183 - If Your Startup Can't Win On GTM, We Won't Invest (Emily Kramer, Co-Founder at MKT1)
Jan 8, 2024
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Emily Kramer, Co-Founder at MKT1, discusses warning signs before investing in startups, GTM strategy, MKT1 Capital Fund, and burning questions. The episode covers marketing strategies, unique advantages, and the significance of aligning tactics with business goals for startup growth.
Investing in startups with a focus on marketing expertise is crucial for success in the current landscape.
Market One Capital Fund aims to secure high returns by identifying startups with significant market impact potential.
Providing adaptable marketing frameworks over rigid playbooks empowers startups to navigate marketing challenges independently.
Deep dives
Investing in Startups with a Focus on Marketing Excellence
Investing in startups with a focus on marketing expertise is crucial for success in the current landscape. By evaluating the go-to market viability of early-stage startups, investors can identify key factors that contribute to long-term success. This approach involves assessing the founding team's understanding and commitment to go-to-market strategies, their ability to make strategic marketing hires, and the presence of marketing advantages within the company. By emphasizing marketing excellence, investors like Market One Capital Fund aim to increase the chances of success for their portfolio companies.
Return on Investment Expectations and Fund Performance
Market One Capital Fund's investment strategy aims to secure high returns by identifying startups with the potential for significant market impact and big exits. The fund operates with a long-term perspective, typically spanning a 10-year period to assess overall returns. By focusing on companies with the potential for outsized success, the fund targets returns ranging from 3x to 10x, driven by a few key companies with substantial exits. Additionally, the fund's commitment to diversity in its investor base, including a significant representation of marketers and women, further enhances its value proposition and potential for success.
Teaching Startups to Fish: Frameworks Over Playbooks
In the realm of startup marketing consulting, the emphasis on providing adaptable frameworks over rigid playbooks is essential for empowering startups to navigate marketing challenges independently. By equipping entrepreneurs with strategic frameworks for customer research, goal setting, channel prioritization, and messaging alignment, consultants support startups in building a strong marketing foundation. Encouraging ongoing iteration, utilizing simple tools such as Google Docs and Slides, and instilling a customer-centric approach, consultants foster a self-reliant and agile marketing mindset within startups.
Early-Stage Startup Marketing Approach
For early-stage startups, laying a strong marketing foundation is crucial for long-term growth and success. Initiatives such as voice of customer research, defining company goals, prioritizing marketing channels, and establishing clear messaging contribute to crafting a robust marketing strategy. Adopting a systematic approach that allows for continuous iteration and adaptation based on customer insights ensures that startups remain aligned with market needs and competitive landscape.
Closing Thoughts on Marketing and Branding
In the ever-evolving landscape of marketing and branding, key considerations include the selection of primary brand colors and brand names that resonate effectively with the target audience. Investing in distinct brand elements that are visually appealing and memorable can bolster brand recognition and audience engagement. Strategies to avoid common pitfalls, such as choosing overly bright colors or overly complex brand names, can contribute to a cohesive and impactful brand identity.
Happy New Year! I'll keep saying that until we're well into February, and you can't stop me.
I feel like I could talk to Emily for hours every time she comes on the pod. Emily Kramer is Co-Founder at MKT1. MKT1 helps founders and marketers build and scale their marketing functions through investing (MKT1 Capital fund) and advising. Emily was on the pod before, listen to Ep. 141 “Mistakes To Avoid When Hiring Your First Head of Marketing.” It’s a Top 5 most listened to episode of all time.
In this episode:
What are some warning signs you look for before you invest in or advise an early stage startup;
What does "win on GTM" actually mean;
GTM strategy is more than just marketing so why'd you decided to focus all your energy on positioning around "marketing excellence" when you communicate your positioning and messaging and content with MKT1;
I wanted to dig into the MKT1 Capital Fund, specificallyreturn on investment expectations with this fund and what makes you different from other funds;
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