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YC

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.

Video

YC

The Better Customer–Startups or Big Enterprise?

@ Y Combinator

The Better Customer–Startups or Big Enterprise?

08/27/22

Related Takeaways

YC

Y Combinator Cast

08/27/22

@ Y Combinator

Startups can learn from successful companies like Gusto and AWS by studying their strategies and adapting them, rather than reinventing the wheel.

MS

Michael Seibel

08/27/22

@ Y Combinator

Many successful Y Combinator companies, like Stripe and PagerDuty, started by selling to other startups, demonstrating that this can be a successful strategy.

BF

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.

MS

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.

YC

Y Combinator Cast

08/27/22

@ Y Combinator

AWS initially targeted startups to build relationships and gain traction, which later helped them penetrate the enterprise market, showcasing the effectiveness of a bottoms-up sales strategy.

BF

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.

GA

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.

YC

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.

DH

Diana Hu

08/28/19

@ Y Combinator

Taking advantage of high-leverage activities that larger companies might avoid can be a key strategy for startups to differentiate themselves.