tmk.edu startup + brand collaborations: october 2016

OCTOBER 7TH, 2016

KBS VENTURES STARTUP + BRAND COLLABORATIONS

• KBS VENTURES OVERVIEW• BACK TO BASICS: STARTUP DNA• BRAND / STARTUP RELATIONSHIPS• WORKING WITH STARTUPS• TRAINING CLIENTS• QUESTIONS

IN TODAY’S CLASS...

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

VENTURES CREW4

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”

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:

VENTURES IS AN INNOVATION PIPELINE:

16KBS PORTFOLIO

COMPANIES

400+VENTURE

AFFILIATIONS

500+STARTUPS SCREENED/

YEAR

80+NETWORK

INTROS

DEAL FLOW COMES FROM DEEP RELATIONSHIPS WITHIN THE VENTURE COMMUNITY

KBS VENTURES PORTFOLIO

BACK TO BASICS

WHAT IS A

STARTUP?

BACK TO BASICS

“A STARTUP IS A TEMPORARY ORGANIZATION IN SEARCH OF A SCALABLE, REPEATABLE, PROFITABLE BUSINESS

MODEL, OPERATING UNDER CONDITIONS OF EXTREME UNCERTAINTY”  

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

BACK TO BASICS

BACK TO BASICS

“AN ENTREPRENEUR IS PERSON WHO ORGANIZES AND MANAGES AN ENTERPRISE, WITH CONSIDERABLE

INITIATIVE AND RISK”  

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

WHAT’S MY POINT?

TO EFFECTIVELY COLLABORATE WITH STARTUPS, YOU FIRST NEED TO UNDERSTAND THEIR DNA.

BRANDS ARE TAKING NOTE

BY PARTNERING…

BRANDS ARE TAKING NOTE

BY INVESTING...

HOUSEHOLD BRANDS ARE BUYING STARTUPS TO REACH END USERS BETTER AND CREATE GREATER EFFICIENCIES IN THEIR OWN BUSINESS

BRANDS ARE TAKING NOTE

BY ACQUIRING...

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”

DIFFERENT COMPANY STAGES

MATUREMID STAGEEARLY STAGE

• DEALING WITH FOUNDER • LIKELY NO SALES/MARKETING EXPERTISE • POTENTIALLY PRE LAUNCH • VAGUE PRICING MODEL /PRODUCT

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

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

TALE OF TWO CITIES:

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?

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

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

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

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

TITLE / HEADER

WANT TO LEARN MORE ABOUT STARTUPS?

GET INVOLVED WITH VENTURES!

CONTACT:

JESSICA PELTZ-ZATULOVE, PARTNERJPELTZ@KBSP.VC

QUESTIONS?