Customer Before Investor

A strategy of becoming a customer of a product before investing in it, demonstrated through stories of successful investments and missed opportunities.

Key Benefits of Customer-First Investment

• Provides firsthand experience with product quality and team responsiveness
• Helps validate market potential through direct usage
• Reveals operational excellence and execution capabilities
• Shows how quickly teams ship features and fix problems
• Gives insight into customer experience and product value

Real Example: Beehive Investment

• Initial pass on investment due to market size concerns
• Became customer first through Milk Road newsletter
• Observed key positive signals:
  • Fast problem resolution
  • Consistent product shipping
  • Strong operational execution
• Eventually invested after experiencing product as customer
• Company reached ~$10M ARR by March 2024
• Growth graph showed steep upward trajectory

Investment Decision Framework

• Market size isn't always the key factor
• Better to bet on strong execution than hypothetical market potential
• Look for teams that are "relentlessly shipping"
• Value operational excellence over theoretical opportunities
• Direct product experience can override initial investment hesitation

Key Takeaway

• Being a customer first provides better investment signals than traditional due diligence
• Allows investors to see how team actually operates
• Reveals true product value and team capabilities
• Can help overcome initial market size concerns
• Shows real execution vs theoretical potential