The 3 stages of building world-class growth funnels

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By Walter Thompson

Tuesday, June 27, 2023

Welcome to TechCrunch+ Tuesday

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Building a durable growth funnel doesn’t just scale your business: it also signals to investors that a team can move directionally, which is a major confidence builder.

“Acquisition, activation and retention are critical,” writes Jonathan Martinez, TC+’s in-house growth expert. “While referral and monetization are also quite important, they won't make or break a startup.”

He says early-stage teams should push well beyond “vanity metrics” like click-throughs and conversions to develop advanced metrics that are specific to the business they’re building.

For this article, he broke down onboarding and activation processes at several startups, including Postmates, Zoom, Uber and Canva, to show how they shaped messaging that push users deeper into their funnels.

It’s complex work, but don’t be intimidated — a growth analyst or data scientist contractor can easily set up the dashboards you’ll need to run experiments, set goals and track day-to-day progress.

“This isn't meant to be a teardown of each specific startup, but rather a holistic look into what leading companies are doing, their mindsets when it comes to growth and how to replicate these actions in your own startup,” says Martinez.

Thanks very much for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

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While everyone keeps talking about AI, HR tech startups are quietly building toward a $24B market

While everyone keeps talking about AI, HR tech startups are quietly building toward a $24B market image

Image Credits: Gopixa / Getty Images

According to a report on European HR tech by GP Bullhound, the industry generated 15% of the region’s new unicorns.

“HR tech is proving more durable than other sectors, at least when it comes to fundraising,” write Anna Heim and Alex Wilhelm.

“Going by the trend these days, we're bound to see some HR tech startups from around the world going public in addition to all the AI startups.”

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Coinbase execs: As global crypto policy grows, US has urgent need for legislation

Coinbase execs: As global crypto policy grows, US has urgent need for legislation image

Image Credits: U.S. State Department

Crypto maximalists are comfortable making big bets, but ambiguous oversight by U.S. financial agencies is holding back corporate adoption, according to a study conducted by The Block and Coinbase.

“Around 91% of surveyed executives agree that lack of clear regulation on crypto, blockchain or web3 make the space hard to navigate,” reports Jacquelyn Melinek, who interviewed Kara Calvert, head of U.S. policy at Coinbase, and Faryar Shirzad, its chief policy officer.

“It doesn't matter where lines are drawn, we'll build to those lines,” said Shirzad. “But we can't deal with a lack of clarity; the uncertainty is not healthy.”

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Don't wait to identify your startup's ideal customer personas

Don't wait to identify your startup's ideal customer personas image

Image Credits: Carol Yepes / Getty Images

Most early-stage startups don't have a dedicated full-time CMO, and that's OK.

However, it's still someone's responsibility to capture user data, which is why growth expert Jonathan Martinez shared a guide with TC+ for developing ideal customer profiles (ICPs).

"By identifying your ideal customer personas first, you will find product-market fit faster and identify the right customers to sell to," he writes.

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There are signs that it will be a hot secondaries summer

There are signs that it will be a hot secondaries summer image

Image Credits: Getty Images

Buyers and sellers in the secondary market are getting closer on prices: the average bid/ask spread at private securities marketplace Forge Global has fallen to 17%, reports Rebecca Szkutak.

“We need to watch this and see that this 17% is sustainable,” said Forge Global CEO Kelly Rodriques.

“If it is, there are a group of market participants that are watching the space and wondering when to jump back in.”

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SignalFire's State of Talent report 2023

SignalFire's State of Talent report 2023 image

Image Credits: Sean Gladwell / Getty Images

The State of Talent report that early-stage VC firm SignalFire just shared with TC+ tracks shifts in the tech labor market from the start of the pandemic in March 2020 to the end of Q1 2023.

"Tech has seen nonstop layoffs that hit 166,044 workers in Q1 2023 alone," writes Dr. Heather Doshay, a SignalFire partner. "That's more than all of 2022's then-record 161,411 tech layoffs."

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California Today: California Jury Pay Could Soon Increase to $100 a Day

A new bill would offer higher stipends to low-income jurors in Los Angeles, Alameda, Kern and other counties.
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By Soumya Karlamangla

California Today, Writer

It's Tuesday. Jury pay could soon go way up in California. Plus, how a shortage of a $15 cancer drug is upending treatment.

In San Francisco, more than a third of residents say that serving on a jury poses an economic burden, according to city officials.Patrick T. Fallon / AFP via Getty

Californians could soon be paid far more for jury duty.

A bill moving through the State Legislature would give certain jurors $100 a day for serving on a criminal trial jury, a big jump from the current daily rate of $15. If the legislation passes, jurors will be eligible for the higher stipends in Los Angeles, Alameda, Kern, Monterey and San Francisco Counties through 2025.

