Yearly Archives: 2021

News: Taking consumer subscription software to the great outdoors

Fitness and the outdoor passion space is one of the most exciting CSS categories in a growing landscape that includes everything from family planning to entertainment and education.

Eric Crowley
Contributor

Eric Crowley is executive director in the San Francisco office of global investment bank GP Bullhound.

The pandemic has been extremely painful for many. But as lockdowns lifted and people began resuming their outdoor hobbies, mobile-first businesses have seen growth accelerate as consumers turned to digital tools to improve their time outdoors.

The Dyrt, for example, is the top camping app on the Apple and Google Play App Stores. The app sits at the confluence of two trends: An increased interest in outdoor recreation and travel, and an explosion in consumer subscription software (CSS).

The Dyrt launched its premium offering in 2019, The Dyrt PRO, in time to take advantage of the rising number of Americans making the great outdoors part of their lifestyle. A year later, it had a new subscriber every two minutes paying for features like offline maps and detailed camping information.

CSS businesses at the forefront of outdoor activities have closed major deals in recent years such as hunting app OnX (Summit Partners), hiking app Alltrails (Spectrum Equity), Surfline (The Chernin Group) and mountain bike leader Pinkbike (Outside Media). Companies like Netflix and Spotify have trained consumers to pay monthly or annual fees for software that enhances their lives, creating a business model investors view as reliable and poised for growth.

I think of different outdoor activities almost like individual genres on Netflix. Dominating camping or surfing might be like capturing the streaming market for comedy or horror.

Fitness and the outdoor passion space is one of the most exciting CSS categories in a growing landscape that includes everything from family planning/management services to entertainment and education. I believe CSS is still in the early stages of its growth — perhaps where B2B SaaS was a decade ago.

So what sets apart the great CSS businesses from the good ones?

Passion equals profits on the CSS flywheel

The beauty of the CSS model is the complete alignment between the business and its customers. CSS companies don’t have to please advertisers, and they can design purely for their users.

This dynamic is particularly powerful for CSS companies in the outdoors space, which make your favorite outdoor activity better with performance analytics and enhanced information such as maps, reviews, air quality reports and fire warnings. Consumers are happy to spend money on the activities and hobbies they enjoy, and CSS companies are able to make pleasing those consumers their top priority.

The result is what I call the CSS flywheel, in which a quality CSS product attracts and retains loyal users. Those users contribute their data through posts, photos and reviews, which creates a better product that further attracts new users, and so on.

The CSS flywheel shows the cycle that results when a quality CSS product attracts and retains loyal users.

The CSS flywheel shows the cycle that results when a quality CSS product attracts and retains loyal users. Image Credits: GP Bullhound

When companies get this flywheel right, it’s incredibly appealing to investors, because of the advantages of scale in CSS. Each niche will probably be dominated by one or two players, and a given niche can have tens of millions of consumers.

News: Daily Crunch: Salesforce rolls out initial post-acquisition Slack integrations

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hello and welcome to Daily Crunch for August 17, 2021. Today we have what struck us as the most interesting collection of startup news in some time. And we’re keeping an international perspective, diving into Brazil’s IPO market and — see below — fintech industry, while also looking at what’s ahead for Nigeria’s burgeoning startup industry. (Africa is busy!)

Before we dive into all of the goodness, demo tables are now live for our October TC Sessions: SaaS 2021 event, and we’ve got big biotech plans for Disrupt. Now, the news. — Alex

The TechCrunch Top 3

  • Salesforce starts to integrate with Slack: As Ron Miller notes, we’ve known that SFDC has big plans for workplace chat app Slack. You don’t spend $28 billion without a plan (the deal wasn’t cheap). Today the CRM giant announced early integrations with Slack, which should be exciting to all you BigCorp denizens who use both tools. In the set of new tooling are things like “dedicated deal rooms,” which are like huddles, but for a particular sales effort.
  • Travel startups are fundable again: That’s the takeaway from news that Hopper, a startup that helps consumers book flights and hotel stays, raised $175 million in a new round that values the company at $3.5 billion. What about the COVID-19 resurgence that many markets are currently enduring? The startup’s products that facilitate more flexible travel are doing numbers, Hopper told TechCrunch.
  • Crypto exchanges are venture darlings: Today’s news that crypto trading platform Bitpanda has raised $263 million at a $4.1 billion valuation is merely part of a trend that TechCrunch has seen in recent weeks of crypto exchanges raising huge checks at high prices. What’s driving the trend? Coinbase’s simply enormous and very public success in recent quarters. Everyone wants to fund the next Coinbase.

