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For British agency Ascendant, growth marketing is much more than a set of tactics

Growth marketing is often misconceived as a set of tactics when it’s much more: It is a process that startups need to put in place in their early days that will scale as their customer base and internal teams grow.

This is where British growth agency Ascendant shines, Robyn Weatherley, head of marketing at Thirdfort, let us know via our growth marketing survey. Ascendant’s consultants haven’t just helped the British legal tech startup execute growth tactics, she wrote: “They’ve helped us set up the framework to keep executing on those whether we are five, 50 or 500 people.” (If you too have growth marketers to recommend, please fill out the survey!)

“If you don’t come from a growth marketing background, you don’t know how to even frame the problem, let alone fix it. This is why so much startup marketing is tactical rather than strategic.”

We followed up on this recommendation by interviewing Ascendant co-founder Gus Ferguson and partner Alyssa Crankshaw for our ongoing series of growth marketer profiles. If you are in the U.K., you might know them from the TechLondon Slack community, or bumped into them pre-COVID at the OMN London events, the digital marketing meetups they co-organize. In the interview below, they share how they work with early-stage companies, including tactical planning and building out tools for marketers to use without taking up internal engineering resources.

Editor’s note: The interview below has been edited for length and clarity.

Can you tell us about your background and how you came to work with startups?

Gus Ferguson: I’ve been a digital marketer for the last 15 or 16 years, and in 2009, I started one of the first content marketing agencies in the U.K. We did a lot of work with big travel brands, but the problem was that in big corporates, teams are in silos, so they weren’t able to take advantage of being at the forefront of marketing.

Gus Ferguson - Ascendant

Gus Ferguson. Image Credits: Ascendant

I was based in East London and I started working with a couple of startups. It’s also around that time that I partnered up with Alyssa. But we were looking at startups being hampered by traditional marketing — because traditional marketers were bringing big corporate problems to startups, when their key strength is their nimbleness and their agility and their ability to adapt.

That’s when we started developing processes for basically building businesses from scratch — when you don’t have any historical data to base your marketing strategies on. We were saying to them: Don’t ask us for a 12-month plan, because it’s a waste of time. But because there was that mindset at the time, that’s just what people expected. So we were going in and saying: You need a broad three-month plan, maximum; then a one-month plan in detail, and ideally a two-week sprint.

What kind of clients does Ascendant work with?

Gus Ferguson: Thanks to the growth framework that we’ve built up over time, we can pretty much work with any new business where there’s no existing process for marketing. We work with fintech, healthcare and legal companies, e-commerce brands, and both B2C and B2B. So startups, but also startup-type businesses. For instance, we worked with corporate ventures like Canon and VCs like Forward Partners, which was really interesting learning, because we were working with earlier-stage businesses than we would normally.

One million in funding is our sweet spot for startups. The reason for that is that it costs money to bring experienced growth experts into business, and up to that point, I believe it is important for founders to understand growth themselves. Being able to understand how to do it at that early stage will create such a valuable foundation of audience centricity for that business moving forward. A lot of what we do is bringing audience centricity into product-focused businesses — and generally encouraging founders to think about why their audience should care that they’ve got a solution to their problem.

Right, “build it and they will come” is a mistake that founders make all the time! Could you give more details on how you help them?

Gus Ferguson: Generally we’ll look at whatever they have as a foundation, and at similar businesses, and we’ll create an initial growth model. We’ll start putting hypotheses in place as to which channels are going to be the most effective at hitting their short-term objectives if they have them ready. But often, part of the process is also defining which metrics matter for that business, and working out how to measure them.

We always start working with founders and sales, and generally before or with one first marketing hire in place. Part of our work is to come up with projected results based on their funnel, but very often, with product-centric businesses, it will be that funnel that’s missing. So we bring in a bit of funnel thinking to those businesses and get that in place.


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And then there’s all sorts of what we call framework building that needs to be in place before you can start doing more traditional campaign-based marketing. So we’ll start looking at the specific frameworks around data, and how to form an objective truth for that business, with a shared understanding of the key metrics. When nobody knows what the fundamental data framework of that business looks like, for instance, because of team turnover or silos, we’ll tighten that up and make sure that everything is functioning together so that things like marketing automation are possible.

It’s perhaps a bit surprising about siloed teams at an early stage; how big are the startups you work with?

Gus Ferguson: We start when they are small, but we keep our clients for a long time. So, for example, we worked with Elder, which is a health tech startup. When we started off with them, there were 12 people, and when we finished with them, there were hundreds of people. Soldo is another example: When we started the marketing team was one person, and by the time we left, they were spanning three floors at WeWork.

