5 Unconventional GTM Lessons from Yuvo Health’s Journey to 40,000 Customers
Sometimes the most valuable GTM lessons come from founders who had to throw out the conventional playbook entirely. In a recent episode of Category Visionaries, Cesar Herrera shared how Yuvo Health grew from 3,000 to 40,000 customers in just two and a half years by completely reinventing their approach to market. Here are five crucial GTM lessons that challenge conventional wisdom about scaling in regulated markets.
- When Your Customers Can’t Pay, Become Their Revenue Stream
The standard GTM playbook assumes your target customers can afford your solution if they see enough value. But what if that assumption doesn’t hold? Yuvo Health discovered this challenge with their initial business model: “When we first started and we first went to market, it was as what is called a management services organization… our revenue model was essentially an administrative fee paid by the health centers for those set of services,” Cesar explains.
The solution wasn’t to adjust pricing or demonstrate more value – it was to fundamentally reshape how money flowed through the market. They pivoted to become “the risk-bearing entity to actually take on risk under value based care to contract directly with health plans and use those contracts with health plans to actually directly funnel value based care revenue to our health center partners.”
- Build Trust by Solving Structural Problems, Not Just Feature Gaps
In markets with a history of exploitation, product capabilities alone won’t win trust. Cesar reveals their early messaging mistake: “When we first started, we really pushed that the most of, here are some capabilities that we know our health center partners are not allowed to build, do not have the capacity to build… We realized really quickly that wasn’t a compelling story.”
Instead of focusing on technical capabilities, they needed to address the structural challenges their customers faced. This meant understanding that “health centers are willfully under resourced and they need access to the capital today.” By solving this fundamental problem, they transformed from potential threat to trusted partner.
- Let Your Customers Be the Heroes of Your Marketing
Most companies put their own brand and capabilities at the center of their marketing. Yuvo Health took the opposite approach: “Most of our marketing is actually marketing for our FQHCs versus marketing ourselves,” Cesar shares. Their philosophy centers on ensuring “they have a seat at the table… highlighting and spotlight our FQHC partners versus us.”
This approach isn’t just about messaging – it’s about recognizing that in certain markets, your success depends on your customers’ success becoming more visible.
- Find the Regulatory Arbitrage That Creates Your Moat
Sometimes regulations that seem like barriers can become powerful moats if you structure your business correctly. Cesar explains: “Health centers are actually regulatorily prohibited from participating in value based care themselves. They need to have a third party partner that’s willing to take on the risk associated with value based care.”
By becoming that regulated third party, Yuvo Health created a powerful distribution advantage: “There are very few third party entities that directly support health centers.” Understanding and embracing regulatory constraints, rather than fighting them, became key to their competitive advantage.
- Scale Through Financial Alignment, Not Just Product Value
The path to scale isn’t always about better features or more sales – sometimes it’s about better alignment of financial incentives. “I’m very confident in how we’ve redesigned the model to get it right, because we’re, it is a win, win for all scenarios,” Cesar notes. “We’re driving cost savings to the health plan, we’re driving new revenue directly to our health center partners, and we’re creating sustainability to drive the infrastructure that we at Yuvo are building.”
This multi-stakeholder alignment created powerful network effects that drove rapid growth: from “3,000 to 10,000 to now nearly 40,000 patients that we’re at risk for in just two and a half year timeframe.”
The Deeper Truth About GTM Strategy
The conventional GTM playbook – build a great product, prove ROI, scale through sales and marketing – assumes your market operates with relatively standard dynamics. But in heavily regulated markets or those with structural barriers, success often requires reimagining the entire flow of value.
As Cesar summarizes: “Everything should be centered on your customer, whoever that is. Make sure that you truly understand the motivations of your customer and they’re quote unquote buying decisions. Because if you don’t understand that regardless of how great your solution is, you’re not going to be able to sell it.”
For founders building in complex markets, these lessons suggest that GTM strategy needs to start with deep structural understanding rather than conventional sales and marketing tactics. Sometimes the key to unlocking growth isn’t about selling better – it’s about restructuring your business to solve the fundamental barriers that prevent your customers from buying in the first place.