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Tag: Startups

  • SoftBank CEO: Downturn May Last Longer for Startups

    SoftBank Group CEO Masayoshi Son had sobering words for startups, warning the economic downturn may last longer for them.

    Companies large and small are beginning to experience a reversal of fortunes amid the downturn. While larger companies are already feeling the pain, Son is warning it could be worse for startups — largely because of their founders.

    According to TechCrunch, Son says unicorn founders are placing too high a value on their companies, impeding their ability to secure funding.

    “Unicorn companies’ leaders still believe in their valuations and they wouldn’t accept that they may have to see their valuations [go] lower than they think,” he said, according to company’s official translator.

    “So until the multiple of listed companies is lower than those of unlisted companies, we should wait,” said Son, referring to a popular way investors assign value to firms. While saying the winter for public companies continues, he said startups may experience a “longer” downturn.

    Son also acknowledges the temptation to invest when the market is depressed but highlights the risks of doing so.

    “Now seems like the perfect time to invest when the stock market is down so much, and I have the urge to do so, but if I act on it, we could suffer a blow that would be irreversible, and that is unacceptable,” he added.

  • How To Get PR For Your Tech Startup

    How To Get PR For Your Tech Startup

    PR is the most cost-effective strategy for an early-stage tech startup.

    Press placements have 6x the visibility and 3x the credibility of an advertisement of the same size or length.

    Hence, PR means more brand awareness and new customers.

    The significance of PR cannot be underestimated, especially when the tech industry is witnessing fierce competition post-pandemic and showing exponential growth with an estimated CAGR of 5% through 2024.

    However, getting PR for a startup tech company is challenging if you are not aware of the strategies to impress editors.

    This article will help you understand what PR is, the advantages of PR, and share some of the best tips to acquire great PR for your startup.

    Let’s begin!

    What is PR?

    PR stands for public relations which is the strategic communication by the company to the public to educate the consumers about new product launches or features.

    PR has the ability to build your brand’s credibility that your consumers can trust because it is also driven by factual reviews and opinions by third-party.

    Why PR Is Essential For Startups?

    Here are some solid reasons why PR is essential for startups:

    1- Increases Credibility

    PR has the ability to build your brand’s credibility that your consumers can trust because it is driven by factual reviews and opinions by third-party. Therefore, PR content are considered unbiased and genuine.

    Also, when a third-party writes or speaks positively about your brand, they endorse your company’s expertise and leadership, which makes content more valuable.

    As a result, consumers show interest in engaging with such content and get into conversation, which further helps the brand boost their credibility.

    2- Positions Your Brand as a Category Leader

    PR content pieces demonstrate your expertise and specialization in the form of news, which adds unique touch and value to your content.

    They explain how you are different from the rest of your competitors in the market and why someone should choose your company.

    It helps separate your company from your competitors in a positive way and position your brand self as an expert in your field.

    3- Boosts Lead Generation

    Well-planned PR strategies comprise the right messages and convincing call-to-action.

    They work together to make your brand more discoverable and attract more leads while developing your company’s credibility and reputation in the market.

    4- Attracts Investors

    PR can also overcome the most challenging part of funding a startup.

    A masterful PR campaign ensures you get plenty of buzz and get your company introduced to potential investors.

    PR content creators also leverage the power of your past investors to encourage new investors to support your company.

    Since PR is an effective means of getting publicity, it helps you to attract the attention of investors looking for the next promising startup to back.

    Tips To Acquire PR For Your Startup

    Here are some proven tips you can use to acquire PR for your startup:

    1- Find Journalists Who Cover Your Niche

    Look for journalists who write for businesses in your industry.

    Experienced and niche-expert journalists will provide you with press content that is industry-specialized and explain your business well. Plus, they will get you faster press coverage through the right channels.

    2- Pitch A Story

    Instead of simply asking a journalist to write about your business, pitch a story.

    Stories catch attention and create an emotional connection. Also, PR is mostly about a story. Therefore, it is essential to learn the art of pitching a story. Take a look at these pitch email examples and learn how to approach journalists with your story.

    You can start with sharing your company’s mission or an innovative vision that revolves around the reason or purpose of launching your product or services. Moreover, the purpose should be intended to help others. Remember to avoid any sales pitch to avoid boredom. 

    3- Share Quality Content Consistently

    Journalists look for the reputation or the market presence of a company before accepting PR requests or writing about them.

    Hence, develop an online presence by sharing ongoing changes in your company and information-packed content consistently through social media channels or your own website.

    This way editors will find your company’s information newsworthy and get a reason to write about you. 

    4- Follow-Up Emails Wisely

    Follow-up emails are highly effective in landing responses that you missed out in the first round.

    When you send your first mail, wait for a few days before following up. It is a good idea to have a tool to track email activity so that you get a notification if the recipient opens your email.

    If you do not receive any response even after the recipient opens your email, send a follow-up mail with more information.

    It is recommended to follow up at least three times for each contact.

    Several Examples of PR

    Let us check out the best examples of PR that tech startups can learn from:

    1- Happsy

    Happsy is an organic mattress manufacturer that planned to utilize a press release to announce its launch but with a twist.

    Instead of simply announcing their product launch, they found an angle to hook a vast audience and leverage product pricing as their USP.

    Here is a press release with the heading containing the words accessible to everyone to get the attention of the journalists.

    Since organic products are usually expensive, the press release hit the journalists’ and audiences’ attention by presenting Happsy organic mattresses’ affordability as an USP in the news.

    2- Gerber

    Gerber, a brand for early child nutrition experts, released news that narrated a well-rounded story. It was touching, had a compelling image, and had feel-good quotes from key players.

    The story not only left the readers satisfied but also made them look forward to more. Plus, the narrative prompted journalists to cover follow-up stories.

    3- Gojo

    This press release by Gojo immediately grabbed news reporters’ attention because the news covered the story of donating 16,000 liters of hand sanitizer to local hospitals.

