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3 Ways to Categorize Your Product, and Why it Matters for your marketing

whale — Sat, 08 Jan 2022 15:23:16 +0000

or: how to identify your “low hanging fruits” audience

You’ve probably heard the famous saying from that 80s film Field of Dreams: “Build it and they will come.” So you’ve built it, but where the heck is everyone? Hey, it’s a nice fantasy. A product so good, it draws people like a magnet. But the reality? Not so much. You know how awesome your product is. You know it’s a game-changer. But here’s the brutal truth. At first, most people simply won’t care. At all. Not a bit.

When you’ve conquered the initial stages of product development, the next step is finding your first audience who will go on the journey with you as you build further, better and higher.

You want those people by your side as you gather momentum. They are the ones who’ll grow your base by engaging, sharing, commenting, and recommending, just as the product rises from the early stages.

You definitely shouldn’t wait till product maturity to create a frontline community. The question is how to do it and where to start.

It starts at the beginning — with your product

The first thing you need to do is look at the DNA of your product. How would you define its true character? That may seem like an awfully big question. But there are actually three distinct categories that your product will fit into. Whichever one it is, there is an audience of “low hanging fruit” ready and available to be introduced to your product. And that’s who you should be targeting.

So let’s dive in and explore the three product character “types”. Which category best matches your product?

(1) The product that fills a need

Some products are built for the purpose of solving a problem or filling a need. Rest assured, there are people out there right now searching for the exact solution you offer. They just don’t know about you yet.
These searchers are very focused, actively looking on Google for the right solution. And what they are looking for might just be closely related to what you have to offer. For example, ParentGood is an app that offers on-demand parenting advice. The target audience is new (tired) parents. Where are they likely to be hanging out? Online, late at night, searching for products like baby monitors, rockers, and — yes — parenting apps. How does Parentgood reach them? With a killer search marketing strategy that serves targeted search ads just when they are out there looking for solutions to their needs.

Parentgood: The product that fills a need

(2) The product that offers new experiences

This product type is designed to offer new, exciting, and even unexpected experiences for customers. The audience is made up of opportunists and impulse buyers (you know the type…). They are not looking for something in particular. You’ll commonly find them in the shopping, gaming, and mobile markets.
These consumers need to be exposed to your product and turned on by it. They are open and willing, and not even aware that your product is something they could love. The Klever Live Online Shopping app is a great example, offering tons of deals, auctions and shopping offer to satisfy people as they browse for that new, shiny thing to catch their eye.

The product that offers new experiences

(3) The product that serves an existing community

If your product is suitable for an already-formed community, then you’re in luck! This consumer group is already huge fans of the niche. They are living the lifestyle, breathing the culture, and always open to new products that will sharpen their devotion. Now you just need to connect with them.

For example, Vans started out as a fashion brand for the skating community (still a huge part of its identity today). So, the marketing strategy was literally to go to places where skaters like to hang out — skateparks and beaches — and interact with consumers there.
Another fab example of a company targeting an existing community is Balena, which develops “compostable” fashion products that biodegrade fully after “end of use”. People who are passionate about sustainability and the environment are usually passionate about their consumer choices too. By tapping into eco-conscious communities that are active on Instagram, Facebook and other social platforms, Balena finds an audience ready and waiting for their product.

The trick is identifying which niche your brand really belongs to and where the existing communities can be found (online or offline), and then tapping into them to get them on board.

The product that serves an existing community

So, you’ve got the product. Now, get the people.

Build it, but don’t wait for them to come. Start working to define your product DNA as precisely as you can, within the framework of the three types listed above. Then, you can craft a strategy to capture the audience that is out there waiting for your kind of product. Find ways to reach out to them where they are, whether it be via search ads, social media campaigns, or infiltrating existing forums and communities. They will be the first ones to surround you and help lift up your product as it starts to take off.
So before you jump into attracting your first audience, make sure to shift your focus away from the usual marketing questions, and ask yourself: what type of product am I launching? The answer to this question will lead you to your best audience of low-hanging fruits.

The post 3 Ways to Categorize Your Product, and Why it Matters for your marketing appeared first on The Flying Whale Fund.

Think Like a Brand, Act Like a Startup

whale — Mon, 15 Nov 2021 15:34:36 +0000

If you’re building a startup, let me introduce you to a golden rule: act like a startup, but think like a brand. From the very first day. Why? All will be revealed. But first, you’ll need to wrap your head around what a brand really is. That’s the perfect place to start.

So, what’s a brand?

As Jeff Bezos famously said, “Your brand is what people say about you when you are not in the room.” And a somewhat less famous, but no less true, way of putting it is: “A brand is a set of thoughts and feelings that people have about a company, product or service.”

To be a brand means developing an attitude, values, and character all your own. It immediately identifies you and can be spotted a mile away. Your brand is felt in every ad, every email, everything you say or do. It encapsulates the unique story that people tell themselves (and their friends) about your product or service. And all this comes with a very clear tone and style that’s yours, and yours alone. So if you can step back, look at what you are doing, and honestly say that’s how people feel about your company, then congratulations! You’re a brand.

Why think like a brand from the very first day

Now you know what a brand is and how a brand behaves. As a startup, that’s how you need to behave too, right from the start. There are several reasons why, but I’m going to focus on two that I believe are the most important: one reason is emotion-based and hard to measure, and the other is functional and highly measurable. Here they are:

(1) A good brand is a great insurance

On good days, your brand will be secure and confident enough to express itself and interact with the world. In times like this, you are free to take risks. On rainy days, however, when business is not going so smoothly, a strong brand will give you a much-needed buffer — not just among your competitors, but also among clients, investors, and employees.

A highly successful entrepreneur (and also a good friend) once told me about a period when his company was in a rough patch. Fortunately, they had a strong brand, and it held up much stronger than the company itself. The brand enabled them to maintain a solid footing with investors and new customers, even on the shakiest of ground.

