How to climb the enterprise logo ladder as an infrastructure startup.
Gil Feig, Co-Founder & CTO at Merge
Gil Feig described his company’s customer evolution in a single phrase: climbing the logo ladder.
“We had to climb a logo ladder, right? We are an infrastructure provider and infrastructure providers do not close enterprises on day one. It’s quite rare.”
This is not the narrative they pitch. Most infrastructure startups don’t lead with “we take five years to sell to real customers.” But that’s the actual timeline. And there’s a playbook hidden inside it.
The ladder has steps
You don’t start with JP Morgan. You start with a startup that’s ambitious enough to try something new. You prove that your infrastructure can scale with them. You learn from their problems. They audit you. Then you move up.
“We had to climb a logo ladder. It was a sort of climbing the ladder, serving a company, proving that we could serve a down market customer well, improving our security posture, signing a better customer, a larger company that was even stricter on security, having them then audit and critique us and moving up slowly but surely until we finally hit the sort of mass enterprise.”
The progression is precise. Early customer. Small company. Mid-market company with stricter security requirements. Large company that audits you. Fortune 500. LLM lab. It’s not random. Each rung teaches you something that the next rung requires.
The early startup customer doesn’t have complex compliance needs. They teach you what it means to ship and iterate. The mid-market customer has permissions and basic access controls. They teach you that infrastructure complexity scales faster than you expect. The enterprise customer has audit logs and compliance frameworks. They teach you that reliability is non-negotiable.
By the time you’re closing Fortune 500s or AI labs, you’ve built the depth required. You’ve survived their audits because you’ve already passed versions of them three times. You know the permission model because you’ve debugged it at smaller scales first.
“Yeah, it was not easy,” Gil said.
Why this playbook exists
This isn’t a strategy. It’s the shape of how infrastructure gets built. Small companies can take risks. They’ll try beta features. They’ll tolerate bugs in exchange for lower cost or faster integration. They give you something that enterprises will never give you: permission to fail fast.
That failure is valuable because it teaches you what breaks at scale. An early customer hits an edge case. You fix it. The next customer hits a different edge case. You fix that too. By the time you’re selling to enterprise, you’ve pre-solved most of the problems.
Large companies won’t be your QA. They’ll expect infrastructure to work. So you do the QA with smaller customers first. You run the same integration against their different setups. Their custom fields. Their weird permissions. Their old API versions.
“And we serve a lot. I just want to make sure I don’t say any that we don’t have logo rights for here,” Gil mentioned when I asked about their customer base. They have logos. Recognizable ones. But they didn’t start there.
What each rung teaches
The early-stage customer teaches you speed. How fast can you iterate? How quickly can you onboard? What’s the MVP infrastructure?
The growth-stage customer teaches you stability. They have more employees. More data. Higher uptime expectations. They’re not forgiving of downtime.
The mid-market customer teaches you security. They have IT teams. They ask about encryption. They request audit logs. They want to understand how you handle permissions. This is where you realize that your early architecture has to be rethought.
The enterprise customer teaches you compliance. They bring lawyers. They have policies. They audit you. But by this point, you’ve already built the things they’re auditing for. You’re not scrambling to understand their needs. You’ve seen versions of them.
“Climbing the ladder, serving a company, proving that we could serve a down market customer well, improving our security posture, signing a better customer, a larger company that was even stricter on security, having them then audit and critique us and moving up slowly but surely.”
Each word matters. You serve a small customer, prove you can handle them, improve yourself, then approach a harder customer. You don’t try to jump to enterprise. You climb.
What happens if you skip steps
Some infrastructure companies try to close enterprise early. They pitch hard. They get press. They maybe even land a pilot. Then they hit the step they skipped. A customer audits them and finds missing pieces. The pilot gets frozen. The company is now in triage mode instead of growing.
Merge didn’t skip. It took five years. That seems long until you realize that Merge now has enough depth that enterprise customers trust them with critical data. That trust is what allows them to serve Netflix’s internal agents and AI labs at scale. You can’t shortcut to that.
The logo ladder exists because infrastructure is only proven at the step where it’s being used. Enterprise-grade reliability isn’t something you can claim from a whitepaper. It’s something you earn by surviving increasingly difficult customers.
The luck you make
“Yeah, we had to climb a logo ladder. We are an infrastructure provider and infrastructure providers do not close enterprises on day one. It’s quite rare.”
This reads like resignation. It’s actually strategy. By the time you’re rare, you’re valuable. By the time you close enterprise, you’re not competing on pitch anymore. You’re competing on depth.
That depth takes time. But it’s also why, once you have it, customers stick with you. Netflix doesn’t use Merge because of a slide deck. They use Merge because six years of smaller customers proved that Merge understands how to scale integrations without breaking. That’s not luck. That’s the ladder.
FAQ
Can you accelerate the climb? Some. You can choose your early customers strategically. You can pick startups that are growing fast and will push your infrastructure hard. But you can’t skip the tiers. Enterprise customers will audit you. You need the experience from smaller customers first.
Why don’t big companies just invest from the start? Because they can see the depth gap. They know you haven’t proved you can handle their scale, their security, their compliance needs. Early investment is possible, but trust still takes time.
Is the logo ladder specific to infrastructure? Mostly. SaaS products can sometimes close enterprise earlier because the surface area is smaller. Infrastructure is riskier. A bad integration can cascade through a customer’s entire system. So enterprise is more cautious.
How long does each rung typically take? Merge took about one year per rung in the early stages, then accelerated once the pattern was proven. That’s not universal. Some teams move faster, some slower. The pattern matters more than the timeline.
What if you get stuck on a rung? You’re generating revenue, which is good. But you’re not moving toward enterprise. At that point, it’s worth asking: are we stuck, or is this the right market for us? Not every infrastructure company needs to reach Fortune 500.
How do you pitch when you’re early on the ladder? You don’t pitch enterprise. You pitch the value to the customer you’re actually serving. For startups, that’s speed and cost. For growth-stage, that’s reliability. Each rung has different priorities.
Does this apply to AI infrastructure too? Absolutely. The companies building AI infrastructure are climbing their own ladders right now. The ones being cautious and learning at each rung will have more trust when they reach Fortune 500s and labs.
What happens after you reach Fortune 500s? You’re now a platform. The next rung is thought leadership and enabling ecosystems. That’s a different game, but it still builds on the foundation of surviving increasingly difficult customers.
Full episode coming soon
This conversation with Gil Feig is on its way. Check out other episodes in the meantime.
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