Chief Community Officer: The New CMO?

The Evolving Role of Community in Startups

The concept of community extends beyond a single platform like Slack, an event, or a newsletter. It represents a comprehensive collection of interactions encompassing current customers, potential customers, and even those with only brief engagement. Despite its fragmented nature, organizations are increasingly prioritizing diverse communication channels, driven by the prevalence of remote work and digital interactions.

Growing Investment in Dedicated Community Teams

Recent discussions highlight a significant shift: startups are now making substantial investments in community building, allocating dedicated budgets rather than diverting funds from sales and marketing. This demonstrates a growing recognition of community’s intrinsic value.

One founder articulated this change by stating that the “chief community officer is the new CMO.” This observation sparked further interest, particularly following a conversation with Mac Reddin, founder of Commsor, regarding his company’s recent $16 million Series A funding round led by Felicis and Seven Seven Six Ventures.

Commsor: An Operating System for Communities

As the importance of community becomes increasingly apparent, Commsor emerges as a solution designed to help community managers demonstrate the value of their efforts and track tangible outcomes. Reddin positions Commsor as the central operating system for managing communities.

The platform assists companies in understanding the nuances of their various communities, potentially leading to increased sales leads and revenue generation. For example, Commsor can identify key users, such as “three engineers from Google utilizing your platform,” prompting proactive outreach for potential enterprise contracts. Identifying these opportunities and fostering grassroots adoption is a core strength of Commsor.

A Rapidly Expanding Market

Currently in private beta, Commsor reports a substantial increase in startups allocating budgets specifically for community initiatives over the past year. However, disrupting a category still characterized by ambiguity presents unique challenges.

Building the Community Ecosystem

To address these challenges, Commsor launched C School, an educational resource for aspiring community managers. They also established a fund to support companies operating within the community space.

Furthermore, Commsor published a memo signed by prominent companies like Hopin, Lattice, and Notion, signifying a collective commitment to defining the future of the community landscape.

Reddin draws a parallel to the evolution of customer success a decade ago and revenue operations previously, stating, “People care about it and there are roles, but there’s still a lot of defining and growth to be done.”

In subsequent sections, we will explore competition among early-stage startups, address the pipeline challenge, and discuss Bitcoin’s recent achievements. You can connect with me on Twitter @nmasc_ or via email. Subscribe to Startups Weekly to receive it directly in your inbox every Saturday.

Could Your Investor Fund a Rival Company?

Typically, when an investor provides funding to a startup, the expectation is that this company will ultimately lead its market sector. This applies whether the focus is on products like CBD gummies, essential financial services, or innovative platforms such as peer-to-peer car rentals. Consequently, an investment in a direct competitor can be interpreted as a concerning sign and potentially damage the investor’s standing.

Key Insights from Alex Wilhelm: As software markets reach greater maturity, a shift may be occurring in investment strategies. Perhaps the landscape is evolving to accommodate investments in competing entities, a practice that could be described as strategically aligned, complementary funding.

Further Considerations: This week’s episode of Equity explored the intricacies of competition within the startup ecosystem. We discussed how certain investment decisions appear to seamlessly integrate with one another. You’ll need to listen to the episode to discover the specific firm in question, but here’s a clue: could the creators of Dispo monitor revenue generation from Clubhouse via Stir?

Olive's Challenge to Amazon in the E-commerce Sector

Founders of nascent companies frequently encounter a pivotal inquiry from potential investors and members of the press: What would be the outcome if a major technology company – such as Facebook, Apple, Amazon, Netflix, or Google – were to develop a similar product? This line of questioning aims to ascertain the founder’s unique capabilities and justification for tackling a specific problem, even in the face of substantial resources and engineering expertise from a large corporation.

Insights from Nate Faust, Jet's Co-founder: Having previously sold his company to Walmart for $3 billion in 2016, Faust is now embarking on a new venture to challenge Amazon with a focus on sustainable e-commerce practices.

Olive’s core concept centers around aggregating a customer’s online purchases into a single, weekly delivery, utilizing reusable packaging to minimize environmental impact.

This approach offers a compelling alternative to traditional e-commerce fulfillment methods.

Further Considerations: For those interested in understanding the dynamics of competing with Zoom, insights may be gleaned from four edtech startups and Google’s strategies in this area.

Debunking the Notion of a Talent Pipeline Deficiency

A common explanation for the limited diversity within Silicon Valley, encompassing both personnel and investment stakeholders, centers around the concept of a pipeline problem. This suggests a scarcity of suitably qualified, diverse candidates available to fill open positions. However, emerging research increasingly demonstrates the outdated and inaccurate nature of this perspective.

Megan Rose Dickey, a journalist, recently engaged in an interview with Dr. Joy Lisi Rankin, who serves as a research lead focusing on gender, race, and power dynamics within artificial intelligence at the AI Now Institute.

Key insights from Rankin’s research include:

Rankin emphasizes that increased openness regarding hiring practices and corporate recruitment strategies could be instrumental in mitigating biases. Such transparency would also effectively communicate crucial information to potential candidates.

Greater clarity in these processes can help attract a wider range of applicants.

Further Discussion: TC Sessions: Justice, scheduled for next month, will feature a discussion on the impact of research like this, alongside an examination of the structures inherent within venture capital, on early-stage founders. Featured speakers will include Arlan Hamilton, founder of Backstage Capital, and Brian Brackeen of Lightship Capital, among others. Tickets are currently available for $5; secure yours here.

TechCrunch Updates

The TC Sessions: Justice event for 2021 is scheduled to begin within the next fortnight.

Details regarding the TC Early Stage Pitch-Off competition have been released.

Event Details: TC Sessions: Justice 2021

Preparations are now complete for TC Sessions: Justice 2021, a significant event focusing on the intersection of technology and legal matters.

This year’s conference will feature discussions on crucial topics, including regulatory challenges and the future of tech policy.

Introducing the TC Early Stage Pitch-Off

TechCrunch is pleased to announce the upcoming TC Early Stage Pitch-Off, a platform for emerging startups to gain exposure.

The competition provides a valuable opportunity for early-stage companies to present their innovative ideas to a panel of experienced investors and industry leaders.

• Key Focus: Identifying promising startups with disruptive potential.
• Target Audience: Companies in their seed or Series A funding stages.
• Benefits: Exposure to potential investors and media coverage.

Further information about registration and participation in the TC Early Stage Pitch-Off can be found on the TechCrunch website.

Weekly Highlights

Featured on TechCrunch

The price of Bitcoin surpassed $50,000 as anticipation builds for Coinbase’s upcoming direct listing on the stock market.

Clubhouse, the audio-based social networking app, has exceeded 8 million downloads worldwide, according to recent data.

Queenly, a marketplace specializing in formalwear, was launched with backing from Y Combinator.

Uber has announced an extension of its work-from-home policy, now continuing through mid-September.

Two startups are pursuing debt financing as an alternative to traditional equity funding.

Highlights from Extra Crunch

The edtech sector is experiencing accelerated growth, fueled by the pandemic and the rise of Special Purpose Acquisition Companies (SPACs).

Increased investor activity surrounding SPACs has the potential to significantly alter the landscape of private market funding.

Expert advice is available regarding the process of filing for a green card for an impending spouse.

SaaS businesses that implement usage-based pricing models often demonstrate faster rates of growth.

The valuations of companies like Stripe ($115 billion) and Coinbase ($77 billion) may be justifiable given current market conditions.

Finally, consider this analysis of how ten investors foresee the future of mobility, with predictions focusing on Mobility-as-a-Service (MaaS), on-demand delivery, and electric vehicles.

Until next time,

Natasha