Bridge Round Crunch, Flexible E-commerce, CVC Negotiation Tips Meczyki.Net

Inflation is up and consumer confidence is low, which is why e-commerce startups that expect to face the ongoing slowdown must expand their product offerings.

Does it seem counterintuitive?

“The more supplements and additives there are to your catalogue, the larger the size of your cart and the more likely the customer will be returning,” says Bennett Carrocchio. Prior to co-founding Canal, he worked with hundreds of companies as the Consumer Investment Partner at Andreessen Horowitz.

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In a post for Meczyki.Net+, he identifies the two cost centers that are easiest to control (user acquisition and product R&D) and shares three strategies for “removing the brand-pocalypse.”

Dialing up your marketing budget during a recession is the wrong call, because “margin is everything” and consumers are more skeptical than ever.

Instead, look for ways to increase LTV with larger catalogs and use third-party suppliers to reduce cost of goods sold.

“Landing off a new customer is several times more expensive than retaining an existing customer,” says Carroccio, “and it’s multiplying as the cost of acquisition goes up.”

Thanks for reading!

Walter Thompson
Editorial Manager, Meczyki.Net+
@ your hero

image credit: Patrick T. Fallon / AFP / Getty Images

Last week, the world’s largest retailer announced its plans to delve deeper into the healthcare sector with the purchase of concierge provider One Medical.

Three members of the TC+ team shared their thoughts about the potential impact of the deal on patients and Amazon’s operations:

  • Walter Thompson: Amazon is the black hole created by the death of Main Street retail
  • Miranda Halpern: Following a Logical Progression
  • Alex Wilhelm: What Happened to the Value of Focus?
Bridge Financing

image credit: Getty Images

“Titanic” came out in 1997, but people still argue about whether there was enough room on the floating door for Rose and Jack to have lived through it.

That makeshift raft had enough room for both lovers – the issue was buoyancy: with two people, no one would be safe from the icy waters.

As Rebecca Szutak reports, investors may offer a bridge round to founders who are struggling to keep their heads above water, but metaphorically, everyone will still get wet.

“I think the hurdle with these bridge financing investors is that you have to prove that you are actually building the bridge,” one founder closed a recent round.

Large And Small Metal Gear With Copy Space.  Interaction With Corporate Venture Capital Startups

image credit: Ivan Bazyk (Opens in a new window) / Getty Images

Startups that hope to work with corporate venture capitalists need to be prepared for the hard work that examines everything from revenue to diversity.

In a TC+ guest post, Luisa Rubio Aribas, head of Telefónica’s digital innovation hub Wayra X, shares her advice on how founders should approach a conversation with CVC and what they can expect.

“When an angel investor or traditional VC backs a company, their primary interest is to obtain a decent monetary return,” she writes.

“CVCs, however, don’t just want financial results, they want to tap into the innovation and disruption you bring.”

Thermal Image Of A Woman Kicking A Car Tire On The Side Of The Road;  Founding Investor Alignment

image credit: Joseph Giacomin (Opens in a new window) / Getty Images

Everyone wants to get their company off the ground, so it’s important to find an investor who shares your values ​​and vision.

Accepting the first offer to come is especially tempting, but “picking the right partner for the right stage of your business can be the difference between building a billion-dollar company and losing control.”

Evan Kiperman, Paul Hughes and Len Gray, partners at law firm Wiggins & Dana, shared a post with TC+ that explores the finer points of working with institutional investors, angels, friends and family, and capitalists from other stripes.

“As funding gets harder, your risk tolerance may change, but your process for evaluating investors should not.”