Inside the all-in-one platform empowering creators to become entrepreneurs: A conversation with Hotmart CEO João Pedro Resende

In this episode of Growth Journeys, TCV General Partner Neil Tolaney speaks with João Pedro (JP) Resende, CEO of Hotmart about:

  • The challenges and opportunities of bootstrapping a business in Brazil without any outside capital
  • How Hotmart is empowering today’s creators to pursue and monetize their passions
  • The value that comes with building and nurturing an engaged creator community

… and lots more.

Back in 2011, when Hotmart was created, the content available on the internet was mostly free: there was no paywall on news portals, no paid communities, and no podcast subscriptions. But JP and his cofounder understood that, at some point, things would change – and they did. Today, with the media decentralization allowed by technology and social media, everybody can create their own niche channel, build an audience, and monetize it.  

By the time Hotmart turned 10 years old in 2021, it had became one of the largest companies in the creator economy. They offer an all-in-one platform that includes a global payment system, members area, sales page builder, promoters and integration tools, plus reports and analytics. The company is a global player: it is based in Amsterdam and has employees in Brazil, Spain, Colombia, Mexico, the US, France, and the UK. They offer the whole ecosystem for content creators to turn their knowledge into digital products like online courses, ebooks, and podcasts. Hotmart has built and nurtured a community of creators, who live out their passions: more than 90% of them have never sold any digital product before joining Hotmart. Today, Hotmart has more than 35 million users, over 580 thousand registered products, and sales in more than 188 countries.

Tune in to hear the Hotmart story from CEO JP Resende.


Product, People, and Employee Engagement: How Zillow’s Path to Growth Eschewed the Traditional Marketing Playbook

Growth Hacks – Moving the Metric

Nowadays, growth minded leaders know that a strong corporate culture and engaged employees are a central part of any company’s growth playbook. Yet when Zillow first launched, placing people on the same level as product innovation was an audacious move. Still, Zillow took the time to invest in improving its employee engagement, knowing that engaged employees were the bedrock for a company’s long-term success.

On this episode of Growth Hacks, Kunal and Katja talk to TCV Venture Partner and former CMO, COO, and current Zillow board member, Amy Bohutinsky. We discuss Amy’s perspective on C-suite leadership and bucking the traditional marketing and operational playbooks in order to drive growth and create better company cohesion. As board member of various technology companies, Amy also walks us through what boards are discussing now more than ever.

Key Takeaways

  • Why Zillow focused on product over marketing to drive early growth. When Zillow launched in 2004, they’d seen many of their startup peers spend lots of money on brand marketing without a proven revenue model. Rather than tread the same path, Amy says the Zillow team “saw an opportunity to build a company in a really different way, which was to focus deeply on product. Product was absolutely the best marketing we could have.” By adopting a no budget marketing budget, the team was further incentivized to create products, like Zillow’s Zestimate, that customers would truly love using.
  • Strategies for successfully merging companies post-acquisition. As Zillow has grown, it’s acquired companies of all sizes, including its $2.5 billion acquisition of fellow real estate juggernaut Trulia. To navigate a smoother post-acquisition merger after she became COO, Amy took a page from her former CMO playbook when considering how to best scale Zillow’s employee base while retaining what was special about its culture. During the Trulia acquisition, the companies combined their individual sets of values to create a new shared set of driving core values. “That gave a nod to what was great about both, but also showed that we were bridging two companies together and two different cultures together and creating something new,” says Amy.
  • How shared values in a shared language build connective tissue between disparate teams. One of Amy’s goals during her time as Zillow’s COO was to drive better cohesion between sales, marketing, and product. Though each team had its own values in addition to Zillow’s shared corporate values, everyone across the company bought into what Zillow called its “product personas” — mental sketches of the people they built for. “They had names, they had photos, they had a whole life…And these are individual personas that everyone across every department at the company understands deeply,” says Amy.
  • The most important metrics all C-suite leaders should be paying attention to. When Amy shifted her role from CMO to COO, she viewed Zillow employees the same way she did end consumers; what did they have to say, what were their concerns, and what could Zillow do to make sure they retained the workforce that made them successful. Even now, Amy says all C-suite leaders should be paying attention to a key metric: employee engagement. “If you get that right, it’s a whole lot easier to meet all of the business-related metrics you need.”
  • What corporate boards are most concerned with currently. In addition to the board of Zillow, Amy sits on the boards of Modsy and Duolingo, and has sat on the boards of companies including Gap and HotelTonight. She says that in the last seven to ten years, the conversation on boards has shifted away from growth at all costs to an emphasis on people and how to keep and retain a healthy workforce.

