4 ms·

A few observations, and then the main point: 6. There will always be more Xs and more Ys. Selling software to enterprises is an art and the main artform is lea

A few observations, and then the main point: 6. There will always be more Xs and more Ys. Selling software to enterprises is an art and the main artform is learning how to call the bluff on feature "requirements". So I would encourage the other CEO to reconsider if he should truly be pinning his entire fundraising strategy on this feature objection. 7. What the fuck do VCs know about technical risk? Their purpose is to invest in the founders, team, and business model, not to act as an armchair CTO. I'd be very surprised if there aren't other rejection reasons (maybe they don't like the 2 years it'll take?) and this one just sounds easiest to say. I think they should find better VCs. 9. (this is the main point) If you're only going to have one customer for "Y" and they'll pay you more than all your other customers combined (seems plausible here) then you'll end up working exclusively for that one customer. If you are trying to run your own business at the same time, that will get very complicated over the long term. As you say, it'll become a big distraction. If you like this other CEO and want to work with him, you could consider an acquisition. The VCs would probably like that too.

sebastiennight 4y ago
Thanks for this perspective: 6. "Y" is a pretty big deal because it's a feature that makes the service works across borders: without it, the enterprise company can't onboard their entire international workforce. However I agree that it makes sense for me to dig deeper into what objections these customers are really raising. I'll try and poke around more. Thanks. 7. Hmmm... same. I'll try and ask which VCs they've approached, and get more info. 9. I had not considered selling to them, but that could definitely be a valid option, thanks for raising that idea. I'll do some napkin math around this hypothesis :-)

sebastiennight 4y ago

Thanks for this perspective: 6. "Y" is a pretty big deal because it's a feature that makes the service works across borders: without it, the enterprise company can't onboard their entire international workforce. However I agree that it makes sense for me to dig deeper into what objections these customers are really raising. I'll try and poke around more. Thanks. 7. Hmmm... same. I'll try and ask which VCs they've approached, and get more info. 9. I had not considered selling to them, but that could definitely be a valid option, thanks for raising that idea. I'll do some napkin math around this hypothesis :-)