Time for more vertical integration in enterprise software

deal architect

As SaaS vendors took off in the early 2000s, I was encouraged by their business model. They had collapsed software, hosting, application management and upgrades into one contract. But in recent years I have seen a reversal and a lot. Enterprise Software (IBM, Microsoft, Oracle, SAP

Fermi estimation for startup business models

A Smart Bear: Startups and Marketing for Geeks

Often your best estimate of any metric or market behavior or business model component is at best accurate within a power of ten, for example “expected conversion rate between 0.5% Early in a company’s life, you don’t know anything.

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Business models for ecommerce 2.0

The Equity Kicker

Proprietary merchandise – e.g. vertically integrated retailers like Bonobos and WarbyParker. Andy Dunn from Bonobos wrote yesterday about the dominance of Amazon in what he calls ecommerce 1.0

2016 VC Half-Thoughts: The Industry Has Shifted Back to Investing in Technology, Not Business Models

Hunter Walker

When we started Homebrew in 2013 our industry was, in retrospect, probably midway through a cycle where innovations were in business model rather than underlying technology. Observing a handful of companies, such as Uber, Airbnb, Warby Parker, founders were taking those models and trying to apply them to other verticals. A ton of private label vertical commerce. They were making an assumption about the team, business model and operating excellence.

Horizontal Or Vertical Business Models: Which Is Right For You?

Entrepreneurs-Journey.com by Yaro Starak

The point he’s making is that many marketers teach a business model that relies on using outsourcers, who often don’t have English as a first language, to create ebooks and other information products, which are then sold online using clever marketing. There’s nothing inherently wrong about this model. This model has proven very successful for many people and is taught in various forms as an entry strategy into the world of Internet marketing.

Vertical Markets 4: Putting it All Together « Steve Blank

Steve Blank

In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customer development would be useful. would look in each of the verticals. Innovation – Business Model?

Now Hear This

Steve Blank

Clearshore is a “matchmaker&# that helps small businesses get their fair share of the $60-billion US government budget for R&D and innovation. Much like my career, in the last two years this blog has traveled a serendipitous path.

Born Global or Die Local – Building a Regional Startup Playbook

Steve Blank

Not all start ups want to go in that direction – some will opt instead to become a small business. There’s nothing wrong with a business that supports you and perhaps an extended family. For example, many of the Australian sports tech business models shared common elements.

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A visual guide to pitching

Version One Ventures

I like knowing why a founder is building his or her business. We want to see traction – specifically, how quickly you can capture the initial market or vertical** that you are targeting, and how engaged these early users are.

How To Gauge Demand For Your Ebook, Mastermind Tips, Options For Non-English Speaking Entrepreneurs, And Horizontal Vs Vertical Business Strategies

Entrepreneurs-Journey.com by Yaro Starak

You will also find out how Walter … Read the rest of this entry » The post How To Gauge Demand For Your Ebook, Mastermind Tips, Options For Non-English Speaking Entrepreneurs, And Horizontal Vs Vertical Business Strategies appeared first on Entrepreneurs-Journey.com.

A visual guide to pitching

Version One Ventures

I like knowing why a founder is building his or her business. We want to see traction – specifically, how quickly you can capture the initial market or vertical** that you are targeting, and how engaged these early users are.

It’s not easy to sell into an industry being disrupted

Version One Ventures

Whenever there’s a complete disruption of the business model, it means that the underlying rules for that vertical have dramatically changed. A company that’s being disrupted certainly feels the pain that their business model is under attack. News AbeBooks Amazon Bookselling Business model disruption twitter Looking to sell into an industry that’s currently undergoing disruption? At first glance, it sounds like a great idea.

Opportunities in ecommerce

The Equity Kicker

There’s a good post on Business of Fashion this morning which identifies four ecommerce models that are working in fashion: Social curation (which they helpfully define as ‘product discovery and connecting people to inspiration’). Vertically integrated ecommerce.

The evolution of the online marketplace: six big changes since Ebay

Version One Ventures

Startups have honed in on every vertical imaginable, branched out from product to services, and tested out new paths to profitability. New models emerge for monetization. We’re now seeing SaaS’ Freemium model come to marketplaces where the base listing is free or very low and sellers pay for enhanced services like better placement. News Amazon.com Business model Craigslist eBay marketplaces Uber VarageSale

What exactly is a managed marketplace?