Startups/VC

First up, TechCrunch has been covering the African startup market with much more focus in recent quarters, as you may have noticed. Sadly, per our own Tage Kene-Okafor, news from a key nation in the African tech scene is not good. New regulations that could land in Nigeria are more “concerning than friendly,” he writes.

  • OnlyFans markets SFW app: Sure, OnlyFans is known mostly for its adult content and monetization thereof, but there’s more to the service than just that. The company is pushing a porn-free app that is devoid of monetization to highlight content from its creators that you could watch at work. Let’s see how it performs.
  • Maven earns unicorn horn: On the back of a $110 million round co-led by Dragoneer Investment Group and Lux Capital, Maven is now a unicorn. The startup’s valuation is “a rare landmark moment for women’s health, and women-led startups more broadly,” Natasha Mascarenhas wrote for TechCrunch. Maven focuses on comprehensive women’s health support.
  • More on Brazil in a moment, but Nuvemshop is now worth $3.1 billion after raising $500 million in a single round. Nuvemshop is a Brazilian e-commerce company that is often likened to a Shopify for the region. Its latest round was co-led by Insight Partners and Tiger Global Management, TechCrunch reports.
  • Startup takes on space junk: The issue of space around our planet being full of, well, junk is being taken on by “Aurora Propulsion Technologies, a Finnish company that develops thrusters and de-orbiting modules for small satellites,” TechCrunch reports. Rocket Lab is handling the launch.
  • $50M for better feature flags: If you are building an application, you may want to test new features with a limited set of users. Feature flags can help you do just that. The tech is big enough business that Split.io just landed eight figures of capital to keep building its business.
  • Monte Carlo proves that the data market is more than just lakes: Data observability startup Monte Carlo just closed a $60 million round at four times the price that it raised its Series B earlier this year. The company has seen 8x ARR growth in the last year. The company is a reminder that for high-growth software, there is no limit to available capital in today’s market.
  • And because you’ve read this far, how about some robot pizzas?

What does Brazil’s new receivables regulation mean for fintechs?

The Brazilian Central Bank made a major reform to the way payments are processed that may throw the doors open for e-commerce in South America’s largest market.

Historically, merchants who accepted credit card payments had two options: Receive the full payment distributed over two to 12 installments, or offer a deep discount to receive a smaller sum up front.

But in June 2021, the BCB created new “registration entities” that permit “any interested receivables buyer/acquirer to make an offer for those receivables, forcing buyers to become more competitive in their discount offers,” says Leonardo Lanna, head of payment products at Monkey Exchange.

The new framework benefits consumers and sellers, but for the region’s startups, “it opens the door to a plethora of opportunities and new business models, from payments to credit.”

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

  • Apple has an effort called Impact Accelerator, and, according to TechCrunch reporting, the megacorp is working to “to find and elevate minority-owned small businesses taking on sustainability and climate change.” A first group of 15 participants has been selected. We have the details.
  • And to close out today’s news, a final Big Tech story, but in reverse. Remember when fintech companies were taking on banks? Well, now they are buying banks. Call it revenge of the startups.

TechCrunch Experts: Growth Marketing

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We’re reaching out to startup founders to tell us who they turn to when they want the most up-to-date growth marketing practices. Fill out the survey here.

Read one of the testimonials we’ve received below!

Marketer: Jack Abramowitz

Recommended by: Frida Leibowitz, Debbie

Testimonial: “Jack is personable, sharp and overall a super helpful guy. He genuinely wanted to help and started adding value before we even formalized our relationship. Whether it’s making useful intros or getting into the nitty-gritty details of campaign strategies, he rolls up his sleeves and gets right in the trenches together with the team. He has really treated our project as his own.”

Community

Join Danny Crichton on Thursday, August 19, at 2 p.m. PDT/5 p.m. EDT for a Twitter Spaces interview with Sukhinder Singh Cassidy, author of “Choose Possibility: Take Risks and Thrive (Even When You Fail).”

