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Marketing Tech Businesses: A VC's view

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A VC perspective on the dos and don't of marketing tech businesses.
Originally given at European Pirate Summit September 2014

Published in: Marketing

Marketing Tech Businesses: A VC's view

  1. 1. Marketing tech businesses: a VC’s view Rob Moffat Pirate Summit 2014
  2. 2. 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 years 2
  3. 3. Some of our team 3
  4. 4. Me 4 2000 2007 2009
  5. 5. Me 5
  6. 6. VC view on marketing 6
  7. 7. VC view on marketing 7 VC view on marketing
  8. 8. VC view on marketing 8
  9. 9. VC view on marketing 9 Retention Contribution Margin > CPA or Spend €€€€ before working out:
  10. 10. VC view on marketing 10
  11. 11. Rely only on SEM
  12. 12. VC view on marketing 12
  13. 13. Do ‘black hat’ or ‘grey hat’ SEO Stick to white hat: • Well structured site* • Quality, relevant content • Quality, relevant links *As defined by Google
  14. 14. VC view on marketing 14
  15. 15. Total customers 2,000 customers €17 CPA Use blended CPAs €25 LTV business
  16. 16. Use blended CPAs New customers Repeat customers Paid channels Free channels 800 €5 CPA Paid channels Free channels 1600 €20 CPA Total customers 400 €5 CPA 2,000 customers €17 CPA 800 €35 CPA 100 €35 CPA 300 €4 CPA €25 LTV business
  17. 17. VC view on marketing 17
  18. 18. Ignore your brand Not just name: what do you stand for?
  19. 19. Basic marketing value statement <Your brand> is the <what you do> that will <benefit to your user> due to <proof points>
  20. 20. VC view on marketing 20
  21. 21. Do offline ads too early / without experience
  22. 22. VC view on marketing 22
  23. 23. Put your faith in K-factor (referrals) K = # of invites sent by each user x % conversion of each invite
  24. 24. Put your faith in K-factor (referrals) K = # of invites sent by each user x % conversion of each invite Occasionally >1 for: • Games • Consumer apps • Developer tools Usually 0.1 or less for: everything else
  25. 25. VC view on marketing 25
  26. 26. Spend time/effort getting into tech press Helps for: • Hiring • Tech early adopters (sometimes) Doesn’t help for: • Anything else
  27. 27. VC view on marketing 27
  28. 28. Track hundreds of numbers before you know which are the 3-5 which really matter for you
  29. 29. VC view on marketing 29
  30. 30. Lose people in the funnel (where this is in your control)
  31. 31. 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
  32. 32. VC view on marketing 32
  33. 33. Depend only on A-B testing
  34. 34. VC view on marketing 34
  35. 35. Use third party tools 35
  36. 36. VC view on marketing 36
  37. 37. Have personality 37
  38. 38. VC view on marketing 38
  39. 39. VC view on marketing 39 Be creative
  40. 40. VC view on marketing 40
  41. 41. VC view on marketing 41 Be bold
  42. 42. Questions? 42 @robmoff rmoffat@balderton.com www.robmoff.com

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