20VC Newsletter - Nov 12th, 2023
Here are the transcripts and top takeaways from 20VC episodes released this last week!
Monday’s episode with Joey Zwillinger, CEO & Co-Founder of Allbirds:
Download the full transcript here:
Here are the top 7 takeaways:
Founding Vision and Different Backgrounds: Joey Zwillinger and his co-founder Tim Brown created Allbirds with a vision to revolutionize the footwear industry by blending design with sustainable material science. Tim's background as a professional athlete and Joey's experience in biotechnology played a pivotal role in shaping the brand's unique direction.
Challenges of Public Market: Zwillinger reflects on the challenges Allbirds faced after going public, including the decline in market cap and navigating Wall Street's unforgiving nature. He emphasizes the need for consistent financial performance and acknowledges both external and internal factors affecting the company's valuation.
Brand Identity and Expansion: He talks about Allbirds as a product-first company that exists within the fashion and style sector. Despite being labeled as a DTC (direct-to-consumer) company, Zwillinger sees Allbirds as a brand with a broader omnichannel approach, aiming to reach consumers where they prefer to shop.
Adaptation to Pandemic and Market Shifts: Zwillinger candidly discusses how the COVID-19 pandemic impacted Allbirds, particularly in terms of consumer behavior and market dynamics. He acknowledges the need for agile response to such external challenges and the company's efforts to adapt its strategy accordingly.
Importance of People in the Company: A recurring theme in Zwillinger's reflections is the critical role of people in the company. He talks about the balance of entrepreneurship, the need for expertise in various functions, and how personnel decisions have influenced Allbirds' trajectory.
Product Focus and Consumer Loyalty: He stresses the importance of product innovation and creating a deep connection with consumers to foster loyalty. Zwillinger believes in the potential of expanding beyond shoes into complementary product categories while maintaining the brand's core values.
Future Orientation and Sustainability: Looking towards the future, Zwillinger is focused on aligning Allbirds’ financial objectives with its sustainability goals. He envisions Allbirds as a major player in the footwear industry, maintaining its commitment to sustainability while achieving significant business success.
Wednesday’s episode with Danny Cohen, Former Director of The BBC, and now President of Access Entertainment:
Download the full transcript here:
Here are the top 7 takeaways:
Key Traits for Investment in Founders: Cohen emphasizes the importance of emotional intelligence, drive, focus on quality, ability to prioritize what matters, attention to detail, and flexibility in approach when conditions change as critical traits for founders to possess.
Talent and Team Management: Success in any venture, whether in entertainment or business, hinges on recognizing and harnessing talent. Delegating tasks and focusing on what one excels at is crucial for effective leadership.
Digital Transition and Audience Fragmentation: A major challenge in the entertainment industry is the fragmentation of audiences and the rapid shift to digital consumption. This transition poses significant challenges for legacy broadcasters and requires adaptability.
The Problem of Content Discovery: The overwhelming amount of content on streaming platforms and the overreliance on algorithms has made content discovery a significant issue. Cohen notes the limitation of these recommendation engines in offering truly appealing content.
Emphasis on Talent and Risk-Taking: Success in entertainment is tied to focusing on talent and taking risks. Doing exactly what has been done before often results in a lackluster outcome; innovation requires a willingness to take risks.
Identifying Potential in People and Businesses: Cohen discusses the importance of understanding a person's background, their history of execution, focus, and drive. He highlights the value of looking at their past experiences and motivations, which can be indicative of their future potential.
Navigating Investment and Management Challenges: Cohen shares insights on giving hard feedback, knowing when to cut ties in professional relationships, and the importance of trust and verification in business dealings. He also discusses adapting to market trends and the need to focus on fundamental beliefs in people and ideas.
Friday’s episode with Chris Degnan, Chief Revenue Office of Snowflake:
Download the full transcript here:
Here are the top 7 takeaways:
Consistent Prospecting and Continuous Learning: Degnen emphasizes the importance of making at least eight sales calls a week and continuously learning about the product being sold. This approach ensures a deep understanding of the value proposition and is key to sales success.
Time Management in Sales: Effective time management is crucial. Balancing sales calls with time for prospecting is necessary for planning and preparing for future sales activities.
Customer Feedback for Product Development: In Snowflake's early stages, Degnen focused on gathering customer feedback rather than immediate sales. This strategy helped refine the product and identify the ideal customer profile (ICP).
Sales Forecasting and Opportunity Qualification: Degnen practiced stringent forecasting, allowing sales opportunities to be recorded only if the customer had tried the product, highlighting the need for a compelling reason or event driving customer action.
The Importance of Creating Urgency: He advises on creating urgency in sales cycles, emphasizing the need to outline clear timelines and understand the contract signing process for different customer types.
Building and Leading Sales Teams: Transitioning from an individual contributor to a leader, Degnen focused on finding capable sales leaders, demonstrating the importance of delegation and building a scalable sales organization.
Persistence in Traditional Sales Techniques: Degnen strongly believes in the effectiveness of traditional sales techniques like cold calling and prospecting, even in an era where digital strategies are prevalent.
Thank you for reading, and don’t miss the great guests we have this next week:
Ryan Petersen, CEO of Flexport on Monday and the great Des Traynor on Wednesday!
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