Mar 4, 2025

Demand-Gen Strategies to Drive B2B Startup Success

By Matt Dodgson

Co-Founder - Recruiter & Marketer

Intro

Early-stage B2B tech companies often face an uphill battle when it comes to demand generation. Limited budgets, lean teams, and high expectations make it difficult for founders to find a strategy that consistently generates pipeline and revenue.

In a recent episode of our podcast, we sat down with Kartik Krishnan, Founder of Expedite GTM, to discuss how startups can build an effective demand generation engine. Kartik shared valuable insights on everything from defining demand-gen terms to selecting marketing hires and budgeting for experiments. Below, we break down key takeaways from the conversation.

“Early-stage founders aren’t going to have the luxury of hiring a full-fledged marketing team. They’ll need to balance demand creation and capture themselves.” – Kartik Krishnan



Let’s Get Some Demand-Gen Terms Out of the Way

Before diving into strategies, it’s important to clarify key terms:

  • Demand Generation: The overarching process of creating awareness and interest in your product.
  • Demand Creation: Activities that educate and engage your target audience before they even realize they need your solution.
  • Demand Capture: Tactics that convert existing market interest into leads and revenue.

According to Kartik, most early-stage founders default to demand capture—relying on outbound sales and paid search. However, they often overlook the importance of creating demand through brand-building and education.

“You can’t just wait for the businesses that are in-market and ready to buy—you need to generate demand, or you won’t have enough pipeline to capture.” – Kartik Krishnan


Why Do Early-Stage B2B Tech Startups Struggle With Demand Generation?

Many startups struggle with demand generation because it’s a tough skill to master. Founders and small teams often prioritise short-term wins over long-term brand-building.

Additionally, many startups are creating new categories—solving problems that businesses don’t yet recognise as urgent. That means startups must invest time and resources into educating the market.

“If you’re building a new category, you have to generate demand. Your prospective customers may not even know they have the problem yet.” – Kartik Krishnan


Focus on Finding the Right Audience or Inbound as Well?

Should early-stage founders prioritise outbound targeting or inbound marketing? Kartik recommends a mix of both. Founders need to go after ideal customer accounts while also building an inbound motion to generate consistent interest over time.

An effective way to balance both is by looking at pipeline metrics:

  • If your inbound leads are low, invest more in demand creation.
  • If your pipeline isn’t converting, focus on outbound and demand capture.

“Founders should ask themselves: Am I setting up enough pipeline for Q3 while closing deals in Q1? You have to manage both.” – Kartik Krishnan


What Channels Would You Recommend?

Choosing the right demand generation channels is critical. While LinkedIn is a go-to channel for many B2B startups, Kartik emphasizes the effectiveness of webinars.

By positioning the founder as the host and inviting respected industry leaders, startups can create credibility, engage prospects, and generate both demand and trust.

“A well-executed webinar not only builds brand awareness but also serves as demand capture—it gives your sales team a reason to reach out to warm prospects.” – Kartik Krishnan


What About Qualifying Leads?

One of the biggest challenges in demand generation is ensuring that marketing efforts bring in the right leads. Kartik warns against chasing every inbound lead just because it looks interesting. Instead, startups should prioritise accounts that fit their ideal customer profile (ICP).

“Don’t stray too far from your ICP. I’ve seen too many founders get distracted by big logos or new markets they can’t properly serve.” – Kartik Krishnan


Product-Market-Price Fit – Why Is This Important?

Product-market fit is often discussed, but Kartik introduces another critical factor: Product-Market-Price Fit.

Early traction doesn’t always mean long-term success. Founders need to ensure that:

  • Their pricing matches the perceived value of the product.
  • Customers see enough value to expand usage over time.
  • They aren’t over-promising and undercharging, which can lead to unsustainable growth.

“You can win early deals, but if your pricing isn’t aligned with value, retention will suffer. Retained revenue is just as important as new revenue.” – Kartik Krishnan


Budgeting for Experimentation

How much should startups allocate for experimenting with new demand-gen strategies? Kartik suggests reserving 10–15% of the sales and marketing budget for experimentation.

This allows companies to test new industries, channels, and messaging strategies without risking their core revenue engine.

“The best companies run small, strategic experiments every quarter. They learn what works, scale it, and then try new things again.” – Kartik Krishnan


What Type of Marketer Should a Startup Hire First?

Startups often struggle with their first marketing hire. Should they bring in a product marketer, a demand generation expert, or a generalist?

Kartik suggests hiring someone hands-on who can execute and strategise, ideally supported by a fractional expert for mentorship.

“Hire someone who can think deeply about your business and execute, not just talk strategy. Too many startups hire too senior, too early.” – Kartik Krishnan


What Will Change for B2B Marketers in the Next 12–18 Months?

Looking ahead, Kartik predicts three major shifts in B2B marketing:

  1. Greater AI Adoption – AI-driven tools will help marketers qualify leads, personalise outreach, and analyse intent signals more effectively.
  2. Breaking Down Silos – The best companies will eliminate the traditional separation between marketing, sales, and customer success, using data-driven insights to align teams.
  3. More Efficient Experimentation – Startups will need to be more frugal and agile, leveraging technology to optimise workflows and maximise results.

“The teams that will win are those embracing AI, breaking down silos, and running smarter experiments.” – Kartik Krishnan


Final Thoughts

Demand generation is a challenge for any early-stage B2B startup, but by balancing demand creation and capture, experimenting wisely, and hiring the right talent, founders can build a repeatable revenue engine.