This is a guest post by Chris Winterhoff, who is an expert in Growth. Currently Chris is a fractional Growth leader and growth advisor at Perceptycs.
Previously he headed Growth at Onto, a UK platform for all-inclusive electric car subscriptions. And was also Head of Marketing at Mashroom, which covers the UK housing industry.
Guest Author: Chris Winterhoff
Is this the end of consumer startups? Data suggests that B2B startups are gobbling up all available funding as consumer startups struggle in this tough economic environment.
Whilst it might feel like the end, there are glimmers of hope that 2024 will be different.
For those in the B2C/consumer space, consumers being more cautious and low venture funding have hit hard. But our brothers and sisters in the B2B space have seemingly performed perfectly well against this backdrop.
Venture investors are attracted to B2B startups because their business model usually attracts
👉 Less discretionary spending (i.e. business customers are usually less price sensitive),
👉 Less fickle customer bases,
👉 Unit economics profitability possibility from day 1 (whereas B2C often needs to reach a certain scale)
There are other reasons, but what it boils down to is that B2B seems less risky.
However, there are bright spots for B2C looking to 2024:
👉 Despite everything, consumer spending is still robust.
👉 Wage growth in the UK and US should continue to help support consumers.
👉 Interest rates are predicted to decrease this year as inflation subsides.
It’s still not all roses. Much can change and startups are wise to be cautious.
This is why de-risking the Go To Market is important. Often one of the highest spending areas of startups, a more efficient Go To Market can both decrease CAC and increase LTV. A customer-insight-led creative and ads management strategy can deliver long-lasting results.
If this sounds interesting to you, reach out to me via DM or comment down below for a free 30min strategy call on building your customer-insight-led Go To Market approach.
