AMA with Lolita Taub of The Community Fund

Why should founders build communities? What changed in the last two years?  

I wouldn’t recommend that all founders build community-driven companies. Founders need to ask themselves whether it makes sense for their businesses. But the benefits of a community-driven business are real and should be considered (e.g., lower CAC, higher retention). Learn more about community-driven companies here.   

The timing is right for community-driven companies to rise and build the companies of the future because:

• people more than ever are seeking community
• platforms to unite/create communities are abundantly available (e.g., Slack, Facebook Groups)
• traditional ways of attracting customers are expensive

You are one of the renowned investors in community-driven companies. What are the few things that you look at in companies when you consider investing in them?  

Thanks for the compliment! At The Community Fund, we’re looking for companies that will become unicorns. To learn more, read - The Community Fund: How We Source, Select, and Support Startups.   

What are challenges in the community space that new upcoming entrepreneurs can solve for?  

Growth, engagement, retention, content moderation, connection, human touch, authenticity, and most importantly aligning community with business outcomes.   

What are you most excited about the future when it comes to community-led companies?  

Watching communities shape the products and services that they need to solve their problems and achieve their goals, while creating a sense of greater purpose and belonging. That and watching community-driven companies, members, and investors reap outsized returns from enabling all of that.  

Advice for founders who are building a business with community as a moat.   

Remember that a differentiator is something that you offer/have that the competition doesn’t (and would be hard to replicate) and that your customer wants to pay for. If community is your moat, you need to make sure you tend to it, nourish it, and sustain it as the core of your business. 

Follow Lolita Taub on Twitter.