scott tong
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Square paid around a quarter of its present-day value for Afterpay, Alex Wilhelm notes in The Exchange. That seems like a lot. But was it too much?
“Afterpay brings global revenues, global users and a more diverse merchant network to Square,” Alex notes. “It would have had to spend to derive those assets over time. Square is willing to pay up to snag them now.”
Dana Stalder, a partner at Matrix Partners and Afterpay’s only institutional investor, describes the deal as part of a recurring “critical innovation cycle” in fintech that “determines the winners and losers” for decades to come.
“I’ve never seen a combination that has such potential to deliver extraordinary value to consumers and merchants,” says Stalder. “Even more so than eBay + PayPal.”
Thanks very much for reading Extra Crunch this week!
Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist
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Developers may delight in solving complex technical problems, but the problem of a career path is one many don’t think much about, Juniper Networks CTO Raj Yavatkar writes in a guest column.
He offers a solution that should appeal to developers and engineers: “Treat career advancement as you would a software project.”
Image Credits: Scott Tong
At Early Stage 2021, design expert Scott Tong shared some ways founders should think about design and branding.
If you can link your brand with your company’s reputation, I think it’s a really great place to start when you’re having conversations about brands. What is the first impression? What are the consistent behaviors that your brand hopes to repeat over and over? What are the memorable moments that stand out and make your brand, your reputation memorable?
Image Credits: Nora Carol Photography (opens in a new window) / Getty Images
If you’re fortunate enough to be considering cashing in on vested stock options, this guest column is worth a read.
“Most companies admit they need to be better at explaining how ISOs work in general, but they can’t legally work one-on-one with employees to help them exercise and sell shares the right way,” Wealthramp’s Pam Krueger and John Chapman write.
“That’s why, when the time is right, many employees actively look for help from a qualified fiduciary financial adviser who can walk these could-be ‘options millionaires’ through various cash-in scenarios.”
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At some point, almost every early-stage startup will use paid search ads to connect with customers and throw down the gauntlet with their competitors.
Most of these initial attempts at paid search are unsuccessful. There’s a steep learning curve when it comes to transforming passive searchers into paying customers, and almost no one gets it right the first time.
In a comprehensive guest post, growth marketing expert Stewart Hillhouse identified “14 questions your paid search should answer to ensure you’re only paying for the highest-intent shoppers.”
Question 1? “What’s in it for me?”
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Duolingo’s debut last week was a bright spot, Alex Wilhelm and Natasha Mascarenhas write, with the language learning app’s stock price landing above a raised IPO range.
Alex and Natasha detail five lessons to take from Duolingo’s flotation:
Image Credits: Andriy Onufriyenko (opens in a new window) / Getty Images
In the U.S. alone, yearly spending on AI R&D is expected to reach $100 billion by 2025.
But can your humble startup attract and retain users while it conducts research and product development?
“For obvious reasons, companies want to make things that matter to their customers, investors and stakeholders. Ideally, there’s a way to do both,” says João Graça, CTO and co-founder of Unbabel, an AI-powered language operations platform.
Image Credits: Bryce Durbin
As part of an ongoing series with transportation startup founders, Rebecca Bellan interviews Kodiak Robotics CEO and co-founder Don Burnette about why the autonomous trucking company remains private when so many of its rivals have gone public.
“I think there’s also lots of opportunity within the VCs and the private markets,” said Burnette.
“Kodiak is one of the only remaining serious AV trucking companies still in the private sector, and so I think that gives us some advantages in a lot of ways.”
Image Credits: Nigel Sussman (opens in a new window)
After interviewing Draper Esprit co-founder Stuart Chapman, Alex Wilhelm and Anna Heim took a look at the trend of European VCs floating themselves.
Traditional VC models “can foist artificial time constraints on investors and force them to focus their deal flow into particular stages for fund-construction reasons,” Alex and Anna write for The Exchange.
“As we found out researching this piece, the public venture model highlights some of these limitations — and may be able to alleviate them in part.”
Image Credits: Nigel Sussman (opens in a new window)
After Robinhood failed to burn up the stock charts, Alex Wilhelm wondered why, exactly, the investing and trading app’s IPO didn’t live up to expectations.
He spoke to Robinhood CFO Jason Warnick, who shared a few reasons why it was time for the company to float:
… Warnick indicated that there were a few factors at play, including that Robinhood had built out its leadership team and its internal processes, and that it had worked on user-safety-related tasks and expanded the site’s use cases. All of that is true.
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In the last decade, high-quality design has become a necessity in the software space. Great design is a commodity, not a luxury, and yet, designing beautiful products and finding great designers continues to be a struggle for many entrepreneurs.
At Early Stage 2021, design expert Scott Tong walked us through some of the ways founders should think about design. Tong was involved in product and brand design at some of the biggest brands in tech, including IDEO, IFTTT, Pinterest and more. He’s now a partner at Design Fund.
