The Age Of Hiring

Yesterday a job fair for the 60+ took place in Tel-Aviv. They say it’s a first. I read the story by Guy Grimland on The Marker (Hebrew) and all I could think of is how quickly we’re all getting there. To this age.

A year ago I founded a startup company with a partner who is 8 years younger than me. Recently we started to browse around for a technical partner to join our team. The oldest applicant we had was 52 years old. The youngest was in his late 20’s. Both had interesting résumés.  I can’t say it didn’t cross my mind that a 50 plus might be too old for a web startup but I quickly pushed this thought aside and decided the right thing to do would be to talk to both.

I was very impressed with the older applicant. Clearly his knowledge and experience have given him a lot of confidence, enough to be open to various ideas, tools and consideration. He has this authoritative tone needed if we want him to lead a tech department, yet seemed attentive and kind. It was the younger applicant, who despite a very impressive résumé, clearly a smart and talented young man, seemed simply cocky. Someone who wasn’t going to be a tremendous joy to work with.

It got me thinking again about the topic of age discrimination. Especially in high tech. VCs cannot tell me they are not influenced by the age (as well as appearance, and sometimes sex) of entrepreneurs presenting to them. There’s a very well known angel investor in Israel who would rather not talk to any entrepreneur who is over the age of 30 (especially if it’s a woman), and who is pretty proud of enjoying his version of “child labor”. His excuse is: young people (preferably before family-stage) are independent and can slave around the clock until they reach their declared goal. Older entrepreneurs might actually care about other things too.

But it’s the richer world that makes a smarter entrepreneur. True, you don’t need the richer version for every venture, but it can surely help. So looking at building a founding team I think there’s something smarter in diversifying not only sex, but also age.

VC Marketing 3: The Listeners

After a while the entrepreneurs seeking investment can get a pretty bizarre feeling. You are driving, yet you’re on auto-pilot, and you’re getting nowhere. Seriously, are we driving at all?

But then comes this surprise meeting when you realize that yes, there is a road, you’re on it, and you’re definitely driving. You lose the auto-pilot and you’re wide awake.

These people can either invest or not, but you will remember them and their names, and you will follow them in years to come, because they did this one bit of basic marketing right.

They lost the auto-pilot!! They listened, communicated. They wanted to understand your message. Weren’t afraid to ask the tough questions or make suggestions. Yes those questions were directed at you, and not at every entrepreneur that came into their offices.

If the VC or investment firm has done their homework, you will meet their person who is the most-knowledgeable-in-your-area that they have. And if this person has done his or her homework, they would have researched your business, your industry and each one of the company’s partners to better prepare. Their listening has started way before your first handshake.

After all, they wouldn’t want to miss on a great opportunity only because they forgot to listen.

VC Marketing – They do it 2, Differently

Rise above the noise. Every marketer wants it. And yes, it’s true for VCs and angel investors too. Let’s be different. Let’s get noticed. Let us become entrepreneurs’ first choice.

One such investor, rising above the noise around me is Chris Sacca, with his fund “Lowercase Capital“. I love their web site. Or should I say his web site??

Unlike many VCs, made of a team of partners and professional employees proudly presented to potential investments and investors, Chris Sacca is, well, Chris Sacca. An accomplished venture investor and an entrepreneur. Lowercase is Chris and Chris is Lowercase.

If it wasn’t for the constant use of the word “we” on their web site Lowercase Capital could well seem to be a one-man-show. Its web site has a unique terminology and design. Somewhere between retro, old fashioned and good old westerns, this VC founder is featured under “proprietor” and the entrepreneurs wishing to get in touch are referred to as “prospecting”.

Their visual and verbal difference from the majority of venture capital investors and investment firms is not something they did because they just wanted seem different, or only to rise above the noise. Lowercase capital is stressing how apart it is from the stream under “creed” – their vision, a section opening with the words “Venture capital is broken”. Their appeal to entrepreneurs is coming from some point of empathy with the entrepreneurs’ deep pain and frustration which often accompanies the fund raising process. They are using good old fashioned sentimental motivation in marketing.

This is a web site entrepreneurs would want to read through and through. I am not sure anyone would bother to read all verbals on any VC web site. But here, you will. This web site gives you the feeling that it is indeed about compatibility and personal chemistry between you, the entrepreneur, and “the proprietor”. You would want to know what the other side is seeking and how to get them interested in your particular venture. So you will read every word there and make sure you can convince them that you are the entrepreneur who speaks the Lowercase Capital language. You and no other.

And to be sure you do – they offer you a guide, under “prospecting”. It is not a web form, but it is very much the format you are expected to use when applying. Use it smartly.

And last but not least – the call for action:
On “outfit”, the introduction section – “So take a look around this site and see if we are a fit. If so, we can’t wait to hear from you.”
On creed it is “We won’t be wearing a suit, and our lawyers won’t be in the meeting, but if you think we can help you, let us know.”
On prospecting it is “Now, send your pitch here and let’s get to it.”

Now, if that doesn’t get you on the move, what would?

