Podcast Summary
Discovering Startup Investments through Virtual Events: During the pandemic, virtual events like remote demo days offer opportunities for startups to secure investments. Authentic consumer brands, especially in DTC space, and compliance/security are key focus areas for investors.
Despite the challenges of raising funds during the pandemic, startups can still secure investments through virtual events like remote demo days. Jason Calacanis, an angel investor, shares his experience of discovering and investing in Outer, a direct-to-consumer outdoor living brand, during a remote demo day. Outer, founded by Jake Liu, offers comfortable, durable, and eco-friendly outdoor sofas with a patented design that eliminates the need for rain covers. The company is expanding into outdoor rugs and aims to become the number one outdoor living brand in the world. Jason emphasizes the importance of creating authentic consumer brands, especially in the direct-to-consumer space. He also mentions the importance of compliance and security for startups, encouraging listeners to check out Vanta for SOC 2 reports.
Creating a Transcendent Product and Clever Marketing for D2C Furniture Sales: To succeed in D2C furniture sales, create a unique product and effective marketing approach. Develop a differentiated fabric for comfort, durability, and eco-friendliness, and understand product needs in various outdoor conditions. Iterate constantly to improve.
In order to succeed in direct-to-consumer (D2C) furniture sales, having a differentiated product and unique marketing approach are crucial. The speaker, who comes from a computer engineering background and helped his cousin's patio furniture business grow on Wayfair and Amazon, noted that while there was potential in the space, the product offerings were not differentiated enough from competitors. He emphasized the importance of creating a transcendent product and clever marketing to connect with customers and build a brand. The speaker's own company spent 14 months developing a differentiated fabric for their sofas, focusing on comfort, durability, and eco-friendliness. Understanding the product's needs in various outdoor conditions and constantly iterating are also essential to creating a successful D2C furniture business. The speaker's personal experiences with outdoor furniture, from California to Alabama, highlight the common frustrations of using outdoor furniture and the potential for a better solution.
Designing Convenient Outdoor Furniture Covers: Outer's rain-resistant furniture covers are easy to use, quick to flip, and come with handles for hassle-free use during heavy rain. Gusto simplifies payroll and HR management for small businesses and individuals with automatic tax calculations, unlimited payrolls, and a user-friendly interface.
Outer's rain-resistant furniture covers are designed to make the experience of using outdoor furniture convenient and hassle-free. The covers are easy to use with one hand, quick to flip over, and come with handles for easy transportation during heavy rain. This simple yet effective design solution resonated with people on social media, leading to viral content and increased interest in the product. Another key takeaway is Gusto's innovative go-to-market strategy, which focuses on making payroll and HR management easy and accessible for small businesses and individuals. With features like automatic tax calculations, unlimited payrolls, and a user-friendly interface, Gusto aims to minimize uncertainty and allow users to focus on their businesses. Overall, both Outer and Gusto demonstrate the importance of designing products that solve real-life pain points and provide value to customers.
Neighborhood Showroom: Combining Airbnb and Retail: DTC furniture brand's Neighborhood Showroom concept allows customers to experience products in person, growing to over 500 locations and on track to double, with hosts paid per visit and limited weekly visits to prevent commercialization.
The Neighborhood Showroom concept, which combines elements of Airbnb and retail, has proven to be successful for a DTC furniture brand looking to provide potential customers with an opportunity to experience products in person before making a purchase online. This concept, which began as pilot tests in 2019, has since grown to over 500 locations and is on track to double that number. Hosts are paid a flat fee per visit, and the number of visits per week is limited to prevent turning homes into retail stores. The concept has been successful in allowing customers to use their five senses to evaluate products and has provided a unique and flexible shopping experience. During the pandemic, the concept pivoted to virtual visits to address safety concerns.
Increase in sales for virtual showrooms and outdoor products companies: The pandemic drove a trend towards home improvements and outdoor living, leading to increased sales for related companies and a surge in e-commerce and DIY projects.
