Thread’s Playbook for Landing Enterprise Utility Clients: Insights from Their XL Energy Partnership

Landing enterprise clients in traditional industries requires more than just a great product. In a recent Category Visionaries episode, Thread founder Josh Riedy revealed their playbook for securing and nurturing enterprise utility partnerships.

Target Forward-Thinking Leaders

Thread’s partnership with XL Energy wasn’t random. “XL CEO at the time sat on the Bloomberg stage in 2018 and that was the first utility to declare carbon free by 2050,” Josh explains. This forward-thinking mindset made them an ideal first customer for innovative technology.

Prove Value Before Asking for Money

Instead of pursuing immediate revenue, Thread focused on demonstrating value. “We had to earn the business. XL Energy did not retain any intellectual property, but they also didn’t give us money to do it,” Josh notes. This approach built trust and allowed Thread to develop their solution alongside real users.

Focus on Critical Pain Points

Thread targeted high-stakes challenges that utilities couldn’t ignore. Josh describes how a devastating ice storm demonstrated the need: “People were out of power not for days, not for weeks, but for months. It was catastrophic.” This focus on critical infrastructure helped justify investment in new technology.

Deliver Measurable Results

The company transformed dangerous, time-consuming processes into efficient operations. What previously required “a three person crew repelling down turbines that are 80 meters in height” became “a one person job in roughly 20 minutes.” These concrete improvements made the value proposition clear to decision-makers.

Build for Scale

Thread designed their solution to address common industry challenges. “We are the Thread that spans an entire organization, or an entire utility… across all their assets,” Josh explains. This comprehensive approach made their solution attractive to enterprise clients managing vast infrastructure networks.

Leverage Industry Network Effects

Understanding industry dynamics proved crucial. “Utilities are a very unique market. It is a fast follower, close knit, heavy influence market,” Josh shares. Success with XL Energy, which spans “five states, ranging from the canadian border to the mexican border,” opened doors throughout the industry.

Position Around Industry Transformation

Thread aligned their solution with broader industry trends. “There is a generational opportunity…utilities making the pivot into renewables and making a pivot away from large opex, which was fossil fuels and uranium, to produce power,” Josh notes. This positioning helped secure buy-in for their innovative approach.

For B2B founders targeting enterprise clients in traditional industries, Thread’s experience shows the importance of patient relationship building, demonstrable value creation, and strategic positioning. Their success with XL Energy demonstrates how the right approach can turn a single enterprise partnership into an industry-wide opportunity.