Forerunner’s Post

The fastest way to burn your $$ as an early-stage startup without getting traction is to pursue multiple markets (niches) in parallel.  Been there, done that! Founders are scared of “limiting their options", so driven by FOMO, they try to hedge their bets by going as broad as possible.  “Our product is for everyone!” is what I hear all the time.  And my counter is:  "By trying to craft messaging that appeals to everyone, you appeal to no one!" - Customers are really confused about what you have to offer.  - Your messaging doesn't resonate.  - Your closing rate is low. - Your CAC is high.  Trying to target many segments in parallel creates a mess for messaging but also for product roadmap and features. What would you do when the 10 segments you target want 10 different features? Do you build them all? You now spend a fortune building 10 different sets of features for 10 segments.  - Your product is incomplete for all segments. - Your product is not sticky for any segment. - Your product is a bunch of random features that are disconnected in the prospect's mind (since they come from different niches) You burn money on marketing that doesn't work, you build features that not everyone uses, and your product isn't sticky!    There is a better way:  The idea is to limit your market for the SHORT TERM.  Your goal is to run niche experiments SEQUENTIALLY to find a niche that can be "repeatable" and profitable, where you are able to say the same things, build the same features once, and get those customers to buy predictably.  Ideally, those should be the highest-paying customers that you can get for your product and the fastest to close.  Peter Thiel calls this “Land and Expand” in Zero to One.  Once you find one “repeatable” segment, dominate the sh*t out of it, build a brand in that niche, grow fast, then move to an adjacent segment, rinse and repeat. Facebook is for everyone, but they didn't start there. They landed first in one university, expanded to another, and then kept expanding in different ways until they got your parents and grandparents.  Do the same for the fastest way to market (and profitability)

We are excited to share additional insights from this week's #InvestorSpotlight feature, Battery Ventures. Battery Ventures provides a wealth of resources, including a noteworthy one on how startups can still grow during a recession. These insights are valuable and definitely worth sharing. Here are the key takeaways on how to achieve this: ➤Peer-to-peer marketplaces such as Uber and Taskrabbit thrived during economic downturns by offering alternative income opportunities, such as ride-sharing and freelance labor, which served as crucial lifelines during layoffs and economic crises. ➤Companies that provided more affordable options, like Airbnb in hospitality and Warby Parker in eyewear, captured market share post-recession by offering cost-effective alternatives that appealed to budget-conscious consumers. ➤During challenging economic periods, the "freemium" model, exemplified by Mailchimp and Slack, where basic services are free with paid upgrades, proved successful in rapidly expanding user bases and penetrating markets. ➤Businesses offering essential software solutions, like Salesforce and time-and-attendance systems, maintained stability and customer loyalty even during economic downturns, showcasing resilience through subscription-based revenue models and leveraging network effects. Check out the full article below. — At AXIS Capital Markets, we specialize in global #debtplacement and private market #secondaries for VC- and PE-backed companies. Learn more about us here: www.axisgroupventures.com. #privatemarket #secondaries #venturecapital #privatecredit #privateequity

ahh, the classic "My <thing> is the most important, the other stuff is easy/can be outsourced/not needed yet/etc" founder-who-will-fail-soon. In the linked story, it might be that the technical founders previous co-founder was lazy or incompetent, it happens. But *FOR SURE* this technical founder will struggle. They will find out that all the work that the non-technical founders do, because *someone* has to do this work for the company to succeed. They will most likely learn this slowly and at great financial cost because it will get done at the last second or late. The opposite of this the non-technical founder who says "Developers are expensive. I can just build it using no-code tools".

Creating high quality content that serves your audience — which isn’t just AI generated drivel — is going to be a huge differentiator for companies going forward. That doesn’t mean AI can’t play a role in the workflow… just that the vision and execution for the content strategy should come from thoughtful marketing, and AI plays a supporting executing role. Daydream is building exactly this. Check them out.

This is a good read and worth being aware of if you want to go into a business as a technical or non-technical co-founder. I think more can be done from both sides to help each other feel appreciated. As an engineer at the time, I struggled with this mindset when I came on as a technical co-founder many years ago. I, too, had some business experience, but nothing like running a VC-backed business in the tech world. I felt underappreciated and like my opinion wasn't valued. Since then, having seen what goes on from a product and business perspective, I have developed an appreciation for all the silent work behind the scenes. Even entertaining investors and partners to get buy-in, which at the time seemed like self-indulgence, is an important and very valuable skill. I am a very different person now, I have seen and been through a lot of shit and have far more self-awareness. Sometimes, we need others who complement our skills and fill in the gaps. I'm not saying one has to have co-founders, but there are situations where you have a far better chance at making it if you do, despite the challenges that come with it.

