Quantified Commerce Shares: Understanding Vertical Integration And Why It Is The Path To Success


Vertical integration is a strategy where a firm owns or runs several stages of production, including taking raw materials and turning them into finished products. Therefore, firms that adopt vertical integration own numerous parts of the supply chain. Challenges of Vertical Integration.

Why The Next Generation of Online Video Companies Will be Vertical

Both Sides of the Table

In the online world the ecosystem is being fragmented into those that primarily produce content (Mitu, Vice, BuzzFeed) and those who primarily distribute it: YouTube, Amazon, Netflix, Yahoo!, This is the cycle of synergies that lead to strong vertical franchises in media.

Distribution Advantage

Rob Go

We tend to favor companies that have a “distribution advantage”. So what are some examples of distribution advantages? Here are a couple examples from our portfolio: Vertical Communities: One of the exciting attributes of GrabCAD in the early days was its rapidly growing, engaged community of mechanical engineers. As a vertical community, the business of GrabCAD was never going to look like that of a social network or social media company.

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. Each vertical is, in fact, a functional culture.

Top Hat Raises $22.5M Series C in a Tough Vertical: What Can We Learn from their Success

Version One Ventures

Generally speaking, Ed Tech has proven to be a tough vertical, primarily due to the fact that it’s hard to charge consumers (students) directly. They took an innovative approach to distribution. Top Hat adopted a bottoms-up approach to distribution, as covered in the Globe and Mail article: Sales took off after Top Hat ignored advice and flipped its sales strategy. Series C in a Tough Vertical: What Can We Learn from their Success appeared first on Version One.

What is vertically integrated ecommerce and when is it appropriate?

The Equity Kicker

Andy Dunn, the founder of Bonobos and one of the most thoughtful writers I know on ecommerce, penned a good piece yesterday entitled Digitally Native Vertical Brands. He was talking about what most of us describe as vertically integrated ecommerce, and gave the following definition: The primary means of interacting, transacting, and story-telling to consumers is via the web. It’s a brand, and that brand is vertical.

The birth of a new Foundry theme – Distribution

VC Adventure

This theme – distribution – involves companies leveraging the inherent scalability of the Internet and it’s key platforms in targeted, but extremely large markets. I thought the history of how we evolved our thinking around distribution – basically the birth of the distribution theme – would be illustrative both around how the group dynamic works in the Foundry partnership as well as how we think about our thematic investing approach.

Scaling Techstars Horizontally

Feld Thoughts

There are two common ways to scale a system – horizontally or vertically. Scale Vertically (or “scale up”): Add resources to a single node in a system, typically involving the addition of CPUs or memory to a single computer. Scale Horizontally (or “scale out”): Add more nodes to a system, such as adding a new computer to a distributed software application. You can scale vertically and horizontally at the same time.

2 Disjointed Thoughts: Product Distribution Fit and Founder Heuristics

Rob Go

Product / Distribution Fit. My friend Brian Balfour wrote a blog post yesterday about emerging distribution channels and how they impact innovation. One point he makes is that in even established vertical, new companies tend to rise on the back of new distribution channels. I have 15 minutes free and have been thinking about 2 topics that I can’t get out of my head.

A visual guide to pitching

Version One Ventures

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. The core questions to answer are therefore on distribution and scale, and on your business model.

A visual guide to pitching

Version One Ventures

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. The core questions to answer are therefore on distribution and scale, and on your business model.

Be In Love With Your Business

Feld Thoughts

While Foundry Group generally avoids investing in vertical markets, we make an exception for our Distribution theme. One of the key attributes of this theme is that the company must be led by an entrepreneur who is completely obsessed with a vertical market. They must be thinking – every single waking moment – about how they are going to change the way the world interacts with the vertical market they are attacking. Entrepreneurship distribution stocktwits tuscany

Return of vertical integration?


For example , John Hagel has argued that integration of content with distribution, in the media world, does not work very well. Is this vertical integration Watching this video of American Apparel CEO Dov Charney on Charlie Rose (I think from July 2006), I was struck by these comments Charney made in response to a question about why American Apparel was so successful (my transcription): "Its the easiest thing for us to do, in the sense of the way we've set up our business.

