TechCrunch just launched its Build Mode podcast with a masterclass in finding product-market fit. Co-founder Deon Nicholas of Forethought AI shared his "7-Failure Rule" - expect multiple misses before finding what clicks. The timing isn't coincidental: with AI startups burning through cash faster than ever, Nicholas's customer-first approach offers a reality check for founders chasing hype over substance.
TechCrunch is pulling back the curtain on startup reality with its new Build Mode podcast, and the debut episode delivers exactly what founders need right now. Host Isabelle Johannessen sits down with Deon Nicholas, co-founder of Forethought AI, for a masterclass in building lasting companies through customer obsession rather than investor hype.
The timing couldn't be better. As AI startups burn through funding rounds faster than GPUs process tokens, Nicholas offers a contrarian playbook that powered Forethought from scrappy startup to Startup Battlefield winner in 2018. His core philosophy? Conviction should come from customers, not VCs.
"We focused on solving real problems rather than chasing hype or inflated valuations," Nicholas explains in the podcast. That approach led to Forethought's $9 million Series A just months after their Disrupt victory.
The heart of Nicholas's strategy lies in his "7-Failure Rule" - founders should embrace iteration over perfection and expect several misses before finding product-market fit. It's a stark contrast to the Silicon Valley mythology of overnight success stories. "Early users aren't always direct about what isn't working, so founders have to learn to look between the lines," he notes.
This customer detective work paid off spectacularly for Forethought. Leading up to TechCrunch Disrupt 2018, Nicholas described the preparation as a "friendly pressure cooker," with the team sprinting to secure paying customer logos before hitting the stage. The focus on real revenue over vanity metrics fueled investor FOMO and helped define the early wave of the AI boom.
But Nicholas warns against getting seduced by the hype cycle. While investor momentum built quickly after their Battlefield win, he maintains the company's longevity stemmed from relentless focus on customer value, not Silicon Valley frenzy. "Startup success isn't about hype or rock-star energy - it's about building something customers love enough to stick around for."
