According to the WSJ, start-ups seeking venture capital should know that the value of your aspiring brand is directly correlated to your presence on Twitter, FaceBook and other social media platforms.
The article included 10 basic rules for start-up marketing gurus, including “Rule #8: It’s better to have a huge following on one platform than to have a mediocre following on several.”
The article caused me to smirk, as the first thought that came to mind while reading the article and and simultaneously thinking about how Twitter and FB are so easily manipulated by robots, was Forrest Gump’s fav: “Stupid is As Stupid Does.”
During the better part of the past 20 years (starting well in advance of the “Internet Bubble”), this blogger has led various start-ups and has worked with a broad universe of VCs and private equity icons in the course evaluating multiple enterprises who sought (and still seek) to disrupt the norm with innovative approaches and cutting-edge technology. I’ve huddled with prescient grey beards as well as a multitude of B-School geniuses, the latter of whom like to believe they know everything there is to know about..well..everything..And, that latter group is necessarily fixated on current trends and what’s next..often courtesy of their schoolmates who aspire to be the next Mark Zuckerberg.
I’ve also interfaced with more than a few corporate marketing execs who are responsible for driving brand strategies for their respective companies…many of which are Fortune-level corporations.
For those who don’t know it, when it comes to investing, the herd mentality (which is what the WSJ article profiled), sheep are influenced by what all of the other sheep are doing. Because VCs are making bets on companies with significant social media presence (however fleeting that presence actually is), they could easily be using the same capital to day trade commodities..which are much more liquid.
Brand Valuation Metric for VCs: Your Start-Up's Social Media Presence
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