Noha Gad

Traditional top-down models often struggle to scale amid economic uncertainties in today’s fast-evolving startup landscape; hence, the shift towards community-driven startups gained significant momentum. This transformative model redefines success by democratizing the creation process, empowering users not just as buyers but as active participants to co-shape products, amplify voices, and propel growth through authentic connections and collective energy.

While traditional startups often launch polished products into a silent vacuum, community-driven ventures build their roadmap out in the open, alongside their first users.

Community-driven startups heavily rely on their user base who actively participate in shaping the product, culture, and growth trajectory, rather than serving as mere end-users. These startups build platforms or services centered on fostering closed networks of enthusiasts who contribute ideas, content, feedback, and even governance. Unlike passive consumer applications, community-driven startups prioritize ongoing collaboration, including think forums for feature requests, user-generated templates, or member-led events that evolve the offering organically. 

Community-driven vs. Traditional startups

Traditional startups follow a top-down blueprint where founders design a product in isolation, launch via paid ads or influencers, and iterate based on metrics such as acquisition cost. Unlike traditional models, where users act as passive consumers reliant on marketing budgets and virality hacks for growth, community-driven approaches make users co-creators and advocates through real-time forums, beta testing, and organic referrals. This model can increase the community engagement rate fivefold as users feel ownership, eventually reducing churn and boosting lifetime value.

How to build a strategy as a community-driven startup

Community-driven startups employ strategic steps to cultivate engaged user bases that propel product evolution and sustainable growth. 

• Clarify the community’s purpose. Identify ideal members through persona research via surveys or outreach on platforms, then choose accessible channels and launch with a small group of 50-100 founding members recruited personally. Hosting weekly events like AMAs (Ask Me Anything), polls, or feedback sessions will help ignite participation and build trust through visible responsiveness.
• Encourage contributions early with low-friction tools, such as dedicated forums for feature ideas, user-generated content templates, or beta testing invites. Recognizing active members via shoutouts, badges, exclusive access, or revenue-sharing perks will foster a sense of ownership and culture.
• Expand tactics via referrals and incentives. Introduce scalable events such as mentorship circles, expert webinars, or hackathons to deepen connections without diluting intimacy. Integrate feedback loops continuously to ensure that growth aligns with community needs rather than vanity metrics.
• Achieve long-term sustainability. Survey members regularly, refine based on data, and foster network effects through peer connections and ambassador programs. This would help startups adapt to changing dynamics and cultivate sub-communities for specialized interests to prevent stagnation.

Key benefits

Community-driven startups deliver remarkable advantages by embedding users as core stakeholders, transforming potential costs into self-reinforcing growth engines. Engaged communities foster deep ownership, yielding up to 5x higher retention rates compared to traditional models. Additionally, crowdsourced feedback loops accelerate innovation and help startups minimize product development cycles, while ensuring relevance and delighting early adopters with tailored features.

Loyal members promote the startup through personal referrals and recommendations, which greatly reduce the cost of gaining new customers. Thus, startups will no longer need to launch expensive advertising campaigns, relying on members who naturally increase reach and create network effects that add value with each new member.

Community-based startups are more likely to handle economic challenges among passionate communities that offer stability through ongoing participation. This promotes users’ loyalty and makes them a strong defense against competitors who rely on short-lived trends.

While traditional models focus on isolated polish and paid reach, community-driven startups unlock a more resilient path: turning users into passionate partners who co-build products and fuel growth. This shift significantly redefines how startups grow by prioritizing purpose over polish and collaboration over campaigns, ultimately enabling founders to cultivate not only a wide user base but also a vested community that innovates, retains, and defends together.

Ghada Ismail

For years, Arabic speakers learned how to work around technology rather than with it. We typed in Arabic on apps clearly designed for English. We tolerated clumsy translations, broken layouts, and features that only half-worked once the language was switched. Somewhere along the way, adapting became normal.

That normalization is now being challenged.

Across Saudi Arabia and the wider Arab world, a growing number of startups are doing something deceptively simple but strategically powerful: they are building with Arabic in mind from the very beginning. Not as a translation layer.  But as a core product decision.

These companies are part of a quiet but meaningful shift toward what can be described as Arabic-first startups: ventures that treat language as identity, interface, and competitive advantage all at once.

A Digitally Active Region With a Lingual Gap

The timing of this shift is not accidental. Digital adoption across the Arab world has reached scale. More than 348 million people in the region are now internet users, representing roughly 70 percent of the population. Social media usage is equally significant, with over 228 million active users engaging daily across platforms.