To learn more, tune into Growth Hacks: Treating Employees Like End Consumers: How Zillow Scaled Successfully While Reinventing the Traditional Growth Playbook

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The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview and blog post are not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


Invest Like the Best: Jay Hoag – Calibrating Market Adoption

Post by Patrick O’Shaughnessy

My guest today is Jay Hoag, co-founder of TCV. If you look at Jay’s investment track record, it’s a “who’s who” of tech giants with Airbnb, Netflix, Peloton, Zillow, and a list that does not stop there. Needless to say, Jay has a Hall of Fame career. During our conversation, we talk about his own journey founding TCV, what advice he has for visionaries, and why he sees advantages for private to public crossover investors. Jay has such a wealth of experience that is on display throughout this episode. Please enjoy my conversation with Jay Hoag.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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The views and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview and blog post are not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


The Consumer Opportunity — Fireside Chat with Ian Siegel, CEO of ZipRecruiter, and David Yuan, GP at TCV

TCV recently hosted an offsite on companies extending into consumer, supplier, and employee networks.

ZipRecruiter is one of the few companies that have been able to extend into consumer demand. We were fortunate to have Co-Founder and CEO Ian Siegel join us and share his thoughts on ZipRecruiter’s journey.

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Dave: So maybe to kick us off, tell us a little bit about yourself and ZipRecruiter.

Ian: Sure. ZipRecruiter is an online employment marketplace that I co-founded in 2010. Based in LA, we use Artificial Intelligence (AI) to actively connect people to their next great opportunity.  We’ve helped over 1.8 million businesses of all sizes (from SMBs to Fortune 500 companies) with their hiring needs. Tens of thousands of businesses use us every month to find their next great hires and millions of job seekers search for jobs on ZipRecruiter on a monthly basis.  

Dave: We’ve been talking to each other for a while, and your first demand side offering was allowing employers to use your distribution software application. And if they weren’t getting applicants fast enough, they could push a “boost” button and get more applicant flow. That was a recruiting facing experience. Explain what’s going on in the background.

Ian: We distribute job postings to more than 1,200 sources. That includes job boards, aggregators, talent communities, social networks, etc. We send jobs to online destinations where talent may be congregating and then we pay those sources on a per-click basis for the traffic they can deliver to us. And then there’s TrafficBoost, our own job promotion product. Employers can buy a “Boost” and get more quality candidates faster.

Dave: Great. So, you have this distribution software, and then the “boost button” which is like performance media buying for lack of a better description. And then you started your own candidate profiles. How does that work?

Ian: Good question. The tricky thing about our category is that it represents a point-in-time need. One of the things you need to contemplate when you have consumers, for example, in restaurant reservations or looking for a job, is that they need you for a moment, and then they’re theoretically going to go away. You have to start thinking about what you can do to get a data lock. What are the things you could add to your service? That means they don’t just use you this time but there’s an advantage to using you in subsequent visits or a subsequent need for that service.

We started moving from résumés to profiles. Imagine you are a nurse: You come to our site and upload a résumé. We’ve become very good at enriching résumés and identifying the single skills that employers are really looking for—for example, a nursing license number turns out to be the only thing you need in your profile to be inundated with interest from hospitals and healthcare providers. As a result, you are persistently being found by new employers who can give you subsequent offers.

Our theory is that job seekers never want to miss a great opportunity that’s coming through. There’s this misnomer about the job search category which is that there’s an active and a passive job seeker profile. The reality is that a person who is eagerly full-time searching for work represents only about 12% of the total job-seeking population. The other 88% are people who are somewhere between dissatisfied and happy at their current job but are willing to learn more about new opportunities. 

Dave: So, basically, you’ve gotten the consumer applicant to engage with you, which is quite different, right? You’re running essentially a SaaS business, and then you have to build a consumer business on top of it?

Ian: After two years in, we realized that, no matter how many cool features we put into our product, employers were (and are still) using us for one thing: access to job seekers. The more people we have on ZipRecruiter, the more employers we attract, the more new jobs we have, and the more people we get.  

It’s a virtuous circle.

And so suddenly, we’re not just in the employer business: We’re also in the job seeker business. 

Dave: So how did you go and do this? 

Ian: When our aided brand awareness peaked in the U.S., it became much more important to make sure that job seekers also knew about us. Which is why most of our engineers are now working on some form of search algorithm or search interface. We are deeply thoughtful about focusing on job seekers because, fundamentally, we sell to them.

Dave: Okay. You made the switch, which was tricky since you recognized that you potentially competed with some of your suppliers, and you had to go all in on brand. Or not just brand, but a switch from a business to a consumer business brand.

Ian: It’s always harder to get the buyer than the seller. If you have the buyers, the sellers will come to you. To get to that next level in our category, it’s important to be first and top of mind. When someone decides they’re ready to look for a job, you want to be synonymous with job seeking so they go straight to ZipRecruiter to look for work. 

Dave: How do you balance ongoing management of your product teams and the focus of the organization between both customer groups? Because in reality, you still need to maintain some amount of excitement and engagement around the recruiters while you’re sort of shifting to job seekers. How are you thinking about that?

Ian: It’s such a good question. Let me take you through an exercise that was a real-world problem we had in our business. All of you are hiring managers, right? Would you like it if someone submitted a résumé to you, and ZipRecruiter corrected the grammar? The underlying question is “Do you consider spelling errors and grammatical errors a signal that tells you something’s up?”

Dave: Massive signal.

