Ask HN: Why is B2C so much harder than B2B?
It feels like the majority of VCs are only interested in B2B companies. B2C startups need a lot of traction and already established network effects to have equal chances of getting funded.
4 comments
I think VCs bring a lot to the table for B2B firms.
For instance I worked for a B2B startup that had joined an accelerator near Union Square in NYC and it was a great situation. For one thing NYC is the best place to be for B2B sales into a wide range of industries, but the connections that the investors and other participants in the accelerator bring really help.
Once you have a sales playbook that works, VC money is really like rocket fuel for hiring more salespeople and speeding up your process. You might think that spending money on TV, print or web ads would also benefit, and I'm sure it does, but it's a very different thing to be talking to consumers over that kind of 1-way channel as opposed to a "high touch" sales process where sometimes getting the customer to talk is the best technique you've got.
For instance I worked for a B2B startup that had joined an accelerator near Union Square in NYC and it was a great situation. For one thing NYC is the best place to be for B2B sales into a wide range of industries, but the connections that the investors and other participants in the accelerator bring really help.
Once you have a sales playbook that works, VC money is really like rocket fuel for hiring more salespeople and speeding up your process. You might think that spending money on TV, print or web ads would also benefit, and I'm sure it does, but it's a very different thing to be talking to consumers over that kind of 1-way channel as opposed to a "high touch" sales process where sometimes getting the customer to talk is the best technique you've got.
In B2C targets have a lot free time and less money. So you want to get a lot of engagement & eyeballs to sell for money via ads etc. Whereas in B2B the target have money and pain points and less time… which is one step to monetize vs two.
How many social networks do you use versus how many business apps does your company pay for to enable you to do your job?
The B2B market is the classic rational actor economy, B2C is not.