Late mover advantage is like turning up late to a potluck.

You see what's left, pick the best dishes, and avoid that weird casserole no one touched. Smart move!

Late Mover Advantage 

• Why Read:

  • Learn how being a late entrant in a crowded market can be advantageous by helping you to identify gaps, differentiate your offering, and establish strategic partnerships.

• Featuring:

  • Rebecca Szkutak (@rebecca_szkutak), Senior Writer at TechCrunch+

• Link: 

  • “Why being the last company to launch in a category can pay off”

Key Concepts and Tactics:

• Identifying Gaps in the Market:

  • Point: Analyze competitors' products and target audiences to identify opportunities to differentiate your offering.

  • "When Caraway launched, it joined companies like Our Place, Great Jones and Made In Cookware in an increasingly crowded category of online cookware startups. But being a little late to the party allowed Caraway to see what other brands' products and target audiences were, Nathan said on a recent episode of TechCrunch's Found podcast. This allowed Caraway to change its approach and try to fill the gaps these brands were leaving open."

• Adapting Product Design and Pricing:

  • Point: Adjust your product design, pricing, and packaging based on insights gained from observing competitors.

  • "It helped us change our color palette, it helped us change our price point, what pieces that we put in the set," Nathan said. "And while a lot of those other brands did a lot of things right, we were able to craft our space within the kitchen DTC world that others weren't playing in."

• Focusing on Unique Selling Propositions:

  • Point: Identify and emphasize unique aspects of your product offering to stand out from competitors.

  • "Caraway's competitors also helped Caraway decide to start talking to retailers early in the process. Nathan said they always had planned to launch in stores, but seeing that none of the other DTC brands were looking to enter retail, Caraway started talking with retailers even before it launched online. You can now find Caraway sets at Target and Costco, among others."

• Establishing Retail Partnerships Early:

  • Point: Consider partnering with retailers early on to expand your reach and tap into existing customer bases.

  • "Getting into retailers early helped cement Caraway's stake in the wedding registries as it launched in retailers that had existing registry businesses like Target and Bed Bath & Beyond, before it went bankrupt. This made Caraway a more natural choice for couples building their registries than its startup cookware competitors."

• Persevering Through Fundraising Challenges:

  • Point: Be prepared for potential challenges in fundraising when entering a crowded market, and persist in seeking alternative funding sources if necessary.

  • "Because of this, the first fundraising round was a slog, and Nathan said that after a 10-month period of talking to five to eight investors a day, they were able to close a seed round including more than 100 investors and no big checks from VCs."

5 Fundraising Tactics

Why Read:

• Actionable advice on staying diligence-ready, identifying the right investors, adapting your pitch, leveraging your network, and maintaining independence while scaling your startup.

Featuring:

• Colin Steele(@colinsteele), Director of Marketing Communications at York IE

Link: 

• “5 Startup Fundraising Tips for Founders”

Key Concepts and Tactics:

• Staying Diligence-Ready:

  • Point: Maintain up-to-date financial analysis and data-driven KPIs to make better business decisions and streamline the due diligence process.

  • "By utilizing financial analysis and data-driven KPIs in your day-to-day, you'll be able to make better business decisions and grow more strategically. And when the next diligence process comes up, you'll be able to strike while the iron's hot."

• Identifying the Right Investors:

  • Point: Look for investors with relevant experience who can provide valuable advice and support.

  • "We wanted that talent around us. We really searched out for people that could give us the right advice, who have been in the trenches and seen all the hard things as you're going through raising that capital, but also then deploying that and building your business."

• Adapting Your Pitch:

  • Point: Pay attention to what resonates with investors and adjust your pitch accordingly.

  • "I had to feel out what was resonating with people, and that seemed to resonate."

• Leveraging Your Network:

  • Point: Develop a strong network of advocates who can help you make connections and spread the word about your company.

  • "The name of the game is having people who are going to sing your praises behind your back, who are going to say, 'Who you should really talk to is this investor' or 'That person could be a great fit for XYZ reason,' because, especially if you're a solopreneur, you can't be everywhere all the time. But you can develop almost an army of people who are advocates, evangelists, ambassadors on your behalf."

• Maintaining Independence:

  • Point: Focus on building a company that customers and employees love, rather than getting caught up in vanity metrics and the traditional venture capital culture.

  • "One of the main reasons people get into entrepreneurship is the independence that it creates. Don't lose that as you scale."

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