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GO TO MARKET & COMPETITIVE LANDSCAPE
Rachel Pike, DFJ Orrick TOTAL ACCESS October 9, 2013
Go To Market
Getting that first customer
• Think of your first deal as a partnership • Creative artificial time pressure • The evangelical salesman • Flinch pricing • Paid pilots
Remember: One customer does not a company make!
(also: feature vs. company)
The key to selling…
is to know when to stop building.
What comes next?
• Scaling sales operations • Repeatable business or partnership deals • Reduction in spin up time and cost per
customer
Competitive Landscape
A slide like this… Feature list YOU! Giant
Incumbent Fledging
Competition Not even in your market
Feature everyone has
Feature that some of the competition has
Unnecessary feature your competition cut
Feature you think you have
Feature you wish you had
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
Or this. Fast
Slow
Traditional Modern
Your Logo Here!
Others
Others
Others
Others
Others
Others
Others
Others
You don’t operate in a vacuum…
So know your place.
your startup operates in the context
of an ecosystem there are those you partner with and
those you compete against and
those who keep you awake at night
You know more than investors about your space. Own it! Teach ‘em something.
Know the ecosystem Competitors: direct, indirect, potential entrants
Partners: suppliers, channel, resellers, cosellers
Substitutes: drop in, partial, how it’s done today
What if?
Your competitors are NOT corporations? o Economic + political trends o Cultural + social shifts o Technological innovation o Regulations + legislation
You still need to include them in your risk analysis.
SWOT Analysis
Strengths: why you kick ass - Team - Technology - Scalability - Execution - Customer acquisition & retention - Distribution
Opportunities: why you might kick ass - Early mover - Emerging segments - New technology - New distribution channel - Changing tastes - Etc.
Weaknesses: why you don’t kick ass - Team - Lack of Technology - Scalability issues - Inability to execute - Unreliable product/service - Poor distribution
Threats: why you might not kick ass - Competitors w/ more $ - Emerging segments - New technology - New distribution channel - Changing tastes - Etc.
A long view
• Create a long-term sustainable advantage IP, roadmap, network effects, switching cost
• Continuous learning & innovation Recruiting, culture, 20% time
• Excellence and speed in execution • Don’t obsess about others • A little competition is healthy
Keep an eye on competition but don’t loose focus on what’s really important: the customer!
Deciphering a VC What we say…
What we mean.
Who do you compete with today?
How are you different from the 15 other dating fitness trackers I saw this week?
Who will you compete with tomorrow?
When does Google plan to do this?
I’d like to better understand how you are different, what’s your competitive advantage?
Sorry, what did you just say?
[Insert name here] just raised $50M from these 10 firms, how are you differentiated?
Your competition has deep pockets…will anyone be willing to fund your next round?
