Presented by Jessica Peltz: October 7th, 2016
This class will cover how to understand and work with the range of startups you see everyday. We'll talk about how to vet a startup for business and production traction, how to gauge the depth of their team and experience, how to research their funding and traction, and how to figure out the best way to work with them. We'll also discuss how startups perceive agencies and brands and how to create a good working relationship with startups.
2. • KBS VENTURES OVERVIEW
• BACK TO BASICS: STARTUP DNA
• BRAND / STARTUP RELATIONSHIPS
• WORKING WITH STARTUPS
• TRAINING CLIENTS
• QUESTIONS
IN TODAY’S CLASS...
3. 3
INVESTS IN EARLY STAGE B2B TECHNOLOGY
STARTUPS WITH ENTREPRENEURS TRANSFORMING MADISON AVENUE AND
ADDRESSING THE NEEDS OF THE MODERN CMO
SEED, SERIES A NO CONSUMER
TEAM FOCUSED
DIRECT RELEVANCE TO KBS
4. VENTURES CREW
4
JOSH ENGROFF JESSICA PELTZ
• MANAGING PARTNER, VENTURES
• CHIEF DIGITAL OFFICER, TMK
• 3X SERIAL ENTREPRENEUR
• BI-WEEKLY MEDIA POST COLUMNIST
• PARTNER, VENTURES
• STARTUP/BRAND EXPERT
• FEATURED ON CNBC, FOX BUSINESS
• “35 PEOPLE IN NYC TECH TO WATCH”
5. A NEW WAVE OF
TECHNOLOGY COMPANIES
ARE TACKLING THE
MODERN CMO'S NEEDS:
ADAPTIVE ANALYTICS
EVOLUTION OF COMMUNICATION
EVOLUTION OF CONTENT
PERSONALIZATION AT SCALE
BRAND SAFETY AND PROTECTION
OUR FOCUS AREAS:
6. VENTURES IS AN INNOVATION PIPELINE:
16
KBS PORTFOLIO
COMPANIES
400+
VENTURE
AFFILIATIONS
500+
STARTUPS
SCREENED/
YEAR
80+
NETWORK
INTROS
7. DEAL FLOW COMES FROM DEEP RELATIONSHIPS WITHIN THE VENTURE COMMUNITY
10. BACK TO BASICS
“A STARTUP IS A TEMPORARY ORGANIZATION IN SEARCH
OF A SCALABLE, REPEATABLE, PROFITABLE BUSINESS
MODEL, OPERATING UNDER CONDITIONS OF
EXTREME UNCERTAINTY”
11. STARTUPS BY THE NUMBERS
...<1% GET VENTURE FUNDING
http://www.entrepreneur.com/dbimages/article/where-startup-funding-really-comes-from-infographic.jpg
ACCORDING TO THE SMALL BUSINESS ADMINISTRATION,
~565,000 STARTUPS ARE LAUNCHED IN THE US EACH MONTH...
6.7M LAUNCHED IN THE US PER
YEAR
13. BACK TO BASICS
“AN ENTREPRENEUR IS PERSON WHO ORGANIZES AND
MANAGES AN ENTERPRISE, WITH CONSIDERABLE
INITIATIVE AND RISK”
14. TITLE / HEADER
“BEING AN ENTREPRENEUR IS LIKE EATING GLASS AND
STARING INTO THE ABYSS OF DEATH”
- ELON MUSK, FOUNDER OF TESLA
“WHEN I WAS A STARTUP CEO I SLEPT LIKE A BABY - I
WOKE UP EVERY 2 HOURS AND CRIED.”
- BEN HOROWITZ, FOUNDER OF OPSWARE AND A16Z
BACK TO BASICS
15. WHAT’S MY POINT?
TO EFFECTIVELY COLLABORATE WITH STARTUPS,
YOU FIRST NEED TO UNDERSTAND THEIR DNA.
18. HOUSEHOLD BRANDS ARE BUYING STARTUPS TO REACH END USERS BETTER AND
CREATE GREATER EFFICIENCIES IN THEIR OWN BUSINESS
BRANDS ARE TAKING NOTE
BY ACQUIRING...
19. WHY?
• MAXIMIZE THE POTENTIAL OF TECHNOLOGY: “BUILDING A BETTER MOUSETRAP”
• FENDING OFF COMPETITION
• ABILITY TO DO THINGS BETTER, CHEAPER, FASTER WITH TECHNOLOGY
• LEARN TO BECOME MORE ENTREPRENEURIAL, MORE AGILE AS A BUSINESS
• DESIRE TO KEEP UP WITH CUSTOMERS
• ASKING “WHAT IF....”
WHY THIS INTEREST??!