Yet despite this scale, Arabic remains underrepresented online. While it is one of the most widely spoken languages globally, Arabic accounts for only a small fraction of digital content on the web. The result is a persistent mismatch: millions of Arabic-speaking users navigating a digital world that often does not speak to them fluently.

This gap has long been treated as a content problem. Increasingly, startups are recognizing it as a ‘product problem’.

What “Arabic-First” Actually Means

Arabic-first does not mean simply offering an Arabic language toggle. Many global platforms do that. What they rarely do is rethink how products behave once Arabic is selected.

True Arabic-first startups design around the realities of the language itself. That includes right-to-left navigation, typography that respects readability, and interfaces that accommodate longer word structures and contextual phrasing. More importantly, it means building logic, workflows, and AI systems that understand Arabic as a living language that is rich in dialects, nuance, and cultural reference.

In other words, Arabic-first is not about accessibility alone. It is about relevance.

AI That Actually Understands Arabic

Few areas expose the weaknesses of surface-level localization as clearly as artificial intelligence. Arabic’s linguistic complexity—its morphology, syntax, and dialect diversity—has historically made it difficult for AI systems trained primarily on English data to perform well.

This is where local startups are finding their edge.

Riyadh-based Wittify.ai is one example. The company builds conversational AI agents designed around Arabic from the ground up. Its platform supports text and voice interactions across more than 25 Arabic dialects, enabling businesses to deploy AI for customer service, onboarding, and internal workflows without forcing users into English or broken translations.

Another Saudi startup, Maqsam, has taken a similar approach in voice automation. Its AI phone bots handle customer service calls entirely in Arabic, accurately transcribing speech, identifying intent, and responding naturally. In sectors like e-commerce, logistics, and financial services—where call centers remain critical—this kind of automation offers scalability without sacrificing familiarity.

These companies are not competing with global AI platforms on size or funding. They are competing on understanding.

When Arabic Becomes the Brand

Language choice is not limited to product functionality. It increasingly shows up in branding decisions, an area where Arabic was once sidelined in favor of English names perceived as more “global.”

That mindset is beginning to shift.

A notable example is DEEP.SA, a Saudi AI startup that deliberately incorporates the Arabic word عمق (meaning “depth”) into its logo and identity. The choice is both symbolic and strategic. It reflects the company’s focus on deep technology while anchoring its brand firmly in local language and meaning.

In a market where foreign or English brand names have long dominated, using Arabic as a primary identity signal stands out. It communicates intent: this product is built here, for this market, with local users in mind.

DEEP.SA’s approach aligns with a broader realization among founders that Arabic branding can build trust faster than imported terminology, especially in enterprise, government, and consumer platforms where credibility and clarity matter.

The same logic appears in other regional startups. Abjjad, an Arabic social reading platform, draws its name from the first letters of the Arabic alphabet. Yamli, whose name means “he dictates,” was built specifically to help Arabic speakers search using phonetic input. Tamatem, a mobile game publisher, chose an Arabic name while building a business that localizes global content for Arab audiences.

In each case, the name does more than label the product. It signals who the product is for.

Arabic AI Models Enter the Spotlight

If Arabic-first startups represent the application layer, then Arabic-first AI models are the infrastructure making all of this possible.

For years, Arabic developers were forced to build on top of language models trained overwhelmingly on English data. Arabic support existed, but often unevenly strong in Modern Standard Arabic, weaker in dialects, and prone to context errors that made enterprise use risky.

That gap is now starting to close.

One of the most prominent examples is Allam, Saudi Arabia’s Arabic large language model developed under the umbrella of the Saudi Data and Artificial Intelligence Authority (SDAIA). Designed specifically to understand Arabic linguistic structures, cultural references, and regional usage, Allam marks a strategic shift from adapting global AI models to building foundational technology locally.

Unlike multilingual models where Arabic is one language among many, Allam prioritizes Arabic as a primary language. This allows for more accurate comprehension, better contextual responses, and improved handling of formal Arabic as well as regional variations. For startups building products in customer service, legal tech, education, content moderation, or government services, that difference is not marginal; it is rather structural.

The presence of Arabic-native models changes the economics of building Arabic-first products. Startups no longer need to invest disproportionate resources correcting AI errors caused by weak language understanding. Instead, they can focus on product design, user experience, and sector-specific innovation.

Beyond Allam, the broader regional push toward Arabic AI reflects a growing recognition that language sovereignty matters in the age of generative technology. When AI systems shape how people search, learn, transact, and communicate, the languages they truly understand determine who benefits most from digital transformation.

