Forethought AI’s co-founder, Deon Nicholas, shares how relentless customer focus, not investor hype, drove the company from initial concept to winning TechCrunch Disrupt’s Startup Battlefield in 2018. In a recent episode of TechCrunch’s Build Mode podcast, Nicholas outlined a philosophy centered on solving real problems, validating every step with user feedback, and resisting the temptation to chase inflated valuations.
The Customer-First Approach
From the outset, Forethought prioritized delivering tangible value to its target users. Nicholas firmly believes that genuine traction, not external pressure, should dictate a startup’s trajectory. This meant obsessively refining the product based on actual customer pain points rather than chasing trendy features.
Embracing Failure as a Learning Tool
A key tenet of Forethought’s success was its willingness to iterate rapidly, even if it meant accepting early failures. Nicholas advocates for the “7-Failure Rule,” suggesting founders should anticipate several missteps before identifying a truly viable product. This mindset allowed the team to experiment fearlessly, learning from each iteration and adapting quickly.
The TechCrunch Disrupt Breakthrough
The company’s relentless focus on customer validation culminated in a breakout moment at TechCrunch Disrupt 2018. Leading up to the competition, Forethought sprinted to secure as many paying customer logos as possible. This aggressive pre-competition push fueled investor FOMO, resulting in a $9 million Series A funding round and cementing Forethought’s position in the burgeoning AI market.
Beyond Hype: Sustained Growth
Despite the rapid investor momentum, Nicholas emphasizes that Forethought’s longevity stemmed from sustained customer value, not fleeting hype. He believes that lasting success isn’t about rock-star energy or inflated valuations but about building something customers love enough to stick around for.
The Core Takeaway for Founders
For aspiring entrepreneurs, the lesson is clear: prioritize customer feedback from day one, validate every step, and resist distractions from valuations or buzz. Product-market fit isn’t about achieving perfection; it’s about consistently proving value to the people who matter most. By focusing on real-world problems and relentlessly iterating, startups can build lasting momentum and avoid the pitfalls of hype-driven growth
