Agile Marketing Meetup - Distribution to raise VC $
- 1. Distribution to Raise VC $ Agile Marketing Meetup - February 11, 2014 Mike Harden - Artis Ventures Paul Willard - Subtraction Capital Sponsors: Mindjet + Hotwire
- 2. Disclaimers Never legal/tax advice Distribution focus Still too broad Snowflakes Disruptive software
- 3. My Scars 4 Tech Startups >$500m raised Dozens of advisory raises Move to the Dark Side
- 4. Series Seed: The Problem Problem Not how does this make the world a better place Vitamin pain pill: Addiction? 7 deadly sins Portfolio test
- 5. Series Seed - The Rest Market - Run rate People - Tech/Product/Distribution Multiple - perceived value Bonus points: virality, network, ip Pilot - the bar
- 6. Series A: Product-Market Fit Beta customers Enterprise - 5 Consumer - fanboys Take the product away? LTV proxies Conversion/Activation Engagement/1st Time UX Retention
- 7. Reverse Engineering Active User % 100% Active % Month since sign-up
- 8. Series A: Revenue Model eCommerce Media Seat License Freemium Free for consumers Fortune 500 premium Sales method
- 9. Series A: Bonus Points Funnel Cohorts Addictive design Seeding the funnel Virality, network, ip Scalable growth Progress - the bar A
- 10. Growth Rounds B+ Cumulative Customers Up and to the right/scalable Quality/LTV/ROI - Cohorts Revenue Ramp Quality % Customers Paying
- 11. Cohorts (the shizzles) Cumulative LTV/customer Vintage curves Very predictive Almost anything can be cohorted Unitization Cohort buildup vs averages Active User %
Editor's Notes
- #4: I did not raise > $500m, rather I was in leadership positions in the product, marketing, and design areas at companies that raised > $500m
- #5: relieving pain = dopamine to the brain The Power of Habit: Duhig Hooked: Eyal & Hoover
- #6: Pilot: People are first time at the rodeo? Then pilot must be further
- #7: Net referrer score Customer Satisfaction
- #8: Most common: people think their product is for everyone but learn verticals after rollout Tuning product to appeal to the right market Chicken & eggs: creating active users
- #9: Revenue distribution Broadest adoption Least friction Most defensible