Our lifecycle ends at Series B, because at that point, all the frameworks will be in place and they’ll be bringing everything in-house. So that’s our happy ending when the clients get to huge Series B raises. And then we move on to the next one that needs our help to get there.

But to go back to your question, slips happen because these are very venture-backed companies with very high growth not just in customers but also in their internal teams. Everybody is doing everything, everybody is new at their jobs, and there aren’t very many internal processes, so there’s an element of chaos. That’s where the need for cross-functional teams grew from — to step out of everybody’s individual chaotic worlds and create an island of shared objectives and order.

Alyssa Crankshaw - Ascendant

Alyssa Crankshaw. Image Credits: Ascendant

Alyssa Crankshaw: It’s just important for us to make people communicate. We often end up actually becoming a reason for the whole team to talk to each other — because we are external, they see more value in these tasks that they wouldn’t do otherwise.

How does that work in practice?

Gus Ferguson: An example of that is the CMS system we are putting in place for one client that we’re working with at the moment, where salespeople use it, marketing people use it, customer services people use it — and those teams were fairly siloed beforehand.

We also know that probably one of the biggest barriers to growth is marketers being dependent on developers, which are such a rare resource. We address that by implementing marketing frameworks at a basic level of the business whereby marketers are able to at least control basic marketing operations directly.

But one of the most important processes that we bring in is the cross-functional team, with one stakeholder from each department. It means that there’s at least one person on each team who understands what the objectives are, and then people start problem-solving together.

Didn’t that become more difficult with COVID-19?

Gus Ferguson: Potentially it got easier with remote. Usually, we find one person on each team — generally the team’s leader — and we bring them as spokespersons into the cross-functional team. In a remote world, it’s actually easier because you can just all jump on Zoom calls.

Alyssa Crankshaw: Even before COVID, we weren’t the type of consultants who sit several days a week in their client’s office. We are problem-solvers across the company, and we’ve always done that, whether it was from our old office or remotely now.

Gus Ferguson: Our own model also proved exceptionally flexible when we needed it to be during the pandemic. We are a core team of three people, and we are working with a network of specialized freelancers — so instead of worrying about fixed overheads, we can have agreements with trusted partners and morph into whatever our clients need at that time. Because of the nature of startups, as I said earlier, it doesn’t make sense to have long-term plans for businesses where there’s such a high rate of change. And from an agency perspective, it means that what we’re doing one month is always very different from what we’re doing the next month.

Alyssa Crankshaw: It’s a conscious decision not to follow a traditional agency model, because it helps us be flexible and bring in the specialists when we need them, rather than just having to use that person that sits on your payroll just because you have them. It’s much more effective for everybody.

What’s a thing that people might not know about what you do?

Gus Ferguson: Growth marketing is a process; it’s really how I differentiate it from traditional marketing. A lot of people will say that growth marketing is the AARRR funnel, but is that really any different from traditional marketing? Not really. Maybe you’ve got a broader set of channels than a traditional marketer would focus on. But what’s really different is the process that gives our clients confidence that they’re doing the right thing, even if they’ve never done it before. Because that’s how you learn.

One of the challenges with doing something new for the first time, in a team of people who are also doing a new thing for the first time with no historical data, is that you quite often don’t even know how to frame that. If you don’t come from a growth marketing background, you don’t know how to even frame the problem, let alone fix it. This is why so much startup marketing is tactical rather than strategic, or even worse, tool-led. People think: “Oh, if I was using this tool, then all my problems would be solved,”  when, actually, you need to be able to create the hypotheses and understand the objectives that the hypotheses are answering.

Alyssa Crankshaw: We give our clients the roadmap, the foundation and the operational structure in which to run campaigns, retention, acquisition or whatever the target may be, which is huge for them. Because when creating everything from scratch, that’s where we often see a lot of overtesting. We love a good test — we’re both marketers — but we only like to test the big things. And sometimes when working with inexperienced people, we see a lot of new tests about the smallest things, which is a waste of time and resources. And there are some other things that are foundational, and you just know which they are if you are an experienced marketer and you have done this so many times in your life.

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Apple’s sustainability-focused Impact Accelerator invites first 15 Black- and brown-owned companies

Among Apple’s more recent social good initiatives is the Impact Accelerator, an effort launched about a year ago intended to find and elevate minority-owned small businesses taking on sustainability and climate change. The program now has its first 15 participants, gathered from all over the country for a three-month program and a shot at an Apple contract.

The Impact Accelerator is part of the company’s $100 million Racial Equity and Justice Initiative, which is being divided between a number of efforts, some directly funding existing programs, some going to venture firms owned by people of color, and generally whatever the Initiative’s team thinks is a good investment.

