Mighty Capital’s thesis is that the best product wins — even more so in a downturn

'No amount of salespeople or engineers can save you in the long run if your customers don’t love your product'

When founders are laying off staff and cutting costs to face the downturn, it may seem like odd timing to tell startups to take their product as seriously as ever. In a recession, do users really care about product experience? Yes, says Mighty Capital, whose portfolio includes companies such as Airbnb and Amplitude.

The San Francisco-based VC firm has a core thesis: The best product wins. And changed macro conditions don’t invalidate it. On the contrary, Mighty Capital’s founding managing partner, SC Moatti, told TechCrunch that it is “perhaps more relevant now than ever.”

SC Moatti is a former Facebook executive with a passion for all things product. In addition to her role at Mighty Capital, she is also the founder and CEO of Products That Count, a vast network of product managers that touts the benefits of product-led growth.

Product-led growth makes all the sense in a downturn: If it’s the product itself that does the heavy lifting, it means potentially spending a lot less on sales and marketing. This makes it more likely for successful product-led companies to both grow fast and be profitable, something that investors currently love to hear.

There’s a catch, though: You can’t be product-led without a great product. However, entrepreneurs are understandably nervous about making the type of investment that this would require when their burn rate already keeps them up at night.

To understand how SC Moatti thinks about the product-versus-spending conundrum, we asked her a series of questions that founders might have if they are thinking about taking the product-led leap. Her answers follow below, edited for length and clarity.

Credit belongs to : www.techcrunch.com

You May Also Like

Nigerian proptech Spleet gets $2.6M led by MaC VC to scale its property management products

For the average individual living in Lagos — Nigeria’s most populous city, with over 20 million people — apartment hunting is an extreme sport. Not only is rent expensive — low- to middle-income housing can cost between $1,000 and $5,000 yearly — but renters must also pay a year in advance, sometimes even two before […]

Nigerian proptech Spleet gets $2.6M led by MaC VC to scale its property management products by Tage Kene-Okafor originally published on TechCrunch

App Store experienced sharp revenue drop in September, Morgan Stanley says

Apple’s App Store suffered a 5% year-on-year dip in net revenue in September according to a note from Morgan Stanley analyst Erik Woodring. This is the biggest drop in App Store revenue since the financial services company started tracking its data. Woodring said gaming was the biggest reason for the decline as the sector plunged […]

App Store experienced sharp revenue drop in September, Morgan Stanley says by Ivan Mehta originally published on TechCrunch

error: Content is protected !!