The Exchanges

Q Talk to me about that go-to-market. I'm, I'm super intrigued as a B to B man, and not spending a huge amount of time in the consumer world. How do the two models fundamentally differ when you, when you have them running side by side?

A The, the biggest difference I would say is our B to C model is Marketing driven. So it's customer acquisition, paid advertising, both online and offline, driving people to naturebox.com and getting them to sign up at naturebox.com. In our B to B model, it's driven by inside sales, and it looks very similar to a SaaS company where we have a lead generation team and workflow. They pass a qualified lead onto an account executive. That account executive works the customer through a closed process and then hands it off So I think the process is fundamentally very different because on the B to C side of the business, we can scale with ad dollars. So the more money we put into the engine, the faster we can scale and more customers we can sign up. On the B to B side, the way to scale that business is very different. It requires more top of the funnel work. It requires more people. And from an account management perspective, it's Much more because these customers are larger, there's a lot more hand-holding happening to make sure that these customers are well-serviced and happy and retained for a long period of time.

AI assessment note: “biggest difference I would say is our B to C model is Marketing driven”

Q So how did that transition then into, into NatureBox and the realization that you had to leave the world of VC to, to fulfill this vision of, of providing snacks to so many?

A Yeah. So for me, my co-founder and I got really passionate about this idea. And in fact, we started testing the idea of NatureBox on nights and weekends. The first thing that we did is we put a landing page up that was Naturebox.com , it showed a picture of what the box looked like, and then you could click a buy now button. And if you clicked that buy now button, you actually got sent to PayPal, where you could PayPal us money for your nature box. Uh, and, and believe it or not, over the course of a weekend, over a hundred people actually went through this flow and PayPal'd us 20 dollars for their first nature box. And these were not a hundred people that we knew. These were not friends and family. These were folks that clicked on a Facebook ad and, and signed up for nature box. Now, the only problem at that point is we did not have a nature box, right? It was, it was completely ether. You know, it was just a photo that we did in Photoshop and we didn't even know how to go procure and create product. So it really started as a nights and weekends type of project. And then, you know, after we started seeing that there was real demand for this, We decided to kind of take a step back from our day jobs and, and really build a business around, uh, around this idea.

AI assessment note: “we decided to kind of take a step back from our day jobs”

Q So how did that transition then into, into NatureBox and the realization that you had to leave the world of VC to, to fulfill this vision of, of providing snacks to so many?

A Yeah. So for me, my co-founder and I got really passionate about this idea. And in fact, we started testing the idea of NatureBox on nights and weekends. The first thing that we did is we put a landing page up that was Naturebox.com , it showed a picture of what the box looked like, and then you could click a buy now button. And if you clicked that buy now button, you actually got sent to PayPal, where you could PayPal us money for your nature box. Uh, and, and believe it or not, over the course of a weekend, over a hundred people actually went through this flow and PayPal'd us 20 dollars for their first nature box. And these were not a hundred people that we knew. These were not friends and family. These were folks that clicked on a Facebook ad and, and signed up for nature box. Now, the only problem at that point is we did not have a nature box, right? It was, it was completely ether. You know, it was just a photo that we did in Photoshop and we didn't even know how to go procure and create product. So it really started as a nights and weekends type of project. And then, you know, after we started seeing that there was real demand for this, We decided to kind of take a step back from our day jobs and, and really build a business around, uh, around this idea.

AI assessment note: “after we started seeing that there was real demand for this, We decided”

Q Talk to me about that go-to-market. I'm, I'm super intrigued as a B to B man, and not spending a huge amount of time in the consumer world. How do the two models fundamentally differ when you, when you have them running side by side?

A The, the biggest difference I would say is our B to C model is Marketing driven. So it's customer acquisition, paid advertising, both online and offline, driving people to naturebox.com and getting them to sign up at naturebox.com. In our B to B model, it's driven by inside sales, and it looks very similar to a SaaS company where we have a lead generation team and workflow. They pass a qualified lead onto an account executive. That account executive works the customer through a closed process and then hands it off So I think the process is fundamentally very different because on the B to C side of the business, we can scale with ad dollars. So the more money we put into the engine, the faster we can scale and more customers we can sign up. On the B to B side, the way to scale that business is very different. It requires more top of the funnel work. It requires more people. And from an account management perspective, it's Much more because these customers are larger, there's a lot more hand-holding happening to make sure that these customers are well-serviced and happy and retained for a long period of time.

