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.
Merge intentionally avoided charging its first customers. Once enough pipeline was built, they "turned on" revenue to manufacture a rapid growth story ($0 to $1M in 7 months), creating powerful momentum for fundraising, hiring, and marketing.
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.
Merge's founder considers taking competitor demos purely for research purposes to be unethical. Instead, she became a "really good stalker," finding all necessary information on YouTube, podcasts, and other public materials, maintaining integrity while enabling deep competitive analysis.
To land its first skeptical customers like Drada, Merge offered its platform for free for two months without a contract. This de-risked the decision for the customer and allowed Merge to prove its product's value and the team's responsiveness before asking for a financial commitment.
Merge's founder believes a startup's first $10M in revenue can be achieved through the founders' sheer force of will. However, scaling to $100M requires a fundamental shift: building a strong leadership team, focusing on enterprise sales, and creating scalable systems—a completely different company.
Merge committed to an in-person office, even during peak COVID, believing it was non-negotiable for speed and culture. The core reason: physical proximity makes team members care more about each other's success and holds them accountable in ways remote work can't easily replicate.
To fill her sales calendar without sacrificing her own time on manual outreach, Merge's founder hired a college intern. The intern's sole job was to research prospects and send cold outbound messages using the founder's identity, allowing the founder to focus only on booked meetings.