YouSaid · the spoken record

Geoffrey Moore

lines on the record: 99
first: 2024-01-25
most recent: 2024-01-25
sittings or episodes: 1
sources: podcast

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“LinkedIn. Yeah, I'm on LinkedIn. And I have a blog on LinkedIn. And if these topics are interesting to you, you'd probably be interested in the blog.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“But now how do you validate ethical action? And where does it come from? And so the last part was about, okay, how do you do that You really do need to do good. But it's not because you're obeying. And in this framework, it's not because you're obeying a divine creator. It's because we're mammals and mammals nurture their young and we were gifted with unconditional love when we were born because otherwise you and I could not be here right I mean a one year old cannot if somebody doesn't love the hell out of a one year old they're not going to be two right so so we know where we started so come on those values were built into us they didn't come they don't have to come from above they can come from below and therefore how can you integrate them into your life and that was sort of the book anyway”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it turns out to explain, beginning from the Big Bang to Lenny and Jeffrey talking on this podcast, there's a lot of steps you've got to go through, but there's a whole thing about complexity and how complexity emerges in layers. And the staircase is a series of layers. And the first two-thirds of the book takes 11 stairs to get you from physics to theory. And it's like, really? Yeah, yeah, from astrophysics. Yeah, from a cloud of atoms to us talking by crossing the chasm at 11 steps. We can get you there. So it's kind of fun. And it's assembling the last 25 years of my reading. I mean, this is fascinating stuff in all these different topics. And I was just trying to knit it together. No original research. I was just literally just trying to get the story together. But then the last third was, okay, that's a very reasonable narrative. It's, you know, maybe even more reasonable than religious narratives.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“The purpose of that book was twofold. One was, so I was looking around, and this is an American sort of experience between social media and the politicians or whatever, our ability to defend traditional values is becoming increasingly challenging. And historically you say, well, religion was sort of the place where you, the foundation for solidifying traditional values. In my lifetime, the counter-explanation of how we got here other than being created by the creator, this whole, the Big Bang and the Darwinian model, it's becoming increasingly credible. And I'm fascinated by it. So the question I had in the back of my mind is, how could you take that model and still support traditional ethics? So the first part was, well, what's the model?”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't even know what a billionaire would even do with her money. I mean, I don't even imagine the money. That's a thousand million dollars. It doesn't make any sense. But what does make sense, but what does make sense is to, I'm happy to get two, do I know what to do with 10 million? Yeah. Could I do with 20? Probably. Could I use 100? Probably not. But at some point, I want people to make yourself a great living. Make yourself a... But after that, have an impact. I mean, if you're gifted enough to be able to start a software company and do something original, you're a scarce resource. So don't waste it.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, I don't know if anybody's reading the paper recently, but the world's not exactly nailing it right now. There's a lot of stuff going on that we could do a lot better. And software-enabled technology is almost certainly at the core of any solution that scales to any world problem that matters. And so I think it's more important to be an entrepreneur now than maybe ever. And I wouldn't make becoming a billionaire my goal. I mean, frankly,”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, if you're doing B2B, this is the most reliable playbook. I mean, it's still into this playbook 30 years in. So it's obviously the playbook kind of worked.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“We're still living through the digital transformation 20 years in. And I don't think crossing the chasm is designed for that problem. So that's a different problem.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Venture kind of stepped back from the table too. But out of this consumer computing came out of nowhere. And for my generation, it was unimaginable. When the first time I heard about Google and they said, we're going to save every search argument, that's the dumbest thing I've ever heard in my life. They're not going to be able to afford it. But their model was we're rethinking this thing from the ground up. Jeffrey, you have no idea what we're doing. Boy, were they right. So the point was when that came in, then consumer computing and then the iPhone hits and then we have mobile apps. You have a world now where the B2C play can actually be the core of innovation. It used to be B2C was an afterthought. Now it's like, no, no, no, no, B2B might be the afterthought. And so it's a completely different, the whole digital transformation of the universe.