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Strategic Communications Advisory For Visionary Founders
Actionable
Takeaways
Build Sales Pipelines Early:
OpenPath developed their sales strategy and built strong pipelines long before the product was fully deployed. Having early conversations with key decision-makers can accelerate product adoption post-launch.
Solve a Fundamental Industry Problem:
OpenPath’s success lies in addressing a long-standing pain point—fraud and chargebacks in the payments space. Identify critical inefficiencies in your industry and focus your product on solving them.
Leverage Partnerships for Faster Growth:
OpenPath’s partnership with another payments company helped them innovate faster and create a compelling new product. Strategic partnerships can accelerate product development and market reach.
Prepare for Fundraising Early:
Scott emphasizes the importance of always being overfunded. Plan your fundraising efforts at least a year in advance, and build relationships with investors before you need them to ensure smoother capital raises.
Think Long-Term About Exits:
OpenPath is already laying the groundwork for an acquisition by establishing relationships with potential acquirers early. Building these relationships over time increases the chances of a successful exit and maximizes value for shareholders.
Conversation
Highlights
From Zero to Market Leader: How Openpath Built a Cloud-Native Access Control Platform
In a recent episode of Category Visionaries, Scott Dorey, Co-Founder of Openpath, shared the story of building a company that would fundamentally change how buildings handle access control. What started as a frustration with outdated technology became a mission to bring modern software architecture to an industry stuck in the past.
The Problem That Started Everything
Scott’s journey into access control began with a simple observation about market timing and technology gaps. The industry was ripe for disruption, dominated by legacy systems that hadn’t evolved with modern cloud infrastructure. “We wanted to build something that was inherently cloud native from day one,” Scott explains. “Everything was designed to be in the cloud, API first, mobile first.”
This wasn’t just about moving existing technology to the cloud. It was about rethinking the entire architecture. Traditional access control systems were built on premises with limited connectivity and outdated interfaces. Openpath saw an opportunity to rebuild from the ground up.
Building the Right Product Architecture
The decision to go cloud-native from day one shaped everything that followed. Scott and his team made deliberate choices about their technology stack that would pay dividends later. “We built it on AWS. We built a iOS and Android app from day one,” he says. This mobile-first approach meant users could manage access control from their phones, a stark departure from the clunky on-premise systems that required physical presence to make changes.
The API-first architecture was equally critical. By designing with integrations in mind, Openpath could connect with other building systems and software platforms. This openness would become a key differentiator as the market evolved toward interconnected building technologies.
The Go-to-Market Evolution
Openpath’s initial go-to-market strategy focused on a specific customer segment: innovative companies in tech hubs who valued modern, user-friendly technology. “We started off very much in the tech world, very much in San Francisco, New York, you know, the tech hubs,” Scott recalls. These early adopters understood the value proposition immediately and were willing to take a chance on a new player.
The company took a land-and-expand approach that proved effective in scaling. They would start with a single building or location, demonstrate value, and then expand within the organization. “We can get into one building and then spread out virally throughout that organization to other buildings,” Scott explains. This viral growth within organizations reduced customer acquisition costs and built momentum.
Navigating the Pandemic Disruption
When COVID-19 hit, Openpath faced an existential challenge. Access control for office buildings seemed irrelevant when offices were empty. “Obviously during COVID, it wasn’t ideal for us. We were definitely impacted. People were not renewing, they were going out of business, they were not in their offices,” Scott admits candidly.
But the team adapted quickly. They identified healthcare as a sector that desperately needed their solution during the pandemic. Hospitals and medical facilities required touchless access to reduce transmission risk, and Openpath’s mobile-first approach was perfectly suited for this need. This pivot helped them weather the storm and opened up an entirely new vertical.
The Enterprise Transformation
As Openpath matured, they faced the classic challenge of moving upmarket to enterprise customers. This required more than just scaling the product—it demanded a fundamental shift in how they sold and supported customers. “In the last couple of years, we’ve moved much more up market. We’re going after the big buildings, big customers, enterprise, Fortune 500, 1000 type customers,” Scott shares.
This transition required building out enterprise-grade features, compliance capabilities, and support infrastructure. The sales cycle lengthened, but the deal sizes grew proportionally. They had to develop new muscles around enterprise sales, implementation, and account management.
Strategic Distribution Through Integration Partners
One of Openpath’s most effective growth strategies has been building relationships with systems integrators and security dealers. Rather than trying to sell and install everything directly, they leveraged partners who already had relationships with building owners and facility managers. “We work a lot with systems integrators and security dealers to install and service our systems at our customers,” Scott explains.
This channel strategy allowed Openpath to scale faster than they could have with a purely direct sales model. Partners brought local expertise, installation capabilities, and existing customer relationships. Openpath provided the superior product and technology platform.
Lessons in Product-Market Fit
Scott’s experience reveals important insights about finding and expanding product-market fit. The key was starting narrow, proving value in a specific segment, and then methodically expanding. “We definitely started narrow and now we’re expanding into various verticals,” he notes.
This approach allowed them to build a product that worked exceptionally well for early adopters before tackling the complexity of enterprise requirements and diverse vertical needs. Each expansion taught them something new about the market and informed product development.
The Cloud-Native Advantage
Looking back, the decision to build cloud-native from the beginning was validated repeatedly. It enabled faster feature development, easier updates, and better security compared to on-premise competitors. “Everything was designed to be in the cloud, API first, mobile first,” Scott reiterates. This architectural choice became increasingly important as customers demanded better integrations and remote management capabilities.
The cloud-native architecture also allowed Openpath to scale their business model in ways that weren’t possible with traditional systems. They could offer subscription pricing, roll out new features seamlessly, and support customers globally without physical infrastructure in every location.
Building for the Long Term
Openpath’s journey demonstrates how thoughtful architectural decisions, strategic market entry, and adaptability during disruption can build a category-leading company. By staying focused on their core vision of modern, cloud-native access control while remaining flexible about tactics and target markets, they’ve positioned themselves as a leader in an evolving industry.
For founders building in traditional industries with legacy incumbents, Scott’s story offers a clear playbook: identify the architectural advantage, start with customers who value innovation, prove the model, then systematically move upmarket and expand into new verticals. The key is having the patience to build properly from the beginning and the agility to adapt when markets shift unexpectedly.
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