At the end of the day, a brand is what people “think” is happening at your company, not what’s actually going on behind the scenes. So a good brand is like having great insurance. When all is well, you can bask in the sense of security it provides. And when all is not well, it will keep you going. Plus, people are more forgiving of brands that they love. That’s another important insurance you will definitely need.

(2) A good brand is like a sales agent

People believe in and connect with good brands. Brands build confidence and help remove obstacles to purchase. Having a good brand supports the consumer buying decision, so — ultimately — you make more sales.

People talk about brands they love, so having a solid brand drives people organically to your company or product. Those same people love to buy from reputable brand names, because it says something about them and who they are. They search for great brands on Google, land directly on your site, and are more primed to buy what you are selling. A good brand is like a skilled salesperson. It attracts new customers without having to beg and grovel, it washes away consumer wariness and accelerates the sale, all by itself. Invest in a brand, and like your best sales rep, it will pay you back with revenue (and love).

How a startup can become a brand

Now to the bottom line: how to build a brand as the big guns, but within the time and budget constraints of a startup? It might seem impossible but it’s really not. Follow these tips and you’ll take your startup brand far.

First, think like a brand. Make room for it in the company’s collective mindset. Make sure your brand radiates from every marketing activity and customer interaction. Approach each campaign as if you were producing a Super Bowl ad, no less. Make sure your brand is reflected in your language, tone, style, and sense of humor. Don’t hold back — when it comes to branding, you’ve got to totally go for it, in every way. Facebook ads, marketing emails, videos, everything. A good brand is always built on repetition and consistency.
Define your audience with complete precision. I call this the “micro-target audience”. Call it what you want, but make sure you define your audience as finely and accurately as possible. Connect with your audience, understand what drives them, what annoys them, what makes them happy. Talk to them and with them about all these so you can become them in your brand’s mind.
Build a story around your brand. This is the most interesting and fun part of branding, but it’s also the hardest. In marketing, they say “Don’t sell me a lamp, sell me light”. So find your light — what you are selling besides your product — and talk about it. Incessantly. Nike built a brand around being a winner. McDonald built a brand around family time. The Starbucks brand is about getting together and sharing quality time, Robin Hood’s brand is about democratizing Wall Street, Airbnb about belonging, TED, about neverending ideas, and on and on. You get the picture. If your product or service is the engine of your company, then think of your brand story as the turbo button.
After you’ve come to grips with your story (your raison d’etre, so to speak), quantify it as a goal for your sales team. Create discussion and debate around your goal, actualize it, lift it up, create content around it, be creative about it. Connect with those who connect with the brand goal; they will become your advocates and ambassadors. If you are marketing to small businesses, find ways to support them and make that your goal. If you develop eco-friendly cosmetics, do your part for the environment, and make that a brand goal. If you are building a product for developers, advance their agenda, and include that as a brand goal. And so on and so forth.
Remember that every brand has 2 stories: the functional (product) story and the emotional (brand) story. And each has its proper time and place. Functional stories go well with PPC ads; deeper, emotion-driven stories are better suited to emails, blogs, videos, and product packaging. In an ideal world, these stories work together in sync, in one language that the customer fully understands.
Grab a content arena and take full ownership of it. If you get there first and make your mark, you can achieve first place in the category you are building. People are simple creatures. Our minds are organized like Tupperware containers. Think hard about what box your brand should occupy. And make sure you get in there — fast. If you can do this alongside a great product, you’ll definitely increase sales.

Never forget, you’re a brand too

A strong brand does a lot of things. It enhances your startup’s perceived value in the marketplace. It creates buzz and gets people talking. It puts you top-of-mind and makes your offer desirable. At the end of the day, all this will increase sales. If you can be the brand that everyone is talking about in your category, it’s a sure sign that your startup has succeeded. In a big way.

The post Think Like a Brand, Act Like a Startup appeared first on The Flying Whale Fund.

COVID-19 is here and it’s the perfect time for you to build your brand

whale — Sat, 12 Jun 2021 16:09:38 +0000

Learn from these 5 Israeli brand-driven startups how to turn the current crisis into a branding opportunity and win your customers for good.
Now is the time for brand buildingWow, what just happened?!? COVID-19 took all our marketing plans and squashed them into the wall. It’s pretty nasty for most of us now, but let’s look at the bright side — it’s the perfect timing to build your brand, strengthen the connection with your community of users, validate your brand promise and create those brands magic moments you heard of. Yes, I said it. Build your brand — NOW. Show your people you’re a brand. Not only a product.
This is whySelling is great, and brands, as a business unit, should focus on that.
But what motivates sales? Needs and emotions — mostly love.
I’m arguing that love is stronger than anything, even customers’ needs or code.
If you invest in making people love your brand, selling your products will be easier, loyalty will be stronger and word of mouth will be faster
Showing love on a daily basis is memorable. Showing love when times are hard is unforgettable. So go and build your brand now.
How you should do itThink of your startup (if you didn’t do this until now, it’s a good way to start) as a brand — a brand-driven startup. What drives brand-driven startups are sales and a brand mission. You have a mission, core values, DNA — and when they are clear and sharp, there is no question of what you should do, just how to do it. Think of your brand as a human being. What’s its purpose in life? Is it funny, educational, formal, casual?
Let’s look at a few brand-driven, consumer-centric startups, and how they strengthening their brand, even in the toughest times:
1) Maapilim — Discover the power of communityThe male grooming and wellness startup is all about slowing down, helping people live a healthier, calmer and better life. To show their commitment to their brand’s promise — Jonathan (Founder) sent an email asking Maapilim’s community for ideas and suggestions, and maybe even their own skills to help the community to feel better and overcome these crazy days. The outcome was great: psychologists, meditation teachers, and artists took over the brand’s IG account to offer their time and knowledge. To top it all off, the team produced a brand new hand sanitizer, Maapilim style 
Personal email from founder
Quickly turn your social channels to support the communityCommunity members participated and contributed from their skills
Richard Jenkins (a creative agency owner), guides a meditation session and Dr. August Leming, shares some words of wisdom.

