A problem-solution-fit occurs if a startup has proved both: 1) that there is a 'problem worth solving' for one or more clearly defined customer groups, and 2) that there is evidence that these customer groups would consider the value proposition of the solution the firm proposes.
Product-market fit means: you have collected evidence that your solution solves your customers' problem(s) in a way that they prefer over current alternative solutions; you have proof that they are willing to pay for it; and your service demonstrably gains its first traction in the market.
The inflection point a corporate startup reaches when it obtains certainty that the new value proposition and business model it designed aligns with its parent company’s business and/or innovation strategy.
