Winner Circle: The Social Business VCs Who Achieved Material Events

The purpose of this post is to identify investors who have had a material event (IPO or acquisition) in the Social Business Software space. Read my other posts in this series tagged VC. Our continued research over VCs and investors in the market continues, yesterday, I presented highlights at the Corporate Venturing Innovation conference, and showed the highlights to LPs and Corporate Bankers of who’s making bets –and who’s winning. The following data was also covered in PEHub, and generating interest from entrepreneurs seeking funding. As an Industry Analyst, it’s key that we understand consumer behaviors, business adoption, and startups, but also funding patterns as they influence startup growth or stagnation. Scope of Research and Methods Definition of Social Business … Continue readingWinner Circle: The Social Business VCs Who Achieved Material Events

Meet the Investors of Social Business

The purpose of this post is to identify which investors are most active in Social Business, and segment them from early to late stage funding. I frequently provide due diligence calls to VCs, and also advise startups on their growth startup in highly saturated growth markets.  To hone my industry interactions, I’m publishing data on my continued research on funding in the Social Business space (read other posts on the state of funding in social business, and rate of material event or click the VC category to see all posts).  The investors are a key factor in the success of a startup, they advise, provide resources for rapid growth, influence a sale or IPO, or can cause a startup to be … Continue readingMeet the Investors of Social Business

18% Social Business Software Achieved a Material Event –VCs Not Required

Executive Summary Research has found that out of 55 Social Business Startups that a majority (69%) have received early and late stage funding, averaging $14m in total funding.  A significant 31% have not taken investor funding, which we’ve listed 6 reasons ranging low costs of operations, self-funding, VC avoidance, and market saturation of startups.  18% of startups had achieved a material event (acquired or IPO) and of them, 40% we’re not funded.  Expect three macro trends in 2013 including: 1) Startups focus on business value to battle software giants, 2) Investors hot on SMMS market, but wary of vendors who lack differentiation, and 3) As Social Business Software market matures, expect growth in late stage investments Research Background I’m continuing industry … Continue reading18% Social Business Software Achieved a Material Event –VCs Not Required

The State of Funding in Social Business Software

Executive Summary: Social Business Software vendors (Startups that offer social technology software and solutions for corporations to use to interact with employees, customers, and partners) have raised on average $14m with the most common round being an A-Round at $5.2m.  A few vendors have received large D-Rounds, however most are receiving $5-10m rounds from a series of investors.  Brands must ask vendors at least 5 questions on who and how this money is and will be used, to understand the strategy before buying. [Funding in social business software is an indicator of a Vendor’s potential to quickly accelerate to meet the needs of corporate customers] Why this Research:  As an Industry Analyst, I look at The Three Spheres of Web … Continue readingThe State of Funding in Social Business Software

The Startup Conundrum: Scalable vs Services

VCs Seek Scalable Technologies Lately, I’ve been spending time trading information with one of the most powerful groups in our industries: VCs. They spur innovation by injecting funding into startups, help fuel those that need an accelerated path, and work many deals in the background to connect their investments with the right folks. [Although VCs seek investments that rapidly scale, startups must satisfy the needs of enterprise clients by offering a range of services] Yet despite their power I’m often concerned about one of goals that VCs have of their investments is finding and investing in a company that will quickly scale an an exponential rate then exiting. Their vision is for technology to go from 1 person to 10 … Continue readingThe Startup Conundrum: Scalable vs Services

The Silicon Valley Transplant CEO

I’m extremely busy these past few weeks, and you’ve noticed a slow down in my posting (have you met our other analysts?), so I’m going to do a series of short blog posts, unlike my longer meaty posts. I met with Ali Partovi, CEO of iLike today, who told me about a recent trend of what I call “Transplant CEOs” that have addresses in Silicon Valley, are often here for meetings, but their company is located in other tech hubs like Seattle, Portland, Texas, Canada and beyond. Why this pseudo address? two reasons: 1) Running a company in silicon valley is expensive, talent tends to be flighty, and cost of living is high. In other cities, take Seattle for example … Continue readingThe Silicon Valley Transplant CEO