I am always interested in companies which survived the crash, and especially interested when they are in such a competitive market. Here Amir outlines what steps were taken at Shopping.com led to the success of the company. SM: What did you do differently to make a 1997 founded company survive the worst downturn in the
Here the conversation directly addresses a common assumption that microfinance is not a profitable business model. SM: I would like to get back on topic and drill down on the assumption on returns. Microfinance may charge 18-25% interest and even so does not get even close to the types of returns the venture capital funds
The strategy of running an investment firm may vary, but the end goal is always healthy and compelling returns. SM: So you manage Unitus as a professional investment opportunity with similar goals as venture capital firms? CB: We look at investing very much as a derivative of venture capital. I would argue it is just
The makeup of a private equity fund can be telling. Chris highlights the composition of the Unitus fund. SM: What is the source of the Unitus equity fund? SB: We have four equally significant investors. A quarter of our capital is provided by Omidyar Networks and Pierre Omidyar. A quarter is provided by an excellent
Here Chris details Unitus’ switch from being a non-profit firm to a for-profit firm. Much of the current interest in microfinance is generated by the fact that the discipline is now being viewed as a sustainable “business”, not just charity. Thus, large banks, venture firms, and serious entrepreneurs are starting to wake up to its
For many venture startups, getting funding is always a significant challenge as well as a strategic milestone (taking too much funding, or not enough). Amir had little difficulty gaining funding in the midst of the greatest boom market, and made what ultimately turned out to be the correct decision in the amount of funding received,
There are several very interesting aspects to keep in mind when considering Shopping.com. First, the comparative shopping marketplace was a low-barrier-to-entry marketplace to enter, leading to significant competition. Second, revenue generating strategies were difficult to figure out in the 1997-1999 timeframe. Online advertising as a revenue model had barely started to take off. Finally, once
Chris Brookfield is the Investment Director at Unitus Investment Management Company. He has been a venture capital and private equity investor his entire professional career. In 2004 he co-founded Open Water Investors. Chris has also been an Associate at Redleaf Venture Management, a Silicon Valley seed stage venture investor, and is familiar with pure play