tmk.edu startup + brand collaborations: october 2016
TRANSCRIPT
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!
