I have recently been thinking a lot about brands. This has come about from multiple directions. Some external, and some internal as we navigate our path for growth at SapirVP. My friend Jonathan Friedman over at Lionbird recently shared his thoughts on the topic in his newsletter.
In a follow up call shortly after, Jonathan shared further insights from his journey in building Israel’s leading e-Health venture fund. This conversation spurred me to put some of my thoughts down on paper. Jonathan – thanks for the inspiration.
A strong brand is a powerful tool. Like other powerful tools it takes significant time and effort to create one. And despite being powerful, brands are actually very delicate. One bad move, or even a mistake, can damage the value you worked hard to create.
While the above seems true as a generalization, the nuances and details are specific for each case.
Let’s take a consumer brand as a first example. Simon Sinek, in his book Start with Why? explains the Apple fandom as being way beyond great tech and an amazing user experience. Rather, he claims that it is a company on a mission which others want to be a part of. It took decades for this type of loyalty to develop and it was not necessarily part of Apple’s strategy from its early days.
Others may have argued this before me (please share references.) but I would suggest that in his second term as CEO at Apple, Steve Jobs brought with him a very important skill learned from Pixar: Storytelling.
Sure, Steve must have been good at pitching his company and selling his vision earlier in his career to have gotten that far. But what Simon describes goes beyond all that. It is a religious support of Apple products by a mass following that endorse it through their buying power. They not only choose to spend their hard earned dollars on the generally more expensive Apple products but also vehemently defend these products even when they perform below par.
This type of devotion is naturally associated with religion, but also with books and movies that rise to cult status to create mass followings (and sequels!). They are based on powerful storytelling infused with a mission – a why – that people want to be a part of.
Shifting to a second example, I want to share a recent email discussion I’ve been having with my good friend Gil Eyal, the founder and CEO of HYPR (now merged with Julius). Gil is my go-to-guy for all things influencer marketing related. He has worked with some of the biggest names across movies, music, sports, etc. in designing and running successful marketing campaigns.
Observing some recent headlines regarding influencers backing some questionable choices (in my opinion), I asked Gil whether these influencers care what they were associated with or was any headline coverage considered good PR? Or as the old saying goes – “there is no such thing such as bad publicity” – attributed to PT Barnum.
I was actually surprised at how definitive Gil’s answer was. He unequivocally stated that these influencers do indeed care. However, he continued to explain to me that it is not just about being affiliated with products/services that they genuinely care about (or at least are not strongly against). Rather, it is that they have worked very hard to achieve their success and recognition so they must protect it. And monetize it. But that is for a separate post as we are working on an idea to help them do this better.
Which brings me to my third and last example, our personal journey in building a new micro VC. In recent conversations with potential LPs we keep hearing them ask about our “super power”. While I think it comes through pretty well in our deck, I find myself needing to explain what isn’t necessarily obvious in the deck. Namely, that we are developing a brand, not just a single investment vehicle.
We have a unique approach to investing in seed stage deep-tech companies through the blend of what we do. It is not just one specific thing that gives us an edge. Sure, there are others that do elements of what we offer. There are some really great investors out there today and we are lucky to work with many of them. (Too many to name here, but you know who you are. Thank you for your collaboration across the ecosystem!)
But our core values could (and should) be applied to any new venture. Our current seed-stage deep-tech fund or our future funds, whatever they may look like. (Again, we have ideas and are already working on them…)
Creating a brand is about recognition. Flash an image, mention a name or quote a tagline – immediately everyone knows who you are and what you are all about. I’ve never needed the spotlight, though I don’t necessarily shy away from it. At times, I even enjoy it. Usually when I feel that I can add value. Not as a pulpit from which to preach or as a soap box to chase publicity. I am comfortable being backstage and just making things happen. Truthfully, as an investor – that is the role. We should remember that.
When I was a teen, my mom used to say to me that if you don’t publicize what you have done, then nobody can give you credit. That is true. But still something I struggle with. So, in 2021 I am launching a few initiatives to help spread the word about what we do and how we do it. If you don’t feel like you are hearing from me (or at least more than in the past…) then please hold me to this. Thanks.