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“I think what I realize over time increasingly was this is a model that's really optimized for B2B markets because it implies federated decision making around high risk buying decisions and so and I would say for the for the 20th century that was 95% of tech but what was so interesting about the change in the century because remember if I had the change in the century B2B tech went in the tank It was a tech bubble just because everybody was afraid of the year 2K problem, Y2K problem. So they did a whole bunch of buying up of software. And then there was like a year where they think, well, we ate more than we could at Thanksgiving dinner. We're not eating. We're interested in eating another burger here. So the market went in the tank. And so by that point, venture started saying, well, maybe we should be investing in biotech or maybe we should be doing clean tech.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“We all have different minds. We all have different contexts to make a product that would work, that would solve what I want and solve what you want and solve what the listener wants. The margin, no, we're going to have different expectations. And so there's always, and then of course there's competition and then there's funding and then there's technological shifts and just about the time it really works well. They say, no, we've got to put it. No, no, no. You put it on in the data center. We got to put it in the cloud. Oh, no, no, you got in the cloud. You got to put it in Kubernetes. Oh, no, no, no. You don't understand. It's edge AI. It's not. I mean, it just goes on and on and on. And so I think if you're going to play this game, you got to kind of be up for, yeah, there's going to be a new headache every week.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“There's too much money that wants to be put to work. By the way, there's so much software already out there that the notion that your software is going to be that disruptive is increasingly improbable because you're just like, you know, you're standing on the, you're not standing on the shoulders of giants. You're standing on the shoulders of people standing on the shoulders of people standing on the shoulders of people standing on the shoulders of giants. So he was making a bunch of those points, which I thought were pretty interesting. But his other point about this life ever become easy. No, life never becomes easy. The problems change, but software, I mean, the challenge with software is, well, there's a lot of challenges with it, but software that people use, the software that the application software,”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“So actually, Martin and I had a couple to say his biggest, by the way, his biggest point, I'll come back to your point in a second, but his biggest point is, Jeff, the venture community at least, and certainly Andreessen Horowitz, doesn't deal with the level of granularity of crossing the chasm anymore.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, and here's the thing the reason they build a sales team eventually is they need to get enterprise deals. And obviously you need a sales team to get enterprise deals. And one of the mistakes you could make is hiring an enterprise salesperson when you're trying to cross the chasm. Enterprise salespeople are not good chasm crossers because they're used to doing horizontal coverage model. This is like no domain expert narrow model. You want somebody that looks more like a sales engineer than a salesperson. You want somebody very diagnostic, very committed to the integrity of the problem solution framework. And so it's just different.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Plays really interestingly is in the land and expand phases of the market. If you can land with a hot product, but more importantly, product-led growth, which is really good at is expanding because it prompts the user to get more involved. And that's classically a Main Street play. But there's got to be no risk. Product-led growth works when basically the extended the next purchase has very low risk. And therefore, you're not really dealing with chas”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“How do I create that moment of criticality? What you would do is you'd say, first of all, need telemetry. So you need to figure out what people really doing with our product. And then you need to find a way to communicate with them to see if you can ferret out. Is there a compelling reason to buy thing in their environment? And so it'd be a different way of doing early market. You wouldn't have a market. You would not have a markee client, but to cross the chasm, you cannot cross the chasm with product and growth. You can't because it's like saying, well, yeah, I'm going to cure COVID by just putting vaccines out in public places. It's like, no, people need to learn more. No. So you'd have to do that. Where product-led growth...”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, if you're going to use a volume ops approach, like a glassian or like, you know, anything kind of grows up from the bottom up, you're playing a different game. So first of all, you're playing because you attract the end user before you attract the economic buyer. So you have some version of a freemium strategy. That's what you're going to do. And Yammer did this, right? And eventually got bought by Microsoft. So the way you play that game is, first of all, you probably do need some funding. Not necessarily. Maybe you can make, you know, maybe you can do this all on AWS and a credit card. But the game that is going to be...”