GSV Portfolio Review Q3 01
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The document provides an overview of investments in the 3rd quarter of 2001, including summaries of 14 portfolio companies. Key details included are company strategies, competition, investment information, ratings on management and market potential. The summary seeks near-term investment opportunities and needs introductions to customers for some portfolio companies.
GSV Portfolio Review Q3 01
- 1. 3 rd Quarter 2001 Review
- 2. Presentation Overview List of Portfolio Companies Growth Share Matrix Business Strength vs. Market Attractiveness Exit and Exit Barriers Company Strategy and Details Near-Term Investment Opportunities
- 3. The Current Portfolio acquired by Liquidated
- 4. Growth Share Matrix Relative Market Share Relative Growth Rate Boston Consulting Group’s Growth-Share Matrix Question Marks Stars Cash Cows Dogs 0.1x 0.5x 10x 1x 1.5x 2x 4x 0% 5% 10% 15% 20%
- 5. Exit and Entry Barriers High Returns But Risky Best Case Low Returns Worst Case Exit Barriers Entry Barriers Low High Low High
- 6. Business Strength Strong Medium Weak Low Medium High Business Strength Market Attractiveness General Electric Multifactor Portfolio Matrix
- 7. Defining a Strategy Discipline of Market Leaders preaches that successful businesses must be excellent at one of the following three disciplines: Product Leadership -- selling the best widget on the market, such as Hewlett-Packard's laser printers. Operational Excellence -- having your processes under such great control that you offer your customers the best total cost, such as McDonalds. Customer Intimacy -- you solve all of your customers' problem in an area, so they give you their business. Amazon.com, when it knows what books you like, is being customer intimate. Arrows represent The axes represent 50% effort The tick-marks represent 25% The sum of the 3 axes is 100% A balanced strategy will have 50% on any one axis and 25% each on the other two A company can only excel at any one of the three but at no time needs to ignore the other two Discipline of Market Leaders Michael Treacy, 1994 Technology Customer Operations Customer Intimate Product Leadership Operational Excellence
- 8. digiMine Technology Customer Operations Customer Intimate Company Strategy Provide the highest level of data analytics for medium and large companies, using adaptable and customizable technology focused on customer requirements Competition Technical solutions that often require customers to adapt their expectations to the software rather than vice versa – tend to be highly priced Predominately software sales, less scalable, more costly, and longer implementation time
- 9. digiMine Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Seattle, WA Investor 9/2000 $430,000 $603,492 Growth-stage Advisor Strong digiMine's advanced data warehousing and data mining services are securely delivered via the Internet, which enables a fast and reliable way for businesses to act with precision and speed. Core services include personalization, cross-sell/up-sell, campaign management, data mining/analytics Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation: Mayfield, Kellett, Cedar Grove 4 4 3 3 3 4 Portfolio company Corelation was sold to digiMine in April 2001. Bruce has joined the Board of Advisors for the company. Sales growth exponential 4 best 3 good 2 satisfactory 1 needs work
- 10. fiscaloutlook Technology Customer Operations Product Leadership Company Strategy Create a treasury management solution, bridging financial administration systems at the enterprise and banking levels. First product offering ties in the expense management system. Competition Entrenched expense management systems are clearly not low-cost solutions, tend to be “older” technology, and are focused on customers needs/wants
- 11. fiscaloutlook Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Atlanta, GA Lead 9/2000 $1,000,000 $1,000,000 Seed-stage Director Weak FiscalOutlook is a Financial and Business Administration Software Management firm specializing in building business processes that bridge disparate financial and administrative systems using services to generate customer opportunities. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation 1 2 1 3 1 3 Packaging up for technology sale in the following three areas: banks, technology providers to banks, and managed service providers. 4 best 3 good 2 satisfactory 1 needs work
- 12. HiddenMind Technology Customer Operations Customer Intimate Company Strategy Generates mobile applications that function whether connected or disconnected from the wireless network allowing for continuous interaction by the user. Following the merger, focus has shifted from a technology-centric to a customer-centric perspective. Competition Virtually all competitors are focused on technological leadership, often without regard to customer wants/needs
