Startup Community: Meaning & Importance in the Modern World

The Rising Importance of Community in Startups

A robust community represents a company’s most significant asset, according to Community-led’s foundational Declaration. Effective community building expands a business’s reach, resources, and overall impact in ways that conventional marketing strategies simply cannot replicate. When implemented successfully, community initiatives enhance customer acquisition, optimize support systems, improve customer retention, and deliver invaluable product feedback. Ultimately, community serves as the core engine driving the entire business forward.

Defining "Community" in the Startup Ecosystem

The Declaration underscores the significance of community for forward-thinking startups, while also acknowledging its adaptable nature. This raises a crucial question: what does the term “community” truly signify within the context of the startup world?

A straightforward answer might have been expected from the TechCrunch Disrupt 2021 panel discussion, “How to Cultivate a Community for your Company that Actually Lasts.” However, as experience moderating such panels has demonstrated, a simple definition remains elusive, largely due to the inherent flexibility of the concept. Is understanding community simply a matter of recognizing it when you encounter it, much like a well-known legal principle?

Core Elements of a Thriving Community

Alex Angel, chief community officer at Commsor, explains that the definition is nuanced. “The meaning depends on the individuals involved, the specific context, and the company itself,” she states. “However, at its most fundamental level, a community is a group of individuals united by a common purpose. This shared purpose could center around a product, a company, a particular subject, or any other unifying factor, but members intentionally gather to connect, discuss, and learn.”

While “community” has become a prevalent buzzword in Silicon Valley in recent years, seasoned advocates emphasize its foundational role in both entrepreneurship and venture capital investing.

The Rise of Community-Driven Companies

Lolita Taub, VP of corporate Development at Catalyte and co-founder/general partner at The Community Fund, recalls the initial reaction to the launch of Community Fund last October. “Investors and founders were asking, ‘What is this ‘community thing?’ It seemed rather abstract.” However, the emergence of unicorns like Reddit, Peloton, and Glossier demonstrated the substantial wealth generation potential inherent in community-focused businesses.

Taub has developed a “Community Cheat Sheet” – a checklist to guide ventures exploring this territory.

Evolving Beyond Traditional Social Media

The concept of community is rapidly evolving as companies explore the best ways to integrate it, both in their interactions with customers and internally among employees. In many instances, it’s even surpassing the role of social media, which often facilitates one-way communication.

Katelin Holloway, founding partner at 776, reflects on the long-standing advocacy for community. “For a long time, the three of us have been passionately advocating for the power of community. Seeing it finally gain traction and resonate with the current zeitgeist is incredibly exciting. One of the most rewarding aspects of community is that shared passions become even more enjoyable when experienced with others, and even challenging experiences, like navigating healthcare, become less daunting when approached collectively.”

The Pandemic as an Accelerator

While interest in community has been growing for some time, the pandemic has undoubtedly accelerated its adoption.

Angel notes, “The lockdowns and resulting isolation have highlighted the importance of human connection. People are now turning to online communities to fulfill their need for connection, as in-person interactions have become limited. It’s encouraging to see companies recognizing this and prioritizing strategies to bring people together.”

Authenticity and Business Impact

Taub stresses the critical importance of authenticity. Pursuing a trend simply for the sake of it is likely to fail.

“Consider how community aligns with your core business. If it’s merely a marketing tactic, it’s best to avoid it,” she advises. “Authenticity is paramount. For community-driven businesses, it’s essential to demonstrate a clear link between community engagement and business outcomes. How does this contribute to growth and scalability? How does it create a competitive advantage?”

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