For Arabic-first startups, models like Allam are more than technical milestones. They are enablers, quietly reinforcing the idea that building in Arabic is no longer a compromise, but a competitive advantage.

Why This Shift Is Happening Now

This shift toward Arabic-first products is not random. Several changes are happening at the same time.

User expectations have evolved. As people become more digitally savvy, they are less willing to tolerate poorly translated interfaces or awkward Arabic experiences. They expect products to work naturally in their own language.

Technology has also caught up. Recent progress in AI and language models makes it possible to build systems designed for Arabic from the start, instead of adapting tools originally made for English.

Policy direction plays a role too. In Saudi Arabia especially, national digital initiatives are encouraging innovation that reflects local culture and language, not just global standards.

There is also a clear business reason. As markets become more crowded, standing out becomes harder. Using language thoughtfully can create a real competitive advantage, one that is difficult for others to copy.

The Challenges Are Still Real

Arabic-first is not an easy path. Building high-quality Arabic language technology requires specialized talent, extensive datasets, and continuous iteration. Dialect diversity adds another layer of complexity that few global platforms are willing to invest in deeply.

There is also a lingering perception among some founders and investors that prioritizing Arabic limits global scalability. Yet many Arabic-first startups argue the opposite: products that solve local problems well are better positioned to expand thoughtfully than those that imitate global models without context.

Language as a Product Decision

What Arabic-first startups ultimately demonstrate is that language is not a cosmetic choice. It shapes how products are used, trusted, and adopted.

For decades, Arabic users adapted themselves to technology. Today, technology is beginning to adapt to Arabic. That shift may seem subtle, but its implications are significant.

As the Arab tech ecosystem matures, the startups that stand out may not be those that look the most global, but those that understand their users most deeply. And for hundreds of millions of people, that understanding begins with language.

Not as an afterthought..but as a starting point.

Shaimaa Ibrahim 

Venture capital in the Gulf region, particularly in Saudi Arabia, is experiencing a rapid growth phase driven by the expansion of the digital economy, the rise of innovation ecosystems, and increasing interest in advanced technologies—most notably artificial intelligence and digital infrastructure. As capital flows increase and investment funds multiply, there is a clear shift toward specialized investment models aimed at building companies with global reach, rather than limiting success to local markets.

In this context, Propeller stands out as a distinct player in the venture capital landscape, focusing on early-stage infrastructure software companies and connecting top technical talent from the MENA region directly to global markets, with a particular emphasis on the United States. Its cross-border operating model is designed to empower founders to build globally relevant companies from day one, leveraging the region’s deep engineering talent alongside operational expertise from leading global technology hubs.

Against this backdrop, Sharikat Mubasher sat down with Zaid Farekh, founder of Propeller, to discuss his vision for the future of venture capital, his experience supporting technical founders, and his assessment of AI and infrastructure opportunities in Saudi Arabia and the broader region.

What is Propeller’s strategic vision, and how does it stand out from other venture capital firms in the region?

Propeller’s strategic vision is to become the leading early-stage platform for infrastructure software founders emerging from MENA by providing them with direct, early access to global—particularly U.S.—markets.

Propeller focuses exclusively on pre-seed and seed-stage infrastructure software, backing highly technical founders and helping them validate, sell, and iterate with real U.S. customers—especially in Silicon Valley—much earlier than would otherwise be possible.

What differentiates Propeller is its deliberate focus and cross-border operating model. Rather than being a generalist regional fund, Propeller concentrates on a narrow, technically demanding category and actively bridges two ecosystems: MENA’s deep engineering talent and the world’s most advanced infrastructure buyers and partners in the United States. This approach allows founders to shorten the path to product–market fit, build globally relevant companies from day one, and access follow-on capital more effectively.

How would you describe the current venture capital landscape in the GCC, and what is required to elevate the region’s entrepreneurial ecosystem to a global standard?

We’ve been excited to see the venture landscape maturing in the GCC over the past few years, but we still believe there’s a long way to go. We ultimately believe that the best way to elevate the region’s entrepreneurial ecosystem is to bring its best founders to the global stage so they can learn from and compete with a high density of other founders of a similar calibre. We see this trend happening across the world, not just the Middle East. Great founders from Europe, South America and elsewhere spend time in Silicon Valley or New York, but invariably end up having a huge impact on their local, ‘home’ ecosystems as well, whether by returning themselves to continue to build their startup, by hiring local talent remotely or building an in-region office, by angel investing in the home market’s newest founders, or simply by inspiring a new generation of founders. 

