Extra Crunch Roundup: Influencer Marketing, China Tech & Growth Teams

The Power of Influencer Marketing for Startups

Prior to engaging a marketing consultant unfamiliar with your offerings, or a Chief Marketing Officer lacking industry-specific experience, explore the potential of influencer marketing.

The concept often conjures images of high-profile endorsements, but an influencer can be someone as accessible as a dedicated Reddit contributor managing your Telegram community.

Insights from Jonathan Martinez

Jonathan Martinez, Growth Marketing Manager at Uber, suggests that if your startup possesses a well-defined brand message, “a compelling incentive,” and “clearly defined actions for engagement,” you are well-positioned to connect with influencers.

Martinez details, in a recent article, strategies for crafting offers designed to optimize conversion rates and sustain influencer motivation in promoting your products and services.

Access to complete Extra Crunch articles is exclusive to members.
Utilize the discount code ECFriday for a 20% reduction on one- or two-year subscriptions.

Today, we featured an interview with Julian Shapiro, a growth strategist, founder, and angel investor who also provides guidance to startups on effective self-presentation.

The Art of Storytelling in Marketing

While marketing relies heavily on data analysis, impactful storytelling is fundamentally an art form, according to Shapiro.

Establishing an emotional connection with consumers necessitates “a combination of positive sentiment, core values, social standing, and customer satisfaction – alongside other elements that foster affinity.”

Thank you for reading Extra Crunch this week!

Walter Thompson

Senior Editor, TechCrunch

@yourprotagonist

The Pursuit of the Next Cryptocurrency Exchange Giant

Following the release of Coinbase’s latest earnings report, substantial investment was directed toward a key international rival.

Alex Wilhelm, in his analysis for The Exchange, meticulously examined financial data from Coinbase, FalconX, and FTX.

This detailed review aimed to provide a comprehensive understanding of the current landscape within the cryptocurrency exchange sector.

Analyzing the Competitive Landscape

Wilhelm’s investigation focused on key metrics and performance indicators across these prominent platforms.

The analysis sought to contextualize Coinbase’s position relative to its competitors, particularly FalconX and FTX.

Cryptocurrency exchanges are currently attracting significant investor attention, mirroring the growth seen with Coinbase.

Insights from the Earnings Report

The positive reception of Coinbase’s earnings fueled investor confidence in the broader cryptocurrency market.

This confidence translated into increased funding for companies positioned to challenge Coinbase’s dominance.

The report highlighted the potential for substantial returns within the rapidly evolving digital asset space.

Key Players in the Exchange Market

Coinbase remains a leading exchange, but FalconX and FTX are emerging as strong contenders.

FalconX distinguishes itself through its focus on institutional trading and sophisticated financial products.

FTX, known for its innovative derivatives offerings, is rapidly gaining market share among retail and institutional investors.

• Coinbase: A publicly traded exchange known for its user-friendly interface.
• FalconX: A platform catering to institutional investors with advanced trading tools.
• FTX: A rapidly growing exchange specializing in derivatives and futures trading.

Understanding the strengths of each platform is crucial for investors seeking opportunities in the cryptocurrency market.

Building and Organizing a Growth Team

Businesses generating between $5 million and $10 million in yearly revenue often find it beneficial to establish dedicated growth teams. This represents a strategic investment for startups that have successfully attained product-market fit.

However, the introduction of such teams can sometimes create internal shifts. Existing marketing and product managers might perceive a change in leadership as new, cross-functional teams assume greater responsibility.

Essential Team Members and Integration

Sam Richard, Senior Director of Growth at OpenView, provides a comprehensive guide to constructing a growth team. He details the key personnel required and outlines strategies for seamless organizational integration, alongside suggesting valuable experiments to implement.

Richard emphasizes that a single individual cannot solve all growth challenges. While a talented hire can generate innovative concepts, they require a supporting team to transform those ideas into actionable experiments and ultimately, successful implementations.

A strong growth team necessitates collaborative effort. It's not simply about finding one exceptional person.

The team must be equipped to execute and iterate on ideas effectively.

Key Considerations

Successfully integrating a growth team requires careful planning. It’s crucial to address potential concerns from existing team members.

Clear communication and defined roles are paramount to avoid disruption and foster collaboration.

Indiegogo’s CEO Discusses Crowdfunding’s Pandemic Response

Andy Yang, CEO of Indiegogo, recently discussed with Brian Heater the effects of the pandemic on the crowdfunding platform.

He also addressed the difficulties encountered when assuming his position following the previous CEO’s departure, and detailed the path the company took to achieve profitability.

Initial Financial Status and Leadership Transition

Was the company operating at a loss when you began your tenure?

Profitability was not present upon my arrival. A shift towards profitability, or at least financial neutrality, was quickly realized after I joined.

Any leadership change inevitably leads to some staff turnover. In this instance, several long-serving employees chose to leave, effectively creating a new team almost immediately.

The company was essentially refounded, and a deliberate strategy of gradual team expansion was implemented over the subsequent two years.

This expansion was consistently guided by a focus on maintaining profitability and securing independent control over the company’s future.

Navigating the Pandemic and Achieving Financial Stability

The pandemic presented unique challenges and opportunities for Indiegogo.

The platform adapted to the changing landscape, and the leadership team focused on building a sustainable business model.

This involved careful financial management and a commitment to controlled growth.

Ultimately, these efforts resulted in the company reaching a point of financial stability.

Kickstarter’s CEO Discusses the Evolution of Crowdfunding

Kickstarter recently revealed that over 200,000 projects have been successfully funded by backers, totaling $6 billion in pledges since its inception in 2009.

