Pitching a startup to investors without a personal recommendation isn’t a terrible idea—as long as you’ve done your research first.
Tetra Insights co-founders Michael Bamberger and Panos Rigopoulos raised a $5 million Series A last year, and the duo said cold work was a key part of their strategy.
“When I changed my criteria to find people who were a good fit, the process was really fast,” says Bamberger, who initially raised a $500,000 friends and family round in 2019, followed by a $1.5 million seed round this year later.
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Rigopoulos and Bamberger shared their cold calling tips with TC+, along with the full text of one of their winning emails and a detailed breakdown of the three-step process they used.
“Once you get investors, the story doesn’t matter; it’s all about metrics, numbers and performance,” Bamberger said.
“Before the investment, the numbers are only part of the story, so you really have to understand how you tell the story.”
Due to the Thanksgiving holiday in the US, we’re skipping this Friday’s newsletter, but we’ll be back in a week with another roundup of TC+.
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Tracking and Capture: Getting Started with Attention Metrics
There was a time when metrics like time on site and page views were sufficient for growth marketing, but that’s no longer true.
To track engagement and performance, brands need to know exactly where their ads are appearing and whether users are actively or passively viewing them.
“Viewability is no longer enough and ‘attention metrics’ are becoming increasingly popular in the industry,” according to Sylvain Le Borgne, head of data and analytics at MediaMath.
“As attention metrics and measurement continue to evolve, brands can learn more, develop a plan aligned to key business outcomes, begin optimizing for attention, and begin their targeting and measurement tactics to capture the attention of consumers.”
Get product and customer success teams on the same page to improve net retention
You don’t have to move the needle far to optimize customer success. SaaS startups that gradually improve will accumulate small profits that have the potential to change the company’s trajectory.
Instead of taking a traditional siled approach, founders should consider merging their product and CX teams into one unit to foster cohesion, writes Brian House, senior vice president of product and customer success at Elastic Path.
“No matter what you call the role, product management, UX and customer success should all report to the same person,” he advises.
“This leader must create a structure that shares incentives and common goals aligned with your customers’ measures of success.”
A love letter to microfunds, the backbone and future of venture capital
Venture capital funds can run into the billions, but smaller pools of $50 million or less “are really the funds that are fueling the future of the industry,” reports Rebecca Shkutak.
Last year, Pitchbook recorded $147.2 billion in total venture capital fundraising in the United States, with microfunds raising nearly $17 billion of that amount.
“[They are] it’s often the first investment in a company that creates more opportunities in the lifecycle,” said Kyle Stanford, senior analyst at PitchBook.
“Especially when we’re talking about how much capital has gone into the venture market, it wouldn’t be possible without the large number of micro-funds.”
During a recession, look to drive growth through customer retention
Finding ways to reduce customer churn is at the heart of any retention growth strategy, but centralizing first-party data is the first step, according to Vijay Sundaram, chief strategy officer at Zoho.
Interweaving different signals such as social media, website behavior and CRM data will help identify high-value customers and drive engagement, but “first-party data is likely to be held across multiple departments and systems, including marketing, advocacy customers, sales and support,” he wrote.
“Building rich customer profiles and establishing a culture of information sharing should be core functions of customer engagement teams.”