A new product was produced in no time to support the community needs.

2) HoneyBook — Use your knowledge and expertise

One of my favorite brand-driven startups out there is Honeybook. They’ve built software to support “Solopreneurs” (one-person business) in their daily efforts: from acquiring new clients, managing communication and enabling slick and fast collection and payments. As a brand, its mission is to make the lives of the “Solopreneurs” easier, calmer and more productive — so when COVID19 started, they knew they needed to act fast. Over the past 4 weeks, the company has shifted its focus on social, content and brand teams to do anything possible to support those who maybe were hit harder than all other verticals. Inspired by HoneyBook, here’s an easy how-to:

Show up — with an honest and simple email

It all started with an email sent by Oz (co-founder, CEO) on March 10th, before anyone knew how hard shit was gonna hit the fan:

Create a content hub to and help your community to be updated:

Write practical advice, playbooks and step-by-step guides to the new reality.

The Honeybook blog turned into a COVID-19 business-driven knowledge center

Engage with your community thru media and direct channels

Be a part of the conversation, share your brand’s commitment to supporting your community — anywhere, anytime. Check out HoneyBook’s media and webinars:

Check out the brand’s webinars activity

3) Jolt — build the product your community needs

“Learning experience, designed for the 21st century” is one of Jolt’s basic and main brand statements. Until COVID-19, this brand-driven startup made it a reality and built a new kind of business school, offering people from TLV, London and NY a “Not An MBA” degree learning experience for self-made entrepreneurs, and of course — designed for our times: students meet in small physical spaces to learn together from world-class professionals via live video streaming. So what do you do when students can’t leave their houses and your business’s brand is based entirely on physically showing up and interacting in small groups? Well, Jolt, as an ever-changing brand — part of their brand promise to their customers — transformed their company, in less than a week, into an online business school for the self-made.

(left — before COVID19; Right — after covid19)

Check it out here.

Besides shifting the product online, the team quickly launched new campaigns, with new messaging — “Stay at home, Stay ahead” — and shared some creative Zoom backgrounds with its students:

4) JoyTunes — take your brand statement one big step forward

This great brand-driven startup’s statement is “Anyone can play” and the software they’ve developed around it makes this a reality.

So what can a brand that encourages people to play music do in times like this? 2 super simple things:

Pay as much as you want: JoyTunes now enables ANYONE to download and use the app, start learning how to play and set the price, which will be donated to health charities. Israel and Italy are first to have this feature, the rest of the world will get it soon. Check it out

left: Israeli site, right: Italian site

2. Go back to your roots: JoyTunes started as an app for teachers, and only then went full B2C During COVID-19, they’ve gone back to their roots and are offering all teachers the option to use the app for remote teaching for FREE.

If you’re a music teacher, give it a try

5) Bobile —Put your money where your mouth is

Bobile is a startup that has built an automated loyalty program, designed for local businesses. The trick is that it is totally automated, meaning the business owner doesn’t need to do a thing — just onboard to the platform and Bobile will take it from there, increasing revenues, mostly from existing customers.

When COVID19 started to spread, it was obvious to this startup that its customers, micro SMBs of the real world, would be the first to be hit. So as a brand that’s sole mission is to support business owners, they stopped payments for ALL THEIR CLIENTS for 30 days. That’s right, NO ONE one was charged. For an early-stage startup this is major, and only a company (team and board) that understands its brand’s power, would make such a bold decision.

Small budget, Big brand impact

Let’s summarize

This is the time for brand building
Any budget is enough
Think of your brand promise, and follow it
If you don’t have a brand promise — it’s a good time to get one

Love you all, stay safe and healthy

Dan

The post COVID-19 is here and it’s the perfect time for you to build your brand appeared first on The Flying Whale Fund.

Hey classic brands, war is coming your way.. are you ready for it?

whale — Sat, 12 Sep 2020 16:12:55 +0000

Ever since, Tech industry has been the biggest business battlefield. Disruption, innovation, M&A deals, buyouts, and buy-ins, are part of every company’s day to day activities and has become important skill on the way to success. Giants as Microsoft, Apple, Google, Yahoo, Facebook, Snap and others have to sleep with one eye open in order to identify threats, take aggressive actions and constantly push themselves to innovate and disrupt their industry, by creating or buying innovation. Otherwise, you will lose the war. Competitors are mean, and they want to see you bleed.

But what is happening at the moment in the classic brand’s world? Nothing. Heaven. Almost no one is trying to fight “coca cola” or to kill “head and shoulders” or overcome “Pringles.” It’s something you do only in the tech world — using tech. BUT THESE DAYS ARE OVER.

A term I’ve just made up and didn’t have the patient to wait for a designer to design it

One of the most interesting business battlefields today is the DIRECT TO CONSUMER (DTC) industry. DTC is a company which is a “digital first consumer business.” It sells its product online and builds its community in the digital platforms, and it becomes brands from bottom up, and they are now a real threat to those classic brands we know and some we love. It has started what I believe is the biggest revolution the brand’s world has ever seen, and I call it #brandvolution.

