If a Tree Falls in the Forest and No One Is There to Hear It, Did It Make a Noise? Go-To-Market and Startups

This week in Harvard ES-134, Technology Ventures: From Idea to Exit, we had an engaging discussion about the essentials of finding Product-Market Fit (PMF), developing effective Go-To-Market (GTM) strategies, and navigating the early stages of scaling a startup. Our guest speakers— Greg Schwartz (Tomo) Garrett Rothstein (Queue), and Patrick S. Chung (Xfund)—brought a ton of insights, highlighting the importance of trust, storytelling, and resilience in the entrepreneurial journey.

Understanding Product-Market Fit (PMF) and Go-To-Market (GTM)

For any startup, finding PMF is crucial. It’s the sweet spot where your product genuinely meets the needs of your target market. But PMF alone won’t get you to the finish line. That’s where your GTM strategy comes into play. Think of it as your game plan for launching your product and making sure it connects with potential customers. A well-crafted GTM strategy ensures that your offering not only reaches your audience but also captivates them, making them excited to engage. Together, PMF and GTM are the dynamic duo every startup needs to turn their vision into reality.

Lessons from Greg Schwartz: Building Trust with Customers

Kicking off our discussion was Greg Schwartz, co-founder and CEO of Tomo. Greg and I previously worked together at Zillow, and I’m proud to be an investor in Tomo via 75 & Sunny. He shared his journey from his early days in the ad agency world to becoming a passionate advocate for ethical business practices. After leaving Zillow, Greg made it his mission to cultivate trust between companies and their customers, emphasizing that putting customer protection at the forefront is essential for long-term success.

“Trust is the bedrock of sustainable business,” Greg noted. For startups, building this trust means being transparent, delivering real value, and genuinely committing to the well-being of their customers. Greg was of course talking about how Tomo is delivering on the mission of creating a lower priced mortgage. In his mind (and mine), mortgage lenders' excessive margin is just another way of price gouging them.

Insights from Garrett Rothstein: The Power of Storytelling and Creative GTM Tactics

Next up was Garrett Rothstein, co-founder of Queue, who shared the power of storytelling in marketing. With his background in communications and digital advertising, he shared lessons from his time at Snapchat and Bird, focusing on various GTM tactics like hosting Queue movie nights on campus, creatively using social media, and engaging in seemingly unscalable activities—like mailing stickers to power users.

Garrett stressed the importance of partnerships to Queue's growth, including its collaborations with Lionsgate and Atom Tickets. He also highlighted the need to be present during customer interactions, which allows for immediate insights and adjustments. Garrett uses a discord server to connect with thousands of Queue power users who provide real-time product feedback.

General GTM & Scaling Tips

Garrett shared some essential GTM strategies to help startups navigate common pitfalls:

• SEO: Ensure your product is easily discoverable online. And its sibling, ASO -- app store optimization which is the art of getting to the top of the app store search results.

• Email Marketing: Build relationships with potential customers.

• PR: Establish credibility through effective public relations.

• Content Marketing: Create valuable content that resonates with your audience.

Embracing the Unscalable

Both Greg and Garrett offered sound advice for aspiring entrepreneurs. They encouraged founders to embrace actions that might not scale immediately, such as building personal relationships with customers and actively seeking feedback throughout the product development process. “Your network and experience are invaluable,” Garrett reminded us, stressing the importance of learning from others before diving into a startup. Finally, both Garrett and Greg discussed the emotional roller coaster of startup life; if you want an easy path, don't do a startup.

Patrick Chung: Resilience in the Face of Adversity

Finally, Patrick S. Chung, general partner at Xfund, shared his entrepreneurial journey, highlighting his shift from McKinsey to launching his own startup before becoming a VC. He stressed the importance of identifying a key customer and timing your efforts to achieve success. Even when he faced the threat of bankruptcy, Patrick’s determination showed the vital role of resilience in entrepreneurship.

He discussed how VCs look for innovators who can take a product from 0 to 1, rather than just focusing on scaling existing solutions. “Understanding when to invest is just as crucial as knowing what to invest in.”

Key Takeaways

• Build Trust: Focus on protecting customers to cultivate long-term relationships.

• Leverage Storytelling: Use creative marketing strategies to connect meaningfully with your audience.

• Embrace Feedback: Iterate quickly based on customer insights to enhance your product.

• Stay Resilient: Persistence is essential for overcoming challenges in the startup landscape.

• GTM is critical: Simply building a great product is not enough. You cannot trust that if you build it, people will come. Instead you must have a great GTM strategy. I explained that the field of philosophy has a saying: if a tree falls in the forest and no one is there to hear it, does it make a sound? Entrepreneurship has a corollary: if a company builds a product and no one uses it, did it even ever exist?

Next Week

Greg and I shared the story of Zillow’s journey in monetizing its multi-billion-dollar Premier Agent advertising business and how crucial those innovations were to the company's success. It set the stage perfectly for next week’s class, where we’ll dive into monetization and pricing strategies. Stay tuned!