    The news spreads the message that everyone should care about society during adverse conditions.

    In Summary

    Reputation is one of the primary pillars for any successful tech company. This is true for every company, no matter the size or industry.

    While it is possible for a tech startup to operate a business with little or no PR efforts, it is unlikely that the company will ever succeed in the industry or key markets.

    Using the above tips and examples, tech companies can actively engage in highly effective PR and capture the attention of customers and prospects.

  • Techstars and JP Morgan to Invest in Latino Startups in the US

    Techstars and JP Morgan to Invest in Latino Startups in the US

    Techstars and JP Morgan are working together to invest in hundreds of Latino startups in the US.

    Investments in Latino businesses is disproportionately low, coming in at a mere 2% in the US, according to The Houston Chronicle. Techstars is trying to change that, working with JP Morgan to invest in 400 Latino businesses in nine US cities.

    One of the key factors for investment will be founders who understand their customers, and are working to address their needs.

    “Having a deep understanding of customer pain and an extraordinary ability to execute quickly are the criteria that weigh the most when evaluating the quality of a team,” says Andrés Barreto, Managing Director of Techstars Miami Powered by JP Morgan. “Founders obsessed with their customers’ pain are more likely to find it and solve it.”

    The investment program will provide training to founders to help them close financing rounds, hire the best talent, and manage future growth.

  • 3 Tech Startups Making it Big in Texas

    3 Tech Startups Making it Big in Texas

    The purpose of a tech startup is to revolutionize and innovate on technological products or services. Startups can be a slow-burn type of business and might not see success for a long time, making many entrepreneurs and consumers wary. But, states such as Texas provide benefits and opportunities for startups, as Austin has been ranked as one of the best cities in the world for startups in the tech industry. 

    With so much potential in Texas, many entrepreneurs have made the move there to try to enter the market and contribute to the growing economy and technological industry. The success of many of these tech startups is inspiring and creates a chain reaction, as countless other small tech-based businesses are being formed in an attempt to follow in the footsteps of those who have seen success. 

    As there are many promising and successful tech startups to talk about, here is a breakdown of the 3 most notable tech startups that are making it big in Texas, with exciting ideas and great execution. 

    Molecula 

    Since the day the startup was established in 2017, Molecula has specialized in analytics and artificial intelligence, combining the two to create something that is useful when it comes to data analysis for businesses. 

    One of Molecula’s most well-known products is FeatureBase, a feature that allows businesses to have a single access point for all of their data, allowing accessibility and reusability. Even if a business’s data is scattered throughout different sections, FeatureBase manages to extract all of the data into one space. 

    Data analytics and extraction can be a pain for many businesses, Molecula saw this as an opportunity to create something that eases the process of data collection and creates a sense of organization for many businesses, which is why they are still growing to this day. Data will always be a part of any business, especially in the digital age where all data is stored online. Molecula will always have a reason to operate. 

    Workrise 

    As Texas is seeing massive growth with regards to job opportunities, finding a job in the right industry and hiring the right worker can be overwhelming. Workrise saw this as an opportunity, and so with the help of technology, they have created a system that helps people find jobs and helps businesses hire the right people in industries related to construction, solar, defense, and more. 

    Focusing on both workers and businesses looking to hire, Workrise ensures that people will find the perfect opportunity best suited to their skills, with beneficial pay terms and agreements. Likewise, they help businesses find people with the best skills to complete projects and administrative tasks. 

    Workrise’s system manages to match projects with the best-suited talent. Their system also streamlines cumbersome management processes such as time sheet management, invoicing, and payments. Operating for almost 8 years now, Workrise is a startup that has made working in Texas that much easier. 

    Everlywell

    Getting medical tests can be a stressful process and fairly time-consuming depending on where one needs to go. This is where Everywell comes into play. This tech startup entered the market to provide health information to customers from the comfort of their homes. 

    By sending test kits related to food sensitivity, metabolism, women’s health, and  more to customers’ houses, Everywell ensures that people can get important tests at home without needing to go to a hospital or any medical institution, which is especially useful during the pandemic. 

    These accurate tests are mailed to certified labs where professional physicians will examine them and produce results in no time. Everlywell was designed with efficiency in mind, and this tech startup is one that will continue to age well as time goes on.  

    How Are Tech Startups Established?

    These 3 are just a few examples of the many successful tech startups that have been established in the state of Texas. In this day and age, there are so many ways for entrepreneurs to start their own businesses. 

    Limited liability corporations (LLCs) have become increasingly popular in the United States, especially in Texas. This type of business entity is easy to establish and provides benefits associated with personal asset protection, privacy, and flexibility. 

    This is one of the best ways for entrepreneurs to establish their very own tech startups. Companies such as TRUiC provide useful information and aid when it comes to LLC establishment, as seen with this suggested resource. 

  • A Look at the Types of Startups

    The word startup comes up with an image of high-risk, high-growth, and funded technological companies. While some firms do meet this profile, but they are still a minority. Startups can be characterized depending on their growth potential, funding requirements, and lifestyle demands. An entrepreneur must know the many varieties that it can be categorized into.

    Before you determine which type of startup best suits your business concept, personality, and lifestyle objectives, you must grasp the distinctions in investment needs, risk profiles, lifestyle implications, and upside possibilities.

    How To Determine The Type Of Your Startup

    What you choose to do in response to the following two questions will have the most significant influence on the type of startup you create:

    Size & Growth Opportunities

    • Will your company develop rapidly to a significant size, or will it grow at a slower but more constant rate? Businesses that are experiencing rapid growth have the following characteristics:
    •  A big potential addressable market, such as cellphones or search engines, is a good illustration.
    •  Your clients will quickly accept a novel technology or business strategy if you develop one that is unique.
    •  The business model has a high degree of scalability. Often, technology is the key to achieving such scalability, which is why most fast-growing businesses are in the technology sector.
    • Due to the possibility of competition entering the market, it is necessary to execute very quickly.