So why should you consider joining the DTC game:

Ripe for disruption industry: think about how many years you have seen the same consumer companies… same toothbrush brand, same soda brand, same apparel brand, same swimsuit brand, same sunglasses brand. We’re definitely at a time consumers are open for a change in their brand’s habits
It’s all about Online marketing: direct to consumer is a marketing business before anything else. Surely, you need a good and solid product, but, this is a marketing formula based company. The formula is [What’s your Spent] + [What’s your revenue] — [ what’s the cost of producing and delivering your product] = good / very good/ bad/ very bad business. Try it and see for yourself.
It’s all about Storytelling: Certainly, you can build an “e-commerce business.” Find a nice product, sell it on Amazon and live good and healthy life. But to build a brand takes more time and more money. Great brands are cults, a bigger idea than a product, and what unite a community of people behind a greater story that starts with their deepest feelings and ends in your product.
New audiences want New brands stories: It all started with those millennials. A huge group of people that have had enough with these old brands and their old and irrelevant stories. We all want our brands to be eco-friendly, natural, with the real benefit for us, and ho my, to the world. New brands can tell a new story better than brands that need to “update” their current story that is established many years ago.
You can cut the f***ing middleman: when you sell directly to consumers, margins are high, and profit can skyrocket. It’s good for everyone, both the product maker and its target audience

And now, for the fun part: EXAMPLES

Toms (link) — Shoes brand

Story: The father and mother of all DTC’s brands + impact based marketing strategy. When you buy a pair of shoes, Toms gives one to a child in need. The word of mouth is built… everybody likes to talk about their good deeds. The Founder, which is a kind of celebrity, built this company after few other successes. 8 years later, he sold 50% for $300M, proving it’s worth ($600M) doing something good.

Warby Parker (link) — Glasses brand

Story: Reinvented how people buy glasses (“Try at home first” concept + share your new glasses on social media. Hey, it was in 2010) and now reinventing the $5B eye prescription domain, saving people time, money and teaching the whole industry how a real disruptor never stop disrupting, even its own domain.

Dollar shave club — (link) — Shaving brand

Story: With only one dollar a month, and we’ll deliver new blades to your door. The Founder claimed in the most viral video ever: “You ask if our blades are any good? Our blades are F***ing great!” (link). Apparently, he was right. After almost 6 years, and more than $150M in sales, he got an acquisition deal from Unilever in a whopping amount of $1B.

From 1 dollar shave club to 1 Billion dollar deal (sorry, I had to)

The honest company — (link) household ethical brand

Story: It all had started when Celebrity Founder, the actress Jessica Alba, searched for high quality, natural, organic and healthy products for her baby. When she couldn’t find it — the Honest Company was born, and a few years later, Jessica got even richer than she already was, as the company got its $1B valuation.

Harry’s — Shaving brand (link)

Story: To beat Gillett and Schick, this Warbey parker’s co-founder and his partner raised more than $100M and bought a German factory which produces high-quality blade for many years. with the promise of quality, subscription model, and direct to consumer selling methodology, they reached 1 Million users in 2 years (7 years later and with almost $500M in funding, they’re on their way to profitability and real market share)

Soylent — (link) Food and beverage brand

Soylent is about easy mornings, slow living and the optimisation of your morning routine. Ton and Style are a like if the coolest designer and the geekiest developer had a one night stand. $50M in funding prove sometimes it’s a good idea.

Allbirds — (link) Shoes brand

Story: The first DTC brand to threaten Nike, Adidas in their own home court. It is designed for millennials…. wool fabrics, eco-friendly shoes which make the walking and running experience to be the best ever, from New Zealand based founders and flair of nature, success, and innovation. All sales are direct from the brand’s website, and now in their concept store at Manhattan’s Soho.

Casper (link) — Mattresses / Bedroom brand

Story: The team invented a new concept in the mattresses industry: “bed-in-a-box,” as it sounds, Casper will deliver the bed to your home in a box, and if you don’t like it, after 100 days (!!!) try out, you can easily return the bed. Many people, includes influencers and celebs loved the concept, posted so many photos on Instagram and FB getting the product, un-boxing it, and more. The company got $750M valuation after only 5 years and now plans IPO. Good night and a very sweet dream from the founding team.

Glossier (link) — Skincare and makeup brand

Story: Founder, Emily Weiss, started a makeup blog “into the gloss” and after 4 years, she turned her 1.5M monthly visitors into the first customers of Glossier, her cosmetic brands, created by and for millennial. The Company has just been valued at $400M just after 3 years, and has extends to the UK and opened the first shop on the west coast.

Away (link) — travel and lifestyle brand

Story: 2 Warby parker executives learned how to truly disrupt an old industry, and after searching their next move — they decided to disrupt the travel industry, but from a different angle. 2 years later they generated more than $48M in revenues and their trip has only started.

HIMS (link) — Wellness and health brand

One of the best stories at the DTC domain. Let’s start with the perfect storytelling and branding, making selling viagra and anti-baldness products for millennials the coolest thing ever. Then let’s talk about how they generated $10M in revenues in 12 months and summarized with the fact that they raised $45M in a $200M valuation from some of the biggest and hottest VC’s out there. From the outside it’s a wellness brand, under the hood it’s a f***ing cool medicine company, who sells OTC drugs for millennials. Only in a super sexy way that gives everybody an erection. Customers, founders, and investors.

Well, this is the #Brandvolution. New brands are disrupting old industries, taking over huge domains which nobody dared to try and disrupt. But today, with the help of great storytelling, algorithmic online marketing, influencers impact, and commodity in the supply chain , it is doable

Happy disrupting!

LMK what you think about this, comment here, send me an email

The post Hey classic brands, war is coming your way.. are you ready for it? appeared first on The Flying Whale Fund.

Want to Understand the Basics of Marketing? Blockchain’s Got You.

whale — Tue, 12 May 2020 16:15:09 +0000

Most entrepreneurs are totally lost when it comes to creating a successful marketing strategy for their venture. Endless buzzwords, fancy industry lingo and too many marketing channels can be really confusing and distract you from your goal – AKA the basics of any good marketing strategy – A KILLER STORY. Not a killer product description (anybody can do that!) — a story.