Tong explained how to think about brand as more than a logo or a social media presence, what design means and the steps that come before focusing on the pixels, and gave guidance on when entrepreneurs should hire third-party design agencies or bring on full-time talent.
Help TechCrunch find the best growth marketers for startups.
Provide a recommendation in this quick survey and we’ll share the results with everybody.
“The purest treasure mortal times afford is spotless reputation,” wrote Shakespeare. Though we often think of a brand as a logo or a social media persona, a brand is the equivalent of a person’s reputation. It signifies what the company and products stand for, and it has an element of being memorable for something, whether it’s prestige, like for Chanel, or terrible customer service, like for Comcast.
The closest word in the English language to brand is actually reputation. The analogy is that brand is to company as reputation is to person. If you can link your brand with your company’s reputation, I think it’s a really great place to start when you’re having conversations about brands. What is the first impression? What are the consistent behaviors that your brand hopes to repeat over and over? What are the memorable moments that stand out and make your brand, your reputation memorable? (Timestamp: 2:40)
Tong outlined what design is truly about. There are many different schools of thought on design methodology and there are many different types of design. You may be thinking about product design and logo design and brand design all at the same time, and the only way to successfully hire for those tasks and complete them is to understand what design is, at its core.
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TechCrunch is trying to help you find the best growth marketer to work with through founder recommendations that we get in this survey. We’re sharing a few of our favorites so far, below.
We’re using your recommendations to find top experts to interview and have them write their own columns here. This week we talked to Kathleen Estreich and Emily Kramer of new growth advising firm MKT1 and veteran designer Scott Tong, and published a pair of articles by growth marketing agency Demand Curve.
Demand Curve: Email marketing tactics that convert subscribers into customers — Growth marketing firm Demand Curve shares their approaches to subject line length, the three outcomes of an email and how to optimize your format for each outcome.
(Extra Crunch) Demand Curve: 7 ad types that increase click-through rates — The growth marketing agency tells us how to use customer reactions and testimonials, and other ads types to a startup’s advantage.
MKT1: Developer marketing is what startup marketing should look like — MKT1, co-founded by Kathleen Estreich, previously at Facebook, Box, Intercom and Scalyr, and Emily Kramer, previously at Ticketfly, Asana, Astro and Carta, tell us about the importance of finding the right marketer at the right time, and the biggest mistakes founders are still making in 2021.
The pandemic showed why product and brand design need to sit together — Scott Tong shares the importance of understanding users and his thoughts on how companies manage to work together collaboratively in a remote world.
(Extra Crunch) 79% more leads without more traffic: Here’s how we did it — Conversion rate optimization expert Jasper Kuria shared a detailed case study deconstructing the CRO techniques he used to boost conversion rates by nearly 80% for China Expat Health, a lead generation company.
As always, if you have a top-tier marketer that you think we should know about, tell us!
Marketer: Dipti Parmar
Recommended by: Brody Dorland, co-founder, DivvyHQ
Testimonial: “She gave me an easy-to-implement plan to start with clear outcomes and timeline. She delivered it within one month and I was able to see the results in a couple of months. This encouraged me to hand over bigger parts of our content strategy and publishing to her.”
Marketer: Amy Konefal (Closed Loop)
Recommended by: Dan Reardon, Vudu
Testimonial: “Amy drove scale for us as we grew to a half-billion-dollar company. She identified and exploited efficiencies and built out a rich portfolio of channels.”
Marketer: Karl Hughes (draft.dev)
Recommended by: Joshua Shulman, Bitmovin.com
Testimonial: “Karl is incredibly knowledgeable in the field of content and growth marketing to a large (and equally niche) target audience of developers. He and his team at Draft.dev are some of the best at “developer marketing,” which is a greatly underrated target audience.”
Marketer: Ladder
Recommended by: Anonymous
Testimonial: “They really get what I need. By testing different messaging on different personas, we discover what works and what doesn’t to better understand our users and prospects. This is gold for a company at our stage. Showing those results to our investors blew their minds.”
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Young startups need to be great at design, not just for their products, but for their brands. The pandemic made that all harder — but lessons are being learned. We caught up with Scott Tong, a startup design expert who advises early-stage companies, to learn more.
The office may still be the best place to hash out big multiteam decisions, he says, but new best practices and modern tools are making remote collaboration easier and easier.
Brand design seems to only be getting trickier, however. “To users,” he explains, “brand and product are lumped together and they each represent the other.”
Today, many users have spent lots of time at home online, often thinking harder about world events and how they are living their lives. They’re scrutinizing what they can observe about a startup to see if its values line up with theirs before they make a decision to sign up (or quit).
The solution, in Tong’s view, is to create a unifying plan where design decisions can address problems before they emerge.
More details are in the interview below. For a full conversation, check out Tong’s talk about design strategy coming up at our TC Early Stage 2021 – Marketing & Fundraising conference on July 8.
The pandemic affected us all. How has it affected user-focused brand design?