    Requirements for Financial Support

    Are you aware of the amount of external finance you will require to get your firm off the ground, and who will be providing it to you? Your answer will have the most significant impact on the type of startup you create. Startups that require a significant amount of outside finance have several traits in common, including the following:

    Their substantial capital requirements are frequently driven by the desire to;

    •  Execute fast ahead of any competitors
    • Establish assets (intellectual property, market share, patents, and so on) that will deter competitors from entering the market in the first place.
    • To attract external investors, a business must have an exit strategy clearly outlined from the beginning.

    A typical scenario is that the founder(s) will have to share business ownership with external sources such as venture capital firms or private equity firms, which can have significant influence and control over the future direction and growth of the businesses.

    It is important to note that the answers to the two questions above have a significant association; high-growth enterprises with enormous prospective markets frequently demand large external expenditures upfront and are consequently venture funded.

    What Are The Common Types Of Startups?

    Startups fall into five categories. This detail is not exhaustive, but it gives a framework for evaluating your startup and the decisions you will need to make as it grows.

    Lifestyle Business

    A lifestyle business allows you to work on your terms (choose your hours and location) while paying you enough to make the work worthwhile. A lifestyle business is generally founded by a well-connected person who has retired from a high-profile job or profession. The founder can conduct them online, i.e., via internet-based collaboration and communication technology, without requiring a physical site. Business consulting and financial guidance are two examples.

    Traditional Small Business

    The vast majority of today’s entrepreneurs are involved in a traditional small firm. Businesses in this category are known for their steady but moderate growth. These include hairdressers, IT consulting firms, consultants, grocery stores, carpenters, insurance agents, plumbers, Internet commerce storefronts, and electricians.

    A franchise is another example of this type. An entrepreneur seeking structure, advice, and marketing help can benefit from a franchise. One of the most significant facets of owning a franchise is the ongoing royalty payments. However, a franchise might be an excellent option for an entrepreneur with limited startup expertise but ample capital to invest in a franchise.

    Self-Funded Growth

    It includes businesses that are formed to expand but do not seek outside capital. You cover the launch expenditures with your assets or credit. You shun external stock investment to keep ownership of your company. This type of business is frequently formed by affluent or has already launched successful businesses and wants to expand.

    Note that a company in this category may seek external finance after growing to a reasonable level. The critical difference is that the entrepreneur can fund the venture with her funds.

    Scalable External Funded Business

    This category best depicts Silicon Valley technology startups like Facebook, Uber, and Cloudera. The founders believe their proposal can change the world. They need external funding to implement it rapidly. Unlike small-business owners, these founders want to build a substantial equity stake in a company that will eventually go public or be purchased, resulting in a hefty payout for themselves and their investors.

    Scalable businesses need risk capital to find a business plan. They hire the brightest minds. When they find it, their concentration on scale necessitates more venture funding. This type of venture either succeeds tremendously or fails miserably.

    Buying Targets

    These are enterprises built to be purchased by a more prominent firm in the future. These firms have many similarities to the preceding category (Externally Funded Scalable Startup), but their target market is smaller. Businesses in this category often apply a globally successful business model to a local or niche market.

    Building a tech firm has become cheaper in the last five years. The crowd or angel funding is used by many of these firms. Because there are no typical venture capital investors (and thus no major exit dynamics), they do not have to “swing for the fences” in terms of liquidity. This type of startup is likely to sell for $5 million to $50 million. Les co-fondateurs et investors encadrent millions but not

    The Bottom Line

    Types include the above five types. Each style takes varying levels of effort and skill and gives varied financial incentives. An entrepreneur should grasp this dynamic and choose a startup that best suits their strengths and personal aspirations.

  • Senator Josh Hawley’s Antitrust Bill Would Hurt Startups More Than Big Tech

    Senator Josh Hawley’s Antitrust Bill Would Hurt Startups More Than Big Tech

    Senator Josh Hawley introduced a bill Monday aimed at addressing antitrust concerns, but it may do more harm than good.

    Antitrust has become a major concern for politicians on both sides of the aisle. Google and Facebook are both facing antitrust lawsuits, and officials are looking at various ways of addressing the overarching concerns about the tech industry in general.

    Senator Hawley’s bill would ban companies with a market cap over $100 billion from buying any startups. As Business Insider columnist Jason Aten writes, however, such a move would harm startups far more than it would hurt Big Tech.

    Acquisition is one of the main goals of many startup founders, providing an exit strategy and payday for successful founders and investors. For better or worse, large companies are an important part of that strategy. If they are blocked from acquiring companies, it could completely disrupt the startup scene.

    Another major downside is the disparity between large and small companies that may be over $100 billion. Aten uses the example of Shopify, a company large enough to fall under Hawley’s bill. Shopify would be prohibited from buying an up-and-coming app, service or platform that could help it better compete with much larger rivals, such as Amazon or Walmart. Such an outcome would only hurt Shopify, while protecting the larger company even more.

    Aten’s take on the situation well-illustrates the challenges of addressing antitrust issues without creating even more problems.

  • Investing in Africa: The New Land of Opportunity

    Investing in Africa: The New Land of Opportunity

    Did you know that, as recently as 2019, the top five fastest growing economies in the world were in Africa?  It may be surprising, but it’s true that the overall African economy is growing at a rate of 2x faster than the global average, and is the only economy that is expected to grow by double digits in the next 5 years.  The challenges and needs in this region of the world has made it ripe with business and investment opportunities.  Investing in Africa is the latest startup trend.

    The top five areas for growth potential are in the sectors of healthcare, education, finance, energy, and agriculture.  

    Most people in Western society are fully aware of the health crises in Africa, but unfortunately a flood of ads for humanitarian relief has given us a somewhat narrow view of the African healthcare industry.  Africa is home to 16% of the global population and only 2% of the world’s doctors.  This is a devastating ratio, but it is sure to change as the need for progress has created an environment for the growth of healthcare tech and the industry is expected to reach over $37.1 billion by 2024.  