Ian: Right, signal. If I ask that question to the job seekers, they really don’t like typos. That’s a real-world problem I’m faced with. Who is our customer? The answer is nuanced and depends on the situation. How did we decide who that customer was? In that particular example, we did not correct their spelling and grammar.

Another example: We are the number one-rated job search app on both iOS and Android. How did we become number one? With one simple feature: We tell job seekers when an employer looks at their application. That’s it. The number one thing job seekers hate more than anything is what they call the “résumé black hole”, i.e. when they apply to a job and never hear anything back. In this case, we made the choice for the benefit of the job seeker.

Dave: What about the team? Was it a separate build? Was there significant change since this is a very different business?

Ian: Our product team members were all revenue-focused, which is to say employer-focused. So, we decided to split the team and have one subteam focusing on job seekers and the other subteam focusing on employers. We made a significant investment to support the job seeker subteam and, in some areas, we have multi-year timelines because you can either play to make money or you can play to win. And to win in our category, you need liquidity. You can’t have a marketplace without some form of elite brand recognition and differentiation. 

Dave: Absolutely, great point to end with. Thanks so much Ian!

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The statements, views, and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified, if any, are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies. For additional important disclaimers, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


NVCA Member Spotlight: TCV

Tell us about your firm. What makes TCV different?

CEOs and Founders tell us how TCV stands out for them: the depth of our knowledge in their particular industry and technology. When we identify a compelling technology trend, we take the time to thoroughly understand the underlying drivers, business model, and competitive environment. Having a developed perspective means we can have much more meaningful conversations about a company’s business and growth opportunities.


Where did the firm’s name come from?

We were founded in 1995 and were originally named Technology Crossover Ventures. “Crossover” means that we’re equally comfortable making both private and public investments, and that we help companies evolve from private to public ownership. Many CEOs appreciate a firm who can be a capital partner at multiple stages of their company’s evolution. For example, we invested multiple times in Netflix as a private company, and continued to support them as an investor after their IPO. Our original investment in the company was 20 years ago, and we continue to be investors today. Over the past 24 years, we’ve had more than 60 IPOs in our portfolio and we bring that experience to every new investment.  

What defines your portfolio?

We look to partner with companies that have already established a leadership position in their market and are looking to succeed at an even greater scale. This typically means that a company has been growing for several years – with a history of delighting customers, an economic model that is reflective of the value they provide, and an opportunity to scale the business in the future.

How is the firm different today than when you first started?

Today’s technology market is much bigger than it was in 1995, and today TCV is also much bigger than in 1995. During the past 24 years, we’ve invested in hundreds of companies and evaluated thousands more, so our knowledge base, experience, and network has expanded dramatically. Because of that, we’re in a better position today to help companies scale smarter and faster.

Why is TCV a part of NVCA?

We are a collaborative firm, so being part of our own industry association is a natural fit. TCV was a founding member of the NVCA Growth Equity Group (GEG). Through our direct involvement on NVCA committees and task forces, we have witnessed first-hand how the NVCA works as an advocate for entrepreneurs as well as investors.

Tell us about the current VC landscape in your geography/region.

We have offices in Menlo Park, NYC, and London. While our geographic focus has generally been focused on companies headquartered in North America and Europe, most of our portfolio companies are – or are seeking to be – global leaders regardless of where “home base” is. Today, executives are building great companies everywhere, not just in the traditional technology hubs like the Bay Area, Boston, or New York. So we’re increasingly focused on finding the best companies regardless of where they are located.

What’s ahead for your firm in 2019?

Looking outward, we see more great technology companies and talented entrepreneurs than ever before. We recently began investing out of TCV X, a $3 billion fund, and are excited about the portfolio we’re assembling for that fund. Looking inward, we’re focused on making TCV an even better platform for the world’s best technology investors. We continue to grow our organization and provide a compelling career path for investors who can partner with the world’s best technology companies and deliver exceptional returns for our Limited Partners.

Describe your firm’s culture in 5 words or less

“Helping others succeed.” Internally, this means each of us are accountable for the success of the entire TCV team, and each of us are expected to actively support our colleagues. Externally, we all have the ability – and responsibility – to bring the capabilities of the entire firm to our portfolio companies and give them the best TCV has to offer.

About TCV

Founded in 1995, TCV provides capital to growth-stage private and public companies in the technology industry. Since inception, TCV has invested over $10 billion in leading technology companies and has helped guide CEOs through more than 115 IPOs and strategic acquisitions. TCV’s investments include Airbnb, AxiomSL, Dollar Shave Club, EmbanetCompass, ExactTarget, Facebook, Fandango, GoDaddy, LinkedIn, Netflix, Rent the Runway, Splunk, Spotify, Varsity Tutors, and Zillow. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, visit www.tcv.com.

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The views and opinions expressed in the post above are that of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). This post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above, if any, are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this document, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.

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Woody Marshall on The Twenty Minute VC

Check out Harry Stebbing’s latest podcast with TCV General Partner Woody Marshall.

 

 

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The statements, views, and opinions expressed are those of the speakers and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any statements by the speakers and disclaims any responsibility therefor. This interview is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified are not necessarily representative of all TCV investments and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies. For additional important disclaimers, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.