🎯 From hunch to blueprint, cracking product-market fit with Carles Reina // TechBBQ 2025

Understanding PMF and Early GTM Hires

Carl's Unique Background

• Carl discusses his diverse experience in startups, having worked in operations, product, and sales but not engineering.

• He moved to London 16 years ago after studying international relations and initially worked in banking before transitioning to startups.

• His journey includes joining Uber during its early days when the company had a small presence outside the US.

Transition to 11 Labs

• After working at Uber, Carl joined a nascent AI insurance startup that eventually became a unicorn.

• He became the first angel investor in 11 Labs after a brief conversation with its founders and later took on the role of VP of revenue as their first go-to-market (GTM) hire.

Key Traits for Early GTM Hires

• Carl emphasizes flexibility and rapid hypothesis testing as crucial traits for early GTM hires, highlighting the uncertainty around buyer personas.

• He notes that successful hires are often energetic individuals who can iterate quickly without needing constant guidance.

• The concept of "renaissance reps" is introduced; these are passionate individuals with varied backgrounds who fit well in early-stage environments.

Rapid Growth at 11 Labs

Initial Revenue Insights

• Upon joining 11 Labs, they had just launched their product and quickly gained traction with over one million users within a month.

• Their first two enterprise customers were signed shortly after launch, showcasing rapid growth despite being a small team.

Enterprise Readiness Challenges

• Carl explains that while they secured enterprise deals quickly, they were essentially selling an idea rather than having fully developed products or infrastructure ready for enterprise needs.

Market Opportunities and Sales Strategies

Identifying Market Demand

• The speaker emphasizes the importance of being proactive in identifying market opportunities, noting that through iterative pitching and outreach, they discovered significant demand for their product.

• They leveraged a sense of urgency (FOMO) to encourage potential customers to adopt their solutions quickly, highlighting how this strategy can accelerate sales cycles.

Collaboration and Team Dynamics

• The speaker discusses the close working relationship with co-founder Mati, indicating that effective collaboration is crucial during early stages of a startup.

• They mention how different pitching styles were tested between them to determine which approaches resonated best with potential clients.

Organizational Structure and Growth

• A pivotal moment occurred when roles were defined more clearly; Mati would focus on high-level enterprise sales while the speaker took charge of go-to-market strategies.

• This division allowed for better management of both strategic oversight and operational details, facilitating faster growth.

Revenue Growth Insights

Financial Milestones

• The company reportedly achieved significant revenue milestones within a short timeframe, although actual figures are higher than publicly stated.

• Approximately 40% of revenues come from enterprise clients, indicating a strategic focus on larger corporations as a sustainable growth avenue.

Product-Market Fit Challenges

• The discussion shifts towards concerns about achieving product-market fit amidst the current AI hype cycle, emphasizing the need for careful customer assessment.

Customer Qualification Strategies

Importance of Qualification

• The speaker highlights qualification as critical in distinguishing serious customers from those merely testing products.

• They advocate for rigorous qualification processes to ensure time is spent on valuable leads rather than endless experimentation without commitment.

Segmentation Approach

• At 11 Labs, there’s a clear distinction between commercial and enterprise segments; more hand-holding is provided to enterprise clients due to their size and complexity.

• For smaller commercial clients, less support is given during initial testing phases to avoid resource drain without guaranteed returns.

Regional Considerations in Sales Strategy

• The speaker shares insights from various markets (e.g., US vs. India), stressing that different regions require tailored approaches regarding customer engagement and qualification efforts.

Cultural Nuances in Sales Approaches

Understanding Cultural Differences in Sales

• Different cultures approach sales negotiations uniquely; for instance, in some cultures, potential buyers may delay decisions rather than outright decline offers, contrasting with more direct approaches seen in the US and Europe.

• The speaker reflects on their experience as a GTM hire for a deep learning startup, highlighting the challenges of selling a horizontal product across various industries.

