Mighty Capital's thesis is that the best product wins - even more so during a downturn

“No amount of salespeople or engineers can save you in the long run if your customers don’t love your product”

When the founders are laying off staff and cutting costs to face the downturn, it may seem like an odd time to tell startups to take their product as seriously as ever. During a recession, do consumers really care about the practicality of the product? Yes, he says The mighty capitalwhose portfolio includes companies such as Airbnb and Amplitude.

The San Francisco-based venture capital firm has a bottom line: The best product wins. And changed macro conditions do not invalidate it. On the contrary, the founder and managing partner of Mighty Capital, SC Moatti, told TechCrunch that it’s “perhaps more relevant now than ever.”

SC Moatti is a former Facebook executive with a passion for all things product. In addition to her role at Mighty Capital, she is also the founder and CEO of Products that countan extensive network of product managers that touts the benefits of product-led growth.

Product-led growth makes sense in a downturn: If the product itself does the heavy lifting, it means potentially spending a lot less on sales and marketing. This makes successful product-driven companies more likely to grow quickly and be profitable, something investors currently love to hear.

There’s a catch, though: you can’t be product-led without a great product. However, entrepreneurs are understandably nervous about making the type of investment this would require when the burn rate is already keeping them awake at night.

To find out how SC Moatti thinks about the product vs. cost conundrum, we asked her a series of questions founders might have if they’re considering a product leap. Her responses follow below, edited for length and clarity.

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