- 13. HiddenMind Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Cary, NC / ATL Lead 7/2000 $4,831,200 $6,000,000 Early/Growth Director Very Strong HiddenMind delivers a solution that frees organizations from betting their mobile strategies on a particular device type or a single method to interact with better logic or legacy data. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation: Warburg Pincus, BEA 3 3 4 3 4 4 Portfolio company Anydevice merged with HiddenMind in June 2001. Integration going well. CEO search underway with Taylor Winfield. New customers include St. Jude Medical. 4 best 3 good 2 satisfactory 1 needs work
- 14. Interactiveapparel Technology Customer Operations Customer Intimate Company Strategy Through sales and marketing expertise, become the online distribution arm for small and mid-size apparel and accessories manufacturers Competition Fulfillment houses such as SubmitOrder, Innotrac, and ShipXAct have chosen a low-cost focus – Software companies such as Edaflow and Chelsea Interactive have chosen a technology leadership position – StyleClick is the only customer intimate competition
- 15. Interactiveapparel Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Atlanta, GA Lead 7/2000 $1,000,000 $1,419,790 Seed-stage Director Moderate Interactiveapparel provides end-to-end solutions for the apparel and accessories industries. Services include order fulfillment, web development, imaging, customer service, and marketing strategy Ideal Internet business model due to a lack of need to fund inventory and marketing programs Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation 2 3 3 4 2 3 Company is currently analyzing M&A and investment opportunities with strategic players such as SubmitOrder, ShipXAct, and Chelsea Interactive. Recently signed clients include Enyce, Rafi Linea Uomo, Wittnauer, Ben Sherman, Venom Jeans. New marketing programs kicking off to drive sales in the Fall. 4 best 3 good 2 satisfactory 1 needs work
- 16. iReadyWorld Technology Customer Cost Customer Intimate Company Strategy Following funding, there is a new push to expand into the Atlanta market. The founders are taking a back seat to a new CEO and restructuring strategy will be defined during new CEO’s first 90 days. Competition Status quo is the only true competition
- 17. iReadyWorld Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Cost Current Investment Value Stage of Development Board Representation Momentum Charlotte, NC Investor XX/XX/2001 $X,000,000 $X,000,000 Early-stage Director Strong iReadyWorld supplies, installs, manages, upgrades and supports IT systems, equipment and software for small and medium sized businesses. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation 4 2 3 4 3 4 An offer has been extended to a CEO candidate. Students at Goizueta are made IRW the subject of a change management study with evaluation/recommendations expected in late November 4 best 3 good 2 satisfactory 1 needs work
- 18. Jstreetdata Technology Customer Operations Customer Intimate Company Strategy To apply low cost and high-tech market research to meet specific customer needs/wants, gaining participation in medical studies and programs by physicians and payors in a timely and accurate manner Leverages channel partners and direct sales to syndicate studies for resale Competition In-house market research tends to be primarily customer intimate, not high-tech, and with slow turnaround
- 19. Jstreetdata Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Washington, DC Co-lead 7/2000 $300,000 $300,000 Early-stage Director Strong Jstreetdata.com is a web-based clearinghouse of medical market research opportunities. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation; ADAMII Ventures, Mir Imran 3 3 3 3 3 2 In process on closing Series B Recently crossed into “cash flow positive” territory Customer growth accelerating 4 best 3 good 2 satisfactory 1 needs work
- 20. Percite Technology Customer Operations Product Leadership Company Strategy Leverage existing client/server technology customer base with an ASP solution targeting the freight-forwarding and airline logistics spaces Goal is to build multi-functional platform to meet all of the logistics needs of the customer Competition Other companies have either focused on single function products delivered as a software-only solution
- 21. Percite Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Israel Co-lead 11/2000 $500,000 $500,000 Early-stage Observer Moderate Percite designs and develops systems integrating software enabling eLogistics end-to-end Solutions to Supply Chain Environments. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation BRM Capital, Neurone Capital, GKM 2 3 2 3 3 3 New CEO, John Traenly, joined in May, 2001 Low burn due to Israeli development cost structures Good solid 2 year plan, strategy to go to market without additional funding 4 best 3 good 2 satisfactory 1 needs work