    Education is another area for growth and investment as more sub-Saharan children are finishing primary school than ever before, but 1 out of 5 is still bereft of access to education.  The COVID pandemic of 2020 saw a 97% increase in edtech usage, but just 28 million out of 450+ million children are currently receiving an education.  Education growth could have an astronomical effect on the growth of the African economy. For example, if all 15-year-olds in Ghana received a basic education, the Ghanan economy would grow by 3,800% and the overall South African economy would see an increase of 2,600%.  

    The third core area for growth is finance.  Eighty percent of the African population has access to mobile phones and the online transactions have now surpassed traditional banking. In 2019, mobile transactions in the sub-Saharan region reached $456.3 billion, and African banking revenue is projected to reach $129 billion by 2022.  

    Number four is the energy sector.  It might surprise you to know that many African countries are far more advanced in renewable energy usage than the US and Europe.  For example, Kenya sources 13% of its energy from geothermal and 50% from hydroelectricity.  The UK and the US, on the other hand source only 11% of their energy needs from renewable energy sources. 

    The fifth core area is agriculture.  Sixty percent of the world’s arable land is in Africa, but challenges with infrastructure and food storage have stymied the growth of this valuable sector.  Currently, 12% of African harvests are lost, and sub-Saharan Africa still imports $15 billion in food crops annually. Investments in agricultural infrastructure and inputs could triple the economic growth of this industry.  

    The fact is that Africa is not the place of desperation which many Westerners perceive it to be.  In truth, it is a land brimming with potential and opportunities for growth and investment.  It’s time we re-educate ourselves to the realities of this beautiful continent and thriving economy. Investing in Africa is on the horizon – be a part of the movement today.

    Investing In Africa Infographic
    Via: EmpowerAfrica.com

  • Box CEO: I’m A Pretty Annoying Founder

    Box CEO: I’m A Pretty Annoying Founder

    Box co-founder and CEO Aaron Levie recently appeared on the Jason Calacanis podcast, This Week In Startups, where he talked about being annoying and stubborn:

    I’m a pretty annoying founder. I’m very stubborn and very steadfast. Sort of this is my very strongly held opinion and belief and I’m gonna run into a wall to prove it out. That has certain characteristics that can be annoying at times I’m sure both at the investor level as well as for anybody that is working with me. I’ve been able to tone it down over the years and control it more and contain it. I think it’s not causing probably as much annoyance.

    You have to be stubborn and right is the key. Stubborn and wrong means new job. There’s a Venn diagram of stubborn and right and you want to be right in that target zone. I look back when when I was 20, 21, or 22 and learning this trade and there were plenty of times where I was stubborn and wrong where maybe I took too long to pivot.

    My co-founder was telling me we’ve got to go enterprise probably for three to six months earlier than we actually did. What are three to six months in compounding terms? I don’t know. Maybe we’d be 20 percent bigger now as a result of if I had not been so stubborn at that stage and not seeing the information in the way that he was? That can just be sometimes an annoying pattern that people run into.

    Box CEO: I’m A Pretty Annoying Founder
  • Waves of Job Losses For 2.2 Million Startup Employees, Says VC Group

    Waves of Job Losses For 2.2 Million Startup Employees, Says VC Group

    According to a report on CNBC, startups may not get government money from the coronavirus relief bill if they have already taken venture capital or private equity money.

    “So-called affiliation rules from the Small Business Administration could prevent startups from getting loans as part of that stimulus package,” says CNBC report Kate Rooney. “According to SBA rules, a startup should be affiliated with their investors. For example, if a VC backed company has 30 employees, it is grouped in with thousands of other employees at fellow portfolio companies.

    “The head of the National Venture Capital Association tells me that startups don’t have access to emergency capital in the meantime and there could be waves of job losses for the countries 2.2 million startup employees,” says Rooney.

  • Founders Syndrome Is a Real Thing, Says Craigslist Founder

    Founders Syndrome Is a Real Thing, Says Craigslist Founder

    “I wasn’t temperamentally suited to be CEO or really any kind of manager,” says Craiglist founder Craig Newmark. “So I was thinking maybe it is time to step down. I had also read about something called founder syndrome where somebody who’s good at starting something is really terrible at keeping it going. The biggest lesson is that founders syndrome is a real thing. The faster you think about that and then step down the better off you are.”

    Craig Newmark, founder of Craigslist, discusses the reality of founders syndrome where an entrepreneur might be really good at starting something but horrible at managing the business going forward in an Inc. featured video:

    As a Manager I Suck

    I can applaud myself thinking that it only took me a few months to overcome founder syndrome as opposed to running the company into the ground. The history of the first five years of Craigslist was just me running the thing, one year running it with volunteers, then after making it a company, one year with me as CEO. But towards the end of that year, people were kind enough to help me understand that as a manager I suck. I needed to find people who might be much better at it than I was. They were suggesting that maybe I didn’t have the right skill mix to be CEO. These are people who really cared about the site who believed and they were right.

    Founders Syndrome Is a Real Thing

    I wasn’t temperamentally suited to be CEO or really any kind of manager. So I was thinking maybe it is time to step down. I had also read about something called founder syndrome where somebody who’s good at starting something is really terrible at keeping it going. My decision to step down, well I winced a little bit because it was my creation and I didn’t want to feel stupid if I had made a big mistake. But it’s worked out and I don’t have regrets about stepping down. The biggest lesson is that founders syndrome is a real thing. The faster you think about that and then step down the better off you are. That worked out.

