Startups Anonymous Est. 2013 · Read-only archive
Questions

New launch: best to create buzz now or wait for strong results?

We just launched our B2B product in a pilot program scenario. We’ve been getting in front of investors and can now back with exciting news of launch. We also want to put out a press release with a quote from our pilot company GM etc. We are desperately seeking our seed round. We are bootstrapped and running on fumes at this point.

Our product has both internal and external customers – we’ve geared functions towards both audiences and are hoping to show good usage for both. If we don’t, we’ve already evaluated an opportunity to pivot and focus on either avenue based on the reception.

Quick question is- should we race to promote the launch within our potential investor community and put out press release and social media, etc. while the momentum is brand new? We’re ready to scream from the heavens as we’re very proud. Or, should we wait a while to get a sense of the usage data and put ourselves out there when we have a more compelling story based on proven success? Or should we do both?

 

7 answers from the community

AAnonymous· Nov 23, 2014

If it's that good of an idea, be ready for the copy cats early.

Which means you better have some funding sitting somewhere ..

AAnonymous· Nov 23, 2014

Maybe a difficult decision, maybe not. If you are really running on fumes, your priority is obviously to raise funding, or die. Everything which can speed up fund raising must be done. So, in this case, the card to play is certainly market fuss. On the other hand, if you still have some time, you should evaluate what is the less risky way. Large promotion can speed up your fall if product market fit is too far ahead. But it can be the starting point of the hockey stick. Nobody else than you can better weigh those probabilities.

AAnonymous· Nov 23, 2014

OP here: Great feedback thank you. You are spot on - everything that can speed up funding must be done. Things are very real now. Market fuss may indeed be it.

Question: We have been eyeing a competitor who has apparently launched some similar features recently to their core offering. We heard on the grapevine that their success with this has been low - we have a much more robust product. We had considered approaching them but were worried our 'valuation' was low given it is new and we don't have funding (they do). We had planned on going to them at some point - but given we are running out of steam we may need to do this sooner rather than later. Potential acquisition?

Thoughts?

AAnonymous· Nov 23, 2014

Most likely they would just analyze your features and steal what they needed or wanted ?

You actually think they would pay you for an un patented working concept

they could just borrow ?

Thoughts ?

AAnonymous· Nov 23, 2014

Ok, I see. I confirm my first analysis: you need to raise funds, and concentrate on funding. Not talking to competitor. At all.

Since I'm very straight in this advice, with very few elements for such decision, I must enter into details. First: who I am. In the startup world, I'm a technical founder of a software startup. So, I naturally think the value is in the product. Other people may think the startup value is in biz dev or marketing, but my opinion is "value in the product". I precise this because the final decision will be yours, and you will assume all the consequences, not me. So it's honest to explain where is the bias in my opinion.

When I read your two posts, I understand you have a good product and lack of money. And maybe lack of a marketing/sales/bizdev guy or girl. The competitor has money from fundings, thus certainly the marketing/sales/bizdev team with high level skills and rolodex, but "ordinary" tech guys (maybe very young developers from coding bootcamp ? contractors ? offshore ?). It wouldn't surprise me, it is very rare to find teams with strong people on both sides. And I think because your product is better, you are talented engineers, and nobody in your team has exceptional operational skills (like in my own team).

Don't talk to your competitors. They will never buy you (more than one dollar). They will never share anything good for you. They will just stab you in the back and get your technology for free. If you go to them, it's like defying the world champion of poker without making the difference between an ace and a two. But from their point of view, you are stronger. They know perfectly YOU have the good product, and they have the bullshit. They know they are talented in lying, but one day or another, everybody will know they are bullshitters and you have the good product.

In such a game, the one which knocks the other's door has lost.

Do what it takes to raise funds. I can't advise on this part because I hate VC so much I always bootstrapped. But I'm convinced it is easier and faster for high level tech guys like you to quickly learn how to raise money than for bullshitters with fund raising capabilities to learn how to create a good product from nothing. You are stronger, you must know it, believe in it, and you will win. Your competitor will for sure die in a near future if they can't make really good products. Your single goal is to avoid being killed by them before they die (because they can do that, this is maybe the only thing they are capable of).

AAnonymous· Nov 26, 2014

The most important voice is your customers'. Assessing objectively, how far are you from product-market fit? (and beware of drinking your own Koolaid)

Will they pay for your product? Can you survive on that?

If you're 'not there yet' with solving their problem, any publicity will just heighten stress and accelerate your downfall.

AAnonymous· Nov 27, 2014

oP here - smart advice thank you everybody for your insight. We decided to wait - results are starting to come in. We already have additional thoughts on how to help accelerate results.

Good luck to anybody else who just let their first baby fly !