News: Extra Crunch roundup: The Nuro EC-1, early-stage growth tactics, understanding Salesforce+

“With these self driving cars, it’s only a matter of time before a country song is written about a guy’s truck leaving him.”

In 2010, Google’s autonomous vehicle project placed self-driving cars on Bay Area streets and freeways, but practical applications were thought to be at least a decade away.

The futurists were right on schedule: In 2020, Mountain View-based Nuro was testing its second-generation R2 robotic vehicle, the first to earn a federal exemption to operate an autonomous vehicle.

But before Nuro could even consider reaching product-market fit, its founders had to overcome technological challenges, win over regulators and strike partnerships with a range of consumer-facing companies.

“Neither JZ nor I think of ourselves as classic entrepreneurs or that starting a company is something we had to do in our lives,” says co-founder Dave Ferguson. “It was much more the result of soul searching and trying to figure out what is the biggest possible impact that we could have.”


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Across four articles, reporter Mark Harris (The Guardian, Wired, MIT Technology Review) explores Nuro’s origins and operations, including the founders’ decision to focus on creating autonomous delivery vehicles instead of entering the passenger EV market.

I’ve lived inside the San Francisco Bay Area bubble for most of my adult life, so it’s interesting to see how people in Houston’s Woodland Heights neighborhood react to seeing Nuro’s R2 delivering pizza and prescriptions on a limited basis.

As one Redditor recently posted in r/houston: “With these self-driving cars, it’s only a matter of time before a country song is written about a guy’s truck leaving him.”

Part 1: How Google’s self-driving car project accidentally spawned its robotic delivery rival

Part 2: Why regulators love Nuro’s self-driving delivery vehicles

Part 3: How Nuro became the robotic face of Domino’s

Part 4: Here’s what the inevitable friendly neighborhood robot invasion looks like

Thanks very much for reading Extra Crunch!

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Why fintechs are buying up legacy financial services companies

Image of a bank vault.

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

Why bother to beat the competition when you can buy them outright?

“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,” Ryan Lawler writes.

“But lately, fintech upstarts are the ones doing the acquiring.”

Growth tactics that will jump-start your customer base

Image of a megaphone on a pink background with colorful balls in the air to represent marketing.

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

“With audiences spread out over so many platforms, reaching cult status requires some level of hacking,” Jenny Wang, a principal investor at Neo, writes in a guest column.

Covering everything from collecting user-generated content to launching splashy guerrilla marketing strategies that can take advantage of someone else’s events, she shares several growth tactics for startups, plus the metrics required to track their success.

There could be more to the Salesforce+ video streaming service than meets the eye

Behind the scenes of video recording or filming online movie by 8K high definition digital camera and professional monitor. And flare lighting set up with film crew team in the studio production.

Image Credits: ppengcreative / Getty Images

Salesforce announced last week that it plans to launch a video streaming service.

The industry analysts who enterprise reporter Ron Miller interviewed said the initiative has tremendous potential, but one noted that Salesforce will have to dig deep to compete in today’s crowded media landscape.

Salesforce hasn’t released details on the type of programming it plans to offer, but given its vast and diverse customer base, its options are many. Said Brent Leary of CRM Essentials:

“A customer could sponsor a show, advertise a show or possibly collaborate on a show. And have leads generated from the show [which could be] directly tied to the activity from those options and track ROI. And it’s all done on one platform. And the content lives on with ads living on with them.”

More companies should shift to a work-from-home model

An orange tabby kitten rests his paw on a hand as a person works from home

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

Karl Laughton, president and COO of Insightly, offers best practices for companies looking to make the move to a remote model.

“Employers are at a crucial crossroads when it comes to deciding where and how to let employers do their jobs,” he writes in a guest column. “There are those who will adopt the work-from-anywhere model and those who resist it.

“Those who resist it will likely struggle to keep employees.”

Early-stage benchmarks for young cybersecurity companies

3D illustration of a conceptual maze.

Image Credits: Getty Images under a Olivier Le Moal (opens in a new window) license.

YL Ventures’ Yoav Leitersdorf and Michael Cortez lay out a roadmap for founders of early-stage cybersecurity companies that are heading toward unicorn status.