    Founders Syndrome Is a Real Thing, Says Craigslist Founder Craig Newmark
  • You Haven’t Seen a Mass Social Media User Revolt

    You Haven’t Seen a Mass Social Media User Revolt

    The social media space is pretty ripe for disruption says tech investor Geoff Lewis. Lewis likes to invest against the grain, what he calls counter-narrative, and is actively looking at startups in that sector. Lewis says that there has been a lot of noise from regulators but that users are still using social media products. He says that thus far you haven’t seen any sort of mass user revolt.

    Geoff Lewis, the founder of Bedrock Capital and an early tech investor in many companies including Lyft, recently discussed the future of social media and more on CNBC:

    You Haven’t Seen a Mass Social Media User Revolt

    The social media space is pretty ripe for disruption. There’s always this trade-off between privacy and communications and so we want as users and consumers to be able to communicate with our friends and to be connected, but we also want our privacy.

    Then there’s this question of does the privacy thing ever get shifted too far to a point where people revolt? Thus far you haven’t seen any sort of mass user revolt. A lot of the noise has been in the markets with regulators, but the users are still using the product.

    It’s a Narrative Violation to Invest in Social Media

    I actually think it’s a narrative violation to be doing things in social media today as a start-up and what we’re focused on at Bedrock is investing in these companies that are counter-narrative. So I think the idea of investing in a social media business today, especially early stage as a venture capitalist, is very unfashionable.

    So it’s something that we’d be very up for and have been looking at some new companies in that sector.


  • What’s the #1 Thing Founders Should Avoid Doing in a Pitch?

    What’s the #1 Thing Founders Should Avoid Doing in a Pitch?

    Earlier this week LinkedIn launched 30 second videos for Influencers. One of the first questions put out there by LinkedIn was about what not to do in a pitch meeting. There were some very interesting and helpful answers for any entrepreneur facing a pitch to venture capitalist companies.

    What’s the #1 Thing Founders Should Avoid Doing in a Pitch?

    “I see hundreds and hundreds of pitches literally, being a Shark on Australia’s Shark Tank,” says Naomi Simson, Founding Director RedBalloon and popular author, blogger and speaker. “The most important thing is that people quickly and effectively bring us into their world, talk about the problem but also somehow relate it to us. We want to feel connected and we want to feel empathy. Business is about numbers, but it’s also a people game.”

    “Founders must understand that passion is everything,” says Tony Elumelu, who is Chairman at Heirs Holdings based in Nigeria. “If you speak to me and show me no passion I will kick you out of the room.”

    “What do I really hate in pitch meetings, when founders start talking about potential exits, especially at the seed stage where I mostly invest,” noted Hunter Walk, who is a Partner at Homebrew VC and formerly with YouTube, Google, and Second Life. “I don’t want to hear about how you are going to exit out of the company, I want to hear how you are going to build it.”

    “Founders should never assume the customer or investor has as much industry or product knowledge as they do,” says Creel Price, Founder & Director of Investible. “You might have come up with your product over the course of a year and you understand your industry intimately. The investor or customer doesn’t. Rather than take that salesman (approach), come in there with more of an education mindset. Leave the techno speak, the jag, the assumptions and the blind faith at the door and start to educate them on why this is such an amazing opportunity and what you would like for them to do about it.”

    “The number one thing founders should avoid in their pitch is trying to prove that they have a world class team,” commented Guy Kawasaki, who is a marketing and advertising world class speaker and evangelist for Canva. “They don’t have a world class team, that’s why they’re pitching for money. So get to your product, get to your service and explain what the hell you do. Just get to that really quickly. Think F18, not 747.”

    “Please, please… eliminate the word “meet” from any one of your presentations,” added Christopher Schroeder, internet/media CEO and venture investor. You know what I’m talking about. Our idea of Snapchat meets Dropbox meets Pokemon Go, on and on. Don’t overdrive by analogy in a presentation. Don’t drive by the rearview mirrors or sideview mirrors because you’re going forward and it’s about the future. I don’t think Facebook said it met anything. Can you imagine them saying that overall we are MySpace meets Lycos or what have you? I don’t think so. You are your company.”

    “I’ve invested in about 10 startup companies, my most successful being LearnVest, which had an amazing exit last year and an amazing founder Alexa von Tobel,” commented Jacki Zehner, who is CEO of Women Moving Millions based in the New York area. “One thing founders have to avoid doing is acting entitled to my money. It’s one thing to show up confident, have your story, but you should be grateful that anyone’s listening to your story. Don’t be too humble, be confident, but don’t act entitled.”

    “One of the most important things to do in a pitch meeting is to bring a deck,” says Tomasz Tunguz, Venture Capitalist at Redpoint. “A lot of founders come in just wanting to have a conversation. That becomes a challenge because it’s really hard to structure a conversation, support your points with data, and tell the story of the business in the best possible way. So, next time you pitch a VC, please bring a deck.”

    “Investors invest in businesses that are as validated as possible,” said Sramana Mitra, who is Founder at One Million by One Million (1M/1M) based in San Francisco. “Do not pitch concepts.”

  • Facebook’s FbStart Program Helps Asia Pacific Developers

    Facebook’s FbStart Program Helps Asia Pacific Developers

    Facebook launched FbStart in April of 2014 to help startups take off by offering them developer tools and services for free. The company partnered with a number of third-party service providers to do so.

    Facebook has given periodic updates on the program in the meantime, and just gave the latest one talking up its impact on Asia Pacific developers.

    “FbStart, Facebook’s program for early stage mobile developers, has now distributed benefits worth more than $50 million to Asia Pacific startups, $20 million of which went to startups in India, Facebook’s largest developer community outside the U.S.,” a spokesperson for Facebook tells WebProNews.

    This year, Facebook launched its FbStart World Tour across 20 cities where it has been meeting with developers. Events have been held in London, New York, and Mexico City, and most recently in Hong Kong, Seoul, Taipei, Bangalore, and Gurgaon.

    There are over 1,000 FbStart members in Asia, which have apps like Coursell (a lifestyle marketplace app), Cardback (a card management/wallet app), and Samosa (a movie clip app), which the company highlights in a blog post.