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Wouldn't recognize it in a lineup. We're here, and by the way, if anybody comes into our quadrant, we're going to kick their ass. We are going to be beyond compare. Nobody is going to handle this problem with this kind of technology the way we will. And that's our claim to fame. That's what we're going to do. And that's our positioning.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the nice things about crossing the chasm is the positioning formula. It's really cool. So basically when you're thinking about positioning, you say, look, I'm going into this use case in this particular segment. Okay. So they have an incumbent vendor. The advantage of the incumbent vendor is they understand the business, but they don't have the new technology. Conversely, you have technology competitors who have as good technology, maybe even better technology than you have, but they're not committed to this domain expertise of this thing. So your positioning is we are the technology leaders who have specialized and committed to solve this problem. And by the way, we have huge respect for your incumbent vendor. We're not asking you to kick them out. They just can't solve this problem. We also have respect for our peers, but frankly, they wouldn't know your problem if”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and obviously it's an entrepreneur. You have a compelling reason to sell. But the thing that they tend to do is in trying to cross the chasm if they're not using this approach. They think, well, I haven't made my product attractive enough. And so then they say, well, I'm going to make a sexier demo or I'm going to change my deck. I'm going to write a new, you know, the sales guy comes back, says I had a great presentation. This is the deck that we ought to be using. And that's all about compelling ways to sell, not compelling reasons to buy. The pragmatist, by the way, and by the way, the pragmatists will take the meaning. One of the problems with the chasm is they don't say no. They just never say yes. And they actually encourage you. You know, you should come back and dim with this to our, this is really interesting. Yeah, it is really interesting.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, and they have to be the, I think you need to talk to the economic buyer as opposed to the end user. Because the end user will be saying, oh, yeah, you're right. Oh, it's just terrible and we're oppressed. But if their boss doesn't want to sponsor it, it doesn't work.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“The Barque customer is probably not in a beachhead market. The Marquis customer is a famous company that you have the visionary sponsor. That's the thing because that's the company that the business press wanted to write about or the tech press wanted to write about. People want, oh, you were the guys who, you know, you're like Hans Solo. You did the whatever that run was in 15 parsecs. I can't even remember what it was. But that put your claim to fame, right? It's your claim to fame. But the crossing the chasm one is, oh, and by the way, the press is not interested in the crossing chasm, but the local, if there was a local press, they'd be all over it, right?”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Usually that's why I said maybe I should have added that to how do you know you're ready to cross the chasm you should at least have a hunch. You know, you should at least, you know, we've done this work and I think this is the one. Now you still have to go validate it and make it happen. But basically the way you would validate it is rather than try to go to a research or do something that won't work. You say, well, we're going to run a marketing campaign, a modest one I'm going to see if I can't get two more of the same use case. And I'm willing to bet the next three months of my company by saying in this three months all we're going to do is try to get two more deals that have this pattern. And that would be kind of the way you might go after it.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“The key to this whole crossing the chasm playbook is start with the world. Don't start with, well, we're trying to, the question we're trying to answer is, where is a small pool of trap value that we can become our pool? So that's why we have geography, profession, use case. We're just trying to big enough to matter, but small enough to lead is a one. And then once you find that pool, the question you have to say is, Who controls access to sponsor my deal in order for me to release that trap value for that company? That's your target customer. And you may not know them. Typically, my experience is you probably have worked with at least one company in the industry at some point along the line. It's kind of odd if you just had never heard of the industry and you picked that one.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, and so, in fact, it might even increase risk because this vendor might say, well, yeah, I'll give you a better price, but now I'm not going to give you the extra support or I'm going to have a change of scope. You know, we'll say, yes, yeah, but now that wasn't in the contract, so you have to add more. And all of that is fair game on Main Street, but it's not for crossing the chasm.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Back to that issue about heart surgery $9.99 this Saturday only bring a coupon. I mean, the discounting model makes sense when something's commoditized or let's even do the freemium model. The freemium model makes sense if there is no risk in adopting the offer. But chasms are based on risk-bearing decisions. I mean, basically that's the problem that creates the chasm. I have to make a risk-bearing buying decision. And so discounting does not reduce risk.