Meet Keith and Retail Aware
Q: Could you introduce yourself and tell us about Retail Aware?
A: My name is Keith Fix, and I’m the co-founder and CEO of Retail Aware. We specialize in helping brands, retailers, and their partners access first-party data from product displays in physical stores. We aim to prevent out-of-stock issues and optimize in-store investments’ performance, including retail media.
Q: What inspired the creation of Retail Aware?
A: Entering the retail tech sector wasn’t something I initially aspired to do. My journey started with building out CRM for a Fortune 1000 retailer, after which I launched a digital signage integration business, focusing on retail clients. We installed displays and screens in stores, and during this time, I realized that in-store spending was a bit of a black hole. It’s costly, often running into six or seven figures, but it’s necessary because the majority of purchases still occur in physical stores.
Physical retail remains a crucial channel, yet there were no tools for effective measurement and optimization. Questions like how to A/B test in the real world or track in-store attribution were unanswered. This gap in the market was the ‘itch’ I needed to scratch.
Our first project involved a frozen food brand in Omaha. They were investing heavily in placing freezers in stores and wanted to understand their value, how to manage inventory, and track their performance. This initial engagement revealed that this challenge was widespread in the industry, and from there, Retail Aware continued to grow and evolve.
Joining Plug and Play
Q: What led you to join the Plug and Play accelerator?
A: Interestingly, it was Plug and Play who approached us first. Our public profile within the industry, especially in the US where we work with large retailers, made us stand out. Joining them turned out to be one of the best things for us, especially since we started during the COVID-19 pandemic. This period was challenging for everyone, highlighted by the widespread concern over shortages of toilet paper.
During this time, our data became crucial. We launched at TechCrunch Disrupt in October 2019, and by the time the pandemic hit, we were already operational in a few stores. We collaborated with a data scientist friend from a university and released a press release on the safest times to go grocery shopping based on our data. This release gained massive traction, getting picked up by Forbes, and Wall Street Journal, and even landed us a spot on the Today Show. This exposure was invaluable and significantly boosted our brand equity, leading to greater recognition and client interest.
The Application Process
Q: Can you describe the application process for joining Plug and Play?
A: The application process for Plug and Play starts with an initial contact, followed by filling out a detailed form that includes links and references. This form is quite extensive because Plug and Play is dedicated to effectively connecting startups with enterprises. They seek solutions that are not just innovative but also ready to meet the specific needs of their corporate partners. Their focus is more on practical and tactical alignment with what their corporates require, such as connected stores and real-time data from in-store activities.
What’s unique about their process is the emphasis on ensuring that the startups they select can handle enterprise-level demands and offer solutions that match their corporate partners’ needs. The process isn’t just about finding the next big innovation; it’s about finding practical solutions for current corporate challenges.
Once you complete the application, your profile is included in a public database accessible to corporates globally. Being in this database provides significant visibility, as Plug and Play has corporate partners across North America, the UK, China, and other regions. This global exposure is a substantial opportunity for startups to gain visibility and connect with potential clients.
A Day in the Life at Plug and Play
Q: What was a typical day like for you in the Plug and Play program?
A: The structure of the Plug and Play program, especially in our Brand & Retail cohort, was quite different from traditional boot camp-style accelerators. It was essentially self-driven, meaning the effort we put in directly influenced what we got out of it. The typical day involved engaging with scheduled mentor sessions and various programming events. The global reach of the program meant many activities were virtual, which was beneficial for broadening participation beyond geographical limitations.
Q: How did the option of in-person participation at Plug and Play enhance your experience?
A: Opting for in-person engagement at Plug and Play’s Sunnyvale location was extremely beneficial. Being in Silicon Valley, the heart of tech innovation opened numerous networking opportunities. It’s one thing to connect virtually, but the physical interaction, particularly in our industry that relies heavily on retail and e-commerce integrations, accelerated our ability to build relationships and close deals significantly.
Q: How did Plug and Play’s global presence and regional programs contribute to your startup’s growth?
A: Plug and Play’s global presence is a huge boon. They operate programs in various parts of the world, and having access to a local office provided us with both regional and global networking opportunities. This setup allowed us to gain insights specific to our market while staying connected to the broader international community, offering diverse perspectives and opportunities for collaboration and growth.
