Comment by tmpz22

8 days ago

They cannibalize their social group. For example, they will make a lot of immediate small deals with other people in their cohort, incubator, or investor circle, and then use these deals to get to their next round of investment. Functionally those early sales are just there for signal.

That or they just lie on socials.

Further, if you "cheat" your first tranche of sales you're potentially burying a valuable negative feedback loop for your product and sales development. The real hurdle, afaik, is mid-market and enterprise sales which is a big jump from getting your buddy to sign a small one year contract.