That was one of the first and most important lessons I’ve learned when I first got my foot in the marketing door, a little over 10 years ago. From one entrepreneur to another — I believe this is a lesson you should learn as well. Don’t sell products, sell stories.

Allow me to explain it using a few examples, and I’ll start with my favorite one: If you wish to sell a lamp, don’t sell the lamp — sell the light it’ll bring into your life.

Need a few more?

Coca Cola is a drink, but they don’t sell drinks, they pitch happiness
Nike make shoes, but they don’t sell shoes, they sell a tool that enables you to hit your goals and win at life
Apple creates consumer electronics, but they don’t sell that, they sell a status quo and a cool, urban lifestyle

Not enough?

twitter doesn’t sell you self expression, but the world’s pulse
Linkedin doesn’t sell you a professional social network, it gives you a career boosting tool
Airbnb doesn’t sell apartments, it sells an authentic, local experience
Wework doesn’t sell a workspace, it sells the power of belonging

And Blockchain? It is by far the most basic, yet super genius case of the bunch

Blockchain’s problem: it all started with bitcoin (which lot of people describe is the first and most popular app based on blockchain technology) . and just as a reminder — bitcoin and blockchain started with a pretty sh*#&y rep. You see, during its early days people and different news channels only talked on the people that were using it to trade weapons or drugs. Further more, movies and documentaries all over described Blockchain as a radical anarchist tech, so needless to say, it was frowned upon by the masses, the banks and governments. It needed a “Don Draper”, type of magic spin in order to rise to the top

The solution: The evangelists stopped talking about use cases or specially about bitcoin. They started talking about the philosophic idea behind the tech: Blockchain’s ability to fully transact without intermediaries (aka banks, financial institutes etc.) and thrive in a mutually beneficial trading community based on TRUST.

A new positioning was born — The Platform Of Trust.

So why is TRUST an idea people all over the world love? Well, firstly it unites us against a shared “enemy”:

We don’t trust banks
We don’t trust the governance process
We don’t trust anyone who doesn’t share our interests

But if you could actually TRUST a platform to guard your money, and if you could actually feel positive about it (sounds surreal, I know) wouldn’t life be much healthier? Along came Blockchain and it’s beautiful, idyllic platform of trust — who amongst us commoners can say no?! Even banks, government branches and big financial institutions were yapping about all the amazing things Blockchain are doing and the conversation around them was getting more and more positive by the minute.

So, the next time you gear up to sell a product — don’t sell a lamp, sell the LIGHT. Don’t sell Blockchain, sell the TRUST. Tell a story, and if it’s a good one — I’ll buy it.

The post Want to Understand the Basics of Marketing? Blockchain’s Got You. appeared first on The Flying Whale Fund.

Israeli B2C startups: The (almost) full list

whale — Tue, 12 May 2020 16:11:28 +0000

Next time someone says you can’t start a B2C startup out of Israel, send them this list, and a middle finger emoji