Some SEO tools are so impactful that not using them quickly becomes an insurmountable disadvantage. Bernard's Clearscope is that for editorial SEO. Using AI, Daydream will become that for programmatic SEO. So excited to support Thenuka and the team on their mission 🚀

Ever heard of the 'David vs. Goliath' strategy in the startup world? Scaling with limited resources is the modern-day equivalent. How do you achieve 10x growth without a million-dollar budget? 💡 Focus on Psychological Leverage Consider Dropbox—initially, they had no massive marketing budget. Instead, they tapped into the power of social proof and reciprocity by offering additional storage space for referrals. The result? 3900% growth in just 15 months. ⚙️ Another tactic: Resourceful pivoting. Airbnb, at its inception, couldn't afford expensive marketing campaigns. They hacked their way into Craigslist, posting their listings and driving traffic back to their site. Within weeks, their user base exploded. 📈 Metrics Matter: A study by CB Insights revealed that 29% of startups fail due to cash flow issues. Yet, those who leverage psychological principles like scarcity (think limited-time offers) see a 200% increase in conversion rates. When resources are scarce, creativity isn't just an asset—it's your lifeline. 📩 Curious about more real-world strategies to scale your startup? Let's connect and dive deeper into the psychology of growth. Reach out to me!

The 5 lessons this founder learned from 15 months of building an MVP and hitting $10k MRR within one year. Am scrolling through Reddit and came across this founder sharing theirs on building a $110k revenue startup. Below are the lessons, but first, their primary acquisition channels include; - Affiliates -Emails -PPC (recently launched) The five lessons shared quote & quote; 1/ If you’re trying to build something worthwhile, it takes time. I truly don’t understand the concept of “MVP in 4 weeks and grow!” 2/ Iterate all the time. I’ve spent 60+ hours with users for direct feedback and curated a few super users. 3/ Treat your team like people. Know their spouses, their kids, and their struggles, and they’ll have ownership over the process like no other. 4/ Raising money is easy if you have built a foundation of trust; but, the majority of people will still say no. It’s crazy how little cash “investors” actually have. 5/ Competition means there is a BIG problem to solve. If there’s no competition, it’s probably because there’s no problem. No.2 sticks out for me, you need to constantly iterate your product from the feedback you get from users. P.S.: Get free newsletter-proven product marketing. Link on profile.

I recently celebrated 17 years working as a fractional CFO to startups. A few things I've learned. 1/ Lead with your passion The best companies are founded by accident. They aren't founded by people who want to do a start up. They are founded by people who are scratching their own itch. Derivix (acquired by FlexTrade Systems) comes to mind. Two software engineers trading options in their spare time (their passion) realizing there should be a better way to do things. 2/ Slow is the way to go Make sure someone wants what you're building. Your first version should be low budget/high touch. Mailchimp (acquired by Intuit) comes to mind. Two web designers developing email campaigns (their passion) realizing there should be a simpler way to do things. Fun Fact: Mailchimp was bootstrapped with customer revenue. When they sold to Intuit for $12,000,000,000 they owned 100% of the shares. That brings me to the next lesson. 3/ Don't raise capital until you absolutely need it Raise slow. This seems like a paradox. But raising money slowly will lead to a more successful company. I've watched so many companies waste money because they had it to waste. I've watched founders get lazy and outsource roles they needed to deeply understand. The most important thing you can do is get in front of your customer. When you're doing sales you get a deep understanding of what your customer really thinks about your product or service. You'll see their facial expressions, hear their tone, and understand what's working and what's not working. If you can bring yourself to do customer service, you'll get an even deeper understanding of your customer. 4/ Know your numbers This is the #1 issue I see with founders. It's not fun to crunch the numbers so they avoid it. It's simple. Research your expense and revenue assumptions. A simple Google sheet is all you need. If you need help with this comment below and I'll help you for free. If you're starting a company in 2024, make sure it's something you are personally passionate about. It'll keep you motivated. Don't raise more money than you need. Do sales and customer service yourself to gain knowledge. Know your numbers. There's no excuse to fly blind. #startups #venturecapital #angelinvesting #financialmodeling #growthstrategy

I'm super excited to announce daydream's $2.5M pre-seed today, along with our feature in Axios (see comments below). Three things you should know about us: 1. We're building the next generation of tools for acquiring users at scale from search. 2. We're already working with some excellent companies including Notion, Tome, Twingate, Clay and others. If you're interested in working with us, DM me! 3. We have one open role on our team for a Founding Engineer (see comments). If this is you, please reach out to me directly! Here are a handful of the amazing people that are supporting us on the journey. --- Funds: Basis Set (Xuezhao (Lan) Lan), WndrCo (ChenLi Wang), Hustle Fund (Eric Bahn), Soma Capital (Willem van den Bosch), Moth Fund (Molly Mielke), Picks and Shovels (Joshua Schlisserman) and The Autopilot Fund (Hari Raghavan), Growth Leaders: Lauryn Motamedi (Isford) (Head of Product Growth at Notion), Melissa Tan (former Head of Growth at Webfow), Bryan Tsao (former VP of Growth at Dropbox), David Hoang (VP Marketing at Replit), and Michelle Lim (Growth Lead at Warp). SEO Leaders: Eli Schwartz (Author of Product-Led SEO and former Director of SEO at Survey Monkey), Nikolas Baron (former Head of SEO at Grammarly), David Ly Khim (Co-Founder, Omniscient). Other great angels: Lenny Rachitsky (of Lenny’s Newsletter), Cailen DSa (Co-Founder, Neo.Tax), Austen Allred, Cyrus Shirazi (former Director of GTM at Meow), Varun Anand (Head of Ops at Clay), Jason Zhang (VP of Product at Mesh), Tony Huie (CEO at Twingate)