These companies will take part in a three-month-long virtual program (the details are not discussed in Apple’s announcement post) and then will have the opportunity to become suppliers for Apple’s carbon neutral supply chain goals.

Apple profiles all 15 companies in this list, but here are five that caught my eye:

  • Volt Energy Utility (Co-founder: Gilbert Campbell III) — Developer of utility-scale solar projects with a focus on underserved communities.
  • Bench-Tek (Founder: Maria Castellon) — A manufacturer of lab benches that focuses on using environmentally friendly materials.
  • Vericool (Founder: Darrell Jobe) — Aims to make sustainable alternatives to Styrofoam and other packaging products, and makes a point of hiring formerly incarcerated folks.
  • Oceti Sakowin Power Authority (Chairman: Lyle Jack) — Not a company per se, but an NGO formed by six Sioux tribes dedicated to developing renewable energy in the Midwest and on reservations.
  • Mosaic Global Transportation (Founder: Maurice H. Brewster) — Supplies employee and event shuttles and other vehicles with an aim to replace gas-operated ones with EVs.

“The businesses we’re partnering with today are poised to become tomorrow’s diverse and innovative industry leaders, creating ripples of change to help communities everywhere adapt to the urgent challenges posed by climate change,” said Apple’s VP of Environment, Policy, and Social Initiatives, Lisa Jackson, in the announcement.

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Why fintechs are buying up legacy financial services companies

Oh, how the tables have turned.

It used to be that if you were a fintech startup or, for lack of a better term, a digitally native financial services business, you might be eyeing an acquisition from an incumbent in the industry.

It used to be that if you were a fintech startup or, for lack of a better term, a digitally native financial services business, you might be eyeing an acquisition from an incumbent in the industry.

But lately, fintech upstarts are the ones doing the acquiring. Over just the last year or so, we’ve seen:

So what’s going on here? Why are fintechs now acquiring legacy financial services businesses, instead of the other way around?

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Tropic picks up $25M to streamline software procurement experiences

The pandemic was a catalyst for showing companies looking to cut costs just how much they were spending on their software tools. New York-based Tropic’s platform not only uncovers those savings, but also brings a click-and-approve approach to buying software. Today, the company announced a $25 million Series A round of funding.

Canaan Partners led the round, with participation from Founder Collective and Mo Koyfman’s new fund, Shine. It gives Tropic $27.1 million in total funding since the company emerged from stealth in 2020, CEO David Campbell told TechCrunch.

Prior to founding the company with Justin Etkin, Campbell was in technology and sales roles, selling software contracts of every size, and realized how complex and rigid the contracts were getting as companies grew larger and the lack of price transparency increased. The complexity of some contracts can cause companies to overpay, even locking companies into payments they can’t afford, Campbell said.

On top of that, more buyers are younger now and their experience with purchasing software is pulling out their phone to download an app, while buying a customer relationship management tool will take six months to buy and cost thousands of dollars.

“Looking at the space, we are in a mirror maze of software, including companies using software to build products that they then sell back to the software companies,” Campbell said. “Companies are only buying software once a year, yet the process can be so complex.”

Tropic’s SaaS procurement model gathers the whole process under one platform. Unlike some competitors’ approaches, it takes on the heavy lifting so when companies have to buy or renew a contract, users can access Tropic’s one-click purchasing service to outsource the transaction. After the contracts are signed, its platform manages the technology and ensures financing is in order. This approach saves companies 23%, on average, on the software purchases, which Campbell said “moves the needle” for many companies where software is the No. 1 cost after salary.

In recent years, cloud software has become a fast-growing spend category across most businesses. Campbell said the average company can have more than 100 software contracts, while that jumps to over 500 for enterprise organizations. Meanwhile, global spend on enterprise software is forecasted to reach $599 billion by the end of 2021, a 13.2% increase over the previous year, according to Statista.

In the last 12 months, the company added over 60 customers, counting Qualtrics, Vimeo, Zapier and Intercom, surpassed $250 million in managed spend and processed transactions for over 1,200 vendors. The company is seeing 100% quarter over quarter growth, and in the last quarter, doubled its annual recurring revenue, Campbell said.

Tropic will use the funding for R & D and to deepen integrations with existing procurement tools in the cloud software ecosystem. Over the past year, the company’s headcount has grown to 50 and Campbell has “aggressive hiring plans between now and the rest of the year” focused on the tech side with engineering and product management.

Hootan Rashidifard, principal from Canaan Partners, said his firm was tracking the software procurement sector and learned about Tropic through Founder Collective, which led the company’s seed round.

