VCs struggled with Axonius's pitch because the problem had existed for years with no solution (a "why now" issue). The founder overcame this by having the VC put him in front of Fortune 500 CISOs. When every CISO told the VC it was a top, unsolved priority, the market validation was undeniable.
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Before seeking major funding, Elysian validated its radical aircraft design with skeptical professors from TU Delft and MIT. Winning over these experts provided the critical credibility and third-party proof needed to build investor confidence in their unproven deep-tech concept.
Instead of relying only on market research, David Shim went to the source. He asked Zoom's CEO, Eric Yuan, if his idea was valuable and if Zoom was building it. Getting a clear 'yes' on value and 'no' on competition provided the ultimate validation to raise $10M.
When Axonius's founder discovered a major breach, the security team was surprisingly nonchalant. They couldn't act because they lacked basic asset visibility. This customer acceptance of a huge, unsolved problem was the signal for a massive market opportunity.
The key to accelerating from $1M to $10M in revenue was evolving the sales narrative. They moved from discussing technical details with CTOs to explaining business impact, like compliance and audit readiness, to non-technical buyers like Chief Compliance Officers and CFOs.
Merge's founder views the seed round not just as a capital raise but as a test of street smarts and sales skills. How a founder manages intros, creates FOMO, and navigates the "dating game" with VCs is a direct indicator of their future success in acquiring actual customers.
Investors like Stacy Brown-Philpot and Aileen Lee now expect founders to demonstrate a clear, rapid path to massive scale early on. The old assumption that the next funding round would solve for scalability is gone; proof is required upfront.
After a buggy POC, the founder presented the economic buyer with a simple slide: a timeline showing every issue raised and how quickly it was fixed, often in days. This demonstration of extreme responsiveness and partnership outweighed the product's imperfections and built the trust needed to close the deal.
In initial meetings with enterprise prospects, Nexla's founder didn't pitch a solution. He focused entirely on validating the problem. By asking, "Do you see this problem as well?" he framed the conversation as a collaborative exploration, which disarmed prospects and led to more honest, insightful discussions.
During validation calls for Merge, prospective customers expressed extreme annoyance with the status quo but were skeptical the founders could technically solve it. This combination was the ultimate signal: the pain was immense, and a successful solution would be highly defensible and valuable.