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Could do it myself with Jen. And I'm going to sell it to other people. I mean, you can imagine whole businesses that say, We write legal opinions and we always start with Gen AI. We don't ship Gen AI. There's a human in the loop, but we do, you know, we have, we're going to do amazing or more images maybe. We're going to design visual images with all the really cool stuff you could do. We're going to invite and invent a new agency, a new kind of agency. We're going to charge to, I don't know what it would be, but the point is Gen AI, I think, can be absorbed by the marketplace that multiple places.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Right now, is that particularly after the pandemic? You're a teacher, you used to have, when you were a teacher in say K through 12, K through eight, you have a class of 30 kids. And probably, you know, 10 to 15 of them are middle of the road and some number are actually significantly ahead. And some number are behind. And your job as a teacher is to kind of work with that. Well, after the pandemic, you might have five different grade levels in the same classroom, not three or six even. That's an impossible problem. But if you said, look, we can use Gen AI tutoring and we can tune it to each one of those six grade levels. Now that's a teacher co-pilot, but that's a really specialized idea. So you go, well, that's amazing. And then if you wanted to go to the other side, you say, you know, all these ad agencies say they do this really cool advertising.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Salesforce is probably close enough. They have a sales co pilot, they have a services co pilot, right? I'm sure the marketing co-pilot. So you're going. And we're going to use generative AI inline in our performance on a very widespread across our entire base. So all our salespeople are going to use this new tool. That would be, okay. And that makes sense because the new tool, first of all, Salesforce has their own large language module. So it's like it's not like you're going out to the open AI world and having all those issues. So you can do it. And there's a very high productivity return at a modest risk. I think at modest disruption. For the bowling alley, you'd say, I don't know if this is bowling alley or early market. I'll say it's bowling alley. So if you're Sal Khan and you have the Khan Academy and you're saying, look, we want to provide educational resources for the world for young people. The problem with education.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it's interesting about particularly right now. I mean, the thing that's caught everybody's imagination is generative AI, right? And so we should be thinking about things like open AI with Microsoft and Copilot and those kinds of things. Well, maybe not. It depends on what. So from a customer's point of view, there's AI in the early market. There's AI in the Bowling Alley. There's AI in the Chasm. There's AI in the tornado. And there's AI on Main Street. So, I mean, I would argue if you go to Microsoft Copilot, you're on Main Street. You're not taking any risk. You're experimenting with a new thing. It's kind of cool. Makes you more productive. God bless. It's kind of like just an add-on to teams or to your whole Office 365 suite stuff that's in the tornado right now. I don't know, I'm trying to think about what is the use case for JetAI. I'm not sure there is one in the tornado, but the closest I would say is...”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“You way off your solution roadmap. So each one of these things, the market dynamics call for a very clear response. It's not hard to see the response, but people struggle with is I have been successful with this playbook. The market has moved to the next phase, but I'm really good at the old playbook, so I want to stay with the playbook I'm good at, and so that's when they get in trouble.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, so let's start with classic sales 101 from the 90s qualify the customer on budget before you make a sales call. That absolutely is critical on Main Street. It's dumb on, I mean, it's critical on the tornado. It's dumb on Main Street because obviously a budget, they've got budgets that you have your name on it if you can go get it. But it's a big mistake in the early market or in the bowling alley because they don't have budget. And so you're not going to get it. And the way you win in the early market is with a project model. And the way you win and the bowling is with a solution model. And the problem is if you bring a project model to the Boeing Alley, the problem is you won't scale because it won't be repeatable. The ecosystem won't form around you. If you bring a solution model, the early market, it's like you're overinvesting in one thing the visionary is saying, well, yeah, but I have so many other things I want to do. And so they're going to want to take.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“The way I would just say the last two is think of tornado as kind of the land and mainstream as the expand. I mean, that's not a bad way to think about the two as well. Yeah, you got it. You got it.