Do we even need your product?

A guide to market creation from Anish Dhar, CEO of Cortex

In partnership with

TLDR 🥱 

Cortex started with zero customers, zero competitors, and a new category that needed explaining. Through relentless iteration on messaging and laser focus on finding the right champion, they built a company that was valued at USD 470 Mn at Series C. 

Read on to get their playbook!

The Story

Building Without a Blueprint

When Anish left his role at Uber, he had firsthand experience of a growing problem: the chaos of managing thousands of microservices. 

Wait…WHAT is a microservice?

A microservice is a way of designing software as a collection of small, independent parts, each focused on a specific job. Imagine a big app—like Netflix or Amazon—broken down into single tasks, like user accounts, payment processing, or recommendations, that's a “service”. 

Instead of building everything as one large application, each microservice is like its own mini-app, running separately. This makes it easier to update or fix specific parts without disrupting the whole system. This TechCrunch article is also worth a read if you want to learn more about IDPs). Now back to Cortex… 

At Uber alone, internal services had grown to almost 8,000 – far exceeding the number of engineers at the company. Basic questions like "who owns this service?" or "where is the documentation?" became impossible to answer.

To solve this, Anish and his co-founders created Cortex: a Internal Developer Platform (IDP) that helps engineering teams access, manage and improve their services. 

Think of it as a central hub that automatically catalogues all services across an organisation, tracks their quality, and ensures teams follow best practices, saving countless hours for software engineers. 

Armed with this vision, they won a spot in Y Combinator's Winter 2020 batch, but still no customers… (Gentle reminder: the deadline for the YC W2024 batch is today - don’t forget to apply!)

Sequoia led their Seed while they were still pre-revenue, a relationship that has stood the test of time as they participated in their latest USD 60 Mn round.

Cortex’s product

Creating a new category comes with a unique challenge: no one knows they need your product

Cortex's early days were a gruelling exercise in market education:

I was probably sending 1000s of cold emails a week to everyone I could think of… I’d get 2 replies, one would be “not interested”.

Anish on cold emailing customers

Early demos often ended with potential customers acknowledging the problem but not seeing enough value to pay for a solution.

Finding your point of attack… 🤺

Everything changed when Cortex identified one particular job title as their ideal point of entry: Site Reliability Engineers (SREs). These were the people whose job it was to specifically make sure engineering efficiency was at its highest. 

The SRE strategy unlocked another crucial advantage: direct access to executive decision-makers. The importance of executive sponsorship in software sales has been flagged time and time again by the likes of HubSpot and Insead

Because SREs typically work closely with CTOs and VPs of Engineering on critical reliability issues, they provide a natural path to the real buyers.

Define your value to your customer 🤑 

Working with SREs taught Cortex a crucial lesson about enterprise sales: while technical champions validate the solution, executives buy based on pain. This insight transformed their pricing strategy. 

Instead of feature-based pricing or complex ROI calculations, they learned to anchor their value to recent incidents or pain points. When a company had just experienced a major outage, the conversation shifted from technical capabilities to emotional value:

If a company had gone through a really painful incident recently... Suddenly, they could have prevented this incident that cost me millions through Cortex

Anish on defining the value of Cortex

The strategy paid off. After months of struggle, Cortex landed their first major enterprise customer through a cold email to an SRE who had previously built a similar internal tool. 

More importantly, they had found a repeatable sales strategy: 

  1. Find the SRE, 

  2. Demonstrate technical value, 

  3. Convert decision makers with a pain-point focused pitch, 

  4. Repeat!

Here’s what that means for you… 

Finding your point of attack: Look for people who: 

  1. technically understand the problem 

  2. have organizational influence, even if they lack direct buying power, 

Converting them into sales: Technical validation isn't enough – you need executive buy-in. The key is translating technical value into business impact. Instead of complex ROI calculations, anchor your pricing to recent pain points (e.g., "This incident cost you $10M, we can prevent the next one for $10K").

If you enjoyed this story, please forward it to fellow founders, operators, & investors and fill out our feedback form below:

What did you think of this edition?

Login or Subscribe to participate in polls.

📚️ SCALE’s Resource Centre:

Access our resources built from 30+ interviews, 75+ insight blogs and 20+ podcasts distilled into one actionable package. BTW: our 40% presale discount is applied to all the links below!

👯 Hiring Guide: The complete playbook for building high-performing teams - from first hire to scale - with battle-tested frameworks, templates, and strategies.

🤑 How to Raise Your Pre-seed / Seed: A comprehensive guide to early-stage fundraising with pitch decks, investor outreach strategy, and everything on terms.

đź’ą Financial Model Templates: Professional-grade financial models built by VCs, incl., cap table management, financial planning & forecasting, and more!

đź’µ Pricing: The definitive guide to SaaS pricing strategy with proven frameworks, competitor analysis tools, and real case studies.

(PS: you can still access our investor lists for free by referring a friend!

💻️ Links of the week:

11x just announced their unreal USD 50 Mn Series B led by a16z

Unreal to think that Hassan and I (Rahul) were both at McKinsey together at the same time! Big big congrats to the whole 11x team!

Full press release here.

Agicap raises €45 milllion aiming to redefine treasury management for midmarket businesses

This investment will support Agicap’s mission to expand its leadership across Europe and to position itself as the global reference in midmarket treasury management.

Full article here.

Get your news where Silicon Valley gets its news đź“°

The best investors need the information that matters, fast.

That’s why a lot of them (including investors from a16z, Bessemer, Founders Fund, and Sequoia) trust this free newsletter.

It’s a five minute-read every morning, and it gives readers the information they need ASAP so they can spend less time scrolling and more time doing.

Learn how to make AI work for you

AI won’t take your job, but a person using AI might. That’s why 1,000,000+ professionals read The Rundown AI – the free newsletter that keeps you updated on the latest AI news and teaches you how to use it in just 5 minutes a day.

This week’s sponsor (PS: we love Notion!)

Free Notion and Unlimited AI

Thousands of startups use Notion as a connected workspace to create and share docs, take notes, manage projects, and organize knowledge—all in one place. We’re offering 3 months of new Plus plans + unlimited AI (worth up to $3,000)! To redeem the Notion for Startups offer:

  1. Submit an application using our custom link and select Beehiiv on the partner list.

  2. Include our partner key, STARTUP4110P67801.

See you next week!

Rahul & Aryaman

Reply

or to participate.