6 GTM Lessons from Disrupting a Legacy Industry: Insights from Hive Watch’s Security Revolution
In a recent episode of Category Visionaries, Ryan Schonfeld from Hive Watch shared his journey of transforming physical security from a hardware-centric, channel-dependent industry into a modern software category. Here are the key GTM insights that emerged from that conversation:
- Sometimes Your Biggest GTM Challenge Is the Category Itself
When your target market associates your category with failed solutions, conventional positioning won’t work. As Ryan explains, “In physical security, what you’ll find is PSIM is literally and figuratively a four letter word. It’s not something that most organizations want.” Rather than trying to rehabilitate a damaged category, focus on creating distance between your solution and historical failures.
- Speed-to-Value Can Redefine Market Expectations
Legacy industries often accept inefficient processes as unchangeable facts. But questioning these assumptions can reveal powerful differentiation opportunities. “The legacy products in our space have an average 14 month deployment cycle,” Ryan notes. “One of the North Stars for Hive Watch is that an organization should be able to get us up and operational within 30 days.”
- Cut Out Unnecessary Distribution Layers
Complex distribution networks often persist because “that’s how it’s always been done” rather than because they add value. Ryan highlights this problem: “By the time the product actually touches the customer’s hands, number one, it’s seen I don’t even know how many markups, but number two, the support available to the customer is restricted to the people within that channel.”
- Turn Industry Constraints into Opportunities
Rather than accepting industry limitations, look for ways to turn them into competitive advantages. Ryan observed that security departments were “throwing more people at the problem to do manual analysis.” This inefficiency became the foundation for Hive Watch’s value proposition: automation and streamlined operations.
- Early-Stage Market Education Pays Off
When Hive Watch started, Ryan found that “almost every VC we talked to didn’t have a thesis on the physical security space and really just didn’t understand it.” Rather than seeing this as a barrier, they used it as an opportunity to shape the narrative around industry transformation. By their Series A, these same firms had developed investment theses around physical security.
- Build Your Go-to-Market Around Customer Success
Instead of relying on third-party implementation partners, Hive Watch created an internal customer advisory team staffed with industry consultants – expertise that customers would typically have to pay for separately. This direct support model not only accelerates deployment but creates stronger customer relationships.
These lessons extend beyond physical security. For founders targeting legacy industries, the key takeaway is clear: Question every assumption about how products reach customers. The most innovative aspect of your business might not be your technology, but how you deliver it to market.
As Hive Watch demonstrates, companies that successfully challenge industry GTM conventions can grow rapidly while maintaining quality. They expanded from 25 to over 65 employees in under a year while keeping turnover minimal and building what Ryan describes as “one of the most diverse companies in our industry.”
The success of this approach is evident in how quickly enterprise buyers have embraced their solution. Despite targeting a traditionally conservative market, Hive Watch has found that organizations are increasingly “open to technology” and recognize that “technology is necessary.” This openness, combined with their reimagined GTM strategy, has enabled them to drive change in an industry that hadn’t meaningfully evolved in over a decade.
For founders looking to transform legacy industries, these lessons offer a blueprint for success: Challenge conventional wisdom, eliminate unnecessary complexity, and build direct customer relationships. Sometimes the most powerful innovation isn’t in your product – it’s in how you bring it to market.
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