Version One Ventures

At the same time, the use of the buzzword “managed marketplace” has expanded into business models that are clearly NOT marketplaces. And every underlying use case and vertical might require a different approach.

Lessons about company building from the WeWork drama

Version One Ventures

The major point that often gets forgotten is that no business model is the same. But if you run a tech-enabled service business, gross margins tend to be low, scaling is hard (you’re moving atoms instead of bytes), and capital requirements can be high (especially if you take on leases like WeWork or inventory like OpenDoor). Vertically integrated commerce or hardware companies fall into the same category of low-margin and hard-to-scale businesses.

5 Startup Intangibles That Can Energize Your Business

Startup Professionals Musings

In the last few years, perhaps in reaction to the business integrity issues leading to the recession way back in 2008, I am seeing a renewed focus on other less tangible attributes which can set your startup apart. These days, you have to foster a community of support for your business.

“Podcast Discovery” Is A Problem But It’s Not A Company

Hunter Walker

I’m also a believer that there’s money to be made in podcast businesses – most of it not “venture scale” but lots and lots of opportunities for founders to build meaningful SMBs here. I love podcasts.

Is Freemium Compatible with Enterprise Software?

Venture Chronicles

Freemium is not magical pixel dust, it is a way to deliver a multi-channel business model that intersects customer segments regardless of size, complexity, and revenue opportunity. It does require you to rethink your business from top to bottom, beginning with how you meter your pricing model and ending with how you use your website. Build your product to maximize the Hour-1 customer experience and then in support of the metering model you select.

The power of platforms

The Equity Kicker

I’ve been reading a few articles recently about the power of platforms as business models and how they’ve replaced vertically integrated models in a number of industries.

Why Investing in the Everyday Economy Isn’t Just a Consumer Strategy

View from Seed

We dove deep into how this investment thesis extends to major verticals of consumer spending like entertainment , clothing , and home. W e’ve also shared why our approach is also “horizontal” — a company we invest in doesn’t have to neatly fit into the consumer spending verticals, but it should have the potential to touch millions of people or become deeply habitual for a smaller group of end-users. Impact First, Business Models Second.

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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

So the shift to mobile meant Facebook’s business model was breaking. To get there, Atlassian has to go beyond its traditional market of developer teams and branch out into other verticals.” Large companies don’t acquire small companies for their financials.

Why We’re Market-First, Not Technology-First, Investors

View from Seed

Often, these startups tend to fall in areas like home , food , apparel , transportation — but fitting squarely within a specific vertical isn’t a requirement. . One ramification, then, is that many of these or businesses may seem odd, and certainly outside of the mold of current mainstream VC-backed companies. My partners and I have been very public and transparent over the past six months about our thematic investing approach — what we call the Everyday Economy.

Announcing Version One Fund III

Version One Ventures

But a thesis centered around network effects isn’t static – and isn’t limited to any particular sector, business model, or platform. And we also look at companies that are creating the best product for a specific vertical – including bio/healthcare and other emerging tech. We believe these emerging tech ecosystems are more relevant than ever, and want to empower entrepreneurs outside Silicon Valley with opportunities to grow successful businesses.

The Future of Health: How We Think About Investing in Healthier Living for Everyday People

View from Seed

For many years, NextView has looked at many health-related businesses but invested in relatively few. We wanted to learn more about the nuanced industry market forces before applying the same hands-on investing model we do with tech startups in other verticals. It’s a world that doesn’t fit our seed-focused model and fund strategy. Many of these companies, however, exhibit similar characteristics to the things we invest in outside of the health vertical.

6 Entrepreneur Recovery Steps When Profits Plateau

Startup Professionals Musings

A good many startups I know have been “successful” over a couple of years in overcoming the challenges of starting the business, including incorporation, services development, funding, and setting up operations.

Why Tech Will Transform Tomorrow’s Construction Site

YoungUpstarts

They know everything about their customer (thanks, big data) and have the ability to customize every part of the business for efficiency. . However, there continues to be trepidation to such change in the majority of the industry, and the reality differs across verticals and regions.

