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  1. The Physics of Startups
  2. Cyberstarts: Inverting the idea stage
Cyberstarts: Inverting the idea stage

Cyberstarts: Inverting the idea stage

The Physics of Startups · Feb 6, 2026

VC firm Cyberstarts achieves massive success by inverting the idea stage. They find intense customer demand first, then build the product.

VC Firm Cyberstarts Achieves Massive Returns by Finding Founders Before the Idea

Cyberstarts' "Sunrise program" invests in talented founders pre-idea. They leverage their network of CISOs to identify intense, unsolved problems, pre-sell a solution sketch, and only then build the product. This demand-first approach generates an extremely high hit rate.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

The Creator of CAPTCHA Failed to Build a Business By Starting With Technology First

Cyberstarts' founder learned from his first startup, which invented CAPTCHA, that a great technology doesn't guarantee a business. He now advocates for reversing the process: find a painful market problem first, identify paying customers, and then build the solution for them.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

Product-First Startups Face Infinite Customer Permutations with Low Odds of Success

Starting with a product forces you to search through infinite potential customer segments, most of which won't have intense demand. By starting with validated customer "pull," the product shape, sales process, and messaging become obvious and standard exercises, drastically increasing your odds.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

Separate Customer Discovery into Two Meetings: One for Demand, One for Supply Validation

Structure discovery into two distinct conversations for maximum effect. The first meeting should focus exclusively on uncovering the customer's blocked goals (demand), without mentioning a product. Use the second meeting to validate if a high-level solution sketch (supply) gets ripped out of your hands.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

Enterprise Deal Velocity Obeys a Power Law: CXO's Top Priority Closes in Weeks

The idea that enterprise sales average 12-18 months is a misleading myth. Sales cycles follow a power law: if you're solving a C-level executive's number one priority, the deal closes in weeks. Anything else gets deprioritized and drags on for a year or more.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

A Customer Leaning Forward in a Pitch Is a Stronger Growth Signal Than Verbal Agreement

Don't just listen for positive feedback like "that sounds good." The true signal of intense demand—the kind that builds fast-growing companies—is a physical change in posture. A customer literally leaning forward and asking "How do we get started?" is the ultimate indicator of product-market fit.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

Existing Startups Must Loosen Their Grip on the Product to Find True Market Pull

Founders who've built a product but aren't seeing traction should stop focusing on the product. Instead, they must leverage their market knowledge to find the real customer demand, even if it means scrapping prior work. This pivot can unlock massive growth, as seen with a startup that went 0 to $34M ARR.

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Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago

High-Growth Startups Are Easier to Build Because Intense Customer Demand Creates Its Own Velocity

Counterintuitively, building a hyper-growth company can be easier than a "lifestyle" business. When customer pull is intense, they do the heavy lifting to close deals and provide rapid feedback. This creates a virtuous cycle where velocity begets more velocity, whereas a low-demand product requires constant pushing.

Cyberstarts: Inverting the idea stage thumbnail

Cyberstarts: Inverting the idea stage

The Physics of Startups·13 days ago