Get your free personalized podcast brief

We scan new podcasts and send you the top 5 insights daily.

Fundrise decides which software companies to back by first becoming a power user of their products (e.g., Ramp, Intercom). This firsthand experience provides deeper conviction and a more accurate assessment of product quality than any external analysis could achieve.

Related Insights

Model ML, a fast-growing fintech AI company, started as an internal tool for the founders' family office to automate investment due diligence. The product was validated when senior finance professionals saw it and asked to use it, proving demand before it was even a company.

To manage an infinite stream of feature requests for their horizontal product, Missive's founders relied on a simple filter: "Would I use that myself?" This strict dogfooding approach allowed the bootstrapped team to stay focused, avoid feature bloat, and build a product they genuinely loved using.

Salesforce operates under a 'Customer Zero' philosophy, requiring its own global operations to run on new software before public release. This internal 'dogfooding' forces them to solve real-world enterprise challenges, ensuring their AI and data products are robust, scalable, and effective before reaching customers.

Move beyond slide decks to gauge a founder's true passion and product quality. By installing and using a product live during a pitch, investors can ask deep, contextual questions and observe the founder's unscripted responses, revealing a level of genuineness a presentation cannot.

Dogfooding isn't enough. Founders should use every feature of their product weekly to develop a subjective feel for quality. Combine this with objective metrics like the percentage of unhappy customers and the engineering velocity for adding new features.

The Codex team's core mandate was to create a tool they loved and used daily for their own development. This intense dogfooding—including building the app on itself—served as the ultimate validation and quality bar before they considered shipping it externally.

Founders Fund's preemptive investment in Nominal was driven by an 'inside view' from their other portfolio companies who were Nominal's customers. This direct feedback loop on the software's necessity gave them the high conviction to invest early and aggressively, bypassing traditional diligence.

The acquisition of Clapp wasn't driven by market analysis but by the Lemlist team becoming passionate users first. The CEO fell in love with the product, leading to company-wide adoption. This bottom-up conviction in the product's quality was the starting point for the M&A conversation.

For products targeting specialized professionals like pilots, credibility is paramount. The most effective way to ensure product-market fit and user adoption is to hire an actual end-user (like a pilot) onto the product team. They can co-create concepts, validate language, and champion the product to their peers.

In a powerful example of dogfooding, every developer at Lightning AI—whether working in Go or Python, on web apps or ML models—codes within the company's "Studios" cloud environment. This validates the product's flexibility and ensures the team directly experiences its strengths and weaknesses, accelerating improvement.