Marketing Tech Businesses: A VC's view
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Marketing tech businesses: a VC’s view Rob Moffat Pirate Summit 2014
description
A VC perspective on the dos and don't of marketing tech businesses. Originally given at European Pirate Summit September 2014
Transcript of Marketing Tech Businesses: A VC's view
Marketing tech businesses: a VC’s viewRob MoffatPirate Summit 2014
Invest $0.1M - $15M into tech companies
with $B potential
Invest across Europe, help businesses go
international
Have invested in >120 companies over
last 13 years2
ACQ.
$1B
IPO
$2BIPO$2B
ACQ.
$0.7B
Some of our team
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Me
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2000
2007
2009
Me
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Retention ContributionMargin > CPAor
Spend €€€€before
working out:
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Rely only on SEM
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Do ‘black hat’ or ‘grey hat’ SEO
Stick to white hat:• Well structured site*• Quality, relevant content• Quality, relevant links
*As defined by Google
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Total customers
2,000 customers€17 CPA
Use blended CPAs€25 LTV business
New customers
Repeat customers
Paid channels
Free channels
Paid channels
Free channels
1600€20 CPA
Total customers
400€5 CPA
2,000 customers€17 CPA
800€35 CPA
100€35 CPA
800€5 CPA
300€4 CPA
Use blended CPAs€25 LTV business
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Ignore your brand
Not just name: what do you stand for?
Basic marketing value statement
<Your brand>is the
<what you do>that will
<benefit to your user>due to
<proof points>
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Do offline ads too early / without experience
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Put your faith in K-factor (referrals)
K = # of invites sent by each userx % conversion of each invite
Put your faith in K-factor (referrals)
Occasionally >1 for:• Games• Consumer apps• Developer tools
Usually 0.1 or less for: everything else
K = # of invites sent by each userx % conversion of each invite
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Spend time/effort getting into tech press
Helps for:• Hiring• Tech early adopters (sometimes)
Doesn’t help for:• Anything else
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Track hundreds of numbers before you know which are the 3-5 which really matter for you
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Lose people in the funnel(where this is in your control)
Lose people in the funnel(where this is in your control)
Which to focus on:20% drop out while choosing product
30% drop out when asked for credit card
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Depend only on A-B testing
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Use third party tools
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Have personality
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Be creative
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Be bold
