<![CDATA[CUSTOMER DISCOVERY PROS

<![CDATA[CUSTOMER DISCOVERY PROS - Blog]]>Fri, 06 Mar 2026 22:44:15 -0500Weebly<![CDATA[Customer discovery for finding VC Funding]]>Thu, 15 Jun 2023 16:57:06 GMThttps://www.customerdiscoverypros.com/blog/customer-discovery-for-finding-vc-funding

Do your homework to get funded by VCS

The chances of a startup receiving funding from a venture capitalist (VC) is 5% of the overall funding total. It can vary greatly and depend on many factors - including your willingness to do customer discovery (below)- about the investors.

First, here are the typical considerations:

Market Potential:
VCs are interested in startups that operate in large and growing markets. If your startup is in a niche market, the chances of getting VC funding may be lower.

Unique Value Proposition:
Your startup needs to offer a product or service that is unique and solves a significant problem. If there are many other companies offering similar products or services, it may be harder to secure VC funding.

Team:
VCs invest in people as much as they invest in ideas. A strong, experienced team with a track record of success can significantly increase the chances of receiving VC funding.

Business Model:
Your startup needs a clear path to profitability. VCs want to see that you have a solid business model and a plan for how you will make money.

Traction:
Demonstrating some level of traction, whether it's user engagement, sales, partnerships, or other key performance indicators, can significantly improve your chances of securing VC funding.

Investment Stage:
VCs often specialize in different stages of investment (e.g., seed, Series A, B, C, etc.). Your startup's stage of development needs to align with a VC's investment focus.

Network:
Many VC deals come from within the VC's network. Having a warm connection to a VC can greatly increase your chances of securing funding.

Chances for Success
Despite these factors, it's important to note that the overall percentage of startups that receive VC funding is relatively low.

In a 2020 report from Fundable, only about 5% of startups are funded by VCs, and the process IS highly competitive.

While VC funding can provide significant resources for growth, startups should also consider other funding options, such as angel investors, crowdfunding, or bootstrapping.

Improve your chances of funding success

You can improve your chances of funding success by truly understanding the needs of investors.

Find out their investing preferences - are they focused on seed funding or Series A?
Are they focused on deep tech, fin tech or edtech?
Keep them informed - they may not be able to help you, but certainly there is someone in their network who does.
Respect their intelligence - don't bombard them with unsolicited requests.
Research their interests and then match your outreach to them.
Make sure you - as CEO - does the outreach - noone else!

]]><![CDATA[US Market Entry - Getting Ready]]>Thu, 15 Jun 2023 04:00:00 GMThttps://www.customerdiscoverypros.com/blog/us-market-entry-getting-ready

When is the Right Time
to Enter the US Market?

Recently I spoke with the leader of a very successful Canadian accelerator an the right timing for Canadian companies to enter the US market.

If you’re looking to go to the US, then sooner is always better than later.

Why? Because in the US, it is far more competitive. From duking it out in the business world, to competing for parking spaces in your condo development. It’s a big surprise for Canadians - and it takes getting used to.

When you look at the costs of doing business in either country, the first thing that gets your attention is the 30% difference in the US vs. Canadian dollar exchange rate. Add another 30% bump in salary to pay for Canada’s government-funded healthcare - and there’s immediately a 60% differential.

Add to the mix, generous Canadian Scientific Research and Economic Development (SR&ED) grants and tax credits, and government programs to support export and market readiness - from the Atlantic Canada Opportunities Agency; Western Economic Diversification, Ontario Centres of Excellence / Ontario Centre of Innovation and, National Research Council IRAP.

Focus on the Prize.
Snag the Big Kahuna

If you think about the Big Picture, the reality is you are building a business not just developing a product. to think about the big picture, and the fact that you are running a business.

Resist the temptation to keep focusing on government grants because you might miss out on the huge opportunity to build your company value, and sell it / IPO for a big return for you and your investors. Avoid getting used to the coddling you receive in Canada - it’s much tougher and competitive in the US.
If you play to win, you’ll be rewarded for it.

I recommend going lean, bootstrapping, doing whatever it takes to get a beachhead in the US market. You’re going to go there eventually - why not start as soon as possible? (Besides, your US competitors are already there!)

Start staking your claim to getting an achievable percentage of the total addressable market. That means millions, USD $10M, or $100M+ in revenues. Contrast that with saving CAD $25K.

#1 Concern:
Our Product is not 100% Perfect

Don’t be worried about your product’s functionality. It’s better to be concerned about attracting Customers.

Typically, Canadians are concerned about a perfect functioning product. Americans really buy into the MVP - Minimum Viable Product and sell ‘the promise’ of their software. They focus first on getting the purchase order and landing and expanding within the Customer’s organization. And, now they have an inside track to all of that valuable Customer feedback and requirements.

Heed their example - you can always demo new features. Get the Customer onboard and adopting your product / service, even if you change your roadmap. You will then be able to have the inside track for valuable insights regarding bugs to fix, features to add.

For evidence of this approach, think back to Microsoft Windows / Office - particularly in the early days. The software wasn’t great, and crashed computers pretty often. But the software was good enough - until it got better - to get the job done.