    “Through FbStart, Carousell’s team was able to run and test marketing campaigns with their Facebook Mobile App Ad credit,” Facebook says. “The quality of users acquired and cost targets have exceeded expectations with the help of Lookalikes from Custom Audiences of their top buyers and sellers. They also used FbStart’s partner benefits, including Transifex to scale to multiple countries and languages and Mobile Action to improve their app store optimization. Additionally, Carousell uses Facebook Platform products such as Facebook Login, Social Plugins, and Facebook Analytics for Apps.”

    Cardback has also made great use of ad credit as well as Facebook Login and Facebook Analytics for Apps. Samosa was able to capitalize on Parse to power its backend to help it quickly iterate on its app.

    Image via Facebook

  • Facebook’s FbStart Expands To Pre-Launch Startups, Adds Benefits

    In April of last year, Facebook announced FbStart, a program to give satartups developer tools and services from Facebook and partner companies to help them get their businesses to take off. The company opened it up to startups the following month. On Thursday, the company provided an update on the program, and revealed that it has distributed $100 million in benefits to over 3,800 startups in its first year. Additionally, it’s adding new benefits and partners.

    Upon launch FbStart counted the following among its partners: dobe, Appurify, Asana, BlueJeans, Salesforce Desk, MailChimp, Parse, Proto.io, Quip, SurveyMonkey, User Testing, and Workable. Combined with Facebook’s own contributions, these partners offered services to startups worth up to $30,000.

    In July, the program added services from Braintree, Appmethod, and Get Satisfaction, and bringing the worth of services up to $40,000. As it kicked off an FbStart tour in October, it said tools and services were worth up to $63,000 for its “Accelerate” companies and $24,000 for “Bootstrap” companies. In November, it added benefits from Stripe.

    New partners include App Annie, Balsamiq, GitHub, Mobile Action, Namecheap, TransparentBusiness, Yandiki, and Zendesk. There are now over 20 partners in all.

    When FbStart began, it had two tracks – Accelerate and Bootstrap. The value of the former’s benefits is over $30,000 while the latter’s is $80,000. It’s now adding a third track for Pre-launch, which it describes as:

    Designed to provide partner benefits such as domain hosting, access to legal services, or wire-framing services, for example, that mostly help developers who are still building out ideas and haven’t launched their app.

    The program is also adding a games package and a social good package.

    “Offered in addition to standard FbStart tracks, the Games package includes mentorship from the Facebook Games team and benefits relevant to game developers,” explains Facebook’s Kevin Prior. “Offered in addition to standard FbStart tracks, the Social Good package includes mentorship opportunities with the Internet.org team, and exclusive partner benefits like growth and fundraising consulting from I.G. Advisors, social media consulting from Social Misfits, and access to services from Praekelt Foundation.”

    Finally, Facebook is about to start another FbStart tour. Dates are as follows:

    June – London, New York City
    July – Denver, Mexico City
    August – Chicago, Hong Kong, Montréal, Seoul, Toronto
    September – Singapore, Taipei
    October – Bogota, São Paulo, Seattle, Vancouver
    November – Boston, Buenos Aires, Los Angeles, Helsinki
    December – Austin

    Startups can apply for FbStart here.

    Image via Facebook

  • Twitter’s Flock Developer Series & Hatch Contest: What You Need To Know

    Twitter is wooing developers more than ever in 2015. It’s hard to believe, but the company only recently held its first-ever developer conference, Flight. The October event saw the unveiling of Twitter’s Fabric developer kits and Digits sign-in.

    There are three modular kits that address stability, distribution, revenue, and identity. Fabric combines services from Twitter itself, as well as its Crashlytics and MoPub offerings and other things. The Crashlytics kit is for stability, The Twitter kit is for distribution, and the MoPub kit is for integrating ads into apps. Digits is a phone number-based sign-in, and is part of the Twitter kit. More on all of that here.

    Now, this year, Twitter is going on the road with a new developer event series called Flock.

    The Flock Takes Flight

    “Since we unveiled Fabric at our first mobile developer conference, many of you have started using the Kits to address some of the most common challenges facing app developers: stability, distribution, revenue and identity,” says Jeff Sandquist, Head of Developer and Platform Relations at Twitter. “We hope to meet many more of you over the coming months, so we’re hitting the road on a worldwide tour we’re calling Flock. We believe the next great app can come from anywhere so we are going everywhere we can to help you learn how to use Fabric to build great apps.”

    Flock is to consist of two phases. The first one is a road trip across the U.S., which will see Twitter’s team of developer advocates traveling in a Fabric bus from city to city to host meetups and seminars.

    The second phase will see the team of Fabric engineers and developer advocates traveling around the world to host a series of half-day events. Here are all of the dates:

    Los Angeles, CA: Jan. 21-25
    Las Vegas, NV: Jan. 26-27
    Denver/Boulder, CO: Jan. 28-31
    Kansas City, MO: Feb. 1-4
    St. Louis, MO: Feb. 5
    Nashville, TN: Feb. 6-9
    Chicago, IL: Feb. 10-11
    Detroit, MI: Feb. 12-13
    London: February 19
    Berlin: February 26
    New York City: March 11
    Tokyo: Spring 2015
    Seoul: Spring 2015
    Hong Kong: Spring 2015
    Shanghai: Spring 2015
    Bangalore: Spring 2015
    São Paulo: Spring 2015
    Southern Hemisphere Autumn 2015

    Fabric Gets Some Updates

    Since Fabric launched at the October Flight conference, Twitter has made several updates to the kits. For one, they upgraded the beta distribution tool with share links and crash-to-tester identification. This was announced in December. Share links enable you to create onboarding links for each build and invite testers through various media.