What FMCG marketers should do

Start Up Blog

Retailers are cutting their lunch through some classic backwards vertical integration – that is, making the products their suppliers make. The missing link in their marketing mix – distribution control. entrepreneurship consumer goods FMCG Ideas insights marketers marketing Retail retailing supply chain vertical integrationKnown as the most innovative industry for much of the commercial world from the 1950′s, consumer goods have got caught napping.

Entertainment as the new Oil

VC Cafe

Entertainment is more than newspapers, more than Hollywood, and more than the sum of specific verticals jousting for consumer eyeballs. Startup landscapes, while not perfect, are useful as they provide a way for us to define a space/category and the players of that vertical.

The Version One Anti-Portfolio – the opportunities we missed…

Version One Ventures

We loved the product, but weren’t convinced it would get much distribution quickly. Unfortunately, at the time we had a few DTC / vertically integrated commerce companies in our portfolio that didn’t do super-well, so we decided that we didn’t want to add another investment.

5 IoT Gateway Best Practices


Load balancing can be achieved by using a cluster manager which manages network data distribution. This ensures balanced load distribution and faster network response. Use Horizontal & Vertical Scaling. The other option to consider is vertical scaling.

Finding new opportunities from second order effects

Version One Ventures

And distribution has become immediate, efficient, and highly targeted thanks to Google and Facebook. In just the past few years it has become a lot less expensive to start a new business in many other verticals. Over the past decade, new platforms have driven down the cost of starting a tech business. For example, you don’t need to buy servers anymore – you can just host your site on AWS.

Why I Doubled Down on YouTube Investments with MiTú

Both Sides of the Table

I have been saying privately for years now that I believe online video will evolve into fragmented distribution (my next online video post) and vertical production. By “vertical production” I meant that many online video production companies will have a strong vertical focus that will help them win the battle to sign up talent, build stronger & more loyal audiences and align with stronger advertiser relationships because they serve more endemic audiences.

Home Is Where the Innovation Is

View from Seed

CPG brands invest significant effort to design packaging that stands out in these environments and supply chains that support this distribution model. If a man from 1987 stepped into a time machine and emerged in 2017, he would find the modern world fantastically different in many ways.

Our Top Posts from 2018

Version One Ventures

Each week we like share our thoughts on a range of topics from vertical markets to general startup advice and our reflections on investing. Changing the narrative on distributed teams in Silicon Valley”. Among our Silicon Valley-based portfolio companies, every company past “A” has a distributed team. platform integration, customer service and distributing team members across the board. . “So Happy new year!

Why Tech Will Transform Tomorrow’s Construction Site


Today, retail is dominated by international giants with powerful supply chains and increasingly digitized distribution systems. However, there continues to be trepidation to such change in the majority of the industry, and the reality differs across verticals and regions.

Global 207

7 Success Maxims from Savvy Business Leaders

Startup Professionals Musings

Often, this means specializing in a single vertical market or industry. Leadership is distributed. Even though I have seen many business leaders succeed, and many that failed, I still struggle with what really makes the difference.

Get to Know Richard de Silva of Highland Capital

Both Sides of the Table

Yes an online video startup in ‘99 that helped large media companies encode and distribute their videos through portals. He is starting to see this occur in sites that are verticalizing content. He does think there are opportunities in vertical search.

Demand Generation: Turning Tactics into Strategy


Building a cache of user data in a CRM that’s strong enough to inform demand gen campaigns—what content to produce, where to distribute it—can take years, according to Brandt Bogdanovich of MST Solutions. Create and distribute content to those segments. There’s a building.

Demand 137

Seven Maxims That Have Led to Startup Success

Startup Professionals Musings

Often, this means specializing in a single vertical market or industry. Leadership is distributed. Even though I have seen many startups succeed, and many that failed, I still struggle with what really makes the difference.

Video Hosting Platforms: Which Is Best for Your Business?


But DailyMotion’s geographic distribution of users doesn’t mirror YouTube, especially within the United States. Of course, with Wisita, you must create the audience for your videos—there’s no inherent distribution network (unlike YouTube).

The Age of Entrepreneurship

Startup Professionals Musings

However, a paper published a while back by the Ewing Marion Kauffman Foundation – the group devoted to fostering entrepreneurship around the world – suggests that the age distribution among company founders is much broader than we might have imagined. By Akira Hirai Entrepreneurship.

Born Global or Die Local – Building a Regional Startup Playbook

Steve Blank

Creating a vertically oriented regional ecosystem is a pretty amazing accomplishment for any country or industry. to understand distribution channel landscape, potential partners and rough cost of customer acquisition.

