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Marketing School - Digital Marketing and Online Marketing Tips

Big VC Firm Shows Where Economy Is At (and How This Will Affect Your Growth Big Time) #2530

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.61.3K Ratings

🗓️ 9 August 2023

⏱️ 10 minutes

🧾️ Download transcript

Summary

In episode #2530, Eric and Neil discuss how a big VC firm shows where the economy is at (and how this will affect your growth big time!). The end of free money is over and we’ve entered a period of rational valuations, innovation, and profitable growth, which has huge implications for marketers. Tune in today to hear how to approach fundraising, hiring, and investing to help your business thrive in the current landscape. Hint: efficiency is key! TIME-STAMPED SHOW NOTES: [00:00] Today’s topic: Big VC Firm Shows Where Economy Is At (and How This Will Affect Your Growth Big Time) [00:56] Companies that make up the ‘Magnificent Seven.’ [01:01] How most companies are faring economically compared to the ‘Magnificent Seven.’ [02:00] Elements that characterized the era of free money. [02:20] Factors that indicate the end of the free-money era, and what this means for marketers. [03:08] The importance of prioritizing the hiring of high-quality team members. [04:40] How business leaders approach growth differently in good and bad markets. [05:13] An overview of the current fundraising, hiring, and investment landscapes. [05:46] The key players that business leaders should be hiring right now [06:29] A story that epitomizes the current business environment. [08:19] Memorable quotes on pivoting from some of the world’s top business leaders. [08:46] That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Links Mentioned in Today’s Episode: Don’t forget to help us grow by subscribing and liking on YouTube! Sign up for the next Marketing Mastermind class on Leveling Up Founders Leave Some Feedback: What should we talk about next? Please let us know in the comments below Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency Twitter @neilpatel Twitter @ericosiu

Transcript

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0:00.0

All right, so a big VC firm shows where the economy is currently at right now and how this is going to affect your growth big time in the world of marketing and business.

0:08.3

So I'm going to reveal some slides over here. This is from CO2 and they did a summit called East meets West. So basically like Asia meeting kind of the West and they did the summit.

0:18.3

And I wanted to share some slides of here and Neil, I'm pretty sure you haven't seen this. Maybe you have, but I'm pretty sure you're going to read this after when I link you after we're done recording today.

0:27.1

So there's a bunch of slides here and you can see my screen. Yes. Yeah, but I can see your screen. Is it bigger now?

0:35.1

Not for me, but it could just be because we're on Riverside.

0:39.1

Oh, you know what here. Let me do this real quick. Let's do this. Okay, here we go. All right, you see this.

0:47.1

Yeah, yeah. Okay, cool. So you can see what's going on in the economy right now.

0:53.1

Where my cursor is, the green is showing the Magnificent 7. This is Microsoft and video Google Apple meta Amazon and Tesla. So people are like, oh my God, the economy is up, you know, the SMP is up 20% this year. You know, who's really lifting it up.

1:07.1

It's these seven companies. The rest, the 493 other ones. Yeah, but a lot of us know that right like Apple has really crushed it this year. Google has meta has done extremely well in video because of the AI boom has done well.

1:20.1

But yeah, you know, and you can continue reading and didn't get you off. But that's where most people get it wrong. It's not the economy's booming. It's a handful of companies.

1:29.1

And it's actually more than just those seven that have been growing, but those seven are really big outliers than market caps are massive.

1:37.1

But you're also seeing some smaller companies grow up with the majority of companies aren't growing at that scale or pace or anything like that.

1:43.1

Anyway, so my point was my point was actually for this slide over here. So you can see this right now where my cursor is. Yeah.

1:49.1

So I'm going to pull it to the top over here. So new market regime. So end of free money is indeed over. So you can see on the left side over here if you're not watching this.

1:58.1

So basically there's a left column that says yesterday. So maybe the last 10 years or so prior to 2022 was a lot of the era of free money. Right.

2:07.1

So the rules of the game previously were there's free money. You can get interest. You can get loans for relatively cheap and there's abundance of growth, right.

2:15.1

We're talking about huge valuations for companies, right. Capital drives growth growth at all costs. Now in today's reality, the rules have changed where it's a 5% risk free rate.

2:25.1

Okay. So that means that you can go put your money into treasuries or something like that and earn 5% on your money. Okay.

2:30.1

Previously, you had to put your money into growth stocks, right. Because that's just how it worked and potential for lower growth now.

2:35.1

And then now you're seeing rational valuations, innovation and execution drive growth and profitable growth, right.

2:41.1

And so this is what I wanted to talk about for this podcast. It's like the regime has changed and you also have to adjust your marketing accordingly or else your growth is going to suffer any thoughts on this to start.

2:51.1

No, we got a special message from our sponsor.

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