EMBRACE IT:
“WHAT WILL, AND COULD PUT YOU OUT OF
BUSINESS”
20. DIFFERENT COMPANY STAGES
MATUREMID STAGEEARLY STAGE
• DEALING WITH FOUNDER
• LIKELY NO SALES/MARKETING
EXPERTISE
• POTENTIALLY PRE LAUNCH
• VAGUE PRICING MODEL /
PRODUCT
21. MATUREMID STAGE
DIFFERENT COMPANY STAGES
• SMALL SALES TEAM
• ABILITY TO PROVIDE CASE
STUDIES / CLIENT ROSTER
• LIKELY SOME VENTURE FUNDING
• DEALING WITH FOUNDER
• LIKELY NO SALES/MARKETING
EXPERTISE
• POTENTIALLY PRE LAUNCH
• VAGUE PRICING MODEL /
PRODUCT
EARLY STAGE
22. MATUREMID STAGEEARLY STAGE
DIFFERENT COMPANY STAGES
• SMALL SALES TEAM
• ABILITY TO PROVIDE CASE
STUDIES / CLIENT ROSTER
• LIKELY SOME VENTURE FUNDING
• STRONG SALES TEAM
• DEFINED PRICING AND BUSINESS
MODEL
• NUMEROUS CASE STUDIES
• WELL FUNDED OR PROFITABLE
• DEALING WITH FOUNDER
• LIKELY NO SALES/MARKETING
EXPERTISE
• POTENTIALLY PRE LAUNCH
• VAGUE PRICING MODEL /
PRODUCT
24. WHAT TO LOOK FOR:
2. PRODUCT
• IS IT LIVE? IN BETA?
• WHAT IS DEFENSIBLE?
• WHAT ARE THE BARRIERS
TO ENTRY/EXIT?
• WHAT FEATURES ARE ON
THE ROADMAP?
1. GENERAL
• WHAT’S THE FOUNDERS
BACKGROUND?
• WHAT PROBLEM ARE THEY
SOLVING, AND WHY?
• ARE THEY FUNDED?
• WHO ARE THEIR
COMPETITORS?
3. BRAND
• DO THEY HAVE ANY CASE
STUDIES?
• WHAT’S THE PRICING
MODEL?
• WHAT VERTICAL ARE THEY
FOCUSED ON?
• WHAT METRICS ARE
AVAILABLE?
WHAT IS THE FOUNDER’S PERCEPTION, OR PROBLEM THEY BELIEVE
THEY CAN SOLVE FOR YOUR BRAND?
25. KEEP IN MIND...
STARTUPS PROBABLY WON’T KNOW...
• AGENCY LANGUAGE (RFP, LUNCH & LEARN, ETC.)
• PLANNING PROCESSES
• CLIENT / AGENCY ROLES AND RESPONSIBILITIES
• WHY PROCESSES, RESPONSE TIME, AND EXECUTION CAN BE SLOW :-)
• BILLING / PAYMENT PROCESSES: PAY UPFRONT IF POSSIBLE!
MANAGE EXPECTATIONS ON TIMING AND PROCESSES
26. WHAT’S THE SET UP?
CLIENT SET UP: *COLLABORATION IS KEY!
1. SMALL, ISOLATED PILOT TEST: SET EXPECTATIONS
2. DEFINE A HYPOTHESIS: IF, THEN
3. CLEAR SUCCESS METRICS: BENCHMARK!
4. SHARE LEARNINGS: WHO ELSE CAN BENEFIT?
5. STRATEGY TO SCALE: ITERATE AND EXPAND
27. EXAMPLE
WEB BASED PUSH NOTIFICATIONS (NEW CRM CHANNEL)
1. ISOLATED TEST:
2. DEFINE A HYPOTHESIS:
3. CLEAR SUCCESS METRICS:
4. SHARE LEARNINGS:
5. STRATEGY TO SCALE:
4 WEEKS IN NOVEMBER
IF WE MESSAGE VIA WEB PUSH VS. EMAIL AS A
CHANNEL, THEN ENGAGEMENT WILL BE HIGHER
LANDINGS, REPEAT VISITORS, TIME ON SITE
OTHER CLIENTS, OR PRODUCTS THAT HAVE SIMILAR KPIS?
TWEAK MESSAGING, LEVERAGE FOR HOLIDAY
28. WHAT’S THE SET UP?
REASONS TO BELIEVE...
• “FUTURE PROOF” THE BUSINESS
• FAILURE DRIVES LEARNING, OPTIMIZE AHEAD OF “PRIME TIME”
• LEAP FROG THE COMPETITION
• NOT MEANT TO REPLACE EXISTING INITIATIVES, COMPLIMENT EMERGING BEHAVIOR
• DO A LOT WITH A LITTLE: MOST STARTUPS CAN GET A PILOT TEST DONE FOR UNDER $10K
• .... OR POTENTIALLY FOR FREE! BARTER FREE PILOTS IN EXCHANGE FOR THINGS LIKE:
• SOCIAL OR CRM SUPPORT (E.G. FACEBOOK POST, TWEET, EMAIL, ETC.)
• CO-BRANDED PRESS RELEASE
• ABILITY TO PUBLISH / USE CASE STUDIES
• MENTORING / OFFICE HOURS / ADVISORY ROLES
SUCCESSFUL STARTUP / BRAND COLLABORATIONS ARE
TYPICALLY MUTUALLY BENEFICIAL, MENTORING RELATIONSHIPS
29. TITLE / HEADER
WANT TO LEARN MORE ABOUT STARTUPS?
GET INVOLVED WITH VENTURES!