GTMfund is challenging the conventional wisdom of startup growth, arguing that distribution, not product, is the ultimate differentiator in today's AI-driven market. The venture capital firm believes that the traditional go-to-market (GTM) strategies are no longer effective in the rapidly evolving landscape of 2025.

According to Paul Irving, partner and COO at GTMfund, startups are overly focused on product development, neglecting the critical importance of distribution excellence. GTMfund operates under the thesis that in an era where innovation cycles are compressed from years to months, a superior distribution strategy provides a more sustainable competitive advantage than product features alone.

Irving suggests that the "one-size-fits-all" approach to hiring and scaling, common in traditional enterprise SaaS, is outdated. He emphasizes that the pathways to building a GTM or revenue engine are now highly specific to each company, requiring tailored decisions.

The firm's perspective arrives as many well-funded startups struggle to gain traction despite having strong products. GTMfund advises its portfolio companies to prioritize differentiation in distribution, recognizing that the speed of innovation makes product-based advantages fleeting.

GTMfund's approach reflects a broader shift in the startup ecosystem, where the cost of building software has decreased, leading to increased competition. In this environment, effective distribution becomes crucial for reaching target customers and achieving sustainable growth. The fund's emphasis on customized GTM strategies suggests a move away from standardized playbooks and towards more data-driven, adaptive approaches.

Looking ahead, GTMfund's thesis could influence how startups allocate resources, potentially leading to increased investment in sales, marketing, and customer acquisition strategies. If successful, this approach could reshape the competitive landscape, favoring companies that prioritize distribution expertise alongside product development.