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20VC: Benchmark’s Chetan Puttagunta on The One Question To Ask When Analysing Market Size, How To Compete in Today’s War for Talent & Why We Have Seen An Over-Rotation In Running Businesses Based on Metrics

Aug 5, 2019

Chetan Puttagunta, a General Partner at Benchmark and seasoned investor in tech giants like Uber and Twitter, shares his insights on startup growth. He warns against an over-reliance on metrics, stressing the importance of customer engagement over competitor comparisons. Chetan discusses strategies for attracting top talent, noting the best CEOs rely heavily on references. He also addresses the impact of remote work on team dynamics and analyzes how startups can effectively assess market size and competition amidst a rapidly evolving landscape.

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INSIGHT

Limitations of Early Metrics

Early-stage metrics can be misleading and fail to capture long-term potential.
Focusing too much on metrics can distract from the core purpose and customer connection.

ADVICE

Prioritize Product over Metrics

Focus on product and customer engagement rather than solely relying on metrics.
Understand how customers use your product and the value they derive from it.

ADVICE

Measure Customer Satisfaction

Measure customer satisfaction using appropriate methods, not just NPS surveys.
Collect data on customer use cases, value derived, and user demographics within organizations.

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Chetan Puttagunta is a General Partner @ Benchmark, one of the most successful funds of the last decade with a portfolio including the likes of Uber, Twitter, Dropbox, WeWork, Snapchat, StitchFix, eBay and many many more. As for Chetan, at Benchmark he has led deals in the likes of Duffel, Sketch and Pachyderm. Before Benchmark, Chetan was a General Partner @ NEA where he led investments in Elastic, MongoDB and Mulesoft to name a few.

In Today’s Episode You Will Learn:

1.) How Chetan made his way into the wonderful world of venture, came to invest in Mulesoft and Elastic and how that led to becoming a GP with Benchmark today?

2.) How does Chetan feel about the push to run businesses based on metrics and benchmarks relative to other companies? What are the metrics they should hone in on? What are the metrics they should disregard? How does Chetan advise his portfolio on the right way to view competition? What is core to analysing competition effectively?

3.) How does Chetan assess the "war for talent" in terms of startup recruiting today? How do the very best CEOs recruit the best talent to their team? Who has done this best from Chetan's portfolio that comes to mind? How much weight does Chetan place on references? What should one watch out for with references?

4.) With the rise of remote, does Chetan believe that a startup even has to have an office in SF today? How does Chetan think about the "tribal knowledge" that remains within the valley? What does Chetan advise his companies that are not in the valley and contemplating it? What works? What does not?

5.) How does Chetan think about market size today when considering new opportunities? Where does Chetan think most managers go wrong when assessing TAM? How does Chetan think about time allocation across the portfolio? What have been his biggest lessons on managing his time effectively as an investor and board member?

Items Mentioned In Today’s Show:

Chetan’s Fave Book: Shoe Dog: A Memoir by the Creator of NIKE

Chetan’s Most Recent Investment: Duffel

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Likewise, you can follow Harry on Instagram here for mojito madness and all things 20VC.