Earlier this summer, Oracle (Nasdaq: ORCL) announced the $5.3 billion acquisition of MICROS, a point of sale system for the restaurant, hospitality, and specialty retail stores industry. Analysts believed that this was just the beginning of many more acquisitions to come as they projected Oracle to spend nearly $15 billion-$20 billion in the next two years on inorganic growth. During the recently ended quarter, Oracle continued to make other smaller acquisitions to grow their presence within the cloud and software segments.
Sramana Mitra: How did you do it? How did you launch? What did you do specifically?
Samy Liechti: We knew that marketing will be very hard. We knew that a subscription business will only work if people like the quality of goods they receive. We knew that we wanted to build a brand, and we knew that we don’t have time to solve all the problems. We did a couple of things. One thing was we spent a lot of time discussing which problems we wanted to address. We selected only one or two and then we solved them.
Sramana Mitra: Which ones were those? >>>
During today’s roundtable, we had three pitches, and all three have generated some revenue already.
Care + Wear
First up, Chat Razdan, from New York, pitched Care + Wear, an arm band for patients going through intravenous therapy that keeps the tubes concealed, while holding them in place. Chat is currently running an Indiegogo campaign, and is also talking to hospitals to distribute the products.
Next, Probir Sarkar from Kolkata, India, pitched Pictofigo, a database of hand drawn figures that can be used in training videos, explainer videos, etc. Probir has a few paying customers licensing his images. I thought it was a nifty idea and a viable business.
Consumer Credit is a $10 trillion dollar industry that Al and his team are trying to turn on its head. Aided by Big Data and machine learning, they are creating a direct to consumer lending model that may have far reaching impact on the financial services industry.
Sramana Mitra: Let’s start at the beginning of your journey. We can talk about your co-founders, but let’s start with your background a bit and share with the audience where you’re from and where your personal journey started.
Sramana Mitra: In 2007, what was the landscape in the e-commerce shopping cart or the e-commerce platform world? What was going on around you? What was the competitive landscape? Whom did you compete with directly and indirectly?
Rick Wilson: Yahoo stores was still a popular platform. I wouldn’t say that it had momentum, but it was certainly popular. The osCommerce software, which had been very popular, had faltered. I was never a big osCommerce guy, so I can’t remember if they released version three or four. They were in between major versions and it just died on the vine. They never got the major version out. I think Magento’s alpha was announced during that time. Shopify was just starting to arrive on the scene. I heard about them in 2008. Volution was probably the earliest success story as a pure play Software as a Service platform provider in our space. >>>
Today’s 236th FREE online 1M/1M roundtable for entrepreneurs is starting NOW, on Thursday, October 30, at 8:00 a.m. PDT/11:00 a.m. EDT/8:30 p.m. India IST. Click here to join.
Today’s 236th FREE online 1M/1M roundtable for entrepreneurs is starting in 30 minutes, on Thursday, October 30, at 8:00 a.m. PDT/11:00 a.m. EDT/8:30 p.m. India IST. Click here to join. All are welcome!
According to a report by Signals and Systems Telecom, the global market for Big Data-related hardware, software and professional services is expected to be worth $30 billion this year. The researcher estimates the industry to grow 17% annually over the next six years to be worth $76 billion by the year 2020.
Corporate venture capital takes many different forms. The most common one is to help the parent company keep its fingers on strategic innovation. Typically, this includes both adjacent revenue opportunities, as well as new business areas, including some that may be disruptive to the company’s core business.
My main observation about what corporate venture capital needs to do differently from generic VC is around how the subject of TAM (Total Available Market) is considered.
In ordinary venture capital, more often than not, the goal is to identify billion dollar, hyper fast-growth business opportunities.
These, though, are extremely difficult to find.
There are, however, many more $100 million, $200 million business opportunities out there.