“We’re seeing software and financial services converge and Tropic sits squarely at the intersection of both in a category with massive tailwinds,” Rashidifard said via email. “Software is accelerating the share of expenses while also penetrating every part of an organization, and software purchasing is becoming more decentralized. Tropic’s platform is in a fragmented market with high payment volume, which is ripe for layering on all kinds of adjacent services.”

 

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Cisco beefing up app monitoring portfolio with acquisition of Epsagon for $500M

Cisco announced on Friday that it’s acquiring Israeli applications-monitoring startup Epsagon at a price pegged at $500 million. The purchase gives Cisco a more modern microservices-focused component for its growing applications-monitoring portfolio.

The Israeli business publication Globes reported it had gotten confirmation from Cisco that the deal was for $500 million, but Cisco would not confirm that price with TechCrunch.

The acquisition comes on top of a couple of other high-profile app-monitoring deals, including AppDynamics, which the company bought in 2018 for $3.7 billion, and ThousandEyes, which it nabbed last year for $1 billion.

With Epsagon, the company is getting a way to monitor more modern applications built with containers and Kubernetes. Epsagon’s value proposition is a solution built from the ground up to monitor these kinds of workloads, giving users tracing and metrics, something that’s not always easy to do given the ephemeral nature of containers.

As Cisco’s Liz Centoni wrote in a blog post announcing the deal, Epsagon adds to the company’s concept of a full-stack offering in their applications-monitoring portfolio. Instead of having a bunch of different applications monitoring tools for different tasks, the company envisions one that works together.

“Cisco’s approach to full-stack observability gives our customers the ability to move beyond just monitoring to a paradigm that delivers shared context across teams and enables our customers to deliver exceptional digital experiences, optimize for cost, security and performance and maximize digital business revenue,” Centoni wrote.

That experience point is particularly important because when an application isn’t working, it isn’t happening in a vacuum. It has a cascading impact across the company, possibly affecting the core business itself and certainly causing customer distress, which could put pressure on customer service to field complaints, and the site reliability team to fix it. In the worst case, it could result in customer loss and an injured reputation.

If the application-monitoring system can act as an early warning system, it could help prevent the site or application from going down in the first place, and when it does go down, help track the root cause to get it up and running more quickly.

The challenge here for Cisco is incorporating Epsagon into the existing components of the application-monitoring portfolio and delivering that unified monitoring experience without making it feel like a Frankenstein’s monster of a solution globbed together from the various pieces.

Epsagon launched in 2018 and has raised $30 million. According to a report in the Israeli publication, Calcalist, the company was on the verge of a big Series B round with a valuation in the range of $200 million when it accepted this offer. It certainly seems to have given its early investors a good return. The deal is expected to close later this year.

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Shopistry bags $2M to provide ‘headless commerce without the headaches’

Canada-based Shopistry wants to turn the concept of headless commerce, well, on its head. On Monday, the e-commerce startup announced $2 million in seed funding to continue developing its toolkit of products, integrations, services and managed infrastructure for brands to scale online.

Jaafer Haidar and Tariq Zabian started Shopistry in 2019. Haidar’s background is as a serial technology founder with exits and ventures in e-commerce and cloud software. He was working as a venture capitalist when he got the idea for Shopistry. Zabian is a former general manager at OLX, an online classified marketplace.

Shopistry enables customers to create personalized commerce experiences accessible to all. Haidar expects headless will become the dominant architecture over the next five years, though he isn’t too keen on calling it “headless.” He much prefers the term “modular.”

“It’s a modular system, we call it ‘headless without the headaches,’ where you grab the framework to manage APIs,” Haidar told TechCrunch. “After a company goes live, they can spend 50% of their budget just to keep the lights on. They use marketplaces like Shopify to do the tech, and we are doing the same thing, but providing way more optionality. We are not a monolithic system.”

Currently, the company offers five products:

  • Shopistry Console: Brands turn on their optimal stack and change anytime without re-platforming. There is support for multiple e-commerce administrative tools like Shopify or Square, payment providers, analytics and marketing capabilities.
  • Shopistry Cloud is a managed infrastructure spearheading performance, data management and orchestration across services.
  • Shopistry Storefront and Mobile to manage web storefronts and mobile apps.
  • Shopistry CMS, a data-driven, headless customer management system to create once and publish across channels.
  • Shopistry Services, an offering to brands that need design and engineering help.

Investors in the seed round include Shoptalk founder Jonathan Weiner, Hatch Labs’ Amar Varma, Garage Capital, Mantella Venture Partners and Raiven Capital.

“At MVP we love companies that can simplify complexity to bring the proven innovations of large, technically sophisticated retailers to the masses of small to midsize retailers trying to compete with them,” said Duncan Hill, co-founder and general partner at Mantella Venture Partners, in a written statement. “Shopistry has the team and tech to be a major player in this next phase of the e-commerce evolution. This was easy to get excited about.”

