Naming companies, Fundraising advice, When to build a second product and more #0020

12/12/2023

INTERVIEWS

Harry Stebbings, Founder at 20VC, interviews Sam Corcos, Co-founder, CEO at Levels and discuss Corcos' experience founding Levels, his fundraising strategies, extracting value from investors, and balancing personal life with entrepreneurial endeavors and more in “20VC: Why Founders Should Take as Many VC Meetings as Possible [...] with Sam Corcos @ Levels“

• Take Many VC Meetings: Founders should actively seek numerous meetings with venture capitalists for learning, feedback, and network expansion.

  • "I think you should take as many meetings and do as many pitches as you can. The feedback that you'll get from really good investors tends to be really positive like you will learn from people who have way more exposure to your Market category than you do."

• Be Open to Meeting Associates in VC Firms: Engaging with associates can offer valuable insights and connections, even if they aren't decision-makers.

  • "I think you should take as many meetings and do as many pitches as you can...finding the ones who they've already done the research they're not taking this meeting as like a random thing of oh well you know I got to fill up my 9:00 am slot they're taking it because they're already looking for a company in this category because they've done their homework and they get it."

• Post-IPO Operators as Valuable Angels: Seek out post-IPO operators as angel investors for their practical insights and networks.

  • "One of the biggest categories was early employees at post IPO companies...for a $5,000 slot in your cap table you can get a tremendous amount of value from it. But it really only makes sense if you're able to extract value from it and make a process around it."

• Utilize Investors to the Fullest: Clearly communicate your needs to investors and strategically leverage their networks and expertise.

  • "I would say the highest leverag ones tend to be more specific...if you can get something really concrete and easy to execute on, your conversion rate goes up a lot. I think we've had something like more than 3,000 specific investor asks that I've sent people and I think our conversion rate is maybe 50% from that group but pretty high."

• Create Theater in Pitching: Present your startup in a compelling and engaging manner, especially when conveying a big vision.

  • "I think if you're trying to pitch a big vision for the future, theater is absolutely critical...you got to try different Avenues of attack you've got to try different language you've got to try different pitches to determine which of these work and eventually you narrow in on like these three talking points always work and then you get really good at it."

Jules Schwerin, Partner at RTP Global, is interviewed by Nate Pierotti, Principal at New Stack Ventures and shares insights on how AI technology is impacting legacy industries, the advantages of vertical SaaS, and discuss the evolving landscape of the Series A funding in “413. How AI Will Transform Legacy Industries, The Bull Case for Vertical SaaS, and the Future of the Series A Market (Jules Schwerin)“

• Schwerin discusses the appeal of investing in industries that are behind in technology adoption. He notes, "almost by definition, since there are sort of lagging industries, in the sense of technology adoption, there’s just not as much software. So you can think of them sort of like Greenfield opportunities in a lot of ways. And also definitionally. Because these markets are smaller, like trucking or trash hauling or scrapyard software. Not a lot of folks are exposed to it. So there’s not a lot of awareness, there aren’t folks coming out of Georgia Tech, or MIT or Stanford saying, you know, I’ve got a great startup idea, instead of building Uber for whatever, I’m going to build an operating system for industrial scrap yards [...] So these markets are largely untouched by modern tech. And that presents a pretty interesting opportunity. In my opinion."

BRANDING

David Placek, Founder of Lexicon Branding, Inc. emphasizes the importance of crafting powerful and distinctive brand names for startups. He highlights how a compelling name can set a startup apart in a competitive market and serves as the foundation for a strong brand identity in “Crafting unforgettable startup names that resonate, inspire thought, and make competitors wince“

• Names Should Stimulate Thought and Imagination:

  • "The best names free your audience to imagine. Brand names should be created to generate interest and suggest a story... When you make it easy to imagine, you make it easy to purchase"

  • "Influential names focus on being remarkably distinctive and noteworthy... They give power to new ideas and confidently lead your audience to conclude that your new product has a story and can help your audience rethink expectations about the category itself."

  • "Using arbitrary words is another great way to make your audience lean in and inquire about your brand."

• The Importance of Memorability:

  • "Simply put, if your brand name is forgettable, you will lose. To influence a consumer’s choice, you must control what they remember... Memorable names make it easier for consumers to buy your product... We also know that imagery is one of the best ways to boost brand name memorability... In a sea of cold, tech-focused software names, Red Hat boldly stands out."

• Popular Names Might Not Be the Best Choice:

  • "The most popular names are usually the most comfortable, and there is no power in comfort when naming. Oscar Wilde once said, 'An idea that isn’t dangerous is hardly worth calling an idea at all.' In branding, this follows suit — the best names involve some risk."

• Names That Challenge Competitors:

  • "Since a registered brand name is the one thing your competitors cannot take away from you, it must make them wince every time they see it. If you think they’ll shrug it off or create something better, take the name off the list. Be unique, disruptive, and calculated when taking risks with your name."

PRODUCT

Casey Winters, growth advisor and investor guides founders on when and how to develop second products to achieve sustainable business growth. He emphasizes the increasing necessity of new product development in a company's lifecycle in "When and How to Build Second Products"

• Importance of Second Products in Tech Companies:

  • "Companies can rarely ride one product into the IPO sunset anymore... Almost every recent tech IPO is multi-product at the time of IPO."

• When to Invest in New Products:

  • "What are the factors that contribute to how quickly you need to be investing in that second product after the first product finds product/market fit?"

  • "Historically, the factor that most people use as a heuristic is the business model... The smaller the market is, the faster you need to expand the addressable market to grow."

• New Product Expansion by Business Model:

  • "Let’s break some examples down by business model and start with pure consumer businesses."

  • Detailed comparisons of Pinterest and Snapchat, Figma and Canva, showing different approaches to product expansion based on their business models.

• On How to Know If New Products Are Successful:

  • "But second products don’t need to do all of that to matter... they need to influence it for the overall company, not just the product itself... If a second product has high retention and can effectively acquire new users, but can never inflect the growth of the overall business, it’s not successful."

• Final Advice on New Product Development:

  • "In order for us to get better at building great, enduring businesses, we need to talk about the types of expansions that matter for companies... It’s time to ditch outdated portfolio practices and innovation teams, and build modern approaches around when to start building, investing hard in building new products when it is the right time."

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