Validating Your Problem
You've identified a problem. But is it worth solving? In this lesson, you'll learn how to validate that your problem is real, significant, and worth building a solution for.
How to Evaluate Startup Ideas
Kevin Hale • Y Combinator
Why watch this: Kevin Hale, YC Partner and founder of Wufoo, shares the exact framework Y Combinator uses to evaluate startup ideas. Learn what makes a problem worth solving.
Why Validate?
What is the #1 reason startups fail?
"Nice to Have" vs. "Must Have"
Critical Distinction
"Nice to Have": People acknowledge the problem but aren't actively trying to solve it. They'll say "that would be cool" but won't pay.
"Must Have": People are actively searching for solutions. They're spending time or money RIGHT NOW to fix it.
If you're not solving a hair-on-fire problem, you're going to have a hard time getting anyone to pay attention.— Michael Seibel, Y Combinator
Hair on Fire Test
Which response indicates a "must have" problem?
🔥 That's a Hair-on-Fire Problem!
When people are already investing time/money on workarounds AND ask when they can get your solution, you've found real demand. This is the gold standard of validation.
⚠️ Polite Interest ≠ Demand
"That would be cool" is a red flag. People say yes to be nice. Without evidence they're actively trying to solve it, this is probably a "nice to have."
💡 Not Painful Enough
If people have "learned to deal with it," the problem isn't urgent enough. They won't pay for a solution when they've already adapted.
Market Sizing: TAM, SAM, SOM
Market Sizing Terms
= Total Addressable Market (the whole pie)
= Serviceable Addressable Market (your slice)
= Serviceable Obtainable Market (realistic near-term target)
The Validation Sprint
Here's how to validate your problem in one week:
Match the Sprint Days
Match each phase to its activity:
⚠️ Red Flags: Signs to Pivot
- "That's interesting, but..." — Polite disinterest
- Can't find people to interview — Market too small
- No current solutions — Not painful enough
- "I'd use it if it was free" — Not validation!
Spot the Red Flag
Which interview response is a RED FLAG?
Define Your Validation Hypothesis
PlanningWrite out exactly what you're trying to validate:
Example Hypothesis
WHO: First-generation college students at large state universities, typically 18-22, whose parents didn't attend college in the US
WHAT: They don't know how to navigate internship recruiting—when to apply, how to network, what companies look for
WHY: Without family connections or knowledge of "the game," they miss opportunities and fall behind peers
CURRENT WORKAROUND: They Google random advice, ask overwhelmed career counselors, or just skip internships altogether
HYPOTHESIS: I believe first-gen students at large universities struggle with internship recruiting because they lack the informal knowledge that students with connected families have, and they currently rely on generic online advice that doesn't address their specific challenges.
Size Your Market
AnalysisEstimate your market size using TAM, SAM, SOM:
Example Market Sizing
TAM: All US college students seeking internships = ~8 million × $200 avg spend on career prep = $1.6B
SAM: First-gen students actively job searching = ~2 million × $100 realistic price = $200M
SOM: Students at 20 target universities in Year 1 = 50,000 × $50 = $2.5M
Assessment: Yes, big enough. $2.5M year 1 can sustain a small team, and there's room to expand to $200M+ if we nail the value prop.
Interview Results Tracker
ValidationTrack your validation interviews and look for patterns:
Example Interview Tracker
Interview 1 - Maria (junior, first-gen): "I had no idea companies start recruiting in fall of sophomore year. I missed the whole cycle." Pain: 9/10. Currently: nothing, gave up on big companies.
Interview 2 - James (senior, first-gen): "My roommate's dad got him an internship. I applied to 80 places cold—got nothing." Pain: 8/10. Currently: mass-applying online.
Interview 3 - Sarah (career counselor): "First-gen students are 40% of our school but 10% of who gets internships. We can't give them enough 1-on-1 time." Pain: 7/10. Currently: group workshops.
Patterns: Consistent high pain (8+/10). Problem is timing/knowledge, not effort. Current solutions aren't working. Strong emotional responses.
Decision: YES, continue. Clear pattern of pain, people are trying to solve it, and existing solutions are failing them.
Pattern Recognition: Red Flags
Based on this data, what's the biggest red flag?
🎯 Key Takeaways
- Validation prevents building something nobody wants
- "Must have" problems show active solution-seeking behavior
- Talk to 10-15 people before deciding if a problem is worth solving
- Red flags are valuable—they save you time
- Document interviews to make objective decisions