VC Marketing, They do it too

A group of investors has been waiting for me to finish a few documents. So my guess is they might be surprised if I put up a new blog post before I submit their expected papers. Priorities, you know. This post got delayed. But along this ongoing process of funding my startup I can’t help but looking at my potential suppliers – those people with the money – and consider their marketing strategy: The investors’ marketing strategies.

As we, the entrepreneurs are searching for funds, and work really hard to market ourselves; we often forget that the people we try to market-to are also working hard on marketing themselves to us.

Investors, whether angels or funds, have to market not only to their investors, but also to the fund-seeking entrepreneurs. They compete on getting the best entrepreneurs coming through their doors first. Some acknowledge this reality better than others: The attitudes range between those who are playing hard to get to those who are open and accessible. Those you can only contact via a shared connection, to those who put their email-Facebook-twitter up there. Those who have you fill out forms to those who will happily get a friendly cup of coffee with you.

It was more than a decade ago that one of my clients was a major Israeli VC fund. I had consulted them on their web positioning and executed the project with the best GUI expert I have known, Yoav Perry, who happens to be my cofounder at Saveby, our startup. I just remembered that experience and considered the long way that web positioning and marketing tactics has made since. Well, at least in some cases. The most interesting cases are those revealing a unique positioning.

So starting close to home with the Israeli VCs I’ll disclose my interest first: My husband is Partner and CFO at Genesis Partners, one of the earliest and leading VCs in Israel. This is their homepage, the images switch randomly.

It's all about the people

The “all about the people” tagline says it all and markets to all direction: the people in the fund, the people trusting the fund with their money and of course the people that the fund invests in. Funds invest in people first, before the ideas.

The people are the fund’s greatest achievement. Which is why Genesis Partners have gone even further. They established “The Junction” – a shared workspace for entrepreneurs doing their very early steps towards a startup company. With an internet connection, a coffee machine and a conference room they fulfill the early stage entrepreneurs’ needs, and all that for less than the coffee costs. Did we mention marketing strategy?

The New King Is: Concept

There’s a new business category and I’m looking for the defining-term for it. For years I’ve been in and around the high tech industry. Worked with software, hardware and internet companies. Been involved in the venture capital funds industry and their pursuit of technological innovations.

But there’s something new out there. An innovative technology and the once so important technological barriers are not as important as they used to be. A winning idea and a thought through concept is the new king in town.

The best example is Groupon. The ecommerce industry, and more specifically, the group shopping trend, is hot now. Very hot. Since Groupon’s rejection of a 6 billion dollar acquisition offer by Google, even those who weren’t quite there want to be related to the successful celeb.

Groupon was founded about 3 years ago, and is currently employing more than 3000 employees, according to its Crunchbase page. It started with an initial angel investment of 1 million dollars in 2007, an additional 4.8 million in 2008, 30 million at the end of 2009 and 135 million this year. But it is estimated that the company is going to make 500 million dollar in revenues this year. That’s revenues, not profits, in case you were wondering. Still – an amazing number. According to this article Groupon became profitable on it’s 7th month of operation. That’s impressive.

Groupon is an interesting example because it’s mainly a concept and not so much a technology. Since it’s an internet based company it’s considered high tech, but really, there’s a new category in town, and it’s not tech, it’s more of an innovative thinking, then an innovative technology.

To be fair, there are plenty of high thinkers out there. If I take only the group shopping market I can find the amazing Lifesta, offering a marketplace for the unused Groupon and similar deals. Yippit is a deal aggregator – reading deals from all location based deal-a-day web sites. The Gifts Project enables groups of friends to buy gifts together. Yardsellr.com is a new sell and buy concept. There is some technology in those, but it’s not the main thing, not even a barrier. The value of the concept is taking its rightfully owned central position. And now, thanks to Groupon, the market is finally realizing that a good idea is as valuable as a new technology if not more. The new barrier isn’t a complicated technology any more, it’s the concept and the people who create it.

This leaves more room for competition of course, but competition can also be good. It validates and strengthens markets. It inspires high thinkers and generates new concepts.

Who will invest in startups in 2009?

While working on the script for a demo to present my startup venture, I am approaching the dreaded point where I will need to get other people’s money to advance my vision. In other words: fish for investors.

‘Investors’ are like a dirty word nowadays. When talking to other entrepreneurs the word “investors” or “investment” is whispered. As if by saying it out loud the dream will crumble and disappear.

The gloom projections for 2009, based on the sad financial events at the closure of 2008, add to a global pessimist atmosphere. The “realists” I meet say to me, nodding their heads, “well… a startup venture?? Now??? This is really not the time, you know??”

Well, what can I say, it’s now that I have this idea, and not later. True, I assume the competition will be fierce and the chances of landing that deserved funding are lesser this year. But that does not mean that by putting my project on hold for two years I will be able to promote the idea faster or safer then.

So I am back to my desk. Following the financial news and learning of the financial figures. I am trying to adopt my message to current times and events and see if I can find that path into some investors’ hearts.

*Click to Play Money by Pink Floyd