After raising $35M, Legora's founder halted sales for six months to address scalability issues. Despite VC pressure, he correctly identified that onboarding prestigious clients to a faulty product would burn their reputation and kill long-term growth, a risk greater than a temporary sales pause.
A huge Series A before clear product-market fit creates immense pressure to scale prematurely. This can force 'unnatural acts' and unrealistic expectations, potentially leading the company to implode. It challenges the 'more money is always better' mindset at the early stages.
Many startups scale revenue based on VC expectations or by mimicking fast-growing companies like Snowflake, rather than using internal business signals. This inappropriate timing and pacing, often triggered by a capital infusion, leads to a high, unnecessary failure rate.
Flexport's CEO advises founders who've raised a large round to immediately implement a 90-day hiring freeze. This prevents the team from defaulting to hiring as the solution to every problem, reinforcing a culture of internal problem-solving and preventing the new capital from creating bloat and slowing the company.
While pausing sales for 6 months to rebuild, Legora framed the delay as a consequence of overwhelming demand. They put new, signed customers into a "queue," creating scarcity and social proof that inadvertently made the product even more desirable by the time it was ready.
Legora's founder felt "fake product market fit" when a single presentation generated 150 demo requests. True PMF only arrived after rebuilding the product to be scalable and reliable, proving that intense initial interest doesn't equal a sustainable business.
Encilia Hair's founder intentionally kept marketing quiet for years. She feared that generating demand she couldn't meet would kill the brand. This disciplined patience, waiting until manufacturing was diversified and robust, is a crucial strategy to avoid collapsing under the weight of unexpected success.
Early on, Tock turned down restaurant groups eager to sign up. The founders knew their product lacked features crucial for those clients, and a premature onboarding would lead to failure and churn. By saying "not yet," they protected their reputation and successfully signed those same clients years later.
Founder-led selling is essential for the first 6-12 months but becomes a critical growth bottleneck if it continues. Founders who can't let go create a self-fulfilling prophecy where the business can't scale beyond them. They must be coached to transition from being the primary seller to an enabler of the sales team.
After raising $35M, Legora's CEO made the bold decision to halt all sales for six months. This time was used to refactor the product for enterprise-level reliability and scale, preventing churn and enabling the company to later onboard thousands of users per day. This prioritizes technical foundation over short-term revenue.
When sales stall, founders assume the market isn't interested. More often, it's an execution problem: they fail to listen to clear demand signals or pitch irrelevant features, creating a self-inflicted "demand problem."