Sramana: How do you manage the courier service? Is it your own service or do you use a commercial service? Where are you having the paintings shipped to? Alexander Zacke: We pick up the merchandise as soon as we obtain an auction contract. We then catalogue the item and run it through our in-house services.
Sramana: Did you expand Auctionata to include other auction house functions once you had verified market interest through valuation services? Alexander Zacke: From there, everything progressed very quickly. We did 400,000 valuations in our first year. Sramana: How did people find out about the site? How did they know you existed and that you offered
Sramana: What did you learn from watching eBay’s struggle with art auctions? Alexander Zacke: In the mid-2000’s, it became clear that the peer-to-peer marketplace model, although extremely powerful and scalable, did not work beyond a certain price point. The fine art world will begin at $1,000 which was 20 times the price point of eBay.
Sramana Mitra: What happened next in your history? Andres Rodriguez: After we sold Archivas, we had all the top venture capitalist wanting to fund the next project. Sramana Mitra: I’m sure. What’s good with being an entrepreneur is, capital follows you. Andres Rodriguez: Success breeds capital. Sramana Mitra: However, let’s talk about the investment pieces
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. Auctionata is a professional online auction house. We’re about to encounter the online version of Christie’s and Sotheby’s. Read on … Sramana: Alex, let’s start at the beginning of your story. Where are you from and where were you raised? What are the roots of your
Sramana: When did you start Influitive? Mark Organ: I left Singapore in early 2010 and I started Influitive after I returned to Toronto. I was able to get a great team together. The goal was to help companies grow faster by leveraging their fans and advocates. We think this is going to be a huge
Sramana Mitra: What were the mechanics of Abuzz? Was it a venture-funded company? Andres Rodriguez: Yes, it was a classic Series A venture funded company. It was funded by SoftBank, Brad Feld, Solstice Capital, and Flatiron Ventures, which is no longer around. I was very lucky to have good guys. They were especially good with
Sramana: Can you tell me a bit about your decision to raise money? Mark Organ: Once we knew the formula for a sales unit and the return it would provide, it was time to step on the gas and we needed money to do that. We knew that if we did not do that, then