Shopistry is already working with retailers like Honed and Oura Ring to manage their e-commerce presences without the cost, complexity or need for a big technology team.

Prior to going after the seed funding, Haidar and Zabian spent two years working with high growth brands to build out its infrastructure. Haidar intends to use the new capital to future that development as well as bring on sales and marketing staff.

Haidar was not able to provide growth metrics just yet. He did say the company was growing its customer base and expects to be able to share that growth next year. He is planning to add more flexibility and integrations to the back end of Shopistry’s platform and add support for other platforms.

“We are focusing next on the go-to-market perspective while we gear up for our big launch coming in the fourth quarter,” he added. “There is also a big component to ‘after the sale,’ and we want to create some amazing experiences and focus on back office operations. We want to be the easiest way to control and manage data while maintaining a storefront.”

 

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My big jump: Sukhinder Singh Cassidy’s CEO journey

After listening to others pitch me a few different job opportunities while still at Google in 2008, it became clear to me that I would make a better decision if I could fully explore the larger landscape of new companies emerging in Silicon Valley.

I had spent the last several years focusing on Google’s business outside the U.S., and I honestly felt out of touch with the startup world. Beyond my goal of becoming a CEO of my own company, I had two other ambitions: I wanted to help build a great consumer service that would delight people (potentially in e-commerce) and I wanted to build further wealth for myself and my family.

To better evaluate my options, I made the decision to quit Google first and find a way to study the wider ecosystem of companies before choosing where to go. Resolved to give myself a “blank slate” before making a final choice, I left Google when I was three months pregnant and joined Accel Partners, a top Silicon Valley venture capital firm and an investor in my previous startup, in a temporary role as CEO-in-residence.

In the months that followed, I helped Accel evaluate investment opportunities across a wide variety of digital sectors, with a particular focus on e-commerce, taking the opportunity to study those companies I might join or think of starting from scratch.


On Thursday, August 19 at 2 p.m. PDT/5 p.m. EDT/9 p.m. UTC

Managing Editor Danny Crichton will interview Sukhinder Singh Cassidy, author of “Choose Possibility,” on Twitter Spaces.


One of Accel’s key partners, Theresia Gouw, helped me brainstorm, joining my cadre of professional priests. We had known one another for over a decade (I originally met her as a young founder at Yodlee) and were at similar stages of our careers, so I knew she could identify personally with my career quandaries. Like me, Theresia was pregnant with her next child and at a similar life stage — yet another commonality.

Cropped photo a photo of author Sukhinder Singh Cassidy

Image Credits: Sukhinder Singh Cassidy

While at Accel, I spent a disproportionate amount of time testing my macro thesis that online shopping was about to explode in new ways. I had seen the rise of e-tailers at Google (many of these companies, such as eBay and Amazon, were Google’s largest advertisers at the time), but many of the leading e-commerce sites like Amazon and Zappos still had a utilitarian feel to them.

Meanwhile, new fashion and décor e-commerce sites such as Rent the Runway, Gilt, Houzz, Wayfair and One Kings Lane were popping up everywhere and growing rapidly. These sites sought to tap into a more aspirational and entertainment-oriented kind of shopping experience and move it online.

Expert investors like Accel and others were funding them, and my own observations suggested that this area would yield another big wave of online consumer growth. These lifestyle categories of shopping also appealed to me personally; I was the target customer for many of them.

I started to work on an idea for a new e-commerce service, a luxury version of eBay, while listening to the pitches of every e-commerce company that was looking for funding and talking to several that needed early-stage CEOs. I continued to listen to non-e-commerce pitches as well, simply to give myself a point of reference for evaluating online shopping opportunities.

At Yodlee and Google, I had been lucky enough to work with incredibly smart and talented people who shared my values, and I wanted to do the same at my next venture.

I wanted to work with great investors, too, and fortunately I had the ability either to work with Accel-funded companies, start my own or leverage other investor relationships I’d developed. I spent time with multiple company founders to try to discern who they were as leaders, in addition to what they were working on.

By this point in my career, I had a pretty clear idea of my own superpowers and values, so I looked to find companies that could make the most of my unique gifts and whose founders or senior leaders had strengths complementary to mine.

Specifically, I hoped to join a company with a very strong engineering and product management culture that needed a CEO with strategy, vision, business development, fundraising and team-building expertise. Applying these criteria, I turned down several opportunities at companies whose founders had skill sets too similar to mine, reasoning that this overlap might lead to conflict if I ever became CEO.

