The startup journey from idea to first Proof of concept - customer : A multiple case study

Abstract: Startups within the tech field are incraesingly using proof of concept (POC) customers as a partner when developing new products and services as this enables them to sell the product before building it, ensuring that the product they are developing is aligned with the market needs before making it avaliable to a wider market. Becasue of the positive results that designing and developing new products together with users and customers have shown, the acqusition of POC customers has become a crucial step in the product development process for many startups. The purpose of this study is to understand how the process from business idea to first proof of concept customer evolves and in this process, what are important factors in acquiring the first proof of concept customer. The study is of qualitative nature and leverages a multiple case study based on interviews with eight Swedish tech startups. The findings from the research show that the process is of iterative nature and has seven sub-processes; Defining and scoping proclem, Defining target marker, Finding customers, Defining customer needs, Initial pitch, Persuasion, and finally, Negotiation and signature. Furthermore, five concepts influencing this process were found; Market understanding, Product understanding, Sales tactics, Customer management, and Entrepreneurial attitude.