Sramana Mitra: What about industry sector? Do you have preferences? Do you have concentrations? Do you have expertise in specific sectors?
Oded Hermoni: We usually invest a lot in media. A couple of months ago, you covered two Israeli companies Outbrain and Tabula. We invested in Outbrain very early on. We also invested in a company called Gizmo, which is a US-based company. One of our latest investments is a company called comedy.com that now has 3.5 billion views per month. Those were our investments in media.
We have some consumer-related companies. We have security companies such HexaTier that was acquired by Huawei. We have >>>
Entrepreneurs are invited to the 391st FREE online 1Mby1M mentoring roundtable on Thursday, March 22, 2018, at 8 a.m. PDT/11 a.m. EDT/8:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea. You’ll receive straightforward feedback, advice on next steps, and answers to any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.
John Dougery: We had a thesis around services-based businesses in e-commerce for consumers. Financial technologies are a big segment there. We invested in Policybazaar, which is the leading online insurance marketplace by a factor of 10 over its competition now. It was about a factor of five when we first invested.
It’s getting increasing commissions from the insurance providers for selling. We’re the lead investor in FundsIndia, which is the leading online mutual fund marketplace for consumers in India. Again, it provides price discovery, understanding of these products so you can stay away from the products with a high load or an insurance where you cannot be taken advantage of. >>>
Billion Dollar Unicorn club member Stitch Fix (Nasdaq: SFIX) went public in November last year. It had a choppy start to the listing as its unique business model puzzled the analysts. Stitch Fix operates a hybrid model of subscription and transaction revenue services. Customers subscribe to receive a supply of apparel that Stitch Fix’s stylists and algorithms work out as best suited to the customer’s needs. But the customer does not have to pay a monthly subscription to receive the package. Instead, they pay a fee when the Fix is sent, and, if they want to buy the products in the package, they can apply this subscription fee as credit toward those purchases. In the last few months, the company appears to have instilled some confidence into the market as it has delivered an upbeat quarterly performance.
Sramana Mitra: Is this an inside sales model? What is the go-to market?
Anthony Ferry: It has turned out to be more of an inside sales type of selling. It’ a hybrid. That was a learning for me. What I was used to was more of an outside sales in a consultative arena. Especially when your product is people, you need to be in front of that customer proving yourself and presenting that talent to them in person.
With PriceSpider, that was a drastic shift. The majority of our identification of potential customers through marketing, solicitation, qualifying, and even initial presentations is all done over the phone. It is only the larger customers or the very >>>
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Oded Hermoni was recorded in October 2017.
Oded Hermoni is Managing Partner at Rhodium Venture Partners, and is also co-founder of an Angel group, J-Angels.
Sramana Mitra: Tell us about Rhodium. What is the focus of the firm? How big is the fund? What sized investments do you make?
Oded Hermoni: Rhodium is not the typical fund. It’s an Israeli-US investment arm of a family office. We have only one LP. We >>>
Steven Aldrich, Chief Product Officer, GoDaddy, delves deep into the nuances of how a sophisticated product organization thinks about new products through customer-driven innovation, internal innovation, as well as external eco-system driven innovation.
Sramana Mitra: Let’s do a couple of case studies of the kinds of companies that you have invested in and had successes with. If you could, for the benefit of our entrepreneurs, walk us through the logic and thought process of the investment thesis when you invested.
John Dougery: I’ll start with companies that are based in Bangalore. It’s a very typical example of how we work. This is an entrepreneur that we started tracking and mentoring because we liked him back in 2006. This was when we were just forming the firm. We didn’t have the capital yet, but we were engaged in the community and we helped him find his seed financing. >>>