What criteria are most important when evaluating startups, and how does Propeller help founders overcome funding and growth challenges?

Propeller focuses on pre-seed and seed-stage infrastructure software startups, investing checks between $500,000 and $3M. It prioritizes founders building for global gaps (not only regional needs) and sees opportunity across multiple layers of the AI stack, from hardware-adjacent enablement to infrastructure, platforms, and applications with defensible infrastructure moats.

Can you provide an overview of Propeller’s current funds, including their strategic focus and sector priorities?

Fund I was a test vehicle of approximately $2M launched in 2017. Fund II was approximately $13M launched in 2021. Fund III is a $50M fund focused on pre-seed and seed-stage infrastructure software startups, with emphasis on AI infrastructure and AI-native software across MENA and the U.S.

What motivated the launch of Propeller’s $50 million third fund, and why focus specifically on horizontal AI infrastructure?

The adoption of artificial intelligence will be the single largest driver of enterprise and economic value over the next decade. Startups are being launched today and in the coming years to meet the enormous infrastructure demands this adoption will create, quickly propelling the best ones into large, category-defining companies

We believe infrastructure is the ultimate multiplier of value in AI. Strong infrastructure enables vertical applications and horizontal platforms to scale faster, cheaper, and more securely.

At the same time, the most enduring applications and platforms will be those that sit on top of proprietary or defensible infrastructure, creating moats that go beyond user interfaces or data wrappers.

To date, how many startups has Propeller invested in, across which regions, and what tangible impact have these investments had on the regional innovation ecosystem?

Propeller has backed 30+ startups across its first two funds and has 6 active investments in Fund III. Propeller is present across MENA and the U.S., specifically in Riyadh, Amman, Boston, and Silicon Valley.

How do you assess venture capital opportunities in Saudi Arabia, particularly in the AI sector?

We assess opportunities in Saudi the same way we assess opportunities everywhere - does the founder have a severe conviction in a unique version of the future? Are they building infrastructure & apps because they love building? And are they thinking Global from day one?

We assess venture opportunities in Saudi Arabia through a fundamentals-first lens, with additional scrutiny specific to the AI sector.

In AI specifically, we look beyond model novelty and focus on structural advantages, such as access to proprietary data, deep integration into workflows, or infrastructure-level positioning that is difficult to replicate. We are cautious around pure “wrapper” businesses and place greater emphasis on companies that own a critical layer of the stack or have defensible deployment advantages.

We have long-standing experience building and selling technology in Saudi Arabia and view it as a strong, sophisticated market for AI adoption. At the same time, we do not see Saudi Arabia as the only market. We assess whether companies can win locally on commercial merit and then expand beyond the Kingdom over time, rather than being structurally dependent on a single geography or policy tailwinds.

Finally, we evaluate alignment with Saudi Arabia’s long-term priorities, such as digital infrastructure and AI enablement without relying on policy tailwinds alone. Our goal is to back companies that can succeed on commercial merit, with or without local incentives, and scale globally over time.

What are Propeller’s plans for expansion, and are there initiatives to establish new regional or international partnerships?

Our team members are already present in Silicon Valley, Boston, Amman, and Riyadh and we have close relationships with follow-on investors and experienced operators in those markets

In your view, which sectors or types of companies are best positioned for significant growth in the coming years, especially in AI and technology infrastructure?

We believe exciting new companies will be built at all layers of the software stack:

1. Application Layer – Vertical AI applications that win with infrastructure moats, not just data wrappers.
2. Platform Layer – Horizontal AI platforms that standardize workflows across industries.
3. Infrastructure Layer – Tools that abstract complexity and make AI usable, secure, and scalable.
4. Hardware-Software Convergence – Silicon-adjacent software bridging models and metal, optimizing performance and efficiency. 

More than companies, we invest in people. We believe that the founders who will build these companies will:

1. Have a severe conviction in a unique version of the future
2. Build infrastructure & apps because they love building 
3. Think global from day one
4. Attract and inspire early employees and supporters.
5. Have the persistence to run through walls, the flexibility to change course, and the judgement to know when to do each.
6. Lead from the front by building, not just directing.
7. Build with responsibility, aware of the scale and impact of the infrastructure they create.
8. Nurture a community around their vision. Creating movements not just companies.

