> At a Glance
> – Startups with strong products are failing because they ignore distribution
> – GTMfund’s Paul Irving says creative, data-driven outreach beats big ad spend
> – Early teams should pick one channel, hire slowly, and lean on advisor networks
> – Why it matters: Founders who master go-to-market can win even in crowded AI fields
Even with cheaper, faster product building, well-funded startups are stalling. Paul Irving, partner and COO at GTMfund, blames a one-size-fits-all go-to-market playbook that no longer works in 2025’s AI-saturated market.
The New Moat: Distribution, Not Product
Irving argues that rapid innovation cycles have flattened product differentiation. The edge now lies in how uniquely a company reaches its buyers.
> “The aperture for how you build your go-to-market or revenue engine … have never had more unique and specific pathways depending on your company,” Irving said on the Build Mode podcast.
GTMfund’s portfolio companies are told to:
- Use AI to pinpoint and engage niche customer clusters
- Focus on one channel early on instead of spraying efforts
- Avoid traditional hiring spurts; bring on operators only when data validates need
Creative Channels Beat Big Budgets
Investors no longer cheer swollen ad budgets or bloated sales teams. Irving cites a startup that gained 40-60 yearly customers by owning targeted Facebook groups.
> “If you think about it in the framework of, okay, it’s a thousand people, but 700 of them are my actual ICP and buyer … It can become a really unique channel,” he explained.
| Resource | Old Playbook | 2025 Playbook |
|---|---|---|
| Budget | Heavy ad spend | Low-cost, high-touch hacks |
| Hiring | Scale reps fast | Hire only after channel proof |
| Network | Cold outreach | Curated advisor pairings |
Network as Accelerant
GTMfund pairs founders with seasoned operators, but only when mutual value is clear. Irving stresses that the broader venture ecosystem is willing to open doors if founders arrive curious and prepared to teach as well as learn.
Key Takeaways
- Product parity means distribution creativity is the last defensible moat
- Small teams can punch above their weight using AI-driven, data-centric tactics
- Pick one acquisition channel, prove it, then expand
- Build a trusted advisor lattice before you need it
Master distribution, Irving contends, and even modest startups can outrun better-funded rivals stuck perfecting features no one sees.
