Building software products has become easier than ever, so why do so many well-funded startups struggle to succeed, even with great products? Paul Irving, partner and COO at GTM fund, offers an answer: startups focus too much on product development and not enough on distribution strategies. GTM fund operates on the belief that distribution is the ultimate competitive advantage in the AI-driven era. The traditional go-to-market approach, once suited to enterprise SaaS, no longer works in today’s fast-moving, AI-powered startup landscape. With innovation cycles speeding up, what used to take years can now happen in months. Therefore, Irving and his team advise startups to stand out through creative distribution methods, not just product differentiation.
The conventional go-to-market strategy, with its one-size-fits-all model for hiring and scaling, worked well in the era of traditional enterprise SaaS. However, it’s no longer effective in the fast-paced, AI-driven startup world of 2025. With innovation cycles accelerating, tasks that once took years can now be completed in just a few months. As a result, Irving and the GTMfund team encourage their portfolio companies to focus on standing out through creative distribution strategies rather than product differentiation.
Irving believes that the options for going to market have never been greater, so it’s vital for founders to create a unique approach to connect with their target audience. However, founders shouldn’t go it alone. A key point throughout the conversation is the significance of building a solid network. GTMfund offers its portfolio companies access to an extensive network of operators, but instead of just handing over a list of contacts, they make customized connections to ensure meaningful, mutually beneficial meetings.
If you look at it this way: a thousand people in a group might seem like a lot, but if 700 of them are your ideal customer profile (ICP) and potential buyers because of the specific groups you either started or became very active in, this can be an excellent channel. It becomes especially powerful if you aim to acquire 40, 50, or 60 new customers in a year,” Irving explained.
Irving shared an example of a startup that got involved in multiple relevant Facebook groups.
What’s great about the venture-backed ecosystem is people’s eagerness to help. They understand how challenging it is to build a company and how slim the chances of success can be, but they are still willing to support. If you approach them with curiosity and offer something in return, people are generally open to helping,” Irving said.
Irving emphasizes the value of collaboration within the venture-backed ecosystem, where people are often eager to help. Despite the challenges and high failure rates, those involved are supportive and open to new ideas, as long as the founders show curiosity and willingness to contribute. This spirit of cooperation, Irving believes, is vital for the growth and success of startups in the AI-driven era.