Let’s face it — Israel has earned it’s “Startups Nation” title due to the B2B tech company concept.
The most common use case generally stars a group of friends, fresh out of the army, getting together to commercializing and monetize their technological knowledge and expertise in order to solve everyday corporate problems. After the first kickoff, sales and marketing teams smell a potential slam dunk, jump on board the new opportunity and — you guessed it — pitch it hard to US-based corporates!
That was the natural order of things when it came to Israeli startups making it big, and it made sense. For a while.
Over the past few years, we have been witnessing a major shift in the game. Now, more and more entrepreneurs are trying to build B2C businesses, operating out of Israel. Me, being the ever-so curious being that I am, decided to venture on a journey to find out why and how that is. My reasons for doing this are fivefold:
The consumer market is a massive one (its 3 times the size of the technology market). If we disrupt the ‘natural’ order of it and create a new way of doing things — the sky’s the limit.
The major success of other Israeli B2C companies has brought knowledge, expertise and confidence in the notion that it’s doable.
Israel is a performance marketing empire, thanks to gaming, forex, and other online-based businesses.
B2C is fun! Real people, a direct response to your marketing activities, and a chance to create a brand from scratch! It’s like giving birth to your dream.
We live in a historical time where new brands can roll out anywhere, anytime. And there is nothing stronger than brand equity.
Now that we’ve agreed on the irrefutable fact that the Israeli B2C ecosystem is strong, healthy and has its footprint in almost EVERY VERTICAL, let’s break down the companies who are making it all happen (AKA, brands everyone can take notes from):
* I’ve been working on this post for some time now and most of the data is taken from online reports. If you stumble upon any inaccuracies, you’re more than welcome to comment and let me know!
Vertical: Auto-tech / Transportation1. Waze (GPS navigation app, $1.1B acquisition)This social navigation app went from “who’s ever going to invest in this sh*t?!” to one of Google’s biggest acquisitions — a whopping 1.1B dollar deal. No one thought that a consumer brand and thrive based in Israel, but along came Waze and really opened up the gate for other brands to do the same.
Opened the gate for Consumer companies founded in Israel2. Gett (On-demand transportation service, $1.5B in valuation)GetTaxi (or now, simply Gett) is our local version of the ride-sharing phenomenon taking over the world. Due to Mega investments from VW, a couple of acquisition deals and a now $1.5B in valuation, Gett is a star in our list of unicorn Israeli brands. So, Uber, who?
3. Via (On-demand shared transportation service, $400M in financing)Only a true Tel-Avivian who had to suffer through the pains of local transports could have come up with this idea! Via’s super complex tech + brand equity that suits the life of the average New Yorker earned it an astonishing $400M in financing.
5. Moovit (#1 Urban transit app, raised $130M)Moovit claims that by 2021, more than 1 Billion users will use Moovit to plan their inner-city trips. The company was founded back in 2012 and today, alongside another $50M investment made by Intel, holds the complementary title: “Waze for bus passengers”.
5. Engie (A device that helps you maintain your car, $4M Series A)Engie offers any driver to take full control of their vehicle both on the road and in the shop. It’s a simple device that connects to any car, and reports back if any problems were spotted. Bonus: it also connects you with a recommended mechanic in your area! The company has raised $3.5M and is currently operating in Israel and Brazil.
Vertical: B2MicroSMB’s6. Wix (Saas for micro-smb’s. IPO’d in a $600M in valuation)The oh-so-famous DIY website builder that IPO’d in $600M valuation became a global leader. They’re not only a B2C company but a B2smb. Well, now that I think about it… is there really a difference between the two? That sounds like a great topic for a different post ;).
Wix — became a global leader7. Fundbox (Online credit services, raised over $100M)The B2SMB’s startup offers business owners a line of credit in a digital and super slick way. Yes, I said the business owner and not a consumer (calm down!) and I stand by them making this list. if you’re building a brand that goes after the end-user — it’s a consumer brand (and after raising $100M — it’s a big one!),
8. BlueVine (Credit services, raised over $500M)Thank you banks, we’ll take it from here! Blue Vine offers business funding the way business funding should be way into 2019. No more begging a sleepy teller for a loan. BV provides small businesses access to capital when they need it. BV has raised more than $500M.
9. Next Insurance (Insurance, $130M in series B)Next Insurance is basically Smb’s insurance made easy. NI has been around for just 3 years, and have already raised over $130M! And again, it’s a b2smb’s game, but we all get by now that if you build a brand that targets the end-user — you’re a B2C company. Congrats!
10. Tailor Brands (Automated logo and branding, $20M, Series B)Such a cool and in-demand service! Tailor Brands helps small business owners with good, solid branding services, all done by an algorithm. One has to wonder — can a computer really replace hard-working creative folks? Well, their investors, who poured over $20M into the company — certainly think so.
11. Guesty (Saas for property management companies, series B)Guesty simplifies all aspects of property management companies, offering an end-to-end solution that simplifies every aspect of the short-term rental business. The company is a Y Combinator alumni that have raised over $25M and on its way to complete a home run for its investors.
12. Honeybook (Business manager for creatives, $28M series C)HoneyBook is a favorite of mine. A saas-based solution designed especially for solopreneurs and small business owners. Honeybook offers a very simple deal: You’ll do you (AKA, own your business and handle the creative side of things) and they’ll help with everything else, from marketing to booking and billing.
13. Monday (Workplace collaboration tool, $150M in series D funding, $1.9B in valuation)Founded in 2012, monday.com is quickly becoming a staple among local and international companies looking for a better way to work together. The Israeli collaboration platform has raised $150 million in a Series D round of funding, bringing its total value to $1.9B to this date.
Vertical: CPG and E-commerce14. SodaStream (CPG $3.2B in acquisition)Ok, ok, I know what you guys are thinking. SodaStream is not a tech product nor a DTC, and I agree, but.. so fuck*ng what? It’s an Israeli based consumer product that exited twice. First, a $600M IPO and then again with a $3.2B acquisition deal by PepsiCo. Boom!
SodaStream // Pepsico deal15. Maapilim (DTC, CPG, wellness, $4M Series A)Maapilim offers handcrafted products for men, created with natural ingredients from the Mediterranean. Major Disclaimer: I’m in love with this company as if it were my own. Moving on. Maapilim with founded in Jonathan’s (co-founder) kitchen. His passion for smells, tastes, and marketing led him to launch the first Israel-based global wellness and grooming DTC brand.
16. GlassesUSA (DTC, fashion, lifestyle, Health, $12M series B)Q: How does an Israel-based online retailer earn a huge amount of market share in the glasses and prescriptions domain? Simple A: Israelis are just good at creating and disrupting businesses and winning markets. B2B, B2C, B2G, you name it. And GlassesUSA is a great example of that.
17. Kidbox (Subscription boxes, apparel, $15M series B)Welcome to the world of the subscription economy! Where consumers pay a fixed price each month and get a box full of goodies delivered straight to their doorstep. In Kidbox’s case (which has raised $15M) you’ll get super cool apparel, custom made for your child’s age and style.
18. Mixtiles (Home styling, $13M in financing)One of the first and most successful consumer/commerce stories to come out of Israel. Mixtiles offers to turn your photos into affordable, stunning wall art. People are crazy about this product, and the founding team is crazy about its growth.
19. Brayola (Online lingerie retailer, $13.6M in funding)With Brayola, any woman can find online perfectly fitting bras without having to try them on. The company’s idea is simple yet genius: use crowdsourcing to build a recommendation engine based on Brayola’s community.
20. Boxy Charm (Customized beauty membership)Unlike their competitors, Boxy Charm prides itself on a monthly subscription of 4–5 full-size and luxury size well-known cosmetic products. After receiving an investment from the private-equity firm KarpReilly, LLC back in 2016, BC experienced a massive of 300%, positioning them as leaders in the subscription box industry and disrupting the $2B beauty industry.
21. Mynamenecklace (Owned by Tenen group)So, everyone knows that when it comes to jewelry, nothing beats a one-of-a-kind piece. MyNameNecklace took that notion one step further and offered consumers a chance to take part in the design process, adding an even more personal touch to the finished bling.
Vertical: Food Delivery21. Eat24 (Online delivery service, $150M acquisition)Definitely my favorite story about a group of friends that built an online ordering business, bootstrapping it until the epic $150M acquisition by Yel came knocking. Creativity, hustling and classic Israeli boldness. Match made in heaven.
Match made in heaven22. Tapingo (Online delivery service, $150M acquisition)Another Israeli based online ordering success. The buyer was Grubhub, and the deal was reported to be $150M. The company’s mission is to: “help students become even lazier and cut the dreaded college cafeteria queue”. (free translation).
Vertical: Gaming23. Playtika (Gaming, $4.4B in acquisition)So much has been said about this company, so not much else is needed. The company performed so well, and it has been acquired twice: The first time $80M after just one year of activity, and the second time it was a little bit bigger acquisition… $4.4B bigger.
