Lessons learned from a startup that didn’t make it

Jake Fuentes, co-founder of Cascade, reflects on the lessons from shutting down his B2B data-visualization startup after four years. He argues that failure rarely gets studied carefully, and that several decisions which seemed sound at the time steered the company off course. The core lessons cover how a vague ideal customer profile lets focus fray, why horizontal products depend on a strong vertical use case, how old and clunky incumbents can still be sticky, and how supporters' enthusiasm can be mistaken for real market signal. The piece matters because it offers concrete warning signs for founders and product teams before they commit to a strategy.

01Key takeaways

• Define your ICP as one market segment with similar problem value and reachable in a similar way.
• Treat demand from outside your ICP cautiously; either validate and pivot deliberately or stay focused.
• Horizontal tools need a specific buyer facing many related problems, otherwise vertical rivals win.
• Measure true switching costs, including politics, career risk, and habit, not only time and money.
• Separate enthusiasm from investors and friends from genuine market pull before doubling down.

02Key sections

Vague ICP leads to fraying focus

A broad customer definition let the team chase unrelated use cases, diluting product decisions. The author argues a good ICP is a single segment with similar problem value and reachability.

Horizontal products need strong verticals

Customers care about their specific problems, not total market size, and horizontal tools struggle against tailored vertical competitors. Changes in the business analyst role further eroded the company's relevance.

Incumbents are stickier than they look

The team underestimated Alteryx's loyal users, community, and the deep political and career switching costs embedded in workflows. Winning requires addressing power users, not just cost frustration.

Supporters are not market signal

Investor checks, founder relationships, and early deals created false confidence. Once founders stepped back, demand that depended on them did not sustain itself.

03From the post

“1. A guide for finding product-market fit in B2B 2. How Linear builds product 3. How to build a killer sales pitch 4. Hiring your early team 5. Scaling your B2B growth engine 6. The Magic Loop Subscribe to get access to these posts, and every post. Failure has a lot to teach us. But we usually miss our chance to learn from it. Recently, in the process of shutting down his startup, Jake Fuentes (co-founder and CEO of Cascade) jotted down his biggest lessons from the journey. I found them incredibly insightful, and applicable to most startups and product teams, so I asked him if I could share them broadly. Below, Jake offers his hard-won lessons about what people forget about competition, how early market signal is often deceiving, what it takes to build horizontal products, the danger of unfocused ICPs, and more. These lessons are especially timely with the conclusion of my recent B2B series. For more from Jake, follow him on LinkedIn and X. He also advises companies considering acquisitions or other strategic options. Learn more and…”

04Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.