business model risks for a real-time snapshot of their current activity.
For example, if a company’s riskiest assumption is around their growth strategy, the Fluency Score Report will identify the speed and focus with which they are testing and validating those assumptions.
This component of the score can help answer the question of whether this company may reach product-market fit before running out of resources.
How is the data collected?
Data is collected through a qualitative interview process with the founder to ensure the information is correct and entered into the algorithm in a standardized format.
How is the data analyzed?
The qualitative data collected during the interview process is then quantitized and processed through the Fluency Score algorithm to evaluate the risks across five vectors.
How long is the data accurate?
Early stage companies evolve and grow quickly! For that reason, a Fluency Score Report is considered “fresh” for three months. After that, it is useful for historical comparison and a fresh report is recommended.
All Fluency Score Reports include:
A single, numerical score that can be used to compare, rank, and track a company or group of companies objectively
Breakout of risks
Visualization of risk to diagnose strengths and weaknesses within each component of the business model
Business model stage indicator
Precise labeling of stage allowing for greater differentiation between similarly staged-companies and quantifiable progress reporting
Customized analysis & recommendations
Analysis of a company’s greatest current risks in their business model and recommendations for next steps
Which companies in your application pool or portfolio match your preferred risk profile? How can you best resource them in batches? Different Fluency Score data visualizations in your Analysis Dashboard help drive these decisions! For instance, here’s an example of our business model stage indicator tool.
Four powerful use cases for Fluency Score Reports
Evaluate and choose best-fit startups at a glance
Tailor resources and focus mentors for each company
Show trajectory, even for early-stage companies
Communicate impact efficiently with data
Learn more about the Fluency Score and FLEX Acceleration here.
Fluency Score Process
What is the data collection process?
The data needed to produce a Fluency Score is collected directly from the founder through three touchpoints over a two week period, including a video chat interview, totaling an hour of the founder’s time. After that, leave it to our proprietary algorithm to analyze over 300 data points, create a standardized score, break out a visualization of five vectors of risk, and provide customized recommendations.
What kinds of companies can the Fluency Score measure?
Because the Fluency Score process is longitudinal, measuring the speed and focus of work, it can measure innovating companies from Day 1 all the way through Series A, and is vertical agnostic. If a company is innovating their business model, the Fluency Score can quantify and illustrate that risk.
However, it’s important to note that each Fluency Score measures a single business model. Some companies are an umbrella for two business models — for example, a consulting business and a direct to consumer e-commerce business. In that case, our clients often chose to measure the business model which promises to be the future of the company, or perhaps the one with the most potential to scale. Measuring both business models is also something we do, as that’s simply two separate scores. In these cases, two scores keep the risk factors clearly separated for the business entity to make smart decisions that further their goals.
How does the Fluency Score tell me about the founder/team?
The algorithm is focused on product-market fit on purpose, to bring clarity and objectivity to an area of business development that is often the source of the greatest risk in an early stage company. We recognize there are other very important elements in evaluating a company that are outside of the focus area of this tool.
Half of the Fluency Score is measuring the Velocity with which the team is de-risking their business model assumptions (the speed they are executing at and to what extent they are focusing on their riskiest assumptions). This Velocity data is often a very clear window into the team’s execution strategy and is a great way to visualize/measure team performance as well. Not exactly the same thing as grit/experience, but definitely in the same category.
How often does a company need a score?
A Fluency Score is a snapshot in time that can be used for diagnostic purposes, not a set-in-stone final output. In fact, a score should change over time! The only way to improve a Fluency Score is to build a better business, derisking the business model in fast and focused ways.
Clients who order a single Fluency Score for a company see enormous value in that single report. However, more than one score shows the true power of this data tool.
Multiple Fluency Scores for a company start to draw a trend line for that company, illustrating their progress and tracking how inflection points (programming, resources, investment) impact them.
We recommend multiple Fluency Scores because businesses are constantly growing and evolving. Some clients choose to order pre- and post-program scores. Others prefer to set a cadence of scores quarterly to be able to communicate company progress with third-party objective data.
Because scores are a snapshot in time they are no longer “fresh” after three months. The measure of business model risk should change in that amount of time.
Why does the Fluency Score collect qualitative data?
Many data tools trying to solve for similar problems either scrape data or rely on self-reported data. Scraped data is too lightweight and contains too many vanity metrics. It cannot help us understand product-market fit in rich ways, nor can it accurately (or even at all) measure what’s happening in early-stage companies. Self-reported data can be overly optimistic, or simply. It can also bias against founders who are not steeped in the language of the startup industry..
How is this data different from a pitch?