Finally, I used my time at Accel to think long and hard about the risks I would take in becoming a startup CEO and whether I could afford to fail. My biggest risk by far was ego- and reputation-related. Mindful of how precarious early-stage startups are, I feared that I would leave a successful role as a global executive only to suffer a very large and visible failure. But the more I thought about this, I faced this ego risk head-on and concluded that my reputation as an executive from Google would hopefully be strong enough to survive one failure if it came to that.

The personal risks of taking on a startup CEO role felt different but not greater than those associated with my job at Google. While I knew that serving as a first-time CEO while having another newborn at home (my son Kieran) would be immensely stressful, I would likely benefit from no longer traveling around the world for days and weeks on end and working across multiple time zones, as I had previously.

Last, I evaluated the financial risks of potential moves. Although my startup equity would have uncertain value for a long time, I judged this a risk worth taking, given how excited I’d feel to have more impact and responsibility as CEO. While I lost a large financial package in choosing to leave Google and switching to a startup salary, I could pay the bills at home while digging into my savings only slightly. Under these conditions, I was prepared to make the leap.

In early 2010, almost a year after I left Google, I finally found the right opportunity and decided to join fashion technology startup Polyvore as its full-time CEO. A precursor to Pinterest, Polyvore was based on the idea that women could “clip” online images to create fashion and décor idea boards digitally that were instantly “shoppable.”

Millions of young women (including influencers) were already using the service and loved it. The founding team was led by a rock star engineer, Pasha Sadri, along with three other product and technology folks he recruited from the likes of Yahoo and Google.

Pasha was known for his intelligence, and we had connected informally over the years for coffee, each time having great discussions about business strategy. In fact, Polyvore twice before had tried to recruit me to become its CEO, once when I was at Google and again when I departed that company in 2008. Back then, I’d spent a productive afternoon with the founding team, helping them think through their business model. I also knew Peter Fenton, one of Silicon Valley’s most successful investors and a leading funder of the company. Peter was the one who first introduced me to Polyvore and who continued afterward to passively court me.

Having spent so much time exploring my options from multiple angles, I was now poised to make a great decision. I felt convinced that e-commerce was starting its next wave of growth, and felt excited to be part of it.

Within that vision, Polyvore was among the companies best positioned to succeed, and I knew I could contribute in significant ways to building a service that would delight millions. I was impressed with the strengths of Polyvore’s founder and investors and anticipated that I would be able to complement their efforts nicely. Recognizing that my success as a startup CEO hinged on my relationships with the founder and board, I had also invested time to get to know them.

Meanwhile, I had faced my fear demons, taking financial risk but negotiating my offer aggressively to account for downside scenarios I imagined, and coming to grips with my ego risk. With all this work in place, I finally jumped.

After managing a multibillion-dollar profit and loss and leading a 2,000-person team at Google, I became the newly minted CEO of a 10-person fashion startup in February 2010.

As we tee up the bigger choices in our careers, we all face critical moments of decision. No choice we make will be perfect, and all the frameworks in the world won’t eliminate risk entirely. But we don’t need perfection or freedom from risk. We just need to take the next step.

By choosing thoughtfully, using all the tools at our disposal to maximize our upside and anticipate our downside, we can grasp the opportunities available to us while equipping ourselves to handle whatever challenges reality throws our way.

Excerpted from “Choose Possibility: Take Risks and Thrive (Even When You Fail)’ by Sukhinder Singh Cassidy. Copyright © 2021 by Sukhinder Singh Cassidy. Published and reprinted by permission of Mariner Books/Houghton Mifflin Harcourt. All rights reserved.

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Crypto’s coming of age moment

This week Danny and Alex and Chris took to Twitter Spaces to chat about the current state of the crypto economy, and hang out with friends in a live Twitter Space. We’re doing more of these, so make sure that you are following the show on Twitter.

As a small programming note, I forgot to tell the folks who chimed in during the chat that we were recording it, so we had to cut most the Q&A portion of the show. We got Ezra’s permission, thankfully. The mixup was a bummer as we learned a lot. In the future, we’ll not make that mistake and keep all the voices.

So, what did we talk about? The following:

Ok, we’re back Monday with your regularly scheduled programming!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday morning at 7:00 a.m. PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Extra Crunch roundup: 3 lies VCs tell, betting big on Kubernetes, NYC’s enterprise boom

Although older adults are one of the fastest-growing demographics, they’re quite underserved when it comes to consumer tech.

The global population of people older than 65 will reach 1.5 billion by 2050, and members of this cohort — who are leading longer, active lives — have plenty of money to spend.

Still, most startups persist in releasing products aimed at serving younger users, says Lawrence Kosick, co-founder of GetSetUp, an edtech company that targets 50+ learners.