The pandemic drove people to consume even more media than before. News about science, politics, race and the economy were unavoidable. Brands have had to navigate a very complex landscape of topics that can be divisive. People increasingly identify with brands that are aligned with their values. But in order to understand a brand’s values, someone has to sift through competing signals — some from the brand itself, and others from vocal supporters and critics. Say the wrong thing and a brand can risk alienating large portions of their audience (including their own employees). If a brand says nothing, their silence can be interpreted as complicity. And if brand messaging comes across as unauthentic, it could spell disaster. It’s a difficult needle to thread. It’s not uncommon for companies to run surveys to gather signals about how their brand is perceived by customers and noncustomers alike.
What new things about users should startups consider when working on designing their identities? What are you advising startups now about designing their brands, versus what you said circa December 2020?
Identities are only one part of a much larger constellation of touch points that make up a user’s perception of a brand. User expectations are extremely high and will continue to rise. Even with their free products, users have gotten accustomed to highly polished experiences. While “high quality” is table stakes for users, the challenge for a company is to pinpoint the handful of dimensions that matter most. That’s why constantly seeking to understand users is so important. Deeply understanding what they care about will help isolate those critical dimensions so teams can focus on areas that will drive the most meaningful impact.
Founders, help TechCrunch find the best growth marketers for startups.
Provide a recommendation in this quick survey and we’ll share the results with everybody.
What do startups continue to get wrong?
One recurring observation is that brand teams and product teams often sit in different parts of a company’s org structure. While there are reasons for this, it’s important to remember that users don’t care about your org structure. To users, brand and product are lumped together and they each represent the other.
Internally, how are companies handling internal challenges like collaborative designing in a more remote world? In-person communication has been vital historically to get all parts of a company thinking in the same way. What is helping those who have gone remote-first succeed (tools, approaches to meeting and documentation, etc.)?
Collaboration tools have never been more abundant. But while tools are plenty, norms around their usage can vary significantly from group to group, even within the same company. Where can I find the project brief? How many back-to-back meetings is too many? How are brainstorms run in a virtual environment? When do I use Slack versus email? Establishing those norms requires conversation and experimentation.
Along with norms around tools, it’s helpful to establish a cadence/rhythm that allows team members to get and stay in sync. Depending on the team, that cadence may be daily, weekly, biweekly, monthly or quarterly, etc., but find the appropriate cadence for each audience.
Alternatively, do you think the demands of good design work will motivate more early-stage startups back into in-person office work?
There are varying opinions on whether being in-person spurs innovation or productivity. The pandemic has forced us all to adapt, and design is no exception. It’s been encouraging to see good design happen in remote work environments, and a lot of that has been enabled by tools and the norms around their usage. While I personally would prefer being in-person, especially at the early stages of company building, I think it’s entirely possible to establish a high-functioning team in a remote environment. Of course there are cases — like hardware or soft goods — where tactile feedback is important and hard to replicate remotely. But even then I’ve seen some successful workarounds (for example, sending the same material sample to every team member). Given that this is all still very new, there will inevitably be hiccups along the way. But a team of willing participants with the right mix of tools and norms can make it work.
Overall, with more teams remote and distributed, it may be even more natural than before to work with a third-party brand design expert. When do you advise startups to bring in an outside consultant today, and how should they work with them?
This depends largely on how design is valued within an organization — as a service or as a partner.
If design is viewed as a partner, then the relationship is ongoing and iterative. This means design is a function that builds, measures and learns alongside their product and engineering counterparts and the benefits of institutional knowledge compound over time.
If design is viewed as a service, third parties make sense, because in a service relationship there is usually a defined beginning and end to an engagement. Clear scope, timeline and deliverables will set this kind of service relationship up for success.
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Thoughtful and high-quality product design is no longer optional. Gone are the days that a startup could launch with a bare-bones app or website. The demand side of the design equation has only grown — consumers are used to beautiful, intuitive products — while the supply side is struggling to keep up.
How are startups supposed to educate themselves in product design, hire the right people for those positions and think about product design as a core piece of their business?
A good starting point is an upcoming TC Early Stage: Marketing & Fundraising session with Scott Tong on July 8 & 9.
Tong was a principal designer at IDEO, a co-founder at IFTTT, head of product design at Pinterest, an EIR at IMO Ventures and is now a startup advisor at Design Fund.
When it comes to thoughtfully crafting products, and ensuring that those designs fit in line with the company’s broader short and long-term goals, there is perhaps no one better suited to show us how it’s done.
Tong joins a long list of experts in a variety of startup core competencies who will be speaking at TC Early Stage in July. That list includes Sequoia’s Mike Vernal (Product Market Fit Is All About Tempo), Coatue’s Caryn Marooney (formerly Facebook’s head of comms) and Superhuman’s Rahul Vohra (Growth Hacking). You can check out the agenda here.
The coolest part of TC Early Stage is that all sessions are designed with plenty of time for audience Q&A, so founders can get specific, tailored advice about their own business challenges.
These mini-bootcamps kick off in just two weeks so we hope you’ll be joining us at TC Early Stage— Grab your ticket here!
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