Jan 2, 2019 · 31m · a16z
a16z Podcast | What Startups Should Know about Analyst Relations
Michael King · 10m spoken Stacey D'Amico · 7m spoken Anil Lakhani · 5m spoken Sharon Chang · 4m spoken Sonal Chokshi · 59s spoken
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of the a16z podcast, tech industry veterans explain how technology startups can strategically leverage analyst relations (AR) to build market credibility, influence enterprise buyers, and shape product strategy. The panel offers practical insights on engaging analysts, debunking industry myths, structuring internal AR teams, and measuring return on investment.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. The host holds 3.4% of the talking time here. How this is scored →
The host as informed peer 3.0 Guest teaching 4.8 Guest disagreement 1.5 The host pushing back 3.3
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 11:45 Anil rejects host's sales premise
Anil firmly rejects Sharon's assertion that sales teams control criteria, stating that under no situation on earth will a customer only get criteria from the startup.
Hardest push from the host ▶ 11:32 Sharon challenges criteria setting using Mark Cranny frameworkSharon cites the Mark Cranny sales methodology to directly challenge Anil's assertion that analysts establish buying criteria.
Biggest teaching moment ▶ 5:09 Sharon learns valuable analyst info stays offlineAnil and Michael explain that 90% of analyst value is delivered verbally over the phone rather than in written reports, which Sharon admits she did not realize and found mind-blowing.
The host holds their own ▶ 20:24 Sharon connects PMM strategy to analyst feedback loopsSharon articulates an insightful synthesis of product marketing strategy, connecting criteria setting to authentic analyst feedback and competitive intelligence gathering.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Definition and Historical Origins of Industry Analysts | 2 | 6 | 1 | 4 | Sharon pushes back on the relevance of analysts in the internet era when users can look up information on LinkedIn or online. Anil and Michael educate her on how procurement and phone-based inquiry calls work, leading Sharon to admit that learning the best info stays off paper was mind-blowing. | |
| Developer Buyers vs. Executive Decision Makers | 1 | 5 | 1 | 1 | The guests explain how developers have executive bosses and procurement departments who actively consult analyst reports even if developers do not. Sharon listens passively while the guests unpack buyer dynamics across market maturity curves. | |
| The Role of Analysts in Category Creation | 2 | 5 | 1 | 2 | Sharon asks whether analysts remain relevant when a startup is trying to create a brand new category. Anil and Michael explain that analysts prevent companies from making costly category mistakes and provide historical market perspective. | |
| Setting Buying Criteria and Providing Decision Support | 5 | 6 | 3 | 6 | Sharon invokes the Mark Cranny school of sales to argue that only the startup sales team should set buying criteria. Anil directly counters her premise, noting that no startup controls all information channels, while Michael and Stacey explain how showing weakness to analysts builds authenticity. | |
| Choosing Between Major and Boutique Analyst Firms | 1 | 4 | 1 | 1 | Sharon asks an open prompt about whether startups must use big firms like Gartner or boutique firms. The guests collaboratively break down coverage beats and deliverable customizability without host intervention. | |
| Organizational Placement of Analyst Relations | 6 | 3 | 1 | 2 | After asking where AR should sit organizational-wise, Sharon demonstrates strong domain knowledge by synthesizing product marketing strategy, linking analyst insights directly back to competitive intelligence and setting market criteria. | |
| Debunking the Pay-to-Play Myth | 3 | 4 | 2 | 4 | Sharon questions whether analyst involvement slows down the sales process by expanding the evaluation list. Michael and Stacey debunk the pay-to-play myth, explaining how Magic Quadrant dynamics and user requirements actually work. | |
| Measuring AR Value and Contract ROI | 4 | 5 | 2 | 6 | Sharon challenges the panel on why a startup should engage if they won't get top report placement and how to justify $50k-100k contracts to skeptical CEOs. The guests explain that single-deal influence easily covers contract costs and report snapshots differ from phone advice. |
Statements from this episode (20)
Lakhani: Tech Analysts Emerged to Decode IBM's Opaque Market Position
“Analysts as we know them today really came about because there was a point in time in history where IBM was a firm that moved the markets the largest and there was no information about what IBM was doing outside of IBM and financial analysts couldn't get to th…”
King: Industry Analysts Conduct 8 to 10 Hours of Client Calls Daily
“They're taking all of this information from eight to 10 hours of calls with clients every single day. And they're synthesizing it, and they're seeing patterns.”