Verticalization Strategy

• Investors often advise startups to focus deeply on one area; however, the company chose to explore multiple sectors initially.

• They identified 13 Ideal Customer Profiles (ICPs), narrowing down to five key areas based on early data from contracts signed.

• The team categorizes inbound deals according to these ICPs and restricts outbound efforts to three core profiles that drive incentives for sales representatives.

Product-Market Fit (PMF)

Defining PMF Experience

• The speaker describes PMF as transitioning from pushing a rock uphill (struggling without traction) to having less friction while still facing challenges when achieving it.

• They did not officially recognize PMF until about a year into enterprise sales due to the complexity of managing multiple ICPs.

Importance of Enterprise Focus

• The speaker emphasizes that true PMF is more evident on the enterprise side since it sustains long-term valuation compared to self-service growth models.

• Continuous iteration and testing are crucial for maintaining momentum post-PMF, with account executives incentivized quarterly to generate new ideas.

Revenue Distribution Insights

Revenue Breakdown Between Models

• Current revenue distribution shows approximately 62% from self-service and nearly 40% from enterprise sales, indicating a balanced approach at launch.

Strategic Decisions in Early Days

• Unlike many AI startups that begin with Product-Led Growth (PLG), this company integrated both PLG and enterprise strategies from inception, recognizing early that enterprise revenue would be critical for valuation.

Challenges of Transitioning Business Models

Cultural Shifts Required

• Delaying the transition from PLG towards an enterprise model can create resistance within teams; establishing proper Service Level Agreements (SLAs), customer engagement practices, and feature development is essential for cultural alignment.

What Does EV Mean in Today's Market?

Understanding the Current Landscape of Startups

• The speaker questions the meaning of "EV" (Enterprise Value) in a rapidly changing market, highlighting how startups often project inflated annual revenues based on short-term performance.

• At 11 Labs, transparency with investors is prioritized; they provide access to real-time data and maintain open communication about successes and challenges.

• The speaker emphasizes that strong early revenue signals product-market fit but cautions against misrepresenting financial metrics like annual recurring revenue (ARR).

Revenue Metrics and Their Implications

• There's a distinction made between actual ARR and run rate; projecting future earnings based on initial success can be misleading without long-term customer retention data.

• The discussion includes concerns about "PMF collapse," where companies may lose their product-market fit after initial hype fades, citing examples like Jasper.

The Importance of Distribution in Achieving PMF

Strategies for Sustaining Product-Market Fit

• The speaker asserts that achieving product-market fit (PMF) requires effective distribution strategies across multiple channels to ensure sustained growth.

• Companies must invest not only in product development but also in distribution to maintain competitiveness against new entrants into the market.

Navigating Market Dynamics

• In today's fast-paced environment, maintaining momentum is crucial; companies must continuously adapt or risk obsolescence.

Global Market Considerations: US vs. Europe

Challenges of Building from Europe

• A conversation with Ki Sarin highlights the complexities of launching products in Europe compared to the US due to language barriers and diverse markets.

Observations on Adoption Rates

• Despite assumptions about rapid tech adoption in the US, statistics show that some European countries are catching up, with significant usage rates among major corporations.

Conclusion on Market Perceptions

• The speaker notes that while the US market appears larger, actual adoption rates can vary significantly across different regions.

Understanding Market Focus and Global Reach

Initial Market Strategy

• The company was built with a focus on the US market from the beginning, targeting early customers who spoke English.

• The founders believed that their initial customer base would primarily consist of English speakers, regardless of their geographical location.

• They recognized that the US represented a significant opportunity, generating 50% of their global revenues.

Expanding Beyond the US

• The company observed interest from various countries such as the UK, Germany, India, Australia, and New Zealand.

• Users in these regions expressed a desire to use the product due to their proficiency in English or because they were located in English-speaking countries.

• This broadening interest contributed to substantial growth and engagement with the product across diverse markets.