AI assessment note: “our B to C model is Marketing driven... In our B to B model, it's driven by inside sales”

Q I, I do have to ask that. It's too tempting for me now, uh, having moved into the world of VC myself. I'm intrigued What were your big tips nutrition wise that helped you shed so many pounds and stay so fit?

A For me, I had such bad eating habits that it was really, it came down to just a few changes. So I'm a big believer that you should not drink your calories. I think a lot of Americans through soda, juice, alcohol, et cetera, they drink a lot of calories. And, and so I'm a big believer that if you're trying to lose weight, drink water and a lot of water. And nothing else. You know, I think that was one of the big changes that I made. And then in addition to that, it's all the things that you would imagine, right? So, you know, cut down on anything with sugar. So desserts, candy, things like that. Eat at home and, and sort of prepared food, you know, much more than, you know, fast food or eating out at a restaurant. Um, so I, I think a lot of the, dare I call them tricks to sort of weight loss are actually sort of the things that everyone knows. But the hard part is actually doing it.

AI assessment note: “you should not drink your calories”

Q agree, but I do, I do want to discuss the running of your startup though now, being NatureBox, and you operate both now, it was interesting when I, when I was obviously studying NatureBox, operate both a B to C and B to B model. I'm intrigued, why, why both models, and does this not go against potentially a traditional startup ethos of, uh, focus is the most important thing?

A I may have learned the, the focus is the most important thing less than the, the hard way. Um, uh, no, but I think in our case, the B to C and our B to B business, uh, makes a lot of sense. And the reason for that is that we are, we really think of what we're building as a brand and we want to be able to sell to consumers and consumers wherever they're buying or eating snack food. Um, and so for us, that means that we sell online and that makes a ton of sense. And that's a core capability of the company that we've built. But in addition to that, there are a lot of consumers, very many consumers, Consumers in the Bay Area, uh, in particular that are eating snacks in their office, um, either because they're purchasing those products through a micro market in, in their office building, or their company is subsidizing those snacks. So that's a great opportunity for us to build brand awareness. And we see it as sort of just an extension of the sort of vision and the mission that we have, which is to use data and technology to build healthy, better for you snack brand. Um, so, so we see a lot of synergy in being both B to C and B to B. Um, I will say it has its challenges, and I think some of those challenges are that the go-to-market model is very different, right?

AI assessment note: “we see a lot of synergy in being both B to C and B to B”

Q How central do you find, uh, unit economics to you today running, uh, nature box having been a VC and now with the massive transition that we, we will hear about For VCs in terms of prioritizing unit economics, is it a front and center for you in driving forward?

A Having been a VC, I think it was always front and center for us, even from day one, and I think that there's good and bad of that. You know, I do believe that, you know, unit economics are incredibly important. I also believe, though, that there are periods of time and periods of your growth curve where you can sustain either, you know, poor or negative unit economics for other reasons. Right. And, and, and that could be market share, you know, simply just simply growth, or that you may need to get to a certain level of scale before the cost structure starts to evolve and where you can make those margins, you know, you sustainable. Um, so, so I am a big believer that unit economics is massively important. Having been a VC that was front and center, but do appreciate the fact that not every business can be run the same way. And for us, it, it, It continues to make a lot of sense to, to focus on unit economics and, and make sure that they're really positive and sustainable.

AI assessment note: “for us, it, it, It continues to make a lot of sense to, to focus on unit economics”

Q Absolutely, and kind of, in your time in VC, you saw the downturn, uh, of, of the industry as a whole. I'm really intrigued now, you mentioned operating there, obviously, I'm really intrigued to see how that, plus What perspective has influenced your management style today and running with NatureBox?