Funding and Investment Opportunities at Plug and Play
Q: Did Retail Aware receive funding as part of joining Plug and Play?
A: Plug and Play operates differently in terms of funding. They don’t automatically take equity or provide funding upon admission. Instead, the focus is on the investment of time and participation. If a startup has an open funding round while being part of the cohort, it can lead to significant exposure to Plug and Play’s team, who are known to make swift funding decisions. Their approach to funding is typical; they participate in normal investment rounds if a startup is actively seeking to raise funds. What’s advantageous about their method is the flexibility it offers startups, allowing them to set their own terms. Plug and Play has a strong track record in this regard, with a notable history of successful investments.
Overcoming Challenges and Gaining Insights
Q: Looking back, what makes you feel that joining Plug and Play was worthwhile?
A: The most significant aspect of Plug and Play is its focus on connecting corporates with startups. This is their primary goal. If you aim to penetrate corporate circles, initiate deals, and get past gatekeepers in large companies, Plug and Play is exceptionally effective. They provide a platform to make your startup known and potentially lay the groundwork for Proof of Concept (POC) with big companies. However, it’s important to recognize that these are longer-cycle engagements. You might not secure a full contract within the program’s duration, but the foundations and connections you establish are invaluable. We’ve had meaningful engagements and been part of discussions that wouldn’t have been possible without Plug and Play’s support.
Q: What challenges did you face during the program and how did you overcome them?
A: Like any early-stage company, we faced challenges in transitioning from a seed stage to a Series A company. A specific challenge was building a robust sales engine. Fortuitously, there was a module led by one of the best enterprise sales groups in the valley, which became a guiding force for us. It provided insights into the sales process, typical timelines, and what enterprise contracts look like. This guidance was crucial for us at a time when we were struggling to frame our sales strategy. The mentorship and insights offered were instrumental in shaping our approach and significantly moved the needle for our business.
Retail Aware’s Progress Post-Accelerator
Q: How has Retail Aware evolved since completing the Plug and Play program?
A: Since completing the accelerator, Retail Aware has achieved significant milestones. We’ve successfully completed another funding round and have been working with some very large clients to scale out our operations. We’re excited about the future, especially having crossed over 10,000 placements and working with more than a thousand retail banners. These achievements have created great momentum for us. In this business environment, especially with enterprise deals, patience and persistence are key. It’s crucial to maintain financial vigilance, stay well-funded, and continue to nurture relationships, as success in this industry is often cyclical.
Q: What are your next goals and how has the accelerator prepared you for these?
A: Our next major milestone is to expand our footprint in a number of stores and to work towards self-sustainability. This focus marks a shift from the “growth at all costs” mentality of 2021 to prioritizing solid business fundamentals. The accelerator, particularly Plug and Play, has been instrumental in this transition. It taught us how to effectively communicate with corporates, approach the sales process, and leverage valuable connections. These skills are crucial for making progress in the enterprise sector.
Q: Did Plug and Play introduce you to venture capital firms or key investors?
A: Yes, Plug and Play facilitated introductions to several investors. Notably, one of our investors was present at one of their events. These events, like the summits they hold, bring together corporates, ambassadors, cohort startups, and alumni over several days, offering networking opportunities. While Plug and Play’s approach is different from typical accelerators – focusing more on joining rounds rather than leading them – their introductions and connections within the valley are invaluable for startups seeking investment.
Founder’s Advice
Q: What advice would you offer to startups thinking about applying to Plug and Play or other accelerators?
A: My advice is to leverage accelerators as a strategic advantage, especially if they align with your industry. Even for top-tier accelerators that might take a higher equity stake, the trade-off can be worth it for the structure and connections they provide. Plug and Play, being corporate-driven rather than equity-driven, is particularly beneficial for startups looking to work with large corporates. The key is to get into their database and actively reach out to industry leads, either through their website or platforms like LinkedIn. Accelerators can significantly shorten the time it takes to build valuable relationships and gain industry insights, especially for B2B firms with longer enterprise sales cycles. Joining a well-aligned accelerator, be it tier one or two, can be an invaluable step in a startup’s journey.