“The early days of any young startup decide how successful it can be, which is why we’ve developed a focused, value-add program to support cybersecurity founders during this most critical stage and maximize their potential in building market-leading companies,” they write in a guest column.

“It’s never too early to think big, and, with the right support, launch the next industry titan.”

The hyperactive late-stage market should keep the startup investing game afoot

Alex Wilhelm considers last week’s funding news from Carta, Chime and Discord and noodles on what the recent rounds mean for startups.

“Understanding why investors are so willing to buy minute stakes in dozens of private companies worth billions of dollars is key to grokking the crush of investment we see among younger technology startups.”

News: YouTube upgrades search with chapter previews and better recommendations for translated videos

YouTube announced two feature updates today to make it easier for people to find the content they’re looking for on the platform. This includes visual search features and easier discovery of foreign language videos that have captions in the user’s local language. On desktop, YouTube users can hover over a video’s thumbnail and watch a

YouTube announced two feature updates today to make it easier for people to find the content they’re looking for on the platform. This includes visual search features and easier discovery of foreign language videos that have captions in the user’s local language.

On desktop, YouTube users can hover over a video’s thumbnail and watch a brief clip play. This functionality will now extend to mobile with the added ability to browse the chapters within a video. From the search page, users can jump directly to the chapter they’re most interested in.

chapters appear in youtube search

“Let’s say you’re looking for a good sourdough recipe and want to work on your kneading technique. With these new search results, you can see all the steps in the video, from feeding the starter to pulling the bread out of the oven — and skip right to the chapter on kneading,” wrote Pablo Paniagua, Director of Product Management, in a blog post.

The other product update recommends videos in other languages to the user, so long as the video has captioning available in their language. So, to extend YouTube’s sourdough example, if you speak Icelandic and can’t find a good sourdough tutorial in your language, YouTube might recommend an English-language tutorial with Icelandic subtitles. To start, YouTube will supplement search results with English-language videos, but it plans to expand to more languages.

an example of non-native language subtitles on a video

Image Credits: YouTube

In India and Indonesia, YouTube is also testing a feature to complement search results with links to other sites from Google Search.

“Not all searches may have enough high-quality or relevant video content to fully address what you’re looking for,” Panaigua explained.

Google Search already had a feature that let users skip to select moments in a video. Even late last year, Google (parent company to YouTube) experimented with a mobile search feature that would recommend short-form videos from TikTok and Instagram. But, the video would open within the search engine to keep users on Google, rather than opening the TikTok or Instagram apps.

Image Credits: YouTube (screenshot by TechCrunch)

These updates to YouTube’s search feature emerge in the midst of ongoing controversy around the platform’s search algorithm. Last month, Mozilla published research suggesting that YouTube’s algorithm continued to promote “bottom-feeding” content. Mozilla crowd-sourced data from participants who used a browser extension called RegretsReporter, which asks users to self-report YouTube videos they wish they didn’t watch. Mozilla found that YouTube regrets were 60% higher in countries where English isn’t the primary language. Still, a representative from YouTube said that features that might potentially mitigate this — for example, recommending foreign videos with local language captions — were not developed in response to the Mozilla report.

“Our teams have been working on these features for months with the goal of helping users find what they’re looking for, from how-tos to DIYs,” a spokesperson from YouTube said.

News: Fortnite adds a new mode that’s basically Among Us

Fortnite now boasts its own version of one of the pandemic’s hottest games. Fortnite-maker Epic just introduced into the game a new limited-time mode called Impostors; it follows the hit format that sent Among Us to Twitch’s front page — and Congress — during the pandemic’s earlier days. Up to 10 people can play the

Fortnite now boasts its own version of one of the pandemic’s hottest games.

Fortnite-maker Epic just introduced into the game a new limited-time mode called Impostors; it follows the hit format that sent Among Us to Twitch’s front page — and Congress — during the pandemic’s earlier days.

Up to 10 people can play the new Impostors game mode simultaneously, divided into two competing factions: agents and… impostors. Eight agents work to complete tasks around the new map before the two impostors can sabotage their efforts by eliminating agents and undoing their work. And because it’s Fortnite, you can also teleport players randomly around the map and turn everyone into a banana.