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Introducing NextView III and Our Focus on the Everyday Economy

View from Seed

Others take bets on certain verticals or business models, such as marketplaces, SaaS, or enterprise technology. Slack and Dropbox are used every single day by their business customers. What will the future hold?

Is Your Startup Relevant Enough to be Great?

Startup Professionals Musings

These days, you have to foster a community of support for your business. They sell into multiple verticals, or pursue multiple revenue streams, such that they can’t develop a repeatable, scalable sales process, and don’t do anything well.

The Almost On-Demand Economy

A Crowded Space

Or… why you should stop trying to copy Uber and come up with a model that makes sense. And “on-demand” startups need to wise up and provide “almost on-demand” solutions that meet the needs of the consumer while enabling a profitable business model.

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Revenue = Product Market Fit

Agile VC

This is especially true for those with a media / ad based business model (e.g. We invest in internet enabled companies at NextView and our portfolio is roughly equally split between consumer and B2B businesses.

What To Do When Your Startup Profits Hit the Wall

Startup Professionals Musings

A good many startups I know have been “successful” over a couple of years in overcoming the challenges of starting the business, including incorporation, services development, funding, and setting up operations. entrepreneur startup growth business

5 Startup Strategies To Capitalize On Today’s Culture

Startup Professionals Musings

In the last few years, perhaps in reaction to the business integrity issues leading to the recession back in 2008, I am seeing a renewed focus on other less tangible attributes which can set your startup apart. These days, you have to foster a community of support for your business.

Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity).

Innovation Outposts and The Evolution of Corporate R&D

Steve Blank

I first met Evangelos Simoudis when he ran IBM’s Business Intelligence Solutions Division and then as CEO of his first startup Customer Analytics. Evangelos and I are working on what we hope will become a book about the new model for corporate entrepreneurship.

5 Rules of Relevance Every Startup Needs to Adopt

Startup Professionals Musings

In the last couple of years, perhaps in reaction to some business atrocities leading to the recent Recession, I am seeing a renewed focus on other less tangible attributes which can set your startup apart. These days, you have to foster a community of support for your business.

How we can improve the odds of finding unicorns

Version One Ventures

This makes it laboriously difficult to identify rising stars and make comparisons within a specific vertical. We can whittle down those 30,000 companies to a more manageable number by filtering for business models, regions, state, co-investors, Twitter mentions, Facebook likes, LinkedIn connections, iTunes downloads, unique website visitors, and/or other criteria that align with our investment thesis. Vertical SaaS.

How Startups Can Keep Product Development Lean

YoungUpstarts

The lean start-up movement has been based on a single insight – which the purpose of a start-up is to discover a business model that works. Start-ups are very different from established businesses. The objective of a start-up is to discover a business model that works.

Why the Future of Tesla May Depend on Knowing What Happened to Billy Durant

Steve Blank

A version of this article appeared in the Harvard Business Review. Sloan’s book My Years with General Motors , written half a century ago, is still a readable business classic. Ford’s Model T cost just $260 ($3,700 in today’s dollars) and Ford held 60% of the U.S. Within each brand there were several models at different price points. Think of the iPhone and its yearly new models.). Elon Musk, Alfred Sloan, and entrepreneurship in the automobile industry.

When to sell your company

Version One Ventures

Few decisions can be as life-changing for founders as deciding when to sell a business. At the time, AbeBooks was still a nicely growing and highly profitable business, but we didn’t know how we could turn it into a billion dollar company. At the same time, the business could provide a lot of strategic value for many players in the book business, namely Amazon. Companies get sold for a whole host of reasons: founders break up; money runs out; shareholders force a sale.

Software Eating Industries

Mucker Lab

From the outside, they are vertically integrated challengers to decades if not hundred-years old incumbents. A little more than one year ago, Marc Andreessen wrote a seminal piece which has defined venture investing and entrepreneurship since.

6 Tips for Services Startups When Profits Plateau

Startup Professionals Musings

A good many startups I know have been “successful” over a couple of years in overcoming the challenges of starting the business, including incorporation, services development, funding, and setting up operations. entrepreneur services startup founder profits plateau business

How do seed investors benchmark startups?

Hippoland

As a result, for these kinds of businesses, investors often don’t expect that companies can earn revenue right out of the gate, because they may not legally be able to. Does the team know exactly what they need to do to go into business?