CVector, an industrial AI startup, faces concerns from customers about its longevity in a competitive industry. Founders Richard Zhang and Tyler Ruggles respond with certainty about their commitment. These customers include utilities and manufacturers who rely on CVector's software for operational improvements. The startup secured a $1.5 million pre-seed investment from Schematic Ventures to tackle challenges in supply chain and manufacturing. Strategies suggested to ease client concerns include practical solutions like code escrow and founder commitment, which contribute to CVector's early success.
When we talk to some of these big players in a critical infrastructure, the first call, 10 minutes in, like 99% of the time we're gonna get that question," Zhang told TechCrunch. "And they want real assurances, right?"
Zhang said he wanted to bring on investors that have a reputation for working on these kinds of hard problems in supply chain, manufacturing, and software infrastructure, which is exactly what Schematic is focused on as an early-stage fund.
There are practical solutions - say, putting code in escrow, or offering a free, perpetual license to the software if an acquisition happens. But sometimes "it comes down to founders being mission-aligned with the company and clearly communicating that long-term commitment to customers."
It's this commitment that seems to be helping CVector find early success.
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