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Mighty Capital’s thesis is that the best product wins — further down the line • Technology Flow

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

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When founders It may seem like odd timing to lay off staff and cut costs in the face of a recession, telling startups to take their product as seriously as ever. In a recession, do consumers really care about the product experience? Yes, Mighty Capital, whose portfolio includes companies like Airbnb and Amplitude.

The San Francisco-based VC firm has one core thesis: the best product wins. And changed gross circumstances invalidate it. In contrast, the founding managing partner of Mighty Capital, SC Motti, This is “more relevant now than ever,” he told Technology Flow.

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 articulate the benefits of product-led growth.

Product-led growth makes all the sense in a recession: if it’s product that’s doing the heavy lifting, it means spending a lot less on sales and marketing. This allows successful product-led companies to grow faster and be more profitable, which is what investors like to hear right now.

There’s a catch, though: You can’t drive product without great product. However, entrepreneurs are understandably apprehensive about making the type of investment required when their burn rate is already keeping them overnight.

To understand how SC Motti thinks about the product-versus-spending conundrum, we asked her a series of questions entrepreneurs might have when considering a product-led leap. Her answers are below, edited for length and clarity.

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