A recent IDC research expects the Big Data technology and services market to grow 26.4% annually through 2018 to be worth $41.5 billion. The growth translates to six times that of the overall information technology market. Palo Alto-based Big Data vendor Cloudera is one of the prominent Billion Dollar Unicorn players in this market.
Keith Anderson: Besides exactly matching products, one of the fundamental, but not obvious ways we add value is through the matching of products that are not exactly identical. There is just one example—private label products, which are the products that the retailer sells under their own label or a private brand are often positioned as national brand equivalent, but they’re not exactly the same product. From a data perspective, matching those products is possible with a unique identifier like UPC. You have to have fairly sophisticated matching algorithms that either use product characteristics or visual matching that are associated with the products. >>>
Fat startup Adaptive Insights is another proud member of the Billion Dollar Unicorn club. They are a leading provider in the cloud-based Corporate Performance Management (CPM) solution market that IDC estimates to be worth $33 billion. Here is their story on how they made it to the club.
Sramana Mitra: Let me see if I’ve got this. You help retailers with pricing information and you help manufacturers optimize their channels through these retailers. Is that a good summary?
Keith Anderson: That’s a great summary. The retailers also care about assortment. We can also help them, very efficiently, identify products that they don’t carry and that their competitors carry that may be selling well and or that shoppers have reviewed positively. The retailers are getting more sophisticated in how they leverage our capability but it’s primarily about price and assortment for the retailers. For the brands, it’s an even broader set of analytics that they care about.
Sramana Mitra: Let’s double-click down a bit and give us the kinds of insights that you are able to extract for pricing optimization.
According to a survey of small businesses conducted by the Federal Reserve Bank of New York, to process a loan, a small business has to spend at least 26 hours, approach 2.6 financial institutions, and submit 2.7 loan applications. Billion Dollar Unicorn club member OnDeck is trying to make a big difference in cutting all this effort.
Price personalization has been touted as the holy grail of e-commerce. This conversation brings to light the state of the union in the domain of price optimization, price intelligence, and price personalization.
Sramana Mitra: Let’s start by setting some context for our audience of what Profitero does and what your background is.
Keith Anderson: Profitero was founded in 2010 in Dublin, Ireland by former IBM and Google software engineers. Sometimes people ask why the company was founded in Ireland and not in Silicon Valley. Dublin has established itself as a European technology hub. Our founders live there. We’re backed by Polaris Partners, which has offices both in Boston as well as in Dublin where we’re headquartered. We now have offices in Dublin, London, Boston, San Diego, Belarus, and Minsk. We’ll shortly open offices in Asia and other parts of Latin America this year. >>>
Entrepreneurs are invited to the 253rd FREE online 1M/1M roundtable mentoring session on Thursday, April 2, 2015, at 8 a.m. PST/11 a.m. EST/8:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea to Sramana Mitra. You’ll gain straightforward feedback, advice on next steps, and she’ll answer any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.
My recent book “Bootstrapping With A Paycheck” offers a close look at a mode of entrepreneurship that has become a major trend. Entrepreneurs are starting companies in droves while still holding onto their full-time jobs.
Two interviewers, Amina Elahi from The Chicago Tribune and Katherine Harvey from Union Tribune San Diego, asked me the same question: If you are bootstrapping a startup with a paycheck, when is the right time to quit?
Here is what I told them:
Q: How can an entrepreneur know when it’s time to make the leap to full-time self-employment?
A: This is a personal choice that depends on your life circumstances, but at the minimum, you should definitely validate your business idea and determine whether it’s going to generate money. Talk to customers and make sure they’re buying. And keep in mind that most venture capitalists will not fund you until you’re running your business full-time. Before you go out to raise money, you’re going to need to quit your day job.