Sramana Mitra: Help me rationalize what’s happening right now in the market regarding late-stage valuation bubbles. We have two kinds of bubbles in the startup venture world. One is in the seed capital. In 2013, 70,000 companies were angel-financed. That’s too much actually. It’s great that they got angel-funded, but then if you look at
Sramana Mitra: During this period when you had a lot of users and you didn’t have the model figured out, what experiments did you run to get to the heart of that issue—because the whole business is predicated upon that? Ross Mason: No one has ever asked me that question and it’s a great question. I
Sramana Mitra: Anything that starts to validate and gets clients into a product is really a key milestone. In everything that we do, that milestone makes a humongous difference. Ajay Patel: It was a turning point for us. Sramana Mitra: In what year was that? Ajay Patel: That was in 2006. Sramana Mitra: At that
Sramana Mitra: If I understand it correctly, you have not only the indexers and the crawlers but also connectors to different systems like Salesforce that then allows you to bring all that together in contact. Louis Tetu: You’re right. Obviously, you understand technology really well. Sramana Mitra: I’m a computer scientist from MIT. Louis Tetu: So we
Sramana Mitra: Our program is 100% based on this philosophy that you have to immerse yourself in customers and you have to understand the customer dynamics—why they buy, when they buy, and how they buy. Louis Tetu: If you do that, you can use seed capital to get very quickly to a use case and
Sramana Mitra: Just to get the facts straight, you have a bunch of Fortune 50 companies starting to adopt the solution. You did the seed round yourself. What about the venture round? At what point in that adoption cycle did that venture round come in? I’m not talking about post-IPO. I’m talking about the pre-IPO
Sramana Mitra: In the case of HP as the anchor tenant, were they paying you? Louis Tetu: They were in exchange for significant development capacity and applications suited to their needs. Of course, we had the framework for that. As I said, we went to them with a concept of digital competence profile. That was a significant
Sramana Mitra: In this strategy of being the a customer service portal for brands, the business model around that is not exactly an advertising business model; it’s more a SaaS business model, isn’t it? David Karandish: That’s where half of the revenue comes from, but we leveraged the Advertising.com business model to build out the