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“And then at some point, if you're not number one, then you have to kind of do a defensive maneuver and retreat into a niche and say, okay, if I can't be a guerrilla, I at least need to be a chimp. And a chimp is like a local gorilla. I'm not the gorilla, but I'm not Cisco. I'm juniper. But for telcos, juniper was the Cisco of telcos at that time. So I don't know if you saw in the paper today, but at the other end of that life cycle, HPE has bought juniper.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Which is what creates the tornado. Because if you give a department of budget, they will spend it. And when they spend it, they're going to spend it with a vendor. And whoever vendor they select, they're probably going to stay with. So now the market share battle is now on. And whoever gets the most customers early on, the ecosystem starts to form around them. So in the 90s, we saw a lot of tornado guerrilla play Cisco, Intel, Oracle, you know, obviously Microsoft. I mean, these companies, they were all incredibly competitive companies. They were all tornado plays, which is the client server, the internet between client server and the internet just created this massive tornado effect. So in that game plan is very competitive sales to grab market share.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“In the bowling alley, you have to redirect budget, but that takes sales cycles. It takes time. And if it's a small market, this is why entrepreneurs can win these market segments. Because if you're a big established company, this is just a pain in the ass. I mean, it's too small a market, it's too much work, it's too hard, redirecting the way. I want my salespeople to go where the budget's already established. Well, when does budget get established? When a category goes horizontal and people go, well, yeah, we all want Wi-Fi. We all want mobile apps. We all want cloud computing. We all want whatever it is. And now what happens is, and by the way, the pragmatists heard is they went from, you're not doing that, are you? No, me neither. Okay, good. To you are, you are, you are. Oh, we're behind. We better do it. So these budgets come into the market kind of all at the same time.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“So, how do you know there's the bullying out of the tornado? Prior to the tornado, when your sales team calls on the customer, they do not have a budget for you. In the early market, there's no budget for anything. In the bowling of this budget, but it's budget for a solution that's not you. It's for the old way of trying to band-aid the problem. So we say in the early market, you have to create budget.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Off the table. And then the bowling alley stuff is, okay, I'm buying now I'm buying probably a journey from 10 million to $100 million, something like that. And I want to see, and I'm expecting a growth rate. Kick in. If you're playing the rule 40, we want to raise more money later on. You're going to have a different valuation than we had before. And then the tornado thing, by that point, now you say you're in that cat. You're in Gen AI. You have a large language module. Whoa. Okay, you're worth a lot more than we thought because now that categories in the tornado and that's a different game.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and as long as and you'd like to grow, and you might want to raise money. But the point is, if you do want to raise money, you get to raise money at a different valuation. So the way in which venture capitalists categorize you is they say, what risk is my money going to take off the table? So an angel investor says, well, my money is going to take off the table the risk of whether you can even create anything. I'm going to give you enough money to get into trouble. It's basically clear. And then the crossing the Kasm money says, I'm going to take company existence viability off the table. I don't know if you're going to grow. I don't know if you're going to become a venture return, but I'm going to take you going out of business.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“All you really care about is cash flow positive. I just want to be able to keep doing what I'm doing. So, you don't care about the actual gap accounting at all.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Out probably in the $10, $20 million, but it's a real company. It's a real company. And that's who you're trying to create when you cross the castle. And you know you've crossed the chasm when you say, I don't have to raise any more venture capital. Now, I may want to because I have ambitions to be globally dominant, but you get to raise it on your timeline, not on, oh my God, I'm running out of money. So the sooner you can get off whether I'm running on it, and particularly last year was fatal to a huge number of companies because that was not how they were thinking about raising funds. Well, there'll be another, there'll be another round and another round and another round. And they were not thinking about changing their valuation state. Not”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“You haven't changed the value state of the company, and we have to raise more money, we're going to raise it at the old valuation. And I and investor lose. Or even worse, we have a down round and I lose even more. Okay, so once you start thinking about that, so we then crossing the chasm. The crossing the chasm play is I need to change the state of my company from a cool possibility to what accountants call a going concern. So what is a going concern? A going concern is a company that two years from now you would expect still to be in existence. Why would you do that? Because they have a customer base that's loyal and they have an ecosystem of partners that bring them into new deals and they have established their CAC and their LTV and they've kind of figured out their operating model. And it's not the biggest company in the world. It's somewhere here now.