How to Nail Product-Market Fit and Scale a B2B Company with Thejo Kote of Airbase

Thejo Kote (@thejo) talks to Village partner Ben Casnocha. Thejo is a two-time founder and CEO. His current company, Airbase, is a spend management platform serving companies with 100 and 5,000 employees like Coda, 15Five, Front, Marqueta, CaptivateIQ, Abnormal, and more. Airbase has raised over $200 million, has tens of millions in ARR, and is consistently ranked as a top spend management company by G2.Highlights:- Rather than jumping into building Airbase, he built high-fidelity mockups and went back to prospective customers and asked if they’d buy it to “pre-sell” it.- In B2B, build for a specific, recognizable buyer. You want to sell to a specific role within the org who will be your champion. Ideally this is someone who also has influence within the org.- Select the kinds of customers who aren’t likely to switch in the early days. Team with early customers who actually want to be partners and are motivated by the relationship. Flatter them by asking: “are there any other innovative, forward-thinking leaders you know who I should also talk to?”- 6-8 months later after proving value and showing they could be a good partner, he said “hey, I want to get your feedback on our pricing model. Is this fair for the next set of customers?” 100% of the customers converted when he asked if they were willing to opt in to the pricing structure with a significant discount for their initial partnership.- When hiring salespeople, Thejo focuses more on personality traits rather than prior experience selling to the same segment. Also, if candidates are drawn to the liquid comp at a large, public company, they’re likely going to have a hard time transitioning to a startup. Find people who have been comfortable taking risks.- Airbase is fully remote and Thejo doesn’t think in terms of onshore vs. offshore within the company because that instantly creates a class system. Anyone anywhere in the world is part of their single, remote team, which has the internet as its headquarters. Each member of the team is “equitably inconvenienced” in his words.Thanks for listening — if you like what you hear, please review us on your favorite podcast platform. Check us out on the web at villageglobal.vc or get in touch with us on Twitter @villageglobal.