5 Critical Go-to-Market Lessons from Crowded’s Journey in the Nonprofit Tech Space

5 Critical Go-to-Market Lessons from Crowded’s Journey in the Nonprofit Tech Space

Starting a company is one thing. Finding your market is another entirely. In a recent episode of Category Visionaries, Daniel Grunstein of Crowded shared candid insights about building a fintech platform for nonprofits. Here are the key go-to-market lessons that emerged from their journey:

1. Choose a Beachhead Market That Enables Rapid Learning

When Crowded looked at the nonprofit sector, they faced a massive, fragmented market. As Daniel explains, “It’s a massive market with a lot of sub verticals and sub verticals and sub verticals, and you can’t really start with nonprofits in general. It’s like saying, I’m starting with businesses or people.”

Rather than trying to serve everyone, they chose college organizations as their initial market. The key wasn’t just market size – it was their ability to learn quickly. “The cool thing with college groups is the treasurer changes every year. I’ve got this guy. He’s new, he’s excited,” Daniel notes. This regular turnover of decision-makers created consistent opportunities for product feedback.

2. Get Creative with Early User Acquisition

Instead of relying solely on traditional sales tactics, Crowded found innovative ways to attract their first users. “In the early days, we used to do things like endorse them on LinkedIn or offer them an unpaid internship, which was really just giving us product feedback. And they love that because obviously college students want experience,” Daniel shares. This approach provided value beyond just the product, making early adoption more attractive.

3. Start Manual, Then Automate

Perhaps the most striking lesson comes from their approach to early product development. Daniel reveals, “Our first client actually, when we got them on the system, the database wasn’t actually registering the payments. So what I would do is I would get them on a call and I would literally go in and they would write, my dues for this semester is a grand, two grand, whatever it is. And I would actually write it on a piece of paper and then enter it in the database after.”

This willingness to start with manual processes allowed them to validate real user needs before making significant technology investments. It’s a powerful reminder that perfect automation isn’t always necessary for initial validation.

4. Find Your True Competitive Edge

While Crowded started by solving payment processing problems, they discovered their real competitive advantage lay elsewhere. Daniel explains that for nonprofits, compliance failures can be catastrophic: “They get billed and they can get sent to bill by the IRS. The organization and all its great efforts can be shut down overnight.”

This insight led them to build compliance handling into their core offering, differentiating them from both traditional banks and modern fintech competitors.

5. Embrace the Market’s Natural Pace

When asked what advice he’d give to founders entering the nonprofit space, Daniel’s response was simple but profound: “Be patient. They move slow. Be patient.” This reality shaped everything from their sales approach to their product development timeline.

This patience extends to strategic decisions as well. Even after achieving significant traction, Daniel maintains a measured outlook: “In three to five years, it’s unclear to me still if this is exit play or if we want to just continue riding the business the moment. We’re really enjoying it.”

For B2B founders, these lessons highlight the importance of being strategic about your initial market selection, creative in your early user acquisition, and patient in your execution. Success often comes not from trying to serve everyone immediately, but from finding a specific segment where you can learn quickly and build a strong foundation for growth.

The nonprofit sector may represent 6.5% of US GDP, but capturing even a small piece of that market requires a thoughtful, patient approach to product development and go-to-market strategy. As Crowded’s journey shows, sometimes the best path to serving a massive market starts with being willing to do things that don’t scale, focusing on a narrow segment, and letting real user needs guide your evolution.