TechCrunch+ Roundup: SV Funding, 2022 Marketing & GTM Strategies

The Shifting Landscape of Tech Investment

Detroit’s rise as the automotive capital of the United States was primarily driven by practical considerations. Its central location within the Midwest, coupled with a dense population and access to essential raw materials, convinced investors of its suitability as an industrial center.

Conversely, the initial growth of Silicon Valley’s technology sector stemmed from investments in military research and a post-World War II increase in university enrollment. This fostered a collaborative environment of technologists and venture capitalists.

Geographic Advantages Aren't Permanent

However, these initial advantages – such as proximity to shipping ports or abundant mineral resources – are not immutable geographic characteristics.

More than ten years have passed since the Bay Area secured less than 30% of all U.S. seed and early-stage venture capital, as reported by Mary Ann Azevedo, analyzing data from Revolution and PitchBook’s “Beyond Silicon Valley” report.

Several factors are now prompting investors in established tech hubs to explore opportunities beyond their immediate regions. The leading destination for investment dollars originating from New York City and San Francisco may surprise many.

A Decentralization of Funding

Revolution founder and CEO Steve Case predicts that the current trend is only the beginning, stating, “This momentum we’re seeing now? You ain’t seen nothing yet.”

While a headline proclaiming “Silicon Valley’s share of US VC funding falls to lowest level in more than a decade” might appear concerning, it is viewed positively by many residents of the Bay Area.

The San Francisco Bay Area has undeniably benefited from attracting both technological expertise and financial resources. However, this concentration has also created challenges related to infrastructure, housing affordability, and economic disparity.

Benefits of a Wider Distribution

Despite its advantages in climate and cuisine, the Bay Area doesn’t hold a monopoly on innovation. Increased startup activity in cities like Cincinnati, Portland, and Buffalo will not only stimulate those local economies but also lead to a broader range of perspectives and novel products.

A more diverse range of locations will foster new services and products that reflect a wider spectrum of ideas and backgrounds.

Thank you for your time, and have a pleasant weekend.

Walter Thompson
Senior Editor, TechCrunch+
@yourprotagonist

Key Marketing Shifts Anticipated in 2022

The landscape of growth marketing has undergone substantial alterations since the onset of the global pandemic.

Changes in consumer behavior, particularly the adoption of Apple’s iOS 14.5 privacy features, increased regulatory scrutiny of browser cookies, and the widespread phenomenon known as The Great Resignation are all contributing factors.

According to Jonathan Metrick, chief growth officer at Sagard & Portage Ventures, and Simon Lejeune, user acquisition lead at Wealthsimple, strategies effective in the past are no longer guaranteed to yield the same results.

Their projections for the future include:

• A decline in data availability coupled with heightened privacy concerns, leading to a resurgence of growth hacking techniques.
• The increasing influence of TikTok, content creators, and the prioritization of authentic, platform-native content.
• Intensified competition for skilled growth talent driven by The Great Resignation.

These developments necessitate a proactive and adaptable approach to marketing strategy.

The Impact of Privacy and Data Limitations

The shift towards greater user privacy, exemplified by iOS 14.5, is significantly reducing the amount of data available to marketers.

This data scarcity is prompting a re-evaluation of traditional marketing methods and a renewed focus on innovative, resourceful strategies like growth hacking.

TikTok and the Rise of Native Content

TikTok’s continued growth and the expanding influence of social media influencers are reshaping content creation and distribution.

There is a clear trend towards prioritizing authentic, engaging content specifically designed for each platform, often referred to as native creative.

The Challenge of Attracting and Retaining Talent

The Great Resignation has created a highly competitive market for skilled professionals, particularly in the field of growth marketing.

Companies are facing a significant challenge in attracting and retaining top talent, leading to a fierce competition often likened to the Battle of Gettysburg.

Leveraging Customer Research to Inform Your Go-to-Market Strategy

Securing a skilled marketer as an initial hire is crucial for any startup’s success. However, identifying your target users and understanding their needs is paramount.

According to Lucy Heskins, a marketing consultant specializing in early-stage ventures, a deep understanding of the customer’s context is essential. She emphasizes that understanding the factors that prompt a customer to utilize your product is fundamental.

Heskins outlines three pivotal inquiries designed to enhance your comprehension of your ideal customers. These insights can then be strategically integrated into subsequent marketing initiatives:

• What core value proposition would motivate a customer to commit to your product?
• What specific events or realizations lead a customer to select your offering over alternatives?
• Who represents your competitive landscape, and what are their strengths?

Understanding these elements is vital for effective market positioning.

Delving Deeper into Customer Motivations

The reasons behind a customer’s subscription are multifaceted. It’s not simply about the product’s features, but the problems it solves for the user.

Identifying the precise triggers that prompt a purchase decision allows for targeted messaging. This ensures your marketing efforts resonate with potential customers at the moment they are most receptive.

A thorough competitive analysis is equally important. Knowing your rivals allows you to differentiate your product and highlight your unique advantages.