- 22. Quellan Technology Customer Operations Product Leadership Company Strategy Being first to market with a solution creating greater throughput at optical links utilizing integrated circuits Competition No known competitors, but validated by industry players who see this as strategic product initiative
- 23. Quellan Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Atlanta, GA Co-lead 4/2001 $333,334 $333,334 Seed-stage Director Rapid Quellan is developing new technology for next-generation optical links. The company is focused on metro optical networks. Recent Developments Ratings Overall Management Market Product Potential Performance to Plan Venture Group participation; Cordova, Chaddick 3 1 4 4 3 3 Taylor Winfield conducting CEO search. Intel is looking very hard at potential investment, many other strategic opportunities Strong industry BOD and advisors: Ciena, JDS Uniphase, and Agilent 4 best 3 good 2 satisfactory 1 needs work
- 24. Robbins Awards Technology Customer Operations Company Strategy Blend the best of offline incentive programs with the efficiencies of an e-commerce strategy Competition Various offline and online providers of promotional items and other incentive programs Operational Excellence
- 25. Robbins Awards Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Attleboro, MA Follow 7/2000 $800,000 $421,625 Growth-stage Observer Moderate / Strong Robbins Awards provides the tools to design and run programs to retain, motivate and reward both employees and partners. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation: SAC Capital, ECOM, Palm Ventures, Bill Draper 2.5 2 3 2 2.5 3 Reverse merger between The Robbins Company and Corporategifts.com Shuttered corporategifts site due to lack of interest Replaced the CEO Looking at merger with MMS Incentives 4 best 3 good 2 satisfactory 1 needs work
- 26. ServerVault Technology Customer Operations Product Leadership Company Strategy To provide a technically superior, high-security, high-availability managed hosting solution for all-sized companies Competition Exodus and Digex have focused on the broader co-location and hosting marketplace – this has caused themselves to be spread too thin… and are failing due to faltering customer base and commoditized pricing
- 27. ServerVault Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Washington, DC Follow 11/2000 $1,440,000 $1,440,000 Early-stage Observer Moderate ServerVault is an Internet solution provider and security company that provides Internet hosting and security solutions for companies that have an Internet presence. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation: MidAtlantic Ventures, Cross-Atlantic, 5Paces, Schofstall Ventures 2 3 1 4 2 3 Large creditor issues due to completion of their facilities. Product highly regarded, but industry in turmoil. Sales growth continuing but recently leveling off. Assessing long-term strategy. 4 best 3 good 2 satisfactory 1 needs work
- 28. ZapMedia Technology Customer Operations Product Leadership Company Strategy To create the leading integrated multimedia consumer electronics experience for home use Competition Consumer Electronics space with niche functionality, such as DVD, PVR, MP3, etc. have either chosen product leadership or low cost supplier strategies
- 29. ZapMedia Company Description Investment Information Company Location GSV Role Initial Investment Date Total Investment Current Investment Value Stage of Development Board Representation Momentum Atlanta, GA Angel; Lead 7/2000 $352,000 $176,000 Early-stage Chairman Moderate ZapMedia is a convergence technology firm that provides instant access to customized news and entertainment through a common point of access. Recent Developments Ratings Overall Management Market Product Performance to Plan Venture Group participation: ATV, Gannett, 5Paces, Harmon Kardon, ATA 2 3 3 3 2 3 In M&A discussions with Sonic Blue. 4 best 3 good 2 satisfactory 1 needs work
- 30. Others Investment Information Company Location GSV Role Initial Investment Date Total Investment Cost Current Investment Value Stage of Development Board Representation Momentum Washington, DC Follower 7/2000 $1,200,000 $1,564,298 Public None Strong Backwire / Leap Wireless Fund’s Issue Must make a decision of when to liquidate/hedge the stock position. Clippen.com Fund’s Issue Mark Briggs negotiating sale of intellectual property Investment Information Company Location GSV Role Initial Investment Date Total Investment Cost Current Investment Value Stage of Development Board Representation Momentum Boston, MA Investor 7/2000 $250,000 $0 Seed-stage Advisor Closed
- 31. Needs from MSC digiMine Customer introductions HiddenMind Customer introductions ServerVault Customer introductions