When investors showed hesitation about the creator market, Beluga Labs framed it not as their only market, but as a strategic asset. By building deep relationships and solving creators' most complex problems, they are turning these influential users into a powerful, built-in distribution channel for future expansion.
Applying the "weird if it didn't work" framework to fundraising means shifting the narrative. Your goal is to construct a story where the market opportunity is so massive and your team's approach is so compelling that an investor's decision *not* to participate would feel like an obvious miss.
A perceived product flaw can be a primary value proposition for a different type of customer. For example, a diffuse global audience, useless to local venues, becomes a powerful asset for organizations aiming for international reach, unlocking a new market.
Instead of starting with the largest, simplest market, Beluga Labs chose the niche with the most complex tax scenarios (content creators). By solving this hard problem first, they ensure their tax engine is powerful enough to easily scale to less complicated self-employed individuals later.
Encourage team members, not just founders or marketers, to build their personal brands by publicly sharing their learnings and journey. This creates an organic, multi-pronged distribution engine that attracts customers, top talent, and investors. It's a highly underrated and cost-effective go-to-market strategy.
Focus on a single, highly specific product that solves a clear problem for a niche audience. This 'spearhead' product can effectively acquire your first customers and power your advertising, even as you later expand your product offerings to a broader market.
Instead of a broad launch, Everflow targeted only mobile affiliate networks—a small market they knew deeply from their previous company. This allowed them to build very specific, high-value features for that ICP, win deals, and establish a strong beachhead before expanding into larger, adjacent markets.
Figma's market initially seemed too small to attract major VC interest or intense competition, giving them space to build a defensible product. Founders can gain a significant advantage by working in overlooked spaces, provided they have genuine passion to sustain them for a decade or more.
Live-shopping platform Whatnot was rejected by nearly all early investors because it started as a marketplace for a niche collectible, Funko Pops. The only VCs who invested were those who knew the founders personally and trusted their ability to expand beyond the initial niche, proving founder conviction can be more crucial than the initial market.
Well-funded startups are pressured by investors to target large markets. This strategic constraint allows bootstrapped founders to outmaneuver them by focusing on and dominating a specific niche that is too small for the venture-backed competitor to justify.
Instead of building a single product, build a powerful distribution engine first (e.g., SEO and video hacking tools). Once you've solved customer acquisition at scale, you can launch a suite of complementary products and cross-sell them to your existing customer base, dramatically increasing lifetime value (LTV) and proving your core thesis.