Becomes Quote by Fred Wilson
“The most common way customer financing is done is you sell the customer on the product before you've built it or before you've finished it. The customer puts up the money to build the product or finish the product and becomes your first customer. Usually the customer simply wants the product and nothing more.”
About This Quote
Financing often relies on selling a product before it's completed, making the first customer a de‑facto investor.
In simple terms: You fund the product by selling it early.
Key Takeaway
Secure early customers as investors.
Themes
entrepreneurship
finance
product development
Mood
cautious
optimistic
Type
strategic
advisory
When to use this quote
- startup launch
- crowdfunding
- prototype testing
Key Concepts
early‑stage funding
customer validation
Questions to Reflect On
- How can you ensure product readiness before early sales?
- What safeguards protect early customers?
A Different Perspective
Risk of overpromising before delivery.