    “Within your share link dashboard, you can manage all your links in one place — with complete control over who can access your builds,” explained Jason St. Pierre on the Crashlytics blog. “Share a public link with the press or your investors, or create a private link for internal dogfooding by setting domain restrictions. We also automatically point your internal links to the latest build so your testers can always access the latest from one reliable place.”

    “No need to worry about manually adding new testers either!” he added. “With share links, you can automatically assign new testers to a group when they sign up via your link. This ensures that everyone will receive your updates in the future, as soon as you send them out. On top of that, you can now create specific groups ahead of time based on where you plan to post your links. Organizing testers have never been easier.”

    The crash-to-tester functionality lets you instantly identify the tester who experienced a specific crash from within your crash reports. You can then immediately contact testers for feedback and work with them to reproduce the issue at hand.

    Twitter also added a new self-service app installs tracking feature called Answers. This is available for free as part of Fabric. It provides real-time, optimized app analytics.

    “Answers gave us the analytics to track thousands of installs for free from our mobile app promotion campaigns and helped us meet our cost-per-acquisition goals,” said Greg Schwartz co-founder & CEO of calendar app UpTo.

    “We love having the free mobile measurement solution from Fabric to track both app installs driven by our users sharing content on Twitter, as well as app installs we drove through Twitter Ads,” said Path marketing manager Ana Larue. “This solution gave us the visibility to track the 100,000+ installs we drove via Twitter in November.”

    Organic installs measured by Answers are available in Card Analytics.

    Last month, Twitter also launched theming support for Digits. This lets you make Digits blend into your iOS and Android apps.

    “We understand how crucial your app’s sign-in experience is to growing and retaining your user base,” said Digits engineer Israel Camacho. “Digits can already be launched from any button anywhere within your app to optimize that experience. Now, with theming support, you can match Digits exactly to your app’s ambience so the Digits sign-in flow looks indistinguishable from your app. The look and feel of your background, call-to-action button and select text are all customizable.”

    Finally, in the MoPub Kit, Twitter shipped support for MRAID 2.0 and specification to enable rich media ads in banners and interstitial ad units.

    Expect to learn how to get more out of all of this stuff at the Flock events.

    The Hatch Contest

    Along with the Flock developer event series, Twitter just announced a new contest for startups called Hatch. With this, the company is calling on developers to tell them about their apps, and they’ll pick a winner, who will get meetings with Twitter execs as well as opportunities to meet with potential investors. They’ll also get some funding cash. There will be ten finalists, who will fly to San Francisco to present their startup ideas at the first annual Hatch Gala in July. Here’s a look at the prizes and what it takes to be eligible:

    Submissions for Hatch are open now. The deadline is June 5, which will be followed by the first round of judging beginning on June 8, and the second round on June 15. The finalists will be announced on June 22, and the finalist event in San Francisco will take place on a date in July to be announced.

    Image via Twitter

  • Amazon Apparently Working On Secret Startup Platform

    Amazon is reportedly working on some kind of new “platform for inventors”. Details about just what this might entail are far from plentiful, but there are some job listings Amazon has, which hint at the project.

    Re/code’s Jason Del Rey came across said listings, and spoke to some unidentified people about Amazon’s plans. He writes:

    But sources say it could be connected to a recent initiative Amazon has been pursuing. Amazon is attempting to build close relationships with young, promising hardware and electronics companies — think robotic toys, fitness and health gadgets — with the goal of convincing them to build their business using Amazon as the main sales channel.

    “They are trying to figure out how to engage with startups in new product categories in a more thoughtful way,” one source said, citing robots and wearables as the kind of products Amazon is targeting.

    One of the aforementioned Amazon job listings is for Senior Manager of Product Management, New Venture in Seattle. Its description says:

    Are you inspired by inventors who develop and launch new products? Do you want to build the world’s best end-to-end platform for startups? Do you see the opportunity to connect these entrepreneurs with Amazon’s hundreds of millions of customers?

    If you live for these kinds of challenges, we’ve got the job for you!

    As the Senior Manager of Product Management, you will define, build, and manage a new large-scale program to serve startups-as-customer. You will hire and lead a scrappy team of product managers and designers, and you will work in close partnership with software developers, business developers, and marketers to bring this new venture to life in a short amount of time. You will lead the creation of the product strategy and vision, including the definition and management of high quality product roadmaps. This is a highly visible role, and you will work with business and technical leaders across the company to realize this vision.

    The ideal candidate will be experienced in developing customer-facing products for PC and mobile platforms, and will have a portfolio of successful product launches. He/she will be an experienced people leader, adept at inspiring other product managers and designers to create world-class customer experiences. The candidate must be able to understand customer needs deeply and translate those needs into innovations that surprise and delight. The role requires excellent judgment, communications skills, and the ability to get stuff done in a fast-paced dynamic environment.

    Read Del Rey’s piece for some additional insight into things Amazon might have in mind with this.

    Amazon isn’t commenting on its plans.

    Image via Amazon

  • Twitter Co-Founder Evan Williams Launches Obvious Ventures

    Evan Williams, co-founder of Twitter and Blogger, is back with his third version of Obvious, the previous versions of which spawned Twitter, Medium, and Twitter co-founder Biz Stone’s Jelly and Super.

    This one is called Obvious Ventures, and running the show with Williams are investors James Joaquin and Vishal Vasishth. The firm is what it sounds like – a venture capital fund, but it focuses on what they refer to as “wold positive” startups. A message on the Obvious Ventures website says:

    We’re entrepreneurs. We’ve helped a lot of companies launch, grow, and generate great financial returns. A few of these companies also deliver positive social and environmental benefits with every dollar of revenue they earn. We want to fund and build more of those. That’s what we call #worldpositive venture capital.

    Why should these companies work with us? We’re experienced investors, with several IPOs under our collective belt. But we’re product designers and company builders first, and we are on a mission to help fuel startups that combine profit and purpose. Startups that create new solutions to big world problems in a profitable and scalable way.