“If you can provide a valuable, scalable service for the older adult market, there’s a lot of opportunity to drive growth through partnerships,” he notes.


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Use discount code ECFriday to save 20% off a one- or two-year subscription.


Cropped photo a photo of author Sukhinder Singh Cassidy

Image Credits: Sukhinder Singh Cassidy

On Thursday, August 19, Managing Editor Danny Crichton will interview Sukhinder Singh Cassidy, author of “Choose Possibility,” on Twitter Spaces at 2 p.m. PDT/5 p.m. EDT/9 p.m. UTC.

Singh Cassidy, founder of premium talent marketplace theBoardlist, will discuss making the leap into entrepreneurship after leaving Google, her time as CEO-in-Residence at venture capital firm Accel Partners and the framework she’s developed for taking career risks.

They’ll take questions from the audience, so please add a reminder to your calendar to join the conversation.

Thanks very much for reading Extra Crunch this week! Have a great weekend.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Dear Sophie: Can I hire an engineer whose green card is being sponsored by another company?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I want to extend an offer to an engineer who has been working in the U.S. on an H-1B for almost five years. Her current employer is sponsoring her for an EB-2 green card, and our startup wants to hire her as a senior engineer.

What happens to her green card process? Can we take it over?

— Recruiting in Richmond

3 lies VCs tell ourselves about startup valuations

Image of a Pinocchio silhouette.

Image Credits: Dmitrii_Guzhanin (opens in a new window) / Getty Images

In a candid guest post, Scott Lenet, president of Touchdown Ventures, writes about the cognitive dissonance currently plaguing venture capital.

Yes, there’s an incredible amount of competition for deals, but there’s also a path to bringing soaring startup valuations back to earth.

For example, early investors have an inherent conflict of interest with later participants and many VCs are thirsty “logo hunters” who just want bragging rights.

At some point, “venture capitalists need to stop engaging in self-delusion about why a valuation that is too high might be OK,” writes Lenet.

‘The tortoise and the hare’ story is playing out right now in VC

HARE & TORTOISE WITH RACE NUMBERS ON GRASS

Image Credits: Getty Images under a GK Hart/Vikki Hart (opens in a new window) license.

Aesop’s fable about the determined tortoise who defeated an arrogant hare has many interpretations, e.g., the value of perseverance, the virtue of taking on bullies, how an outsized ego can undermine natural talent.

In the case of venture capital, the allegory is relevant because a slow, steady and more personal approach generates better outcomes, says Marc Schröder, managing partner of MGV.

“We simply must take the time to get to know founders.”

What’s driving the global surge in retail media spending?

Shopping cart with dollar sign and colorful shopping bags.

Image Credits: Getty Images under a jayk7 (opens in a new window) license.

As the pandemic changed consumer behavior and regulations began to reshape digital marketing tools, advertisers are turning to retail media.

Using the reams of data collected at the individual and aggregate level, retail media produce high-margin revenue streams. “And like most things, there is a bad, a good and a much better way of doing things,” advises Cynthia Luo, head of marketing at e-commerce marketing stack Epsilo.

New York City’s enterprise tech startups could be heading for a superheated exit wave

“We lied when we said that The Exchange was done covering 2021 venture capital performance,” Anna Heim and Alex Wilhelm admit.

Yesterday, they reviewed a detailed report from NYC-based VC group Work-Bench on the city’s enterprise tech startups.

“New York City’s enterprise footprint is now large enough that it must be considered a leading market for the startup varietal,” Anna and Alex conclude, “making its results a bellwether to some degree.”

“And if New York City is laying the groundwork for a huge wave of unicorn exits in the coming four to eight quarters, we should expect to see something similar in other enterprise markets around the world.”

Disaster recovery can be an effective way to ease into the cloud

Ladder leaning on white puffy cloud on blue studio background, white surface, drop shadow

Image Credits: PM Images (opens in a new window) / Getty Images

Given the rapid pace of digital transformation, nearly every business will eventually migrate some — or most — aspects of their operations to the cloud.

Before making the wholesale shift to digital, companies can start getting comfortable by using disaster recovery as a service (DRaaS). Even a partially managed DRaaS can make an organization more resilient and lighten the load for its IT team.

Plus, it’s also a savvy way for tech leaders to get shot-callers inside their companies to get on board the cloud bandwagon.

Regulations can define the best places to build and invest

A view of a woman's eye looking through a hole in some colorful paper

Image Credits: PeopleImages (opens in a new window) / Getty Images

“The decisions of government, the broader legal system and its combined level of scrutiny toward a particular subject” can affect market timing and the durability of an idea, Noorjit Sidhu, an early-stage investor at Plug & Play Ventures, writes in a guest column.

