Here's a summary of the "This Week in Startups" episode featuring Brandon Brown, CEO of Grinn, an influencer marketing platform, and a discussion on Trevor Milton's fraud indictment and Robinhood's IPO:
**Nikola Founder Indictment:** Jason Calacanis opens the show with news of Trevor Milton, the former CEO of Nikola, being charged with three counts of criminal fraud for lying about nearly all aspects of the business to bolster stock sales. Calacanis reflects on his past interview with Milton on episode 1090, noting that Milton seemed overly focused on the stock price and IPO rather than the product itself, raising red flags. He argues that Milton's claims of creating a "gravy train" from Nikola's trucks were misleading to investors, especially those new to the market, and that the video itself might be evidence of securities fraud. Calacanis urges investors to be responsible for their due diligence and to be cautious with speculative investments like SPACs and crypto. He anticipates that the market correction will expose more fraudulent activities, drawing parallels to Bernie Madoff. He offers advice to potential investors to diversify their portfolios, invest only a small percentage of their net worth in speculative ventures, and prioritize a well-researched investment strategy.
**Robinhood IPO Congratulation:** Calacanis congratulates Robinhood on its IPO, emphasizing the company's positive impact on financial literacy for younger generations. He advocates for providing young people with small amounts of capital to invest and learn about the stock market, fostering financial independence. He pushes back against cynicism surrounding young people investing in stocks, emphasizing that their participation promotes a higher-functioning market. He praises Robinhood's product and user growth, highlighting the potential for long-term financial empowerment for its younger users.
**Grinn Interview:**
Jason interviews Brandon Brown, CEO of Grinn, an influencer marketing platform, discussing the company's growth from tens of thousands of dollars in monthly revenue to over $10 million in annual recurring revenue. Brown shares his background in opinion leader marketing at Red Bull and the motivation behind creating Grinn, which focuses on direct relationships between brands and influencers rather than transactional marketplace approaches.
They discuss the evolution of influencer marketing from dabbling to enterprise-level operations. Brown explains how Grinn streamlines the influencer management process for brands, automating tasks like product shipping, discount code creation, and content tracking. The conversation touches on the legal and regulatory environment, highlighting the importance of authenticity and disclosure by influencers, as well as the FTC's guidance on proper disclosure. They discuss the common ways influencers get paid, including free products, commissions, or long-term retainers.
They also delve into the different tiers of influencers, from micro-influencers to mega-influencers, and their earning potential. Brown describes the company's high-growth phase and the challenges involved, such as building a sales team and managing rapid scaling. He stresses the importance of finding strong leaders, empowering them, and prioritizing growth over perfect execution. Brown shares his perspective on revenue vs ebitda suggesting revenue is more important in a high growth SaaS company. They also discuss the transition to remote work and the need for in-person collaboration in early-stage companies to establish product-market fit and company culture.
Brown emphasizes the shift in consumer attention to mobile social platforms and the rise of the "creator economy." He envisions a future where every brand utilizes creator management software at scale. They discuss the importance of partnerships with brands they believe in. The discussion shifts to the effectiveness of different marketing channels. Brown emphasizes that the best path to success is being honest and inspiring brand loyalty in their team and partners. Brown emphasizes that you can't buy authenticity, and that's what matters most. They conclude with a discussion on the potential of a partnership between Grinn and the podcast industry. Brown mentions the need to capitalize with investment, if the market opportunity is there for a company.