[PreMoney SF 2015] "How to: Create Value Add, Not Value Ad(vertising)"

TL;DR

Differentiating in a competitive market by adding value to customers rather than relying on advertising.

Transcript

Thanks I'm Finn Barnes my partner with first round here in san francisco and i'm going to try to talk through a simple a simple way that I think anyone in this room can establish a differentiated position in what is what is a very very competitive market by creating value add rather than value advertising so throughout the day we've heard a lot abo... Read More

Key Insights

• 💯 Value add should be a core operating principle, regardless of market competitiveness.
• 🪜 Focusing on adding value to customers is more important than advertising.
• 💪 Building a strong community and reducing friction in the startup process can differentiate in a competitive market.
• ❓ Startups value investors who are entrepreneur-friendly and trustworthy.
• 🥺 Differentiating in the market by treating customers right can lead to success.
• 😑 VC product pre-investment should focus on being a consumer product that entrepreneurs want to buy.

Questions & Answers

Q: What is the correlation between competitiveness in the market and value advertising?

The speaker believes that there is a correlation, as every market is competitive and there are always more investors than great opportunities. Value advertising is a response to this competitiveness.

Q: How can one be successful without advertising?

Success can be achieved by focusing on adding value to customers rather than advertising. Building a strong community and providing valuable services can make a significant impact.

Q: What is the approach of First Round in adding value?

First Round's approach is building a community of entrepreneurs, helping them communicate with each other, and providing resources and services to support founders in building successful startups.

Q: How can individuals add value for zero cost?

By rethinking the definition of the customer and considering every entrepreneur as a customer, it is possible to add value without any cost. Thinking about word-of-mouth marketing and creating products that cater to a broader audience can be valuable.

Summary & Key Takeaways

• Value add is a core operating principle and should not be based on the current competitive landscape.

• Adding value to customers is more important than advertising and can lead to success.

• First Round has a specific approach to adding value by building a community of entrepreneurs and reducing friction in the startup process.