In the world of startups and venture capital, getting noticed can be a daunting task. With so many innovative ideas competing for attention, it’s not uncommon for founders to try unconventional methods to stand out from the crowd. Recently, I had the opportunity to speak with Chip Herndon, CEO and co-founder at Chatterbox, about his unorthodox marketing campaign that has gained significant traction.
The Venmo-Fueled Outreach Campaign
Herndon revealed that he had been reaching out to over 100 VCs, angels, celebrities, athletes, and influencers through Venmo. The idea was to send a $0.02 transfer with the message "My 2 cents on why you should invest in my company." This unusual approach has yielded surprising results, with Herndon claiming that he received multiple responses, two of which were high-quality messages from a partner at a venture firm and an angel investor.
The Platform Behind the Unorthodox Marketing Campaign
Chatterbox is a platform that aims to connect young people in their local communities through group chats. The company describes itself as "Nextdoor for Gen Z." Herndon emphasizes that Chatterbox is targeting college campuses, with three core features: user-generated chats, emergency chats, and permanent chats.
- User-Generated Chats: Users can create chats for interesting events they encounter.
- Emergency Chats: The platform will automatically generate chats for emergency situations.
- Permanent Chats: Users can participate in permanent conversations with others in their local community, such as dorm buildings or libraries.
The Idea Behind the Venmo Campaign
Herndon attributes his unorthodox marketing campaign to a desire to stand out in an intensely competitive landscape. He claims that he had to get "scrappy" and think outside the box to grab the attention of potential investors. The idea was born after brainstorming for four hours with nothing but pen and paper.
Why Venmo?
Herndon chose Venmo as the platform for his outreach campaign due to its search and profile picture features, which he believes enable him to "gain their attention in a way that doesn’t feel intrusive." However, not all investors agree on this point. Some view the approach as "a little creepy."
Reactions from Investors
I spoke with several investors who received the $0.02 transfers and asked for their reactions:
- One investor noted that it felt "a little creepy" to receive a random Venmo transfer with a pitch.
- An associate at another venture fund seemed impressed by the creativity, but also expressed concerns about receiving multiple $0.02 donations.
The Verdict: Is This the Next Big Way to Reach Out to Investors?
While Chatterbox’s unorthodox marketing campaign has gained attention, it remains to be seen whether this approach will become a standard practice in the startup world. Herndon’s willingness to think outside the box and try unconventional methods has clearly paid off, but the effectiveness of such tactics is still up for debate.
Conclusion
Chatterbox’s innovative approach to marketing highlights the need for startups to constantly adapt and innovate in order to stand out from the competition. As the startup landscape continues to evolve, it will be interesting to see how this unorthodox campaign inspires others to think creatively about reaching potential investors.