Innovative businesses are most often asked to pitch a vision of a future state they hope to create. The vision is important, but often masks the reality – and the risks – inherent in that approach.
The Fluency Score takes an objective approach to measuring what is already built, already known and de-risked about the business as a counterpoint and reality check to the pitch.
What is the basis for the Fluency Score algorithm?
Innovation industry experts know how to reliably and predictably build entrepreneurial success. They use best practices in design thinking, lean startup methodology, and agile frameworks.
The Fluency Score incorporates these best practices into the algorithm’s core measurement and reporting.
Our standardized qualitative data collection process asks jargon-free questions that will notsurprise you as a supporter of entrepreneurs, as they are based on a logical progression of de-risking a business model in the market with customers.
What has this business learned in its journey to product-market along the following vectors: Problem-Customer Validation, Solution and Market Demand, and Growth Strategy?
Our proprietary algorithm quantitizes (yes, it’s a word!) over 300 data points to produce a single, standardized, numerical score and a visualization of how that risk breaks out.
What is the experience like for founders?
To complete a Fluency Score, a founder answers questions online and during one video chat meeting, totalling about an hour of their time.
Founders love talking about the work they’ve already done to derisk their business. So often we ask them to pitch what their business will become, which requires the art of storytelling. But the Fluency Score isn’t interested in that narrative. Rather, it evaluates what is true about the business as it is right now — a snapshot in time of what has been derisked in the market with customers. And founders love to share what they already know about their company’s product-market fit!
What will I need to do when we buy Fluency Scores for a batch of companies?
Getting started is easy! All we will need are the email addresses of the companies for which you are ordering scores.
How can I improve my Fluency Score?
De-risking a business model in the market with customers, at every step, is the basis for the Fluency Score.
Return to vectors that have “gaps” and think of those as opportunities to really move the needle for the company. What is still unknown in that area, and how can you push ahead with high quality learnings from customers to continue to resolve your business model assumptions.
There are lightweight recommendations in each Fluency Score report to help you kick off the report.
If your organization has ordered FLEX Acceleration for your company, the work of designing lean experiments to rapidly de-risk your business model will be the focus of your weekly work with our coaches.
What is FLEX Acceleration?
The need for the Fluency Score came out of our founder Beth McKeon’s work leading 20 startup accelerator cohorts. As she sought to iterate on tailored, focused founder support, a system for working founders through the “how” of de-risking a business model emerged.
The FLEX (Fluent Lean Experiment) Accleleration program brings value to founders by helping them de-risk their business model in fast and focused ways by combining coaching expertise in weekly sessions with a streamlined platform that organizes founders’ work.
The FLEX Acceleration program starts with the Fluency Score 1) to provide baseline data for the organization for tracking/reporting and 2) so the coach knows precisely what founders need and can hit the ground running in the very first session, creating a plan within our online platform for how the company will begin to tackle the riskiest assumption in its business model in the very first week.
The FLEX Acceleration program will deliver value to founders week over week. There is no other programming that will keep them accountable to doing the hard work of working on their business model, and for that reason it can stand alone as prgramming or it’s often an incredible value add to the wrap-around support being provided by entreprenurial support organziations.
Build a Product-Market Fit trajectory over time with standardized, high quality data
Data designed for strategic decision-making
A lot of data leaves you thinking “That’s cool, but so what?” You need data that cuts through the noise of a shiny, perfect pitch to highlight the company’s actual current risks and opportunities.
- Measure a company from Idea to Series A to track their growth trajectory over time
- Measure companies across industry verticals using a single standardized process for easy comparison
- Build a custom dataset on a single company or an entire portfolio to track and report growth and ROI to external stakeholders
Data for your organization
Your organization needs to gain strategic visibility on the exact stage and needs of your companies for by creating your own dataset for decision-making.
A batch of scores in your Analysis Dashboard is useful for ranking and comparing companies. It’s also incredibly powerful at helping you deploy exactly the right resources to support these companies.
$500 per company, per report includes sharable mentor views and your organization’s Analysis Dashboard (10 company minimum).
Value for your organization
“The Fluency Score creates a foundation of objectivity from which accelerators and investors can make data driven decisions. Having Fluency Scores as a part of our multi step review process gave our team confidence that we were making the best decision on behalf of our fund and the companies.” – Kellie Clark, Director of Programs at Innovation Depot
“Fluency Scores are giving us the valuable information we need to win grants, onboard more entrepreneurs, and move our ecosystem forward.” – Debbie Irwin, Executive Director at Staunton Creative Community Fund
Getting started is easy
The best way to engage with the Fluency Score is to see it in action with a batch of companies. Pricing is simple, at $500 per company, per report, which also provides your organization with an Analysis Dashboard for your dataset.