The pandemic led to a significant increase in sales for companies that offer virtual showrooms and outdoor products due to people spending more time at home and wanting to make their outdoor spaces more comfortable. The manufacturing industry in China was initially impacted but quickly resumed, however, logistical issues with ocean freight and container availability caused delays. The trend of staying at home and focusing on outdoor spaces led to a surge in e-commerce sales and DIY projects, benefiting companies in this sector. The shift towards prioritizing home improvements and creating comfortable living spaces became a widespread trend across the country and potentially the world.
Creating personal workspaces and investing in startups during the pandemic: The pandemic has driven the need for home offices and accessible startup investing, with China's growth serving as inspiration for continued innovation and potential returns.
The pandemic has led to a trend towards creating personal workspaces at home, potentially turning residences into mini-compounds. Meanwhile, investing in startups, especially during their early stages before IPOs or acquisitions, has become more accessible through community platforms that offer comprehensive due diligence and lower minimum investments. Looking at China's development, growing up in Shenzhen, the first autonomous economic zone, offered unique experiences, with the city transforming from a construction site into a bustling metropolis in a short time. These experiences highlight the potential for continued growth and innovation in various industries, especially in the post-pandemic world. Additionally, platforms like Our Crowd provide opportunities for individuals to invest in unique startups, such as Future Family, at early stages, potentially leading to significant returns.
From fishing village to tech hub: Shenzhen's remarkable transformation: Shenzhen, once a small fishing village, became a modernized city with over 20 million residents through government designation as an autonomous economic zone, leading to rapid growth and technological advancements.
Shenzhen, China, which was once a small fishing village in the early 90s, transformed into a modernized, technologically advanced city with a population of over 20 million. This transformation was due to the Chinese government designating it as an autonomous economic zone, allowing for more free trade and economic development. The city, located near the Pacific Ocean and bordering Hong Kong, grew rapidly, with skyscrapers, European cars, and advanced infrastructure becoming commonplace. The growth was so rapid that returning visitors could barely recognize the city, as it continued to develop vertically. The city is now known for its technological innovations, with companies like Foxconn setting up large operations there. The scale of development in China is massive, with examples like the Mission Hills golf club, which was once a national park and now consists of 12 golf courses and 216 holes. Despite the challenges of the COVID-19 pandemic, life in Shenzhen and other major Chinese cities has largely returned to normal, with the use of technology for tracking and tracing helping to control outbreaks.
Governments' swift action led to successful containment of COVID-19: China's quick response to the pandemic led to a return to normal life, global vaccine leadership, unexpected company growth, and a more efficient hiring process due to remote work.
Effective and swift action by governments, particularly in China, led to a successful containment of the COVID-19 spread, enabling a return to normal life for many people within months. This experience has led to philosophical debates about safety and freedom, but overall, individuals in China are content with the temporary lockdown. China, along with the US and Israel, are leading the way in vaccinations, with both China and the US administering over 10 million doses by January 2021. Companies have also experienced unexpected growth during the pandemic, necessitating massive hiring. Remote work has become the norm, allowing for a more inclusive work culture and faster hiring, as geographical location no longer limits the talent pool. This shift towards remote work eliminates the need for uncomfortable conversations about commuting and office attendance, making the hiring process more efficient.
Balancing Angel Investing and Running a Company: Jake Liu's Experience: Angel investing and providing advice can complement running a business, but passion, learning, and efficiency are key. SOC 2 compliance is crucial for major partnerships and customers, and Vanta offers an efficient solution with a $1,000 discount for Twist listeners.
Angel investing and running a company can be balanced, but it requires passion and a desire to learn. Jake Liu, an angel investor and founder of Liveouter.com, shared his experience of getting into angel investing through his involvement with Steezy, a dance company. He was moved by the founders' passion for their business and wanted to be a part of it, even if he couldn't write a big check. He saw value in providing advice and sharing his experiences as a founder. Another important takeaway is the significance of SOC 2 compliance for businesses. SOC 2 compliance is crucial for closing major partnerships and customers, and Vanta can help businesses achieve it quickly and efficiently. Vanta offers a $1,000 discount to Twist listeners for their subscription, making it an attractive option for businesses looking to streamline their compliance process. Overall, the episode emphasized the importance of passion, learning, and efficiency in both angel investing and running a business.