Lakhani: The Most Valuable Analyst Insights Never Appear on Paper
“They're talking to analysts because one thing you will learn when dealing with analysts is the most useful and important stuff you can get out of an analyst comes over the phone or in person, never on paper.”
King: Software Developers Do Not Read Gartner Analyst Reports
“With developers, developers don't read Gartner reports.”
King: Analysts Consult Early Adopters Rather Than Advising Them
“Your early adopters probably aren't talking to analyst firms to get advice. In fact, your analyst firms are oftentimes talking to those early adopters to understand where the market's going.”
Lakhani: Analysts Identify Bad Positioning Rather Than Creating Category Names
“Now, an analyst might not help you figure out what the right thing is or what the right category name is, but they'll definitely tell you what the wrong things are.”
King: A Single Startup Operating Alone Does Not Constitute a Category
“There's another piece of it too, that is, if you're creating a category and you're the lone competitor in a category, then it's not really a category. It's not really a market. It's basically just one vendor doing something strange.”
Lakhani: Startup Sales Teams Never Solely Control Enterprise Buying Criteria
“So if you as a startup sales team intend to set the criteria, then you better control all the means by which the customer gets their criteria. And that's not just you. It's never just you. Under no situation on earth will it be only you.”
King: Sales Pitches Aligning With Analyst Views Are Far More Persuasive
“And if your criteria that you are helping set agrees 90% with the criteria they get from the analyst, it's a lot more valuable and we listen to a lot better.”
D'Amico: Involving Analysts in Product Roadmaps Builds Stronger Startup Relationships
“What the analysts actually really appreciate is when you acknowledge, yeah, you know, we're aware of that and we're working on that. And what advice would you have for us? Because they love being a part of building your company. They really do. I mean, they li…”
King: Major Analyst Firms Deliver Higher ROI in Well-Covered Markets
“If your market is well covered or markets are well covered by the analysts, then you're probably better off from an ROI perspective investing with the larger analyst firms.”
D'Amico: Custom Research and Data Require Hiring Boutique Analyst Firms
“Because there's the larger guys, they don't always do the custom work that you're looking for. So you may need to go to more boutique company to get that special report accomplished or that data that you're looking for.”
Lakhani: Startups Should Run Analyst Relations Out of Product, Not PR
“In the very early stages, at the beginning, it should be run out of product. Because what you're really informing people about and getting feedback on is the product and its positioning and its world, you know, where it stands in the market. And then if you ge…”
King: Analyst Opinions Reflect Market Sentiment, Not Individual Bias
“Whether you think the analyst is awesome or not so great, the analyst opinion about your product, the analyst opinion about your pricing, the analyst opinion about your marketing is a reflection of the market, not of that particular analyst bent or how they wo…”
D'Amico: Enterprise Analyst Relations Does Not Operate on Pay-to-Play
“I've never seen a play for pay motion.”
D'Amico: Top-Paying Clients of Analyst Firms Are Often the Most Dissatisfied
“And I will also add to that some of the people paying the companies the most amount of money are the most pissed off.”
D'Amico: Sales Reps Falsely Blame Analysts Half the Time They Lose Deals
“Or we lost this deal because the client said they talked to an analyst and they said to go a different direction, which half the time isn't actually accurate. I've talked to analysts after some of those calls and that wasn't what was stated. They're just looki…”
King: Analyst Firm Subscriptions Typically Cost $50,000 to $100,000
“Typically an analyst contract is going to be anywhere between 50 and a hundred K for a subscription to an analyst firm.”
D'Amico: Free Vendor Briefings Provide No Feedback Without Paid Subscriptions
“You can use the vendor briefing program where you can submit a request to speak to an analyst. The one thing to know is that under those types of engagements, it's a, it's an hour, be prepared. It's an introduction and it's also sharing information with the an…”
King: Startups Must Ask Analysts What They Tell Prospective Buyers
“The one downside I'd say to only using the briefing is you can't ask what I think is the most important question to ask an analyst, which is let's just say I'm a client and I'm asking you if I should buy my, your product or my competitor's product or What you …”