YC provides a built-in go-to-market engine where startups treat their 200+ well-funded batchmates as their first customers. This 'win YC, win the market' strategy de-risks early customer acquisition and provides critical initial revenue and case studies to build momentum.

Securing your first few customers is not just about initial revenue; it's a critical signal. For Spot & Tango, this early traction provided the confidence that a much larger market was attainable, justifying further investment in solving logistics and marketing.

Pursuing large "whale" customers for early validation is risky because they often come with heavy demands that can derail the product vision. Instead, seek out innovative, mid-level companies who are early adopters. They provide better feedback, and building traction with them opens doors to larger clients later.

Vercel's validation framework starts with "Customer Zero"—themselves, relying on internal taste and needs. They then move to "Customer One," a select group of close design partners for external pressure testing before a wider release. This balances internal conviction with external feedback.

Instead of running a competitive fundraising process, Morton favors preemptive offers from investors. He believes this approach selects for partners with the highest conviction in his vision, which is more valuable long-term than simply maximizing valuation in a bidding war.

Most small businesses accept any paying customer out of necessity, leading to work with wrong-fit clients. Businesses with financial support have the luxury and strategic imperative to be selective from day one, focusing only on their ideal customer profile to build a sustainable foundation.

To win highly sought-after deals, growth investors must build relationships years in advance. This involves providing tangible help with hiring, customer introductions, and strategic advice, effectively acting as an investor long before deploying capital.

Engaging with founders a month before Demo Day, even without a formal pitch, provides a vital baseline. Witnessing their spectacular progress over that month creates a powerful second data point on execution velocity, making the investment decision far easier and more informed.

Sell to startups at their inception when they have no switching costs and few stakeholders. As these customers scale into major companies, your business scales with them, turning early adopters into significant, long-term revenue streams.