Enterprise deal advice and autonomous robotics: February updates from Bessemer
Bessemer Venture Partners
For the entrepreneurs who want to build revolutions of their own.
Discover three important considerations for selling to the enterprise and the tech behind robotic perception.
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Zero to $1M ARR: Three tips for closing enterprise deals
Selling to the enterprise segment gets you to the $1M ARR goal fast, but it's not without its challenges—namely, higher stakes across the board. Here are three important considerations in this sales motion:
1. The revenue concentration problem: Enterprise deals are often worth hundreds of thousands of dollars, so losing one or two can significantly impact your revenue. In contrast, SMB customers, with their smaller payments, have a less outsized impact.
2. High product expectations: Enterprise customers' expectations can extend development timelines and delay revenue generation, affecting your VC fundraising strategy.
3. Feature requests: Enterprises often expect to co-develop your product and may request changes or features, which can disrupt your original roadmap and strategy. It doesn’t mean you should never work outside your core roadmap.
You might try making an exception if the work can bring significant publicity or recognition. “If there’s a feature you disagree with, but it helps secure the logo and a million-dollar deal, it’s okay,” says Bessemer Operating Partner Tony Rodoni .
That said, proceed with caution. Don’t go beyond your core roadmap unless the company is willing to publicly support you through logos, press releases, webinars, or references. “If they’re not willing to go public, don’t bother at all, and charge them a premium. You don’t want to end up with secret enterprise deals you can’t talk to anyone about, as that makes scaling much harder,” Tony added.
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Building blocks of autonomous robotics
In the last several years, we've seen the very early adoption of autonomous robots—robots that can perceive their surroundings and act without human input. Autonomous robotics is still a niche field, but we believe that its emergence will expand the entire robotics market in the coming years as it enables higher-value use cases.
Unlike software, it takes a lot of sophisticated inputs to train autonomous robots—more than code alone. Autonomous robotics learn how to operate in two primary ways: through cameras and computer vision, and deep learning and generative AI.
1. Cameras and computer vision
To perceive their environment, autonomous robots rely on cameras and computer vision technology. In the future we think autonomous robots will use a range of sensors including Lidar, Radar, Sonar, and other wavelengths of the electromagnetic spectrum to perceive the world in a way that is impossible for humans. But most of today’s sensors other than a camera are cost-prohibitive for most applications.
2. Deep learning and generative AI
To gain autonomy, robots need to be able to learn over time, and eventually gain the ability to make decisions on their own. Deep learning, which is enabled by neural networks, allows robots to make sense of what they’re seeing and learn from the commands they’re given.
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Join the conversation! What are your thoughts on closing enterprise deals and the robotics future? Comment below and share your POV.
General Counsel / Founder, The Savvy Startup Advisor / Enabler of Startups on their Zero-to-IPO Journey / Alum: Kirkland & Ellis, Publicis Groupe, and Northwestern University
6d🙏 for your insightful piece. 💯 enterprise sales requires a long-term vision. Changing the road map for one-off customer fixes pushed an enterprise solution into the land of the bespoke. Startup success requires discipline. A quid pro quo for a concession, such as responsiveness for feedback requests in exchange for alignment on industry solutions, participation in case studies, and brand support, makes a lot of sense. Savvy’s tip: Instead of knee jerk acceptance of a large customer’s scope changes, tune your teams to stay on scope or require a supportive nudge from customers expecting the “white glove” treatment.