    Obivous Ventures has invested in eleven companies so far, but has only revealed nine of them. These are: Olly, which makes nutritional supplements; Beyond Meat, which makes meatless protein foods; Breezeworks, a business operations app; Flux, which makes architectural design tools; Loup, a ride service; Magic Leap, a screen interface developer; Miyoko’s Kitchen, which makes plant-based cheeses; Workpop, a work marketplace; and ZenPayroll, which makes payroll software.

    Image via Obvious Ventures

  • Facebook Adds Stripe Benefits To FbStart

    Facebook Adds Stripe Benefits To FbStart

    Facebook announced that it’s adding benefits provided by Stripe to FbStart, as well as launching a new site where members can manage their benefits and learn more about the program.

    Faceobook first announced FbStart at its f8 developer conference back in April. It’s basically a program that provides startups with tools and resources to help them grow. It includes thousands of dollars worth of tools and services to eligible companies with a growing partner list.

    Facebook’s Micahel Huang writes:

    This year, we’ve added new partners and their free benefits to the program, increased the value of those benefits, and launched an international tour to meet with startups in cities like New York, Boston, Austin, Seattle, Dublin, London, Sao Paulo, and San Francisco. By providing free benefits along with our partner companies, and meeting with thousands of startups in person, FbStart is helping developers build, grow and monetize their businesses.

    Today we are announcing that FbStart members (both Bootstrap and Accelerate) will now have access to up to $50,000 in payment processing from Stripe, which joins the 17 other partner companies providing FbStart benefits.

    Facebook says it will reach out to existing members with more details about how to log into the new site and redeem Stripe benefits

    Image via Facebook

  • Facebook Kicks Off FbStart Tour, Offers More To Startups

    At its f8 developer conference in April, Facebook launched FbStart, a program aimed at supporting startups by offering them thousands of dollars worth of tools and services to help them get their apps to take off. The company opened up the program in May.

    In July, Facebook announced that it added more partners, bringing the total to 17. At the time, the company said tools and services available to accepted startups were worth up to $40,000.

    Facebook provided an update on the program on Friday, saying that over 1,000 startups have joined, and that tools and services are now worth up to $63,000 for its “Accelerate” companies and $24,000 for “Bootstrap” companies.

    Still, it would appear that they’re really just getting things started as they announced a new tour across ten cities, which will see Facebook engineers and product managers covering best practices for all stages of app growth and development.

    “We’re excited to meet with promising mobile developers around the world to provide feedback and services,” Facebook said.

    Here are the dates:

    10/2 — New York
    10/6 — Boston
    10/8 — Berlin
    10/16 — Austin
    10/27 — Seattle
    11/4 — Dublin
    11/6 — London
    11/13 — Moscow
    11/18 — Helsinki
    11/20 — San Francisco Bay Area
    11/21 — Paris

    Image via Facebook

  • AOL Launches BBG Fund Focused On Women-Led Tech Start-Ups

    AOL announced a new venture fund focused on early stage investments in women-led consumer internet start-ups, and appointed Susan Lyne to run it. It’s called the BBG Fund.

    The BBG Fund will make seed and Series A investments, focusing on multiplatform media, services, and commerce. AOL says it’s part of a broader initiative to bring more women into tech.

    Lynne was previously Executive Vice President and CEO of AOL’s Brand Group. She will continue to work out of AOL’s NYC headquarters and report to CEO Tim Armstrong.

    “As head of AOL Brands, I had the opportunity to contribute to the growth and profitability of our portfolio of premium brands,” said Lyne. “In my new role, I am looking forward to contributing in a different way. We have a huge megaphone at AOL so we can have an outsized impact on the way girls and women perceive their options, and on the breadth of entrepreneurial ideas that have a chance to compete. But this is also good business: women are the majority of users on the fastest-growing sites and services on the internet. We believe we can get strong returns by focusing on entrepreneurs who know the customer best.”

    “Susan has done an excellent job in her time at AOL at a board and operating level, and we are excited to be putting her vast skills and expertise to work to replicate this success at The BBG Fund,” said Tim Armstrong, Chairman & CEO of AOL. “AOL has a strong track record of investing in women, women’s leadership, and we are adding to our investments in the most important space for women entrepreneurs. ”

    Maureen Sullivan, President of Media Brands will continue to lead AOL.com and the company’s lifestyle brands and money portfolio. Luke Beatty, President of Media Brands, will lead its technology, autos and entertainment properties and the Experimental Products team. Arianna Huffington and Jimmy Maymann will continue to run The Huffington Post.

    Lyne will present AOL’s broader #BUILTBYGIRLS initiative at Ad Week next month.

    Image via Twitter

  • Google Ventures Goes To Europe With $100 Million

    Google announced the launch of a new European branch of Google Ventures, its startup investment arm. It’s starting (based in London) with a fund of $100 million. It says the goal is to invest in the best ideas from the best European entrepreneurs, and help them bring their ideas to life.

    There had been rumors that Google would open a London office for Google Ventures, and it’s now official.

    Google Ventures managing partner Bill Maris had this to say in a blog post:

    When we launched Google Ventures in 2009, we set out to be a very different type of venture fund. Startups need more than just capital to succeed: they also benefit from engineering support, design expertise, and guidance with recruiting, marketing and product management. Five years later, we’re working with more than 250 portfolio companies, tackling challenges across a host of industries. For example, the team at Flatiron Health is improving the way doctors and patients approach cancer care, SynapDx is developing a blood test for the early detection of Autism in children, and Clean Power Finance is making solar energy affordable for homeowners.

    We believe Europe’s startup scene has enormous potential. We’ve seen compelling new companies emerge from places like London, Paris, Berlin, the Nordic region and beyond—SoundCloud, Spotify, Supercell and many others.

    Earlier this year, Google announced Google Capital, an investment fund separate from Google Ventures, aimed at funding growth-stage businesses. So far, it has seven companies under its belt.

    Image via Google