This milestone was reached just 15 months after surpassing the $5 billion mark.

Brian Heater conducted an interview with Aziz Hasan, the current CEO who assumed the role in 2019.

The discussion centered on the significant workforce reductions implemented last year, the lasting effects of the pandemic on the crowdfunding landscape, and strategies for fostering a more durable organization.

Building a Stable and Resilient Kickstarter

Hasan emphasized the importance of thoroughly evaluating the company’s operational procedures.

A key focus is ensuring adequate financial reserves to provide stability and confidence for the team.

The goal is to establish a working environment that promotes both stability and resilience within the organization.

Impact of Recent Events

The CEO highlighted the necessity of operating with a sufficient financial buffer.

This buffer is intended to safeguard the team against unforeseen challenges and ensure continued operational capacity.

Ultimately, these measures are designed to cultivate a sense of security and long-term viability for Kickstarter.

Focus Your Pitch Deck on a Single, Compelling Investor Belief

Founders often seek guidance on crafting effective pitch decks. This is a crucial phase for any startup, and numerous strategies can be employed.

Recently, Michelle Davey, representing telehealth staffing and services provider Wheel, and Jordan Nof from Tusk Venture Partners, participated in an Extra Crunch Live session to dissect Wheel’s Series A pitch.

Nof emphasized the importance of entrepreneurs clearly articulating the core belief investors must embrace to support their venture.

He explained that this direct approach minimizes ambiguity for the investor and directs their attention to the central problem being addressed.

According to Nof, the pitch deck represents a unique opportunity to shape an investor’s perspective. Failing to do so can lead to misinterpretations and a divergence from the core value proposition.

The Power of a Central Thesis

Presenting a clear, concise thesis allows investors to quickly grasp the fundamental assumptions underpinning the startup’s success.

This focused approach streamlines the evaluation process and increases the likelihood of securing funding.

Competing with Amazon: A Strategy for Online Retailers

Directly challenging the dominance of Amazon in the e-commerce landscape can appear unproductive. However, smaller online businesses can cultivate customer loyalty by offering distinct advantages, according to Kenny Small, VP of SAP and Enterprise at Qualitest Group.

Small suggests that Amazon’s primary strength lies in its highly efficient logistics and delivery system. Attempting to replicate this infrastructure is generally unrealistic for competing retailers.

Therefore, a more effective approach involves concentrating on areas where differentiation is achievable, without resorting to selling through Amazon’s marketplace.

Focusing on Core Strengths

Rather than attempting to match Amazon’s speed of delivery, retailers should prioritize building strengths in other areas. This allows them to establish a unique brand identity.

Customer experience and specialized product offerings are key areas for focus. These can create a compelling reason for customers to choose an alternative to Amazon.

Value-Added Services

Consider offering services that Amazon doesn’t readily provide. Personalized support and curated product selections can significantly enhance customer satisfaction.

Here are some potential strategies:

• Niche Product Selection: Specialize in a specific product category.
• Exceptional Customer Support: Provide responsive and helpful assistance.
• Community Building: Foster a sense of community around your brand.

By concentrating on these aspects, online retailers can carve out a sustainable niche and build a dedicated customer base, even in the face of Amazon’s considerable market share.

China's Regulatory Actions in the Tech Sector Persist

Recent weeks have seen increased scrutiny of the education technology (edtech) and financial technology (fintech) industries by the Chinese Communist Party.

Now, messaging applications and the gaming sector are also facing regulatory pressure from Beijing.

Legal Action Against Tencent and Criticism of Gaming

A civil lawsuit has been initiated by Beijing against Tencent, alleging that its WeChat Youth Mode is in violation of regulations designed to safeguard minors.

Furthermore, state-controlled media outlets have likened the gaming industry to the distribution of narcotics to young people, as detailed by Alex Wilhelm in The Exchange.

Wilhelm suggests that these developments signal a continuation of the current trend from the Chinese government.

This includes increased concerns regarding the influence of substantial capital within its industries, subsequent declines in stock values, and delays in initial public offerings (IPOs).

Expectations for the Future

The expectation is for a sustained period of increased regulation and oversight within China’s technology landscape.

This ongoing crackdown is likely to impact both domestic companies and those seeking to enter the Chinese market.

Leveraging Artificial Intelligence to Address the Global Shipping Challenges

Customer satisfaction is significantly impacted by current shipping delays and supply chain interruptions in today’s fast-paced, on-demand environment.

According to Ahmer Inam, the chief artificial intelligence officer at Pactera EDGE, AI offers viable solutions.

He proposes five distinct strategies for utilizing AI to enable startups to better comprehend supply chain vulnerabilities and formulate contingency plans.

AI's Role in Supply Chain Resilience

While AI cannot entirely shield businesses from future disruptions, it can substantially improve their ability to detect, foresee, redirect, and react to them.

Five AI-Powered Strategies

• Enhanced Supply Chain Visibility: AI-driven analytics can provide real-time insights into the location and status of goods.
• Predictive Risk Assessment: Machine learning algorithms can identify potential disruptions before they occur.
• Dynamic Route Optimization: AI can automatically adjust shipping routes to avoid delays.
• Demand Forecasting: Accurate demand predictions minimize inventory imbalances.
• Automated Communication: AI-powered chatbots can keep customers informed about shipping updates.

Benefits for Startups, Manufacturers, and Retailers

These AI applications are particularly beneficial for startups, manufacturers, and retailers navigating the complexities of the global shipping crisis.

By proactively addressing potential issues, businesses can maintain operational efficiency and enhance customer loyalty.