A Yeah. So for me, I think the biggest impact having come out of venture capital and starting a company was really around just selling, right? I think often as a VC, you're, you're trying to get into deals, you're trying to win deals. And so you develop a good skill set around selling and salesmanship. And obviously that's a skill set that's Very transferable to entrepreneurship and, you know, in, in the process of starting nature box, it's been everything from raising capital where, you know, obviously I, I sort of know a little bit more about what the investor is looking for and, and how to answer the questions that they might be asking as well as hiring folks and, and running a recruiting process as well as being in front of the customer, you know, and being sort of comfortable with that, that sales aspect of running a startup.

AI assessment note: “biggest impact having come out of venture capital... was really around just selling”

Q And then talk to me, what's the next five years for you and for NatureBox? What's in the road ahead?

A Well, for us, we just had a really exciting year where we launched products at Target in April of last year, and then in December, we launched on Delta Airlines. So we are actually on every Delta flight greater than 600 miles in length, and it's incredibly exciting. Millions of people are going to see our brand and actually try our products. Products on a Delta flight this year. So it's, it's super exciting for us and, and I say the big sort of next call it three years is about taking our brand offline. We've built great awareness online. We've got a great online business. We think the overall business can be so much bigger given where people buy food today.

AI assessment note: “the big sort of next call it three years is about taking our brand offline.”

Q No, I do agree. I do agree. But I do want to talk there. I'm intrigued. You said about building empathy. Now as a founder, and then having also been a VC previously, how do you think non-operational VCs can build empathy?

A You know, I think it's about just understanding what the entrepreneur is going through, understanding, and most importantly, how you can be helpful. I think that at the end of the day, the entrepreneur understands that it's on their shoulders, but if you can, you know, help her be more successful, help her recruit a great engineer, management team member, whatever it might be, um, I think that's a very strong form of empathy that, you know, the entrepreneur interprets as Hey, this person is in the trenches with me, right? They are, they're not just sitting at the board level, sort of waiting for updates or, you know, kind of pontificating. They're actually in the trenches helping me build this company and, and a true thought partner. And I don't think that that type of help or support requires you to have been an operator. You know, I have several investors that have not been operators and I think when they're engaged and helpful and, you know, sort of In the thick of it, alongside me and the rest of my management team, I think we sort of all feel like, hey, this is someone that, that gets it. They understand what it's like to build a business, and ultimately, that, in my opinion, the value of someone that, that had been an operator previously.

AI assessment note: “I don't think that that type of help or support requires you to have been an operator.”

Q I, I do have to ask that. It's too tempting for me now, uh, having moved into the world of VC myself. I'm intrigued What were your big tips nutrition wise that helped you shed so many pounds and stay so fit?

A For me, I had such bad eating habits that it was really, it came down to just a few changes. So I'm a big believer that you should not drink your calories. I think a lot of Americans through soda, juice, alcohol, et cetera, they drink a lot of calories. And, and so I'm a big believer that if you're trying to lose weight, drink water and a lot of water. And nothing else. You know, I think that was one of the big changes that I made. And then in addition to that, it's all the things that you would imagine, right? So, you know, cut down on anything with sugar. So desserts, candy, things like that. Eat at home and, and sort of prepared food, you know, much more than, you know, fast food or eating out at a restaurant. Um, so I, I think a lot of the, dare I call them tricks to sort of weight loss are actually sort of the things that everyone knows. But the hard part is actually doing it.

AI assessment note: “I'm a big believer that you should not drink your calories.”

Q No, I do agree. I do agree. But I do want to talk there. I'm intrigued. You said about building empathy. Now as a founder, and then having also been a VC previously, how do you think non-operational VCs can build empathy?

A You know, I think it's about just understanding what the entrepreneur is going through, understanding, and most importantly, how you can be helpful. I think that at the end of the day, the entrepreneur understands that it's on their shoulders, but if you can, you know, help her be more successful, help her recruit a great engineer, management team member, whatever it might be, um, I think that's a very strong form of empathy that, you know, the entrepreneur interprets as Hey, this person is in the trenches with me, right? They are, they're not just sitting at the board level, sort of waiting for updates or, you know, kind of pontificating. They're actually in the trenches helping me build this company and, and a true thought partner. And I don't think that that type of help or support requires you to have been an operator. You know, I have several investors that have not been operators and I think when they're engaged and helpful and, you know, sort of In the thick of it, alongside me and the rest of my management team, I think we sort of all feel like, hey, this is someone that, that gets it. They understand what it's like to build a business, and ultimately, that, in my opinion, the value of someone that, that had been an operator previously.

