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The Demand Validation Test

The "how" behind ETHOS principle #1: validate demand, not interest. Five questions that separate real institutional demand from false positives, plus the depth probes that tell you whether your answers will survive a 12-18 month sales cycle. For edtech founders selling into K-12 districts, universities, or corporate L&D before they build, before they pitch, and before they ask for a pilot.

Source: "Cracking Higher Ed: Why Startups Miss the Mark" — Philippos Savvides, SXSW EDU 2026. Licensed CC BY 4.0.

If you can't answer all five questions, you're not ready. "Interesting" and "funded" are different categories. Enthusiasm is not demand. This file is the test that tells you which one you have.

The jobs you're validating live in higher-ed-jobs-atlas.md. The structural patterns the depth probes reference live in founder-traps.md. The interview method for discovering and pressure-testing these jobs lives in jtbd-interviews.md.


1. Who is struggling, and what is the struggling moment?

Not "who could benefit" but "who literally cannot do their job without a change?"

Name a specific person at a specific institution with a specific problem. If you can't, you have a hypothesis, not a job.

  • A job: "Academic advisors at large online programs manually triage 300+ students each term using spreadsheets, missing at-risk students until it's too late."
  • A hypothesis: "Universities could improve student outcomes with better analytics."

Depth probes:

  • Is the struggling moment in the phase where the person experiences the pain, or is it caused upstream? Trace the causal chain back one phase. (See Pattern 2 in founder-traps.md.)
  • Is the struggling moment structural (happens to everyone in that role at that phase) or situational (happens to a subset)? Structural jobs have larger markets.

Watch for: If the struggling moment is "students drop out" or "retention is low," you're describing a symptom. Keep asking why until you reach the decision point where things went wrong. The job lives at the decision point, not at the outcome.

2. What have they already tried (and why did it fail)?

If they haven't tried anything, the job isn't urgent enough to pay for.

Your real competitive set is not other edtech products. It's:

  • Spreadsheets and manual processes
  • Graduate assistants and TAs
  • Ignoring the problem entirely

What they've already hired and fired tells you the actual job. If the current workaround sort of works, your bar for adoption is higher than you think.

Depth probes:

  • Are they using workarounds that technically function but don't scale? Spreadsheets, grad students, and unofficial tool substitutions are signs of a real job with no adequate solution.
  • Have they tried solving the downstream symptom without addressing the upstream cause? If prior solutions targeted the wrong phase, your opportunity is the phase they haven't addressed.

Watch for: If "nobody's tried anything," either the job isn't painful enough to pay for, or you're talking to the wrong person. Real jobs always have workarounds, even bad ones.

3. Is there a budget line item?

This is the single biggest filter. "Interesting" and "funded" are completely different categories.

Ask the buyer: What budget would this come from? Acceptable answers:

  • "Title III funds"
  • "IT security budget"
  • "Student success allocation"
  • "We have a line item for retention tools"

Unacceptable answers:

  • "We'd have to figure that out"
  • "Maybe we could write a grant"
  • "Let me check with finance"

If the buyer can't name where the money comes from, the pilot is innovation theater.

Depth probes:

  • Does the budget sit with the person who experiences the pain, or someone else? If the user and the buyer are different people, you need the job statement for both.
  • Can you connect the job to a line item the buyer already has? Student success funding, retention budget, IT modernization, accreditation compliance.

Watch for: Pattern 4 in founder-traps.md applies here. The student feels the pain but the provider controls the budget. When talking to the budget holder, lead with the provider's job, not the student's experience. "Reduce grading turnaround from 5 days to 1" lands differently than "students feel they're teaching themselves."

4. What happens if they do nothing?

The cost of inaction must be quantifiable and urgent.

These are jobs:

  • "We lose accreditation"
  • "We lose $2M in retention revenue"
  • "We violate FERPA and risk federal funding"
  • "We can't staff enough advisors to handle enrollment growth"

These are hypotheses:

  • "Students might learn better"
  • "Faculty might save some time"
  • "It would be nice to have better data"

If the buyer can't articulate a concrete cost of inaction, they won't fight through procurement for you.

Depth probes:

  • Is the cost of inaction quantified or merely perceived? "We lose students" is perceived. "We lose $X in tuition revenue from students who drop after discovering their credits don't transfer" is quantified. Help the buyer do the math.
  • Does the institution even know the cost of inaction? Many costs are distributed across departments and invisible to any single stakeholder.

Watch for: Pattern 3 in founder-traps.md applies here. If the stated cost of inaction is based on stakeholder perception, check whether outcome data tells the same story. If every stakeholder says "the accelerated format is killing retention" but the data says otherwise, the real cost of inaction may be somewhere else entirely.

5. Who else must say yes?

If the answer is "just me," your pilot will succeed and your deal will die.

Real institutional adoption requires multiple approvals:

  • IT: Security review (HECVAT, SOC 2)
  • Legal: Compliance review (FERPA, data governance)
  • Finance: Budget approval and procurement process
  • Faculty governance: If the product touches curriculum or pedagogy
  • Accessibility: ADA / Section 508 compliance

If you don't know the approval chain before the pilot starts, you'll generate great evidence that never reaches the person who signs the purchase order.

Depth probes:

  • For each approver in the chain, what is their job? IT's job is risk mitigation. Legal's job is compliance. Finance's job is ROI. Your pitch must address each approver's job separately.
  • Have you mapped the full approval chain before the pilot starts? IT security review, legal and compliance, finance and procurement, faculty governance if you touch curriculum, accessibility review.

Watch for: If you've only validated with users and champions, you have enthusiasm without procurement. The pilot will succeed and the deal will die. Map every node in the approval chain and understand what job each node needs done before they say yes.


Scoring yourself

Question Strong signal Weak signal
1. Struggling moment Named person, named problem, named institution "Universities in general"
2. What they've tried You know the current workaround and why it fails "Nobody's tried this before"
3. Budget line item Buyer names the budget "We'd figure it out"
4. Cost of inaction Quantified financial or regulatory consequence "It would be nice"
5. Approval chain You've mapped IT, Legal, Finance, and faculty governance "Just my champion"
Score Verdict What to do
5/5 strong signals You have validated demand Design the pilot to produce the evidence the buyer needs.
3-4 strong signals Promising demand with gaps Address the weak signals before committing resources to a pilot.
0-2 strong signals You have a hypothesis, not demand Go back to discovery. Interview 10 more people who recently made a switching decision in this problem space — see jtbd-interviews.md.

After the pilot: noise vs. signal

The five questions above filter demand before you build. Once a pilot is underway, pressure-test the results with the four-question noise vs. signal filter in founder-traps.md. Short version: signal comes from buyers and procurement processes, noise comes from users and champions. If any answer is no, you have enthusiasm, not validation.


Last updated: 2026-05-30