Noha Gad

The world is in a race to master quantum computing — a technology based on the principles of quantum physics with the potential to reshape industries, security, and science. Unlike current computers, which rely on simple binary bits, quantum computers use quantum bits, or qubits, that can exist in multiple states simultaneously and can be profoundly interconnected. This potential enables them to tackle complex challenges in areas such as medicine, materials science, and logistics at speeds higher than today's most advanced supercomputers.

By harnessing the principles of quantum mechanics, this emerging field offers time- and energy-efficient computational power, secure communication, and precise sensing capabilities. The quantum economy is poised to generate immense value through the application of quantum technologies across various sectors. 

Saudi Arabia acknowledges the revolutionary impact of quantum technology and is strategically positioning itself to become a global leader in this domain. This emerging field is not a distant concept but a strategic priority aligned with Vision 2030. The Kingdom is actively building its own quantum landscape, transforming ambition into structured national action. This move is a clear step to diversify its technological capabilities and cultivate homegrown scientific talent for the post-oil era. 

According to a report released by the Centre for the Fourth Industrial Revolution in Saudi Arabia (C4IR Saudi Arabia), quantum technology can drive innovation across multiple sectors, creating new industries and economic growth. In the healthcare industry, quantum sensors could revolutionize medical sectors, leading to more accurate and less invasive diagnostic tools. Additionally, very high precision in material characterization leads to the development of new materials and improves quality control in industry and manufacturing sectors. This technology can also revolutionize financial services and enhance risk management by improving the accuracy and speed of risk analysis. This could transform areas like portfolio optimization, fraud detection, and pricing of complex financial instruments.

When deployed in the logistics sector, quantum computing can improve route optimization for logistics companies, ultimately reducing fuel consumption, delivery times, and costs.

On the other side, these technologies have vast and multifaceted societal impacts, encompassing ethical, legal, economic, educational, and cultural dimensions. They are expected to transform how societies operate, how economies function, and how individuals interact with technology and each other.

Potentials and challenges

Saudi Arabia has significant opportunities to establish itself as a key player in the quantum technology race and become a regional quantum hub that attracts talent and investment and fosters collaboration. 

Various stakeholders play a crucial role in advancing quantum technology in the Kingdom and enhancing short-term educational initiatives aimed at rapidly building and strengthening the quantum talent pool. For instance, King Abdullah University of Science and Technology (KAUST) and King Abdulaziz City for Science and Technology (KACST) established dedicated research centers and designed undergraduate and graduate curricula focused on quantum technology. They also contribute through specialized programs, professional training courses, and collaborations with industry and government entities. 

Prominent organizations such as the National Information Technology Academy (NITA) and the Saudi Federation for Cyber Security and Programming, through TUWAIQ Academy, actively contribute to workforce development through internships, specialized training, and skill transition programs. King Fahd University for Petroleum and Minerals (KFUPM), in collaboration with Aramco, has established a Quantum Chair Professor program to foster research, education, and innovation in Quantum technologies. 

Partnerships with local and international partners also play a fundamental role in advancing the quantum computing industry and creating innovation hubs in the Kingdom. These collaborations bring expertise, technology, and resources to the Kingdom, accelerating the development and commercialization of quantum technologies. 

Aramco recently deployed the first quantum computer in Saudi Arabia, and the region’s first quantum computer dedicated to industrial applications, in partnership with Pasqal, a global leader in neutral-atom quantum computing. Deployed at Aramco’s data center in Dammam and powered by neutral-atom technology, this quantum computing is expected to significantly build regional expertise and accelerate the development of quantum applications across the energy, materials, and industrial sectors in the Kingdom and the broader Middle East. Pasqal’s system can control 200 qubits arranged in programmable two-dimensional arrays, offering a platform suitable for exploring advanced quantum algorithms and real-world use cases relevant to industrial operations.

The Saudi Telecom Company (stc), one of the leading enablers of digital transformation, recently expanded its collaboration with IBM to establish a quantum-safe framework designed to proactively identify and mitigate cryptographic risks, ensuring readiness for a time when large-scale quantum computing could challenge existing encryption systems safeguarding sensitive data. 

Although Saudi Arabia has various potentials to lead the quantum computing industry regionally and globally, it faces several challenges in this domain, notably a talent shortage. The limited number of quantum scientists and engineers compared to global leaders creates a substantial obstacle to rapid advancement, compounded by a scarcity of specialized quantum laboratories, hindering crucial research and development efforts. The quantum industry in the Kingdom is still in its infancy, with few commercial applications, making it difficult to attract investment and create a thriving ecosystem.