There are three areas currently facing regulatory scrutiny that have the potential to “provide outsized returns,” Sidhu writes: taxes, telemedicine and climate.

VCs unfazed by Chinese regulatory shakeups (so far)

“China’s technology scene has been in the news for all the wrong reasons in recent months,” Anna Heim and Alex Wilhelm write about the Chinese government’s crackdown on a host of technology companies.

“The result of the government fusillade against some of the best-known companies in China was falling share prices,” they write.

But has it affected the venture capital market? SoftBank this week said it would pause investments in China, but the numbers through Q2 indicate China is steadier than Alex and Anna expected.

Perform a quality of earnings analysis to make the most of M&A

Hand counting pieces of m&ms making up pie chart

Image Credits: Westend61 (opens in a new window) / Getty Images under a license.

If you’re a startup founder, odds are, at some point, you’ll raise a Series A (and B and C and D, hopefully), perform a strategic acquisition, and maybe even sell your company.

When those things occur, you’ll need to know how to do a quality of earnings (QofE) to maximize value, Pierre-Alexandre Heurtebize, investment and M&A director at HoriZen Capital, writes in a guest column.

He walks through a framework for thinking and organizing a QofE for “every M&A and private equity transition you may be part of.”

VCs are betting big on Kubernetes: Here are 5 reasons why

3d rendering of Staircase and cloud.

Image Credits: Getty Images under a akinbostanci (opens in a new window) license.

“What was once solely an internal project at Google has since been open-sourced and has become one of the most talked about technologies in software development and operations,” Ben Ofiri, the co-founder and CEO of the Kubernetes troubleshooting platform Komodor, writes of Kubernetes, which he calls “the new Linux.”

“This technology isn’t going anywhere, so any platform or tooling that helps make it more secure, simple to use and easy to troubleshoot will be well appreciated by the software development community.”

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Growth tactics that will jump-start your customer base

Five years ago, the playbook for launching a new company involved a tried-and-true list of to-dos. Once you built an awesome product with a catchy name, you’d try to get a feature article on TechCrunch, a front-page hit on Hacker News, hunted on ProductHunt and an AMA on Quora.

While all of these today remain impressive milestones, it’s never been harder to corral eyeballs and hit a breakout adoption trajectory.

In this new decade, it is possible to first out-market your competitor, and then raise lots of money, hire the best team and build, rather than the other way around (building first, then marketing).

Outbound marketing tools and company newsletters are useful, but they’re also a slow burn and offer low conversion in the new creator economy. So where does this leave us?

With audiences spread out over so many platforms, reaching cult status requires some level of hacking. Brand-building is no longer a one-hit game, but an exercise in repetition: It may take four or five times for a user to see your startup’s name or logo to recognize, remember or Google it.

Below are some growth tactics that I hope will help jump-start the effort to building an engaged user base.

Laying the groundwork for user-generated content

Before users are evangelists, they are observers. Consider creating a bot to alert you of any product mentions on Twitter, or surface subject-matter discussions on Reddit (“Best tools to manage AWS costs?” or “Which marketplace do you resell your old electronics on?”), which you can then respond to with thoughtful commentary.

Join relevant communities on Discord, infiltrate Slack groups of relevant conferences (including past iterations of a conference  —  chances are those groups are still alive with activity), follow forums on StackOverflow and engage in the discussions on all these channels.

The more often you post, the better your posts convert. The more your handle appears on newsfeeds, the more likely it will be included on widely quoted “listicles.”

Most “user-generated content” in the early innings should be generated by you, from both personal accounts and company accounts.

Build in public …

Building in public is scary given the speed at which ideas can be copied, but competition will always exist, since new ideas are not born in vacuums. Companies like Railway and Replit post to Twitter every time they post a new changelog. Stir brands its feature releases as “drops,” similar to streetwear drops.

Building in public can also lend opportunities for virality, which requires drama, comedy or both. Hey.com’s launch was buoyed by Basecamp’s public fight against Apple over existing App Store take rates.

Mmhmm, the virtual camera app that adds TV-presenter flair to video meetings, launched with a viral video that hit over 1.5 million views. The company continues to release entertaining YouTube demos to showcase new use cases.

Help TechCrunch find the best growth marketers for startups.

Provide a recommendation in this quick survey and we’ll share the results with everybody.

… or build in private

Like an artist teasing an upcoming album, some companies are able to drum up substantial anticipation ahead of exiting stealth mode. When two ex-Apple execs founded Humane, they crafted beautiful social media pages full of sophisticated photography without revealing a single hint of what they set out to build.

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