Playtica- The online gaming behemoth (or tiger)24. Plarium (Gaming, $500M in acquisition)Plarium is a small family business that grew into a strategic games publishing powerhouse. They’ve been acquired for $500M by Aristocrat, an Australian casino company seeking to expand into the mobile games business. Well played Plarium.
25. Jelly button (acquired by Playtika)We used to think gaming in Israel = forex and casino games, but the guys from JB prove casual games can come out of Israel as well. Their 1st game, the Pirate Kings, took Asia by storm, and that was what led Playtika to take the team and make it their own.
26. 888 (Gaming, IPO’d in $1B in valuation)The mother and father of the Israeli gaming industry. This company was valued at $1B from the London Stock exchange back in 2005 and is now behind some of the best executives, entrepreneurs, and companies to come out from Israel.
Vertical: Consumer tech product26. Vi (AI powered personal trainer, $40M series B)This AI-based personal trainer makes people do things they’ve never dreamt of. Vi studies your capabilities, weaknesses, and aspirations and helps you reach your goals. It strives to become your key to success, and with $40M to back them up, they do so in superb design and technology.
VI — Fearless moves, superb design, disruptive technology27. Lumen (Metabolism Measurement Device, almost $9M in funding)Lumen enables anyone, in a single breath, to see if their body is burning fat or carbs and what to do about it. This cool device has the right buzzwords: DTC and digital health, the company has a killer team and $8M in funding.
28. Intuition Robotics (Digital companion technology, $22M)A proactive Artificial Intelligence-driven social robot, designed to encourage an active and engaged lifestyle by suggesting nearby activities and making it easier than ever to connect with loved ones. The company has raised over $20M and will launch their product soon.
29. Healthy (Home-based urinalysis, Raised $60M in series C)Healthy is changing the health services game, big time. The digital healthcare startup is leveraging AI to bring professional-grade medical imaging to the homes of those with kidney disease by presenting the only FDA-cleared and CE-approved at-home urine test. To this date, they have raised over $60M is series C funding.
Vertical: Marketplaces30. Fiverr (Digital marketplace for online services, IPO’d in $600M valuation)What would you do to $5? Edit this post? Design a logo for it? Apparently so would a lot of other people! This platform is now the biggest marketplace to digital services, connecting freelancers and entrepreneurs with business owners. They raised over $100M and recently went public with a $1B valuation on the 3rd day of trading.
Fiverr — From 5$ to IPO31. Puls (On-demand in-home repair, $100M in financing)Puls provides fast-response, in-home repair, and installation for smartphones and smart homes, through a network of skilled technicians. Almost $100M helped this marketplace/on-demand/smart home/gig economy great consumer story to be.
32. Zeek (Leading marketplace for selling and buying gift-cards)Zeek enables users to sell their unused gift cards in a discount to other users so somebody will use this voucher. Zeek changed the perception regarding gift cards — explaining its real money that shouldn’t be wasted, and became the UK’s market leader.
33. Missbeez (On-demand beauty services)Misbeez offers busy, modern women a variety of lifestyle & beauty services to their homes or offices 24/7. Missbeez’s mission isn’t just about beauty, but more about women empowering women and supporting their independent careers.
34. Worthy (Online marketplace for luxury goods, raised $8M in series B)Calling all bling lovers. Worthy is an online marketplace for selling and buying pre-owned diamonds and gems. With a motto like “All We Want From You Is To Sit Back, Relax, And Watch The Offers Roll In”, it’s no wonder they raised $8 million in Series B funding.
Vertical: Real estate/ travel / hospitality35. Selina (Co-vacationing/working, over $200M in financing)These guys really hit a home run with this one. Selina is by far the coolest vacationing/working nomad experience in the form of an on-trend hotel chain! It’s super millennial and fun (maybe that’s why they raised $180M) and totally value-for-money.
Selina — the coolest startup that came out of Israel36. Mindspace (Co-working space brand, $35M series B)Yet another co-working space? Not if you ask the founders. The company has offices in over 10 cities (and counting), thanks to the $35M in funding and a trend, that although it feels worn out, it is only getting started.
37. Venn (Co-living company)Venn targets cool areas near big cities, build buildings to live in, bars to hang out at and other everyday must-have services (like laundry, commute stations, co-working spaces, gyms, etc.) and invited young professional crowds to come and populate their new “town”. All you have to do is move, Venn will take care of the rest.
38. Meet in Place (Co-meeting space)Meet in Place is sort of like the WeWork for meetings. They offer a rent-by-the-hour trendy designed, fully-equipped meeting room for any professional purpose. It’s gorgeous, convenient and cost-effective. What’s not to love?
Vertical: Education39. JoyTunes (Music learning service $17M, Series B)This company’s motto is “anyone can play,” and their products encourage millions of people to achieve their musical dreams. After struggling as a B2B company, they started targeting consumers, and have been thriving ever since.
40. Jolt (Co-learning brand, $10M series A)Jolt is reinventing the way adults learn new skills by creating a global community of learners and by cultivating innovative learning spaces. Professionals can easily learn how to future-proof their careers from world-class experts spanning different fields. They ended up raising over $10M.
Jolt — building a global community of learnersVertical: Media, Content, Publishing41. 5min (Videopedia for life, acquired by AOL in 2007)Probably the first-ever Israeli B3C exist, 5min syndicates how-to and instructional videos to other sites. Pre-acquisition, company data stated that they have over 200,000 clips, generating 110M views a month and spanning across 800 different sites.
5min — The Pioneer42. Minute media (Owner of 90min, 12up and other publishers, $78M)Minute Media has created the industry’s leading digital publishing platform, encouraging fans to create, publish and distribute endless content around the world. The concept works as they own and operate over five different sites and became one of the biggest global online publishers to this day.
43. IMGN Media (Content platform, social media, $6M)IMGN is a tech-media company building content brands for multicultural and niche audiences. The team and their super-smart tech curate and create popular IG channels and partner with the biggest brands out there today.
44. Roundforest (online shopping-assistance. Bootstrap startup)The Israel-based company is out to transform the way users buy and brands sell by using data analysis and predictive analytics technologies to showcase products tailored to the shopper’s needs. Oh, and they also deserve a round of applause for being one of those unicorn companies who were able to avoid VC funding (AKA, bootstrapping) and prove to us all — it’s hard but doable.
Vertical: Insurance, DNA, Fintech, Design, Utilities45. Lemonade (On-demand insurance, over $450M in financing)This company attempts to do the impossible: to break the paradigm of Insurance (AKA, a total nightmare). Lemonade developed a super-fast, easy-to-use product designed for the short attention span and zero small-letters-tolerance of millennials. It has been around for 3 years now and has already raised $180M. Given how quick and aggressive they’re being in their plan to conquer the market — I’m pretty sure we’ll hear a lot more from them soon.
Lemonade — quick, aggressive moves to conquer the market46. MyHeritage (DNA company, a leader in the “roots” industry)MyHeritage started out as a super-techy family tree builder (like the one we made in 7th grade!) and the perfect reminder for when you forget your grandma’s birthday. Today, after $50M in financing and a product in the DNA tests space, the future of this company is even more interesting than the past they explore.
47. eToro (Social investing platform, $222M in financing)The successful social trading and investment giant became even bigger when it enabled users to buy and sell crypto assets with the tap of a button. The company has raised $222M, and that’s without branching into the US market. My guess? The best is yet to come for these guys.
48. Lightricks (Photo editing, raised $70M)This one is also a favorite of mine. Basically, a group of Israeli geniuses got together and created a photo editing app that’s like Photoshop for mobile. They showed the world that being creative with your phone is super easy and fun while being the biggest bootstrap success story to come out of Jerusalem.
49. Any.do (Productivity tool, $6M)One of the first and most popular productivity tools out there, Any.do is an award-winning app that helps users to stay organized and get stuff done. This great and innovative product (version 1 was released in 2011) is similar to the common Israeli entrepreneur: techie, efficient, super slick and gets shit done. Fast.
50. Houseparty (Video chat app, acquired by Epic Games / Fortnite, $70M )Houseparty is probably the most millennial concept to come out of Israel. What started as a live video tool, is not a face-to-face social network, trying to become more Fortnite, less Facebook. It’s brands like Houseparty (Yevvo, Meerkat and Air) that are causing the major league players to sh*t their pants.
Shall we summarise?B2C startups can be created in Israel and become extremely successful. Why is that? Because:We have the know-how, the passion, and boldness
We even have a Community to help and support each other
Join other B2C entrepreneurs, investors on our FB group.
Know any other great B2C companies? Got any feedback? Own a B2C venture?
I’d love to hear from you!

