What’s behind the B2B/MarTech VC investment frenzy and is it just a fad?
So, what has driven investment firms to focus on B2B tech above B2C? B2B tech has evolved heavily since the emergence of marketing automation. B2B companies have learned from their B2C counterparts to innovate, scale and focus on the customer journey.
At the same time, marketing tech stacks have grown more complex, with innovative point solutions helping marketers fill in gaps that marketing automation and CRM systems can’t offer in detail. For Kelly Ford, Investment Partner at Edison Partners, this means focusing their investments on solutions that are integrating with or doing something to enhance marketing automation. Ford noted that, from an investing perspective, there is more of an opportunity to consolidate the market.
Trust is everything! Customers entrust mission-critical processes with startups, often without fully realizing the risks they are taking when they give their business to financially unstable firms. When such startups suddenly collapse, not only are customers’ businesses badly damaged, so too are the careers of the employees responsible for the vendor relationships in the first place.
The best way to get a VC’s attention and increase your chances of getting a yes is to buy yourself some insurance. Not the Generali, AXA or Prudential type. Try to enlist the support of a Mentor or a group of Advisors who have been through the Startup + MarTech + VC funding process before. You need to have at least one Senior Executive on your team that understands exactly what VC’s mean, think and want. In some cases, you will find one or more people who will help for free. But if you can’t, if you find the right person and they have come to you via a recommendation from someone you trust, and/or you can verify their credentials, then it’s worth your while to pay them for a short term period until you have given the VC funding your best shot and either succeeded or realized that it’s not a match.
If you treat the VC’s like a potential B2B client and approach it the same way as you would any other customer that is critical to your company’s survival, you are bound to have a different attitude and perspective than most companies raising funds to do.
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