In conclusion, Saudi Arabia has laid an impressive and strategic foundation for its quantum future, moving decisively from ambition to action and aligning national vision with institutional power, industrial need, and educational reform. Its unique advantage lies in applying quantum computing to its own industrial sectors, creating a tangible testbed for innovation. However, the Kingdom’s success will ultimately be measured by its ability to transition from foundational projects and protected pilot cases to a vibrant, open, and innovative ecosystem that attracts global talent, fosters indigenous entrepreneurship, and produces groundbreaking intellectual property. By navigating the challenges of talent cultivation, ecosystem diversification, and sustained investment, Saudi Arabia will be positioned not only to adopt quantum technology but to actively shape its development and secure an influential role in the coming quantum-powered era.

Ghada Ismail

For many startups, revenue growth is treated as a numbers game: more leads, more sales calls, more discounts. But as markets tighten and investors become more selective, this approach is proving fragile. Revenue engineering offers a structured alternative, one that treats revenue as a system to be designed, tested, and optimized, not just chased.

Instead of asking “How do we sell more?”, revenue engineering asks: “How does our product, pricing, and customer journey work together to generate sustainable, predictable revenue?” In other words, it’s not just about closing deals, but rather about designing a revenue machine that grows with your business.

What Is Revenue Engineering?

Revenue engineering is the deliberate design of a startup’s revenue model. It connects pricing, product design, customer behavior, and distribution channels into a coherent system aimed at predictable, scalable, and sustainable income.

Unlike traditional sales-led approaches that focus on pushing transactions, revenue engineering looks at the full picture: how pricing structures influence adoption, how product packaging drives upgrades, and how retention strategies affect lifetime value. For startups, applying this mindset early can prevent common pitfalls that are expensive or impossible to fix later.

Why Startups Should Care Early

Early-stage startups often make revenue mistakes that seem minor but have long-term consequences. Misaligned pricing, confusing product tiers, or poorly defined customer segments can lead to low margins, high churn, and dependence on discounts to close deals. Investors are increasingly looking beyond top-line growth, as they want proof that your revenue model is solid and scalable.

Revenue engineering addresses these challenges by creating a system that naturally drives predictable results.

Core Pillars of Revenue Engineering

1. Pricing Architecture
   Startups need to choose pricing models that reflect both market realities and product value. Subscriptions, usage-based pricing, freemium, or enterprise contracts each work differently and must evolve as the business grows. Testing pricing early is crucial to avoid missed revenue opportunities.
2. Product Packaging
   Deciding which features are free, paid, or premium isn’t just a marketing decision; it directly affects revenue. Proper packaging guides customer behavior, incentivizes upgrades, and ensures that your most valuable features generate the right return.
3. Customer Segmentation
   Not all customers are the same, and revenue engineering ensures that offers align with willingness to pay. Segmenting customers by behavior, value, or needs allows startups to tailor pricing, upsells, and communication effectively.
4. Sales & Distribution Logic
   Startups must choose how to reach customers efficiently. Self-serve, inside sales, enterprise teams, or channel partners each have pros and cons. Revenue engineering ensures the distribution strategy supports scalable revenue rather than just immediate wins.
5. Retention & Expansion Mechanics
   Sustainable growth doesn’t rely only on new customers. Revenue engineering plans for upsells, cross-sells, and renewals from the start, ensuring long-term value from each client.

Common Mistakes Startups Make

Many early-stage startups fail at revenue engineering without even realizing it. Common errors include:

• Copying competitors’ pricing without understanding unit economics
• Over-discounting to close early deals
• Building features that don’t unlock higher-paying tiers
• Treating churn as a customer problem, instead of a signal of flawed revenue design

Recognizing these pitfalls early can save a startup from costly missteps.

Revenue Engineering vs. Sales-Driven Growth

Revenue engineering does not eliminate the need for sales; it actually strengthens it. Even the best sales teams struggle when the underlying revenue model is unclear or poorly designed. By building the revenue system first, startups give sales teams clear pricing, defined margins, and repeatable processes. The goal is to create a revenue machine that supports sales efforts, rather than depending entirely on aggressive sales activity to drive growth.

To Wrap Things Up..

Revenue engineering is less about spreadsheets and more about intentional design. For startups, it’s the difference between reacting to revenue pressure and creating a business that earns sustainably. By aligning pricing, product, customer behavior, and distribution from the start, founders can build a revenue system that grows with the company.

In an era where growth-at-all-costs is no longer sustainable, startups that engineer their revenue carefully—rather than simply chasing sales—are the ones that will survive, scale, and thrive.