When it comes to B2B2C business models — which combine both business to business (B2B) and business to consumer (B2C) — who really “owns” the customer? That question might not matter as much in more symbiotic, mutually beneficial marketplaces and other platform contexts, but can be a problem in other contexts or if not done right. For example, if it gives entrepreneurs the illusion that they don’t have to work to acquire customers, invest in direct sales, or provides a (false) sense of optionality for a second product/ business that “will work later someday”.
General partners Alex Rampell (who among other things co-founded TrialPay and Affirm) and Martin Casado (who was formerly CTO and cofounder of Nicira, and then SVP and GM of VMWare’s networking and security business unit) draw on their backgrounds on both the consumer and enterprise side of B2B2C to share lessons learned in this episode of the 16z Podcast (in conversation with Sonal Chokshi). In enterprise settings, expanding the sale is one of the biggest drivers of growth, and there are broader ecosystem partners and considerations at play. But more broadly, we discuss how one could think about “channel” — a.k.a. the route to market for distributing product to customers — as well as if, when, and how to build more than one product in a startup.
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Sonal Chokshi is Editor in Chief of Crypto at Andreessen Horowitz.
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Martin Casado is a general partner at Andreessen Horowitz, where he leads the firm's $1.25 billion infrastructure practice.
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Alex Rampell is a General Partner at Andreessen Horowitz, where he leads the firm’s $1 billion Apps practice.
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More About This Podcast
The a16z Podcast discusses the most important ideas within technology with the people building it. Each episode aims to put listeners ahead of the curve, covering topics like AI, energy, genomics, space, and more.