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think you get to a point where you realize I can't scale my business doing what I've been doing. I mean, I just can't. And if you've taken venture capital, the thing you want to do is I want to be able, I don't want to have to raise another, well, so I understood how venture capital funding works for a second. This is important. Venture capitalist gives you money, and what they're buying from you with this money is, I want you to use this money to change the state of your company such that when we raise the next round, the next investor will value your company two to three times higher than we're valuing it today. So basically the purpose of this money is to change the value state of your company. If you do anything else with that money, you could have done brilliant things, created amazing demos, hired great people, but if at the end of the day,”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Or sometimes, I mean, no, you couldn't do this. I was going to say we record it, but they don't want to record it because they're going to say some things during the call that they won't be necessarily complimentary to all their colleagues. They don't want you to record”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Are your goal in that call is to get them to talk as much as possible and for you to take notes. And by the way, this is a place where you probably still want to remember to use a pen because you actually want them to see you writing down their words. Because that means, okay, he's listening. He's listening.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“The lead gen is hey, do you have any of these seven symptoms of fatal churn? And the people that respond to that ad are pre-qualified. And then the BDR, if you're at Salesforce, a BDR would call you and say, just confirming, you know, you have these problems. Oh, yeah, RBI. And your role at the company is, and are you responsible for doing this? Well, actually, no, it's Harriet, not Mary. Maybe we should talk to Harry. Yeah, probably should talk to Harry. So then you call Harry and you get the appointment with Harry because Harry's got the problem. And then the next thing is you do a diagnostic with them. So we understand, we're talking to your colleagues, here's the problem, here's what we think we're doing. But before we tell you about how great our solution is, let's make sure that we understand what your challenge is.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm going to really understand. And by the way, I've got to understand your turn, which is different maybe from somebody else's turn. So it's the problem domain. And then you build your go-to-market around.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, it was like, whoa. Okay. So really cool idea early market fun. For the Bowling Alley one, then the playbook is no. Where's the problem? And then you've got to take it down to in what geography, what industry, what profession, what use case. And that takes, that's not just obvious. I mean, you want to spend some time in doing that. And then what you want to really do is just maintain intellectual curiosity about the problem as opposed to jumping to the solution. So why is this a hard problem to do? What is going on? Where is the trap value? By the way, how expensive, what is the cost of not solving this problem? And often it's a risk exposure, or it could be just a gating item on your growth or potentially a churn problem. I mean, by the way, if you want to pick a compelling reason to buy, how about if you help SaaS companies deal with churn? Do you think they would care about that? I think they might. So the point being, and you're going to say, okay, I'm going to learn more about.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Forces are going to release. And the concept that we use in Venture, I call trapped value. And the idea is, where's the trapped value that this innovation would release? Because when you release trap value, the world will give you a portion of the gain, typically 10%. It's an easy number to do math with them. As I said, I'm an English major. So if you want a billion dollar company, you better find $10 billion with a trap value that your technology could.”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so in the early market, you know you're there because, first of all, the story is the technology. So it's specifically the disruptive technology. By the way, you could start a business in a non-disruptive thing, but then you don't need these playbooks. Then you're on Main Street. So the assumption is you've got something that nobody's ever done before or seen before. And so in that playbook, the first thing is just hear the responsibilities. And it's an adventure capitalist would say the same thing to you. Do you have a technology expert who's a wizard? Because we're not going to fund just any two guys and a PowerPoint tech, even though we like your dog. So that's number one. Number two, can you have proof of can you demo the technology? You have to be able to demo the thing. And then three, can you create a vision which says what?”
2024-01-25 · Lenny's Podcast · Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market · IDENTIFIED FROM THE TRANSCRIPT · source