AI assessment note: “understanding what the entrepreneur is going through, understanding, and most importantly, how you can be helpful”

Q agree, but I do, I do want to discuss the running of your startup though now, being NatureBox, and you operate both now, it was interesting when I, when I was obviously studying NatureBox, operate both a B to C and B to B model. I'm intrigued, why, why both models, and does this not go against potentially a traditional startup ethos of, uh, focus is the most important thing?

A I may have learned the, the focus is the most important thing less than the, the hard way. Um, uh, no, but I think in our case, the B to C and our B to B business, uh, makes a lot of sense. And the reason for that is that we are, we really think of what we're building as a brand and we want to be able to sell to consumers and consumers wherever they're buying or eating snack food. Um, and so for us, that means that we sell online and that makes a ton of sense. And that's a core capability of the company that we've built. But in addition to that, there are a lot of consumers, very many consumers, Consumers in the Bay Area, uh, in particular that are eating snacks in their office, um, either because they're purchasing those products through a micro market in, in their office building, or their company is subsidizing those snacks. So that's a great opportunity for us to build brand awareness. And we see it as sort of just an extension of the sort of vision and the mission that we have, which is to use data and technology to build healthy, better for you snack brand. Um, so, so we see a lot of synergy in being both B to C and B to B. Um, I will say it has its challenges, and I think some of those challenges are that the go-to-market model is very different, right?

AI assessment note: “we see a lot of synergy in being both B to C and B to B.”

Q But before we step back into the kind of wider landscape, I do want to ask about the fundraising and having had that VC experience, as we said, did it alter how you approached the fundraising, how much you raised, uh, the kind of cadence of your rounds? How did it affect, uh, how you went into the fundraising?

A Well, for us, I, I think we definitely had a bit of a leg up in terms of, At a minimum, knowing the types of firms and people to go and approach, but I think in addition to that, I had a good understanding of the types of questions they might ask, a good understanding of what else is happening in the landscape, and I think as you know, you know, often there are companies in similar spaces or maybe even in the same space that are, could be doing great or not so great, and that could impact your ability to fundraise, right? And so, It's helpful to have a broader view on the landscape and, and what's happening, not just within the four walls of your company, within other startups that are playing in similar spaces or with a similar business model. Um, so I think from that standpoint, we were able to accelerate a lot of those conversations by knowing who to go to, what they would ask, sort of how they think about the business. But it's always been, I I'd say fundraising is probably one of the hardest things of being an Because it's one of the things that you really don't control. You influence fundraising quite a bit, but you don't control sort of the, the other side of the table, right? And I think for many entrepreneurs, that can be kind of a, a difficult experience to process or a difficult notion to, to sort of understand.

AI assessment note: “we definitely had a bit of a leg up in terms of, At a minimum, knowing the types of firms”

Q Absolutely, and kind of, in your time in VC, you saw the downturn, uh, of, of the industry as a whole. I'm really intrigued now, you mentioned operating there, obviously, I'm really intrigued to see how that, plus What perspective has influenced your management style today and running with NatureBox?

A Yeah. So for me, I think the biggest impact having come out of venture capital and starting a company was really around just selling, right? I think often as a VC, you're, you're trying to get into deals, you're trying to win deals. And so you develop a good skill set around selling and salesmanship. And obviously that's a skill set that's Very transferable to entrepreneurship and, you know, in, in the process of starting nature box, it's been everything from raising capital where, you know, obviously I, I sort of know a little bit more about what the investor is looking for and, and how to answer the questions that they might be asking as well as hiring folks and, and running a recruiting process as well as being in front of the customer, you know, and being sort of comfortable with that, that sales aspect of running a startup.

AI assessment note: “the biggest impact having come out of venture capital... was really around just selling”