Winning large enterprise customers is one of the biggest challenges for startups, but having advanced technology alone may not be enough. According to Databricks co-founder Arsalan Tavakoli-Shiraji, building relationships, establishing partnerships and understanding business requirements are equally important for securing major contracts.
Tavakoli-Shiraji, who helped Databricks secure its early enterprise deals, believes startups often make the mistake of expecting their products to sell themselves. He explained that businesses must also prepare for legal, contractual and cybersecurity requirements before approaching large organisations.
One strategy that helped Databricks expand was partnering with Microsoft through its Azure cloud platform. The partnership provided access to Microsoft's established sales network, helped arrange meetings with major customers and made it easier to navigate enterprise agreements.
He also highlighted four major concerns businesses must address when selling AI solutions: context, choice, cost and control. Enterprise customers want AI systems that understand their business processes, offer flexibility in model selection, provide predictable operating costs and maintain strong security controls.
Another opportunity lies in modernising outdated enterprise technology. Many banks and large organisations still depend on legacy systems that are expensive and difficult to maintain. AI agents could help analyse older code, understand existing systems and support their modernisation.
His advice highlights an important lesson for startups: long-term enterprise growth depends not just on building better technology but also on understanding customer needs, earning trust and delivering measurable business value.
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