Thread by @dafrankel

Hypothesis: The ability to find alpha in attention markets is an irreplaceable and invaluable skill on a founding team.

Recently it seems that the lack of acquisition DNA on the team is one of the more common reasons I fail to fund.

Thoughts on why it’s so important:

1/11

First, it’s important to define what I mean by acquisition. There’s too much focus chasing arbitrage opportunities on Facebook/short-term growth hacks, and not enough focus on finding sustainable and scalable commercial opportunities.

2/11

It’s also not enough to just be commercially savvy. Someone on the team needs to be obsessed with looking for opportunities to grow - and the process of growth itself. Someone who is constantly seeking out the “edge of the ledge.” This can take many forms:

3/11

🏪 Markets: The most obvious path to growth is identifying underserved markets. e.g. @AdHawk is on a roll partially because the flooring industry is viewed as unattractive. Underserved markets are desirable simply because the commodity tricks are still potent.

4/11

🐁 Growing Niches: Find an emerging service - TikTok, Twitch, etc. Tap the energy of those users to propel your startup. This requires creativity, but a startup should always be able to move faster than a large corporation.

5/11

😜 Unorthodox Tactics: While a host of DNVBs have used Facebook and Instagram to accelerate their growth over the last few years, @PillPack levered the heck out of a much less & attractive growth tool: call centers. “Maybe-not-so-anachronistic” tactics can be underrated.

6/11

🏗️ Platform Shifts: @Seatgeek got out of the gates strong by making a big bet on mobile just as the market was shifting. They’ve followed up that original insight with a decade of smart decisions but it would be harder to replicate their success today on the same platform.

7/11

That’s far from an exhaustive list, but before you go into your next VC pitch meeting, think hard about two questions:

8/11

1) Who on the team owns acquisition? Not as a sideline, but as a core mission. This person doesn’t have to have a track record (although it helps), but they must have a clear vision and a bit of evidence.

9/11

2) What are the big bets you’re making on commercialization? If your answer is simply “buy Facebook/Google ads, maybe a retail pop up...” know that your chances are going to be severely diminished. Product and commercialization need to be designed together.

10/11

There have been times when we didn’t back the product genius because no one on the team was focused on finding the customers. It’s a critical founder skill because it’s such a hard position to hire for. The best acquisition practitioners are doing it for themselves.

/End