Applying Research Findings to Marketing Campaigns

The data gathered from customer research should directly influence your marketing strategy. Targeted advertising, content creation, and product messaging can all be refined based on these insights.

For example, if research reveals a specific pain point, your marketing materials can directly address that issue. This demonstrates a clear understanding of the customer’s needs.

Continual customer research is not a one-time task. It’s an ongoing process that ensures your go-to-market strategy remains relevant and effective.

Addressing Consular Appointment Concerns: Two Case Studies

Dear Sophie,

This correspondence addresses two distinct inquiries regarding consular appointments and visa processing. Both cases highlight challenges faced by individuals navigating the U.S. immigration system.

K-1 Visa Interview Delays

The first question concerns a K-1 visa petition filed prior to the global pandemic. The applicant’s fiancé experienced a cancellation of his scheduled visa interview due to unforeseen circumstances.

With the easing of U.S. travel restrictions, the petitioner is understandably seeking an update on the resumption of visa interview scheduling.

Current Status of Visa Interviews: Consular sections are progressively working through significant backlogs created by the pandemic. Interview availability varies considerably depending on the specific consulate.

• Many consulates have resumed interviews, though appointment wait times can still be substantial.
• Some locations are prioritizing certain visa categories, potentially impacting the K-1 visa processing timeline.
• It is recommended to regularly check the consulate’s website for updates and to monitor the National Visa Center (NVC) status.

H-1B Visa Stamp Renewal

The second inquiry involves an individual currently in the U.S. with an approved H-1B petition. However, their passport lacks the necessary H-1B visa stamp.

The individual intends to travel to Mumbai to visit family and is concerned about obtaining a visa stamp quickly enough to facilitate a return to the U.S. within one month.

Obtaining an H-1B Visa Stamp: Returning to India for visa stamping requires scheduling an appointment at the U.S. consulate in Mumbai.

Timeframe Considerations:

• Appointment availability at the Mumbai consulate can fluctuate.
• Processing times for visa stamping can vary.
• It is crucial to apply for the visa stamp well in advance of the planned return travel date.

Given the one-month timeframe, expedited appointment requests may be considered, though approval is not guaranteed. Proactive planning and diligent follow-up are essential.

— Sophie

A Unique Perspective on Investment Management

The investment management sector operates under a distinctly competitive dynamic, where success for one firm often correlates with setbacks for others. This observation is made by David Teten, founder of Versatile VC, and Katina Stefanova, CIO and CEO of Marto Capital.

Unlike many industries, positive outcomes aren't universally shared. For example, enjoying a superior meal doesn’t diminish the dining experience of others. However, in asset management, achieving alpha – returns exceeding benchmark performance – necessitates underperformance elsewhere.

This article, the initial installment of a series focused on investment management, provides an analysis of the industry’s present condition. Teten and Stefanova also detail the factors suggesting it is ripe for significant change.

The Zero-Sum Nature of Asset Management

A key characteristic of investment management is its zero-sum nature. Gains realized by one manager are directly offset by losses experienced by others.

This contrasts sharply with industries where innovation or growth can create value for all participants. In those scenarios, a win-win situation is often possible.

Factors Driving Potential Disruption

Several elements are converging to create an environment conducive to disruption within the investment management landscape.

• Increased competition from passive investment strategies.
• The rise of alternative data sources and analytical techniques.
• Evolving investor preferences and demands for transparency.

These forces are challenging traditional investment models and creating opportunities for new entrants. The current structure of the industry is being actively questioned.

Teten and Stefanova’s analysis suggests that the industry is poised for a period of substantial evolution. Their subsequent posts will likely delve deeper into these disruptive forces.

Usage-Based Pricing: A Holistic Organizational Strategy

OpenView partner Kyle Poyar, in a recent contribution to TechCrunch+, details why the implementation of usage-based pricing necessitates a comprehensive, company-wide commitment.

He argues that adopting this model requires a departure from traditional SaaS metrics.

UBP is not a transient trend; its increasing prevalence stems from the demonstrably improved growth and customer retention experienced by SaaS businesses that employ it.

The Benefits of Aligning Pricing with Value

Poyar highlights successful implementations by industry leaders such as Twilio, Stripe, and AWS.

These companies demonstrate how usage-based pricing fosters a shared success model with their clientele.

By tying revenue to customer value, businesses mitigate the risk of accumulating a large base of unprofitable users within their CRM systems.

Reducing Risk and Enhancing Profitability

A key advantage of usage-based pricing is its ability to align the vendor’s incentives with those of the customer.

This alignment leads to a reduction in churn and an increase in lifetime value.

Consequently, companies can focus on supporting and expanding the usage of their most valuable customers, rather than attempting to salvage unprofitable accounts.

A Shift in the SaaS Playbook

The transition to usage-based pricing represents a fundamental shift in how SaaS companies approach revenue generation and customer relationships.

It demands a re-evaluation of key performance indicators and a commitment to measuring and optimizing for value delivered.

Ultimately, this approach positions businesses for sustainable growth and long-term profitability.