đ Software Deal Count Dips; Startup School is in Session; Facebook Ad Funnel Tips
Happy Friday!Â
In case you missed it, Y Combinatorâs Annual Startup School launched this Monday, offering free lessons and resources to aspiring entrepreneurs looking to get their businesses off the ground (or to the next stage).Â
If youâre bummed you missed the application deadline, fear not, you can always audit the courses to skip some of the coursework and stick to the lessons.
đ Q2âs IPO spree resulted in a record exit value of $139b, and while software still leads that list and remains Venture Capital's darling, it did see a decline. In fact, its share of total deal count dipped below 40% for the first time since 2011, the same year Rebecca Black came onto the scene with this gem, which we absolutely had to include because, you know, itâs Friday.
đ There is no lack of good ideas out thereâif youâve thought of it, someone else likely has as well. So when looking at similar business themes, how do VCs choose their startups? A lot of it has to do with familiarity, as investors prefer to have some sort of connection to the founder leading the charge. If you donât have the network to hit the ground running, youâll have to nail the cold call and pitch presentations, and should always put your USP (unique selling point) front and center.
đ In 2013, SaaS companies had a mere two competitors on average. Today, that number has ballooned to nine. More competition has brought a higher cost to acquire customers, and decreased lifetime value because customers have more alternatives. But there is something you can do about it, and it starts with product led growth that focuses on the needs of the individuals actually using the product! This involves a bit more B2C style marketing than most businesses are comfortable with, so be prepared to shake things up.
đž Marketers love Facebook, and for good reason. Itâs probably the most reliable ad platform today, capable of reaching a massive audience and offering sophisticated retargeting and lookalike capabilities to identify new users and keep your business top of mind. Single Grainâs Facebook ad funnel specifically focuses on B2B SaaS (quite the rarity), and walks you through each of the buckets of awareness, interest, evaluation, all the way to a sale.
đď¸ Demand generation maven Asia Matos did the impossible by consulting 20 early stage B2B SaaS business in two weeks (for context, 5 clients in that time span would typically be a packed calendar). From these sessions came a number of myths and themes worth noting:
Too many segments - founders lacked focus and targeted too many customer segments, spreading themselves thin.
Content marketing woes -Â their content wasnât addressing customer pains, focused enough on the bottom of the funnel, or making a direct connection between users and the product.
B2B and B2C similarities - in the early stage of 10k MRR or less, companies targeting consumers or businesses face the same challenges: customer development, finding the âahaâ moment, and more.
𧚠Whenever we need a refresher of the key principles needed to bring a solid business to the next level, weâll climb up to the attic and dust off Jim Collinsâ Good to Great. Because while good may not sound so bad, it is actually the enemy of great, and settling for it can lead you down a path towards mediocrity. What it really takes to be great is many forms of discipline: disciplined people, disciplined thought, and most importantly, disciplined actionâall of which Collins covers in his #1 Bestseller.Â