The proposal was inspired by a pilot program in San Francisco that has increased the racial and economic diversity of the county's jury pools by providing $100 daily payments to low- and moderate-income jurors. In California, employers are required to give workers days off to complete jury duty, but they don't have to pay employees' wages.

In San Francisco, more than a third of residents say that serving on a jury poses an economic burden, according to city officials. So many lower-income jurors were being excused for financial hardship that juries were becoming increasingly wealthy and white, because of the correlation between income inequality and race, said Assemblyman Phil Ting, who sponsored the new legislation. That further slanted the criminal justice system against people of color, he said.

During one criminal trial observed by San Francisco's public defender's office, people of color made up roughly 50 percent of the initial pool of jurors. After jurors were excused for financial hardship, the composition of the jury pool became 39 percent people of color and 61 percent white people.

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"We're always promised a jury of our peers," Ting, who represents San Francisco, told me. "Most folks in criminal court, a lot of them are middle to low income. They really come from very modest means. But that's not who serves on juries."

The city began its program in March 2022, offering $100 to anyone who made less than 80 percent of the local median income — that is, less than $74,600 for a single person and $106,550 for a household of four — or was unemployed, self-employed or employed by a company that didn't compensate for jury service.

In the first year of the program, 495 people participated, 60 percent of whom were people of color, said Anne Stuhldreher, the director of San Francisco's Financial Justice Project, which oversees the program. Participants' average annual income was $38,000, and the vast majority of them said they could not have served without the extra money.

"We're under no illusions that this solves every problem in our criminal justice system, but hopefully this can make it just a little more fair for people," she told me. "It does result in more economically, more racially diverse juries, and I think they're better positioned to administer justice."

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The legislation, which Ting's office says would cost roughly $5.5 million per year, would expand the program to include four additional counties that, with San Francisco, make up more than a third of the state's population. As with the pilot program, jurors would be eligible if their income is 80 percent of the median income for their county. No groups publicly oppose the bill.

The public defender in Alameda County, Brendon Woods, told The San Francisco Standard that he supported the bill, and he recounted a recent case in which a Black client faced a jury with no Black people on it. He said it reminded him of when only white men were allowed to serve on juries.

"Oakland does not have a shortage of Black people," he told the news outlet. "But we do have a shortage of Black people when it comes to those serving as jurors."

Enjoy all of The New York Times in one subscription — the original reporting and analysis, plus puzzles from Games, recipes from Cooking, product reviews from Wirecutter and sports journalism from The Athletic. Experience it all with a New York Times All Access subscription.

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A surfer off Cardiff State Beach in Encinitas this month.Mike Blake/Reuters

The rest of the news

SOUTHERN CALIFORNIA
NORTHERN CALIFORNIA
  • Beach erosion: Rising sea levels and big waves during this year's epic winter storms have eroded the southern end of Ocean Beach in San Francisco. Experts worry that the return of El Niño next winter could make conditions even worse, The San Francisco Chronicle reports.
Monte Bello Open Space Preserve in Los Altos Hills.Peter DaSilva for The New York Times

Where we're traveling

Today's tip comes from Judith Keenan, who lives in San Francisco. Judith recommends Monte Bello Open Space Preserve near Palo Alto, in the Santa Cruz Mountains:

"I was lucky beyond measure to live on the 800 acres that make up Monte Bello Open Space in the early 1970s. We called it the Land. It was one of the first acquisitions of the Peninsula Open Space District. I live in San Francisco now and still hike there a few times a year whenever I need to go back to one of my two spiritual homes. From Monte Bello Ridge you can see both San Francisco Bay and the Pacific Ocean, and on a certain night of the year watch the moon rise over the East Bay and the sun set into the ocean. There is also a wonderful trail down Stevens Creek that loops back up the dirt road to Page Mill Road. It's a magic and beautiful space (and free, of course)."

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

Scooter, a Chinese Crested, won the World's Ugliest Dog Contest at the Sonoma-Marin Fair in Petaluma on Friday.John G Mabanglo/EPA, via Shutterstock

And before you go, some good news

Every summer at the Sonoma-Marin Fair, in Petaluma, pups big and small compete for the title of World's Ugliest Dog. It's a contest that promotes the adoption of dogs and celebrates imperfection.

This year's winner was Scooter, a 7-year-old Chinese Crested who resembles a glossy black jelly bean. His hind legs are reversed, and his tongue sticks out of his mouth.

"In the cutest way possible, he kind of reminds me of a hairy hippopotamus," Catherine Liang, a judge in the competition, said.

Thanks for reading. I'll be back tomorrow. — Soumya

Briana Scalia, Maia Coleman and Shivani Gonzalez contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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