Expanding horizons through cross-industry conversations and international investments: Engaging in cross-industry dialogues and investing in diverse industries can broaden perspectives and contribute to a company's growth. The interconnectedness of major economies, such as China and the US, can foster peaceful commerce relationships and decrease the likelihood of conflict.
Engaging in cross-industry conversations and investing in companies in different industries, even passively, can broaden one's perspective and help fuel the growth of one's own company. Additionally, the relationship between China and the United States, despite political tensions, can be seen as a capitalistic truce, with healthy commerce relationships reducing the likelihood of war between the two powerful nations. The theory of the "Golden Arches" suggests that as economies become more integrated, the costs of going to war and the benefits of trade make conflict less appealing. As a global citizen who grew up in China and has lived in the US, the interconnectedness of the two economies is particularly significant, and it is essential for the world's most impactful economies to exist in harmony.
Understanding China and America's unique perspectives: Both China and the US have distinct strengths and challenges. Americans may not fully grasp China's rapid development and challenges, while China may not fully understand American values. Recognizing each other's backgrounds can foster greater understanding and cooperation.
Both China and the United States have unique strengths and challenges, and it's essential to understand each other's perspectives to foster mutual respect and learning. China, which was once considered of lower quality compared to the United States, has rapidly evolved into a global economic powerhouse. Americans might not fully grasp China's rapid development and the challenges it faces, such as environmental issues and industrial growth pains. Meanwhile, China may not fully understand the American values of democracy, environmental awareness, and worker protections, which took generations to establish. By recognizing each other's backgrounds and development trajectories, we can foster greater understanding and cooperation between our two nations.
From rural to modern: China's economic transformation: China's economic development led to improved living standards and shifted manufacturing focus to innovation, quality, and brand to stay competitive.
China's economic development over the past few decades has led to significant improvements in living standards for its people, transforming their lifestyle from rural and resource-scarce to modern and urban. This shift has brought about an upgrade in manufacturing from cheap production to innovation and high quality. As other countries like India and Vietnam offer cheaper labor, Chinese manufacturers must focus on adding value through innovation, quality, and brand to remain competitive. This transition from being the world's factory to a leader in innovation is a fascinating aspect of China's economic evolution and a reminder that each country has an opportunity to contribute to the global ecosystem by improving the lives of its citizens.
Progress in poverty reduction and Chinese food authenticity: Capitalism drives poverty reduction while authentic Chinese food thrives in the San Gabriel Valley, CA, with top chefs using US's world-class ingredients.
The world is making significant progress in reducing the number of people living in poverty and improving overall quality of life and average salary. This trend, driven by capitalism, will continue, with the goal of eliminating poverty entirely. Meanwhile, when it comes to Chinese food, authenticity and high-quality ingredients are key, with the San Gabriel Valley in California being a standout scene. Despite the challenges of finding non-English named restaurants, the experience is worth it for the exceptional dishes. The United States offers world-class ingredients, making it an ideal location for top chefs from China and Korea to showcase their culinary skills. Overall, it's an exciting time for both global poverty reduction and the Chinese food scene.
Valuable experience for founders to connect with investors: Founders can apply for free to connect with investors and potentially secure funding at Remote Demo Day, a successful and recommended deal flow tool for investors.
Attending Remote Demo Day, an event put together by Jake and his team, is a valuable experience for founders. The event provides a rush similar to that of Shark Tank, and has become a recommended and permanent deal flow tool for investors. Founders who are actively raising and have a modest allocation can apply for free on remotedemoday.com. The event has become so successful that it is being held 10 times in 2021. It's a great opportunity for founders to connect with investors and potentially secure funding. If you're a founder looking to raise capital, consider applying to Remote Demo Day.
