Sramana Mitra: Are these on-demand services happening? Are you seeing somebody doing that?
Craig Powell: We’ve done some interesting tests on on-demand auto purchase – the ability to purchase your vehicle from your couch, deliver it to your driveway, test it for seven days, and turn it back in if you don’t like it. We’ve got something going on in on-demand tire services. We know where our drivers are driving and what their needs are. We know when their tires need to be changed. Certainly, there is some early progress on that front and an increasing attention to the fact that there’s a large segment of the population that wakes up and drives everyday for work.
Sramana Mitra: Any other thoughts? >>>
According to a MarketsandMarkets report, the global artificial intelligence (AI) market is estimated to grow at 53.65% annually from $419.7 million in 2014 to $5.05 billion by 2020. The growth in the industry is attributed to the deployment of AI technologies in retail, finance, and healthcare sectors. IBM (NYSE: IBM) is targeting this high growth market with added focus on Watson through acquisitions and strategic tie-ups.
Sramana Mitra: How did you negotiate the deal with Brocade? How much were they willing to pay you for doing what you were going to do for them?
Jagan Reddy: Today for a $2 billion company, our price point would be anywhere between $300,000 to half a million dollar annual subscription fee. At that point, I gave it to them for just under $20,000.
Sramana Mitra: Oh, wow!
Jagan Reddy: That’s just for the software. They paid for the services.
Sramana Mitra: How much did they pay for the services? >>>
There is a very real knowledge gap in the early stage start-up game, on both sides of the table. First-time entrepreneurs lack the seasoning to captain a steady ship through turbulent waters. Inexperienced friends and family (and, increasingly, crowdsourced investors) lack the ability to gauge the viability of a business, or to mentor naïve entrepreneurs. This knowledge gap, I have come to believe, is best filled by savvy incubators. However, there are over 7,500 business incubators around the world, and most of them fail.
Here are several must-read articles on incubators and accelerators that will help you navigate and make informed decisions.