business stuff

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Wed 4/17/2024 7:12 AM
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TLDR

TLDR Founders 2024-04-17
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Headlines & Trends
Andreessen Horowitz Closes $7.2 billion for New Funds (2 minute read)

Andreessen Horowitz, a prominent venture capital firm, has successfully raised $7.2 billion for its latest set of funds, surpassing its initial target of $6.9 billion. The firm has created dedicated venture funds, each with its own team of experts and capabilities, specifically focused on certain segments such as American Dynamism, Apps, Games, Infrastructure, and Growth.
Why Startups Fail And What We Can Learn From It (5 minute read)

Startups fail due to various reasons, but the top three factors are a weak business model, inadequate business development, and running out of cash. To overcome these challenges, startups should remain agile and adapt promptly to market feedback. This requires strategic pivoting when necessary, prioritizing market validation to ensure product-market fit, adopting a customer-focused development approach, and managing finances effectively to sustain growth.
Distribution is King (9 minute read)

Long-term enterprise value for companies is primarily driven by having a differentiated way of distributing great products to customers, rather than just creating innovative content. This article illustrates this point using examples from the video game industry, showing how companies that innovated in distribution, such as Activision, Electronic Arts, and Valve's Steam platform, were able to capture significant market share and profits despite competition.
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Strategies & Tactics
Calculating CAC Payback Period, the Right Way (8 minute read)

This article provides a comprehensive guide on how to calculate Customer Acquisition Cost (CAC) payback period, which is the number of months it takes for a company to break even on the cost of acquiring a new customer. It covers the key components needed for the calculation, provides a template and benchmarks for what a "good" payback period looks like based on company size and industry, and discusses potential red flags to watch out for when analyzing this metric.
How to Land a Pricing Change (8 minute read)

Price changes can be a daunting task for any business, but with the right approach, you can soften the blow for existing customers and even win their support. This article presents two case studies from Patreon, one showcasing a poorly executed pricing change and another demonstrating a successful one. The key lessons learned include creating more value than you capture, over-communicating with customers, providing legacy pricing options, and offering downgrade alternatives.
Why Your Value Prop Sucks (3 minute read)

Traditional approaches to creating value propositions often lead to offers that sound interesting but fail to compel action from prospects. Instead of focusing on the product's features and benefits, businesses should base their value proposition on what the customer is ultimately trying to achieve, even if the product didn't exist, resulting in smoother sales conversations, intuitive product direction, and differentiation from competitors.