Lenny Rachitsky on Twitter: "When raising money, investors are increasingly looking for.. - Deepstash
Lenny Rachitsky on Twitter: "When raising money, investors are increasingly looking for..

Lenny Rachitsky on Twitter: "When raising money, investors are increasingly looking for..

Curated from: mobile.twitter.com

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Distribution advantages

Distribution advantages

When raising money, investors are increasingly looking for your unique distribution advantageβ€”how you get to your target market more cheaply and quickly than your competition.Β 

Here are 7 types of distribution advantages

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1. Starting with a pre-existing audience

Companies like @kyliecosmetics (Kylie Jenner), @Square (Jack Dorsey), @Superhuman (Rahul Vohra), @goop (Gwyneth Paltrow), and @Tesla (Elon Musk) springboarded off their founder’s pre-existing audience, giving them an immediate advantage.

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2. Developing a unique viral loop

2. Developing a unique viral loop

I previously wrote about these magical loops, and one that always comes to mind is @faire_wholesale where the team found a way to incentive their supply to drive their demand, and their demand to drive their supply.

https://www.lennysnewsletter.com/p/magical-growth-loops

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3. Being first on an emerging platform

@zynga and @Facebook, @Instagram and the iPhone, @PinduoduoInc and @WeChatApp Mini Apps, @veevasystems and @salesforce. So many companies broke out by riding the wave of new platforms. Check out this thread for more: https://twitter.com/lennysan/status/1406653638836035590

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4. Having a remarkable story

4. Having a remarkable story

Companies like @Airbnb, @Etsy, @Zillow, @TaskRabbit, and @Instacart grew primarily through (free) PR and word of mouth. Why? They are each remarkableβ€”worth remarking about. Thus, reporters and people loved talking about them.

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5. Starting with pre-existing strategic relationships

Another huge advantage is having a lot of pre-existing connections with your target buyers. Basically, having warm intros vs. going cold. This is exactly why joining programs like YC can be so effective for B2B startups.

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6. Closing early strategic partnerships

A few companies saw huge success in securing early strategic partnerships: Netflix made a deal with DVD manufacturers to insert flyers into DVD players, Kayak partnered with AOL, PayPal partnered with eBay.

More: https://twitter.com/lennysan/status/1339252420073775106

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7. Bringing extraordinary hustle

A final distribution advantage is simply making sh*t happenβ€”no matter what. Tony Xu personally delivered food. Travis Kalanick handed out Uber coupon codes at Caltrain stations. Steve Jobs, Bill Gates, Marc Benioff, Zuck

https://twitter.com/DanRose999/status/1403799514641731592

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Much more in today's newsletter https://www.lennysnewsletter.com/p/distribution-advantages

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