Tonic’s Enterprise Expansion: A Founder’s Guide to Moving Upmarket
Moving upmarket is one of the most challenging transitions for developer-focused companies. In a recent episode of Category Visionaries, Tonic Co-CEO Ian Coe shared how they successfully navigated this evolution while staying true to their developer roots.
Understanding Enterprise Complexity
The first key to Tonic’s successful upmarket expansion was acknowledging the fundamental differences between SMB and enterprise customers. “If you are a 50 or 100 person company and you’re working with a 10,000 person company, they’re going to have a lot more complexity,” Ian explains.
This understanding came naturally to the founding team, thanks to their enterprise background. “We saw what it looks like to solve data problems at very large organizations, at large scale,” Ian notes. This experience proved invaluable when adapting their product and approach for enterprise needs.
Maintaining Developer Trust
While expanding to serve enterprise needs, Tonic remained committed to their developer-first approach. “The people that benefit from tonic are technical folks,” Ian emphasizes. “And so I think they appreciate candor, they appreciate substance.”
This commitment to technical authenticity extends to their content strategy. Rather than shifting to traditional enterprise marketing, they continued focusing on “blog posts that attach to open source projects that we think are genuinely useful to the community… blog posts that are actually instructive and help people level up.”
Building Enterprise Credibility
For enterprise deals, Tonic found that execution matters more than size. “The most important thing you can do with a customer that’s significantly larger than you is do the things you say you’re going to do,” Ian stresses. This focus on delivery helped them build credibility with larger organizations despite being a smaller company.
Adapting Their Message
Recent market changes have required subtle shifts in how Tonic communicates value. While their core message hasn’t changed – “the value of tonic’s building better software faster, it’s protecting your customers data” – they’ve adapted how they present it. Ian notes they’re now “helping customers think through those business cases… helping folks understand there are ways you can use tonic to do cost savings.”
Leveraging Natural Growth
Their developer-first approach created powerful expansion opportunities. “A lot of our customers have found us through referrals,” Ian shares. “We’ve even had customers where they were working somewhere, they moved somewhere else, and they brought us into the new company.”
Looking to the Future
As Tonic continues to grow, their vision has expanded beyond their initial focus. Success now means enabling technical teams to “focus entirely on the intellectual challenges of their work and not on the painful data privacy, data cleanliness, data portability, challenges that plague so much of work that touches data today.”
Yet they maintain their commitment to starting with developer experience. “When I think of three, four, five years out, yes, I think we will be in that Synthetic Data category, but I also suspect we will be pushing into broader categories around how customers operate with their data,” Ian explains.
For founders navigating their own upmarket expansion, Tonic’s journey offers valuable lessons. Building enterprise features doesn’t mean abandoning your initial users. By maintaining authentic connections with developers while thoughtfully addressing enterprise needs, companies can create a sustainable path to upmarket growth.
The key is understanding that enterprise expansion isn’t about pivoting away from your core users – it’s about building upon the trust and value you’ve already created while addressing the additional complexity that comes with larger organizations.