A PRD is not a fixed artifact. Its form changes with the organization writing it. A five-person startup and a 500-person company are solving different coordination problems with the same document type, and treating them identically is why so many enterprise teams drown in process and why so many early-stage teams ship the wrong thing.
Stage 1: Pre-product-market-fit (1 to 20 people)
At this stage, the PM and the engineer are often the same person, or the team is small enough that everyone has the same context. A PRD at this stage is a thinking tool, not a coordination tool. Its purpose is to force the founder to externalize assumptions, not to transfer context to a team that does not have it.
Format: one page. Sections: problem, solution hypothesis, what we are not building, and how we will know if it worked. No acceptance criteria (the team is small enough to discuss those in person. No risk register) the entire company is one big risk.
The most common mistake at this stage is writing PRDs that are too long. A 10-page PRD at a 10-person startup means the PM is spending time on documentation that the team will never read. Optimize for speed. Write enough to make the decision, then build.
Stage 2: Early traction (20 to 100 people)
The team is no longer in the same room. Engineers are joining who do not have the founding context. Product decisions are being made by people who were not in the original customer conversations. The PRD is now doing real coordination work, transferring context from people who have it to people who need it.
Format: 2 to 4 pages. Add user stories (engineers need to know who this is for). Add success metrics (everyone needs to agree on what done looks like). Add edge cases (new engineers will ask about them). The review process is informal, Slack comment or a 15-minute meeting.