The game takes place in a new interior map location that properly conjures the claustrophobic paranoia that makes the social deception-style game intense to play and fun to watch. During each round, the players come together to vote on who they think is secretly working against the agents, which generally leads to a lot of spicy conversation. Players can stick with a smaller group (by picking the private game mode) if they’d like to keep things intimate.

Happily, you can still try it out if you don’t have a group of friends to play with, though this kind of game works best with people you know. While public voice chat is off in the new mode, players in open matches can communicate through a quick chat box and the game’s emotes to vote on who they think has infiltrated the group.

It’s too early to say if Fortnite’s Among Us clone will take off in the same way as the game that inspired it, or how long it’ll stick around. But considering that Fortnite is still one of the most popular games in the world, a new hit whodunnit game mode that’s eminently streamable is just icing on the cake.

News: Insider hacks to streamline your SOC 3 certification application

If you’re a tech company offering anyone a service, somewhere in your future is a security assessment giving you the seal of approval to manage clients’ data and operate on your devices.

Alex Circei
Contributor

Alex Circei is CEO and co-founder of Waydev, a Git analytics tool that helps engineering leaders measure team performance automatically.

If you’re a tech company offering anyone a service, somewhere in your future is a security assessment giving you the seal of approval to manage clients’ data and operate on your devices. No one takes security lightly anymore. The business costs of cyberattacks have now hit an all-time high. Government bodies, companies and consumers need the assurance that the next software they download isn’t going to be an open door for hackers.

For good reason, security certifications like the SOC 3 really put you through the wringer. My company, Waydev, has just attained the SOC 3 certification, becoming one of the first development analytics tools to receive that accreditation. We learned so much from the process, we felt it was right to share our experience with others that might be daunted by the prospect.

As a non-tech founder, it was hard not only to navigate the process, but to appreciate its value. But by putting our business caps on, our team was able to optimize our approach and minimize the time and effort needed to achieve our goal. In doing so, we were granted SOC 3 compliance in two weeks, as opposed to the two months it takes some companies.

We also turned the assessment into an opportunity to better our product, align our internal teams, boost our brand and even launch partnerships.

So here’s our advice on how teams can smoothly reach an SOC 3 while simultaneously balancing workloads and minimizing disruption to users.

First, bring your teams on board

Because we can’t expect employees to stack those hours on top of their regular workdays, as a leader you have to accept — and communicate — that the speed of your output will inevitably decrease.

As a founder, you’ll be acting as captain steering a ship into that SOC 3 port, and you’ll need all members of your crew to join forces. This isn’t a job for a specially designated security team alone and will require deep involvement from your development and other teams, too. That might lead to internal resistance, as they still have a full-time job tending to your product and customers.

That’s why it’s so important to start by being crystal clear with your employees about what this process will mean to their work lives. However, they have to embrace the true benefits that will arise. SOC 3 will immediately raise your brand’s appeal and likely see new customers come in as a result.

Each employee will also come out the other end with well-honed cybersecurity skills — they’ll have a deep understanding of potential cyber threats to the company, and all security initiatives will carry a far lighter burden. There’s also the sense of pride and fulfillment that comes with having an indisputable edge over your competitors.

News: Twitter asks users to flag COVID-19 and election misinformation

Twitter introduced a new test feature Tuesday that allows users to report misinformation they run into on the platform, flagging it to the company as “misleading.” The test will roll out starting today to most users in the U.S., Australia and South Korea. In the new test, Twitter users will be able to expand the

Twitter introduced a new test feature Tuesday that allows users to report misinformation they run into on the platform, flagging it to the company as “misleading.” The test will roll out starting today to most users in the U.S., Australia and South Korea.

In the new test, Twitter users will be able to expand the three dot contextual menu in the upper right corner of a tweet to select “report tweet” where they’ll be met with the new option to flag a misleading tweet. The next menu offers users a choice to specify that a tweet is misleading about “politics,” “health” or “something else.” If they select politics, they can specify if the misleading political tweet pertains to elections and if they choose health they can flag a misleading tweet about COVID-19 specifically.

Twitter has added a way for users to report election-related misinformation before, though previously those options were temporary features linked to global elections. Back in 2019, the platform rolled out the option to report misleading tweets about voting to help safeguard elections in Europe and India.

