Most growth‐oriented ventures make extensive use of venture experimentation, popularized by the lean start‐up method (LSM), yet we know very little about the boundary conditions under which this method can be successful. Using a longitudinal, multiple‐case study method, we investigate how growth‐oriented ventures can apply the LSM to achieve early venture success, and find that prior market knowledge is an important boundary condition for its successful application. We also contribute to the absorptive capacity literature by clarifying how new ventures build absorptive capacity early in their venture lifetimes.