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Brad Flora

08/27/22

@ Y Combinator

It's a misconception that selling to startups is easier than selling to enterprises; startups may not have the problem your product solves, making sales more difficult.

Video

The Better Customer–Startups or Big Enterprise?

@ Y Combinator

The Better Customer–Startups or Big Enterprise?

08/27/22

Related Takeaways

Brad Flora

08/27/22

@ Y Combinator

Selling enterprise-grade products to startups can be problematic, especially if the product is designed for larger companies with different needs.

Gustaf Alströmer

12/30/22

@ Y Combinator

Startups are often easier to sell to than larger companies because they have shorter decision-making processes and less bureaucracy, allowing for quicker sales cycles.

Brad Flora

08/27/22

@ Y Combinator

Founders sometimes mistakenly believe they should sell to startups just because other successful companies did, without understanding the unique challenges involved.

Y Combinator Cast

12/14/24

@ Y Combinator

Startups are now able to sell into enterprises faster than ever, achieving significant revenue milestones more quickly than in previous years.

Adora Cheung

08/01/19

@ Y Combinator

The time it takes to acquire a user and make a sale varies between consumer and enterprise startups; consumer startups often have instantaneous sales, while enterprise startups may take months due to red tape.

Harvard Innovation Labs Cast

06/12/13

@ Harvard Innovation Labs

Focusing on smaller sales opportunities, like 1-5 seat deals, can be more beneficial for startups than pursuing larger, more complex contracts that may take longer to close.

Y Combinator Cast

08/27/22

@ Y Combinator

Understanding the game you're playing is crucial; selling to startups can be beneficial if you aim to grow with them, but it can be detrimental if your goal is to sell to large companies.

Y Combinator Cast

08/27/22

@ Y Combinator

Selling to startups can be a powerful strategy, as demonstrated by Gusto, which started with startups and successfully expanded into the broader SMB market.

Michael Seibel

08/27/22

@ Y Combinator

It's a good idea to sell software to startups when you understand their specific needs and can provide a solution that addresses those needs effectively.