In the meantime, Microsoft had an installed base of paid users, hungry for the next upgrade.

Kaching!

Soft Launch vs. Splashy Launch

I always advocate for a soft launch, instead of a big splash.

This way, you can learn and adjust quickly - and validate your assumptions. Think customer discovery and apply it to your Go-To-Market strategy.

Product Life Cycle Value

Consider the timing of your market entry. If your product lifecycle is 18-24 months, and you wait 12 months until you’ve totally penetrated the Canadian marketing, you could easily lose 50% of your potential market value - and leave the door open to competitors.

I recommend to do strategic projects / reconnaissance in the US - while you are focused on market activity in Canada.

This includes, building a roster of US advisors. They open doors for you, and help you understand the nuances and complexities of user behaviors, buyer personas, procurement, taxes, reporting and liability, etc.

Another action item is to build awareness about your organization and product. Try a strategic sprinkling of digital ads in a desired market segment. Aim for smaller cities to start - and learn what channels and messaging work for you, in those markets.

Is Customer Segmentation
Different in the US?

In a word, yes.

Passion for your product in Canada does not necessarily translate for passion and adoption in the US.

In the US, there are 10 cities with 1 million population or more with far more complexity in different market segments with different personas, buyer behaviors, procurement policies and more.

Let’s look at this example. If you had medical billing software, you could try to focus on Canada and sell the solution to doctors; there are plenty of doctors in Canada. You might initially focus on Toronto and Vancouver (potentially Montreal if you want to translate your software and materials into French).

But in the US - what kind of doctors? Oncologists or general practitioners? What medical specialties do you cover / need coding for? What size of clinic? Private or public? And, so on.

There’s quite a learning curve.

You need time to make mistakes and learn from them.

That’s why I advocate for getting started faster and sooner in the US.

#2 Concern: Availability of Government Grants

I call this one: The Illusion (and Distraction) of Government Programs & Hiring Subsidies.

I frequently speak with Canadian companies, and they are always on the hunt for Canadian government support to offset the cost of hiring, development, or anything they can make a business case for!

Remember though, these government programs, subsidies are designed by bureaucrats not entrepreneurs. They are focusing on meeting their needs and the larger societal and economic impact of benefit to the Canadian economy.

They are not focused on your entrepreneurial needs: like the need for speed, easy-to-complete reports and rapid go-to-market.

Government programs tantalize you with short-term money, but distract you from the real money opportunity - the US market!

The time you spend applying for a grant / subsidy and then taking care of all of the reporting requirements takes you off your game.

Different Culture, Different Mindset

You might say, “why would I not pursue ‘free money’ from the government?

There is a cultural perspective here. In Canada, entrepreneurs look to government for leadership, and lean on their granting mechanisms for a kind of seed capital to get the business going or achieve certain milestones.

In the US, going to the government is often mired in red tape, unless it’s for significant real estate or technology development).. Americans have a different relationship with government - and often view it as an unwanted intrusion in their lives. It is often easier to raise the capital necessary to go out and execute on the plan, than involve government funds into the mix.

In Canada, you might get that ‘free money’, But the reality is, that it can really slow you down and take you off the prize of winning over Customers and the Market. In that context, it can turn out to be a risky, expensive choice.

#3 Concern:
Running out of Cash / Runway

I always recommend focusing on Your Customers, and get them to pay your bills. Even if you have to give them a 20% prepay discount.

If they aren’t paying, then you need to do customer discovery interviews to get the data to find a better market, adjust your marketing strategy or pivot to a new business model from B2C to B2B.

What Did Uber Do?

Everyone loves or hates Uber. But if you dig deeper into their market entry story, and how they operationalized their model, you’ll find great food for thought.

First, they strategically decided which markets to enter, and then sent in small (3 people) rapid expansion teams. They incentivized drivers through advertising as well as riders by providing them with great incentives through their referral program.

They were very aggressive in their marketing efforts, taking a no-holds barred approach.

In Ottawa for example, they took the taxi industry completely off-guard and barrelled their way into the market. (It helped that people were fed up with the taxi industry - and were ready and looking for change.).

By the time they finally entered the Ottawa market, there was so much anticipation and free publicity, that a groundswell of customers already existed. Voila: a market with readiness and urgency.

Do you think the Uber braintrust sat around wondering which government grants to apply for? Or, did they put energy and resources to focus squarely on their goal of Customer acquisition and market dominance?

What Should WE Do?

As the saying goes, don’t put all of your eggs in one basket.

By all means, fine-tune your product - in Canada.

But also turn up the digital heat and start building market awareness in the US.

Focus on a specific geography / location.

Develop a group of US advisors.

Start getting references and case studies from US customers.

Build a base of Customers and partners BEFORE you’re ready to make a splashy entrance.

When you do, make sure to tell the folks back home what a great success you are

____
If you need a US Market Advisor, Randy Fisher can help. He is originally from Vancouver, but now based in Somerset, New Jersey - just outside of New York City. He is the Founder & CEO of Customer Discovery Pros.com

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