Global 318

Expanding our bio/healthcare thesis

Version One Ventures

We have realized that in most cases, bottoms-up distribution or the “consumerization” of software in healthcare has its limits. At that time, our bio/healthcare thesis focused on startups taking a “full stack” / vertically-integrated approach with the belief that data is the key creator of value. Our first investment in healthcare was five years ago in Figure 1 , a platform for viewing. and discussing real-world medical cases with healthcare professionals.

Benchmarking Performance: Your Options, Dos, Don'ts and To-Die-Fors!

Occam's Razor

With that, let's look at the first rich source of benchmarking data in CI tools, the industry and sub-vertical reports. And you also have, perhaps more useful, the industry wide acquisition strategy distribution.

My next journey: fund and empower 10,000 entrepreneurs per year


The truth is, we have 50+ folks on staff at 500 from all over the world (except Antarctica) with expertise in different verticals. We have a distribution team of marketers and sales folks who help our companies grow.

Learning From The OG iPod

Mucker Lab

Most brilliant “Internet of Things” ideas are quicksand for capital unless you have the branding, vertical integration and customer lock-in that Apple achieved. However, the rise of the Internet equalized if not flipped the ratio as the web (and mobile) created a new product category and distribution platform. For the first time, entrepreneurs could build consumer services AND distribute them at scale with almost no physical middle men and inventory costs.

New LumaScapes Organize Digital Funding and Online Gaming

VC Cafe

A year ago, VC Cafe covered LumaScapes , a series of infographics by the American consulting firm LumaPartners , capturing the landscape of various digital media industry verticals including display advertising, mobile, commerce, search, social, and video.

The Great Voice Consolidation

View from Seed

Voice-powered products and services will exist and succeed or fail via as yet unknown but fundamentally different looking distribution and discovery mechanisms. Because voice activation may require users to know both what they want and who provides it, today’s leading brands in any given vertical will have a huge advantage. Speech is our fastest natural means of communicating.

Money Out of Nowhere: How Internet Marketplaces Unlock Economic Wealth


Unfortunately, either information asymmetry or physical distances and the resulting distribution costs can both cut against the economic advantages that would otherwise arise for all. Specific benefits of global internet marketplaces: Increase wealth distribution (all examples).

Tune In to the Secrets of Real Business Leaders

Startup Professionals Musings

Often, this means specializing in a single vertical market or industry. Leadership is distributed. A while back I found some great product leadership guidance in “ The Secrets of Tuned In Leaders ”, by Craig Stull, Phil Myers & David Meerman Scott.

Software Eating Industries

Mucker Lab

From the outside, they are vertically integrated challengers to decades if not hundred-years old incumbents. Smaller companies like Warby Parker are taking on branded incumbents in eyewear by re-inventing and collapsing distribution and manufacturing channels.

Innovation Outposts and The Evolution of Corporate R&D

Steve Blank

and concentrated on a single part of the supply chain – importing, distribution, wholesale, retail. For example, US Steel had integrated vertically and was involved in the mining of the iron ore all the way to the production of various steel products, e.g., nails.

Why Online Video Just Took One More Big Step to Legitimacy

Both Sides of the Table

Anyone who reads this blog frequently will know that I am a big believer in low-cost video content and specifically the power of YouTube as a content creation & distribution platform. Distribution costs have, too.

Raving Fans – How Our Themes Evolve

Feld Thoughts

” We invested in Sympoz in our Distribution theme , but it has this special characteristic around its community that felt a little different to us. We all like the entrepreneur a lot, but the company didn’t feel like it fit in any of our themes and was too vertically oriented for us. We had our Foundry Group annual meeting yesterday. I enjoy our annual meetings – we get to spent a focused chunk of time with our investors.

How the iPhone Got Tail Fins – Part 1 of 2

Steve Blank

mile manufacturing complex, with 100,000 workers – vertically integrated and optimized mass production. Here’s what he did: Distributed Accounting Unlike Ford, GM was originally a collection of separate companies. It was the most advanced consumer product of the century.

For VCs, “What Could Go Right” Is More Important Than “What Could Go Wrong”

Hunter Walker

The notion that tremendous value is created by a very small percentage of startups, and the financiers behind this businesses are counting on a few of these companies to make up for all the nonperforming investments is called a power law distribution.