Anticipating a future need for revenue, Fathom hired salespeople a year early and embedded them in customer success. This allowed them to develop deep product knowledge and user empathy. When the market shifted, this fully-ramped team could immediately sell the product roadmap, securing Fathom's first $100k ARR in a month.
Related Insights
Contrary to the belief that deep-tech startups should be purely technical, ElevenLabs prioritized distribution early. Their first 10 hires included 3 people focused on go-to-market and growth, enabling both self-serve and sales-led motions from the start alongside foundational research.
Snowflake hired its first salesperson pre-revenue not to sell, but to get the product into customers' hands to break it. This person acted as a de facto product manager, gathering critical feedback that led to a core architectural change, proving the value of a GTM hire before product-market fit.
In the pre-product-market fit stage (the first ~20 deals), the sales leader's primary role is not just closing revenue, but acting as a product manager. They must be in every meeting to gather objections, find pockets of value, and translate raw market feedback into actionable insights for the engineering team.
At the $1-10M ARR stage, avoid junior reps or VPs from large companies. The ideal first hire can "cosplay a founder"—they sell the vision, craft creative deals, and build trust without a playbook. Consider former founders or deep product experts, even with no formal sales experience.
Fathom's strategy was to build a robust system for meeting capture and processing, anticipating that transcription costs would drop and GenAI would mature. When GPT-4 launched, they simply "dropped in the engine" to their pre-built "sports car," instantly upgrading their value and triggering explosive growth from $1M to $10M ARR.
A pre-product CRO conducts thousands of market conversations to validate demand and guide the product roadmap. This de-risks development by ensuring you build a product that customers will actually buy, a task more suited to a sales expert than a founder.
While founder-led sales are critical, StackAI believes they waited too long to hire their first salesperson. Bringing in help earlier, around $500K ARR, would have accelerated their ability to test and refine their go-to-market strategy much faster.
Despite low initial revenue per employee, Kukun purposefully front-loaded investment in engineering and data (42 of 55 staff), with only two salespeople. This "build the motor first" strategy was designed to perfect the product before scaling sales, managing burn by offshoring 85% of the team. This was a deliberate, sequential growth plan.
The ideal sales hire changes dramatically across scaling stages. Initially, you need a "product manager" type who can handle ambiguity and provide product feedback. A top rep from a large company would fail because they rely on established processes and support systems that don't yet exist.
Don't outsource these core skills before reaching $1.5M-$2M ARR. If your founding team has a gap, the best path is to learn the missing skill or intentionally limit your business scope, not to hire an agency or junior employee.