The post Israeli B2C startups: The (almost) full list appeared first on The Flying Whale Fund.

Startups are the new brands on the block

whale — Sun, 12 Jan 2020 16:14:11 +0000

This is what happened to me a few years ago: I am an ad man, working with the most desirable brands like Microsoft, P&G, VW, Intel, Hyundai and many others. I’m the king of digital, social, TV, print and every marketing channel out there. I have the biggest budgets, the highest salary, and my professional future is smiling at me. But I’m bored and unhappy… something is missing, and I don’t know what it is.

The phone rings. It’s a man, his name is Phil, and he just founded a new shoe company. He asks me to meet him and discuss his new company’s marketing strategy. This was his story:
“I was traveling all over the world after my graduation, and when I got to Japan, I discovered a super cool company that sells running shoes — high quality and low price. I bought the rights for distributing those shoes in the US, and I want to make it an amazing global consumer brand company that will encourage people to do more physical exercises and connect it to practical and emotional reasons. Currently, the company’s name is Nike. A friend suggested it, and I’m not sure I love it.”
“I’ll be happy to meet you,” I answered immediately.
Phil Knight. Before we met and made him change his haircut.So, yeah.. it didn’t really happened, but imagine you could do this kind of conversations with the CEOs of young companies that are crazy enough to try and reshape the world. There is nothing better, as a marketer, to have the opportunity to join their journey, help them find their voice and place in the world while building global and disruptive brands.
So I started to work with startups as a marketing strategy advisor, as a co-founder, and as a seed investor.
After almost 5 years of working with startups, I finally understood why this connection between startups and marketers is so native and strong. Not like the big established brands, startups are brands in their baby steps, even if they raised their shiny 10 million dollars, the road is still very long, and it’s exciting to have the opportunity to build a brand from scratch. You can (and should) break some marketing rules and find new models, and startups’ founders are the perfect partner for it — most of them are super smart people who understand the psychological aspects of the marketing, they are super innovative in their thinking, and they expect you to think differently like them. It’s a win-win situation: Founders most of the times have a great vision — and you, the marketer, want to turn big vision into a greater story
Every one of those startups might be the next global brand in e-commerce, payment, insurance, finance infrastructure, financial services, consumer brand, marketplace, cyber security, VR, AR and any more domains. Every one of those founders could be the next big CEO, and you might build the next big global brand her / him.
Well, this is something any marketer would love to do, at least I would.

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