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The Importance of Early Customers in a Startup’s Journey

In the world of startups, early customers play a pivotal role. They are the first to believe in your product or service, provide valuable feedback, and can become your biggest advocates. This blog post will delve into the importance of early customers in a startup’s journey and how they impact entrepreneurs.

Early Customers as a Validation of Your Idea

When you’re just starting out, one of the biggest challenges is validating your business idea. Early customers serve as a crucial validation point. They are the proof that there is a market for your product or service.

According to a CB Insights report, 42% of startups fail because there’s no market need for their product. Early customers help you validate that market need.

Early Customers as a Source of Feedback

Early customers are typically more forgiving and willing to provide feedback. They understand that your product or service is still in its early stages and are willing to overlook some flaws.

This feedback is invaluable. It helps you understand what’s working, what’s not, and where you need to improve. According to a study by PWC, 86% of buyers are willing to pay more for a great customer experience. The feedback from early customers helps you create that experience.

Early Customers as Advocates

Early customers can become your biggest advocates. If they love your product or service, they’ll tell others about it. This word-of-mouth marketing is incredibly valuable. According to Nielsen, 92% of people trust recommendations from friends and family over any other type of advertising.

Early Customers and Funding

Having early customers can also make it easier to secure funding. Investors want to see that you have a product or service that people are willing to pay for. Early customers provide that proof. According to a report by Fundable, only 0.91% of startups are funded by angel investors, while a mere 0.05% are funded by VCs. Having early customers can significantly increase your chances of being part of that small percentage.

Examples of Startups Benefiting from Early Customers

There are numerous examples of startups that have benefited immensely from their early customers.


Dropbox is a prime example. Before launching publicly, Dropbox created a demo video that was aimed at a Digg audience. The video resulted in 70,000 people signing up for the beta overnight. These early users provided valuable feedback that helped shape the product.


Airbnb is another example. In the early days, the founders of Airbnb personally went to their users’ homes and learned about what they loved and didn’t love about the platform. They used this feedback to improve the platform and provide a better experience.

In summary, early customers play a crucial role in a startup’s journey. They validate your idea, provide valuable feedback, become your advocates, and can help you secure funding. As an entrepreneur, understanding and leveraging the value of early customers can significantly impact your startup’s success.

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