Mastering Startup Pivoting & Attracting Investors

Table of Contents

1. Introduction
2. Background of Techstars and Kairos
3. The Mid-Pivot of Kairos
4. Kairos Time Clock: An Overview
5. The New Kairos API
6. Branding and Differentiation
7. The Developer-First Strategy
8. Fundraising Challenges and Investor Education
9. The Value of APIs
10. Finding the Right Investors
11. Leveraging Networks and Programs
12. Conclusion

Introduction

In this article, we will explore the meeting between Ryan and David Cohen, the founder and CEO of Techstars, and Brian Barking, the CEO of Kairos. The conversation revolves around the positioning of Kairos in the consumer and developer markets, the mid-pivot of the company, and fundraising challenges. We will also Delve into the value of APIs and the importance of finding the right investors. So, let's dive in!

1. Background of Techstars and Kairos

Before delving into the specifics of the meeting, let's provide some background information about Techstars and Kairos. Techstars is a mentorship-driven startup accelerator founded by David Cohen. With extensive experience as an angel investor, David has made around 350 investments in internet startups. On the other HAND, Kairos is a facial recognition company Based in Miami, Florida, focusing on the enterprise space.

2. The Mid-Pivot of Kairos

During the meeting, Brian Barking mentions that Kairos is currently undergoing a mid-pivot. Initially, their flagship product was Kairos Time Clock, which utilized facial recognition for biometric identity verification in employee attendance systems. However, they realized the complexities and pitfalls of relying on various facial recognition APIs. Consequently, they decided to make facial recognition more accessible and affordable for developers by creating the Kairos API.

3. Kairos Time Clock: An Overview

The Kairos Time Clock was Kairos' first product, designed for businesses to streamline employee attendance tracking through facial recognition. By leveraging biometric identity verification, employees could punch in and out for the day effortlessly. However, as Kairos shifted its focus towards developers, the Time Clock became just one application of their facial recognition platform, rather than the central offering.

4. The New Kairos API

The new Kairos API is set to revolutionize how developers integrate facial recognition into their applications. Similar to the developer-facing components of companies like Twilio and SendGrid, the Kairos API aggregates multiple facial recognition APIs and provides them at Scale to any developer, regardless of location. This opens up a world of possibilities for developers seeking to incorporate facial recognition into their products or services.

5. Branding and Differentiation

As Kairos transitions to a developer-first strategy, they face the challenge of differentiating their offerings in the market. While the Kairos Time Clock is currently their primary product, it will eventually become a separate application built on top of the facial recognition platform. This necessitates separate branding and messaging for both the developer market and the enterprise customers that rely on the Time Clock.

6. The Developer-First Strategy

To effectively cater to the developer market, Kairos aims to position itself as an infrastructure provider that enables developers to build facial recognition capabilities into their applications easily. By emphasizing the simplicity, speed, and ease of integration, Kairos can attract developers who understand the value of infrastructure and architectural-level solutions. This approach aligns with successful companies like Twilio, exemplifying the power of developer-first strategies.

7. Fundraising Challenges and Investor Education

Kairos is currently in the midst of a fundraising cycle, seeking a seed round of investment. Brian seeks David's advice regarding investor expectations and how to effectively position Kairos to investors, particularly those who might be less technical or unfamiliar with APIs. David emphasizes the importance of finding investors who already grasp the value of APIs and infrastructure. These knowledgeable investors are more likely to become champions and bring additional value to the table.

8. The Value of APIs

To educate potential investors on the value of APIs, Brian compares Kairos' role to that of a simple utility, like McDonald's. When opening a McDonald's franchise, investors don't need to explain that people love hamburgers. Similarly, with an investor who comprehends the significance of APIs, Brian can emphasize how Kairos simplifies facial recognition integration and enables the creation of innovative applications in various industries.

9. Finding the Right Investors

David advises Brian to target investors who have experience with API plays and understand the value of infrastructure. While this understanding can be found in investors worldwide, areas like Silicon Valley tend to have a higher concentration of such investors due to the scale of the tech industry. Brian mentions that Kairos has a strong network from their participation in the New Accelerator program in San Francisco, which they can leverage to connect with potential investors.

10. Leveraging Networks and Programs

Brian acknowledges the value of networks like the one formed through the New Accelerator program. These networks can provide access to investors with a deeper understanding of the technical aspects and potential of API-driven businesses. With the right champions in their network, Kairos can attract investors who not only provide capital but also bring valuable connections and expertise.

11. Conclusion

In conclusion, the meeting between Ryan, David Cohen, and Brian Barking highlights the strategic decisions and challenges faced by Kairos as they pivot towards a developer-first strategy and Raise funds. They discuss repositioning the Kairos Time Clock, the launch of the Kairos API, branding and differentiation, the value of APIs, and the importance of finding the right investors. Overall, the conversation sheds light on the intricate Journey of a technology company seeking to make a mark in the competitive market of facial recognition and developer-facing solutions.

Highlights

• Kairos is undergoing a mid-pivot, shifting its focus towards developers and creating an API for facial recognition.
• The Kairos Time Clock, their initial product, will become just one application of the facial recognition platform.
• Kairos aims to differentiate itself by emphasizing its infrastructure and simplifying facial recognition integration for developers.
• Finding investors who understand the value of APIs and infrastructure is crucial for Kairos' fundraising success.
• Leveraging networks and programs like the New Accelerator program can help Kairos connect with knowledgeable investors and industry experts.

FAQ

Q: What is Kairos' main product? A: Kairos' main product is the Kairos Time Clock, which uses facial recognition for biometric identity verification in employee attendance tracking systems.

Q: What is the new product offered by Kairos? A: The new product offered by Kairos is the Kairos API, which provides developers with easy access to multiple facial recognition APIs for integration into their applications.

Q: How does Kairos plan to differentiate itself in the market? A: Kairos plans to differentiate itself by positioning as an infrastructure provider, enabling developers to incorporate facial recognition capabilities seamlessly into their applications.

Q: What challenges does Kairos face in fundraising? A: Kairos faces the challenge of educating investors about the value of APIs and infrastructure, particularly those who may be less technical or unfamiliar with developer-facing solutions.

Q: What role do networks and programs play in Kairos' fundraising efforts? A: Networks and programs, such as the New Accelerator program, provide valuable connections and access to investors who understand the technical aspects and potential of API-driven businesses.