True or False: Startups should develop a growth hypothesis before testing their value hypothesis.

The concept of developing a growth hypothesis before testing the value hypothesis is fundamentally flawed. The value hypothesis is crucial as it assesses whether a startup's product or service delivers real value to its target customers. This step is essential because it establishes whether there is a product-market fit. Only after confirming that customers find the product valuable can a startup effectively formulate a growth hypothesis, which outlines strategies for scaling the business.

When startups prioritize growth strategies without first validating the value they actually provide to customers, they risk focusing their efforts on expanding a product that may not meet market needs. Hence, testing the value hypothesis first is a more logical and risk-averse approach, making it vital for the sustainability and success of the startup. This sequence enables startups to iterate on their offerings based on real feedback before investing in broader growth initiatives.