How Forethought AI Achieved Product-Market Fit With Build Mode
▼ Summary
– Build Mode is TechCrunch’s new podcast exploring how startups are actually built, focusing on getting products to customers and achieving lasting momentum.
– Forethought AI’s co-founder Deon Nicholas emphasizes solving real customer problems over chasing hype, believing tangible value leads to natural success.
– Nicholas advocates for the “7-Failure Rule,” encouraging founders to iterate and expect misses before finding what truly works with customers.
– Forethought’s lean approach involved obsessing over its ideal customer profile and focusing on real pain points rather than flashy features.
– The company’s breakout success at TechCrunch Disrupt 2018, winning Startup Battlefield and securing a $9 million Series A, stemmed from customer focus rather than frenzy.
Achieving lasting product-market fit requires building with your customers from day one, not chasing hype or investor validation. This foundational principle drove Forethought AI’s journey, as co-founder Deon Nicholas explained on the debut episode of TechCrunch’s Build Mode podcast. The series pulls back the curtain on the real, often untidy process of startup creation, focusing specifically on how to successfully get a product into the hands of a loyal customer base.
From its inception, the Forethought team concentrated on solving genuine customer problems rather than pursuing buzz or high valuations. Nicholas firmly believes that true conviction should originate from customers, not venture capitalists. He argues that when a company delivers tangible value to its users, market excitement and financial backing will follow organically. This customer-first philosophy guided their entire development process.
A key part of their strategy was Nicholas’s “7-Failure Rule,” which encourages founders to welcome iteration instead of striving for an unattainable perfect launch. The idea is to anticipate several attempts that don’t quite hit the mark before discovering the solution that truly resonates with the market.
The team maintained a lean operation, developed a deep understanding of their ideal customer, and remained fixated on addressing core pain points rather than adding flashy, unnecessary features. Nicholas points out that early users often don’t explicitly state what’s wrong, so founders must become adept at reading between the lines of user feedback.
This disciplined approach culminated in a breakout moment at TechCrunch Disrupt 2018, where Forethought AI won the prestigious Startup Battlefield. Nicholas described the period leading up to the competition as a “friendly pressure cooker,” with the team racing to secure as many paying customers as possible before taking the stage. This intense focus on customer acquisition paid off significantly, sparking investor interest and leading to a $9 million Series A funding round that helped position the company at the forefront of the emerging AI wave.
Despite the rapid influx of investor attention, Nicholas maintains that the company’s sustained success stems from its unwavering focus, not from market frenzy. For him, building an enduring startup isn’t about hype or charismatic energy; it’s about creating a product that customers genuinely love and remain loyal to over the long term.
The central lesson for entrepreneurs is straightforward: involve your customers in the building process from the very beginning, use their feedback to validate every decision, and avoid getting sidetracked by valuation numbers or industry buzz. Product-market fit is not a destination of perfection but a continuous process of proving consistent value to the people who actually use your product.
New episodes of the Build Mode podcast are released every Thursday. You can subscribe on Apple Podcasts, Spotify, and other major podcast platforms. A video version of the show is also available on TechCrunch’s YouTube channel.
(Source: TechCrunch)
