A VC Perspective on Product Management
Download as PPTX, PDF4 likes1,864 views
The document discusses the role of product managers from a venture capital perspective. It notes that while many European VCs do not fully understand or value the role of PMs, the role is important especially at early startup stages. As startups grow and raise later funding rounds, the interaction between VCs and PMs becomes more limited. VCs primarily look for PMs who can articulate a strong product vision, hire and develop the right team to grow the organization, and execute effectively on the product roadmap. The document provides advice for PMs on managing feedback and input from VCs who often have market but not direct product expertise.
A VC Perspective on Product Management
- 1. The VC Perspective of Product ManagementJuly 2011Prepared by Rob [email protected]
- 2. BackgroundRob Kniaz(Age 32)Hoxton Ventures (UK), PartnerFidelity Ventures (UK)VCGoogle(Mountain View and London)Early AdSense product manager in Mountain View; AdSense front-end PM 2004-2006 Launched new Google AdWords Referralproducts, delivering $100M+/year incremental revenuePM leader for $85m acquisition of FeedburnerIntel(Santa Clara, Portland, and Latin America)Regional market development manager, Northern Cone, Latin America RegionUniversity of Maryland - BS Computer ScienceStanford University - Management ScienceProduct Management & Marketing &Edu
- 3. Product Management at Google (and Silicon Valley to an extent)Very flat organization with frequent level-skipping for decision makingNot uncommon for junior PMs to present to foundersPMs are the General Manager of their products.No B.S. PMs in the end own their product’s success and are expected to own failure and learn & iterate on it.Engineers report to engineering but milestones are owned by PM.PMs responsible for sorting priorities then working with engineering to deliver.
- 4. VC Perspective of Product Management - OverviewSadly, many European VCs don’t value/understand PM.Particularly in Europe, it’s not common to see VCs with product background. Less the case in the Valley.VC/product management relationship changes over time.With early stage startups, the CEO is in fact the product manager and shapes product direction. As startups evolve to orgs with different requirements, PMs need to adapt to suit different investor needs.Startup PMs need to know what to expect from their VCs (and vice versa).The VC/CEO relationship involves PMs who need to know how to interface with VCs and manage expectations and deliverables.
- 5. Stages of venture investment and VC expectationSeed/angel investment$100k-$1M investmentCEO as first product managerHeavy VC involvement in product decisions typicalSeries A investment$1M-$10M investmentFirst PMs come on board, usually reporting to CEOVC/PM interaction more hands-on.Series B/C/growth-equity investment$10M+ investmentPM organization builtVC/PM interaction limited, usually through CEO
- 6. What VCs look for from Product Managers1) Product Vision.It’s exceptionally important that PMs have a strong vision of the product.Do they use the product as an actual end user would?Can they build a roadmap from this product vision?
- 7. What VCs look for from Product Managers2) Team Development & Hiring.Can this PM or CEO hire the right people in the organization to grow it to the next stage?Do they have the right skillset to lead or otherwise find their right role in the org and share the responsibility?Are they able to develop leaders underneath them?
- 8. What VCs look for from Product Managers3) ExecutionCan this PM define, then execute on the product vision and roadmap?This is one of the most key and hard skills to gauge but crucial especially in early stage startups.
- 9. What PMs should expect from VCsMost VCs aren’t and haven’t been product managersManage feedback carefully and prioritize. Watch out for quixotic leads.“I’ll add it to the roadmap” is a safe way of deflecting.Work with CEO if possible to buffer direct feedback.Know how to separate rationale from ideasOften VCs are experts on markets but not products directly. Try and understand the underlying concept they may be pushing under the guise of a single idea.
- 10. Questions?
Editor's Notes
- #3: o Product vision – identifying the customer base and passionately sharing their viewso Does the PM use the product like an actual user? Google AdWords anecdote about approval bin.o Ability to articulate roadmap and hit agreed upon milestones. This is absolutely killer and can mean life or death in a startup.o Balance between keeping the trains running and iterative or revolutionary product changes. A well managed product roadmap should be part both.· What PMs should expect from VCso Most VCs are not product managers at all – manage feedback carefully. Don’t be set off on quixotic whims.o Validate ideas versus rationale of feedback you get from VCs. o VCs are usually well studied on markets but not necessarily products; know how to separate that.o At later stage startups with a product org, work with the CEO to buffer VC feedback.