The intention is to give users a way to surface tweets that violate Twitter’s existing policies around election and pandemic-related misinformation, two topics it focuses policy and enforcement efforts around. The user reporting system will work in tandem with Twitter’s proactive systems for identifying potentially dangerous misinformation, which rely on a combination of human and automated moderation. For now, users won’t receive any updates from the company on what happens to misleading tweets they report, though those updates could be added in the future.

While the new reporting feature will be available very broadly, the company describes the test as an “experiment,” not a finished feature. Twitter will observe how people on the platform use the new misinformation reporting tool to see if user reporting can be an effective tool for identifying potentially harmful misleading tweets, though the company isn’t on a set timeline for when to fully implement or remove the test feature.

For now, Twitter doesn’t seem very worried about users abusing the feature, since the new user reporting option will plug directly into its established moderation system. Still, the idea of users pointing the company toward “misleading” tweets is sure to spark new cries of censorship from corners of the platform already prone to spreading misinformation.

While the option to flag tweets as misleading is new, the feature will feed reported tweets into Twitter’s existing enforcement flow, where its established rules around health and political misinformation are implemented through a blend of human and algorithmic moderation.

That process will also sort reported tweets for review based on priority. Tweets from users with large followings or tweets generating an unusually high level of engagement will go to the front of the review line, as will tweets that pertain to elections and COVID-19, Twitter’s two areas of emphasis when it comes to policing misinformation.

The new test is Twitter’s latest effort to lean more on its own community to identify misinformation. Twitter’s most ambitious experiment along those lines is Birdwatch, a crowdsourced way for users to append contextual notes and fact-checks to tweets that can be upvoted or downvoted, Reddit-style. For now, Birdwatch is just a pilot program, but it’s clear the company is interested in decentralizing moderation — an experiment far thornier than just adding a new way to report tweets.

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

British growth agency Ascendant says growth marketing 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.

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.

News: 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

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 $100M 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.

News: What does Brazil’s new receivables regulation mean for fintechs?

This the story of one regulator, the Brazilian Central Bank, and how it has taken center stage in creating a framework that will have far-reaching effects on merchants and fintechs in Brazil.

Leonardo Lanna
Contributor

Leonardo Lanna is head of payment products at Monkey Exchange, a Brazilian marketplace startup that enables sellers to offer receivables from sales in a single platform to many buyers at once, receiving the best price with low effort.

Something strange is afoot in Brazil, and it promises great changes for how merchants get paid.

This the story of one regulator, the Brazilian Central Bank, and how it has taken center stage in creating a framework that will have far-reaching effects across merchants and fintechs in this fast-growing Latin American nation.

But first, some background: Unlike in the rest of the world, when a credit card is used for payment in Brazil, the merchant does not receive the funds owed to them all at once. Instead, nearly 50% of card sales are completed in monthly installments, leaving the sellers to manage a difficult cash flow process.

The most common solution for merchants is that they end up selling the remaining receivable at a discount — taking less than they are owed — in order to get their money sooner. And we’re not talking about a small-volume market: Some R$2 trillion (Brazilian Reais) in card transactions were processed in 2020.

This compelling new regulatory framework brings new opportunities for many players willing to participate in receivables discounting operations.

Here’s what this looks like in practice: Let’s say Maria purchases a few articles of clothing from retailer Clothing Incorporated. When paying via her credit card at checkout, Maria can choose to pay in two to 12 installments. Maria decides to pay the balance of R$620 over six installments.

While Maria is happy with the products in hand, Clothing Incorporated is without the full payment — and for small merchants in particular, the difficulties associated with limited working capital can be acute. Clothing Incorporated can either wait the full six months to be paid, receiving payments from their merchant acquirer each month until they are paid in full, or they can choose to dramatically discount the amount they are owed and not have to wait the six months.

Let’s say Clothing Incorporated merchant acquirer is ExMarko — instead of receiving R$620 over six months (net of any merchant discount rates), they could receive R$520 within days after the purchase, with ExMarko pocketing the rest when it comes in. This comes at a steep cost of doing business to the merchant, with an implied annualized interest rate that sometimes can reach  ~70% — for a risk-free operation, since the acquirer is only liquidating earlier its own obligation to pay the merchant.

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