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“Business-to-Business is Back” at Venture Association New Jersey Meeting

The regular monthly meeting of the Venture Association New Jersey (www.vanj.com) was held on Tuesday, January 15, at the Hanover Marriott, Whippany, NJ.  The featured speaker was Larry Bettino, General Partner, Starvest Partners (www.starvestpartners.com).  His topic was, “Investing in Business-to-Business (B-to-B) Startup Companies is Back In Style.”

 

            Bettino began his presentation with some facts about Starvest Partners.  Established in 1998, the company invests in technology-enabled providers of business services such as Software-as-a-Service (SaaS), security and compliance, internet marketing, data/information-based services and eCommerce.  “Investing nationwide, but only in expansion stage companies with between $2 million and $20 million in revenue, we will consider only investments where we can add value,” Bettino told the audience.

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            “Investments in Business-to-Consumer (B-to-C) ventures has grown steadily since 2005, climbing rapidly since third quarter 2010, while investment in B-to-B fell out of favor,” Bettino continued.  “The recent rapid rise has been due to speculation in companies like Facebook, Groupon, Zynga and Pandora.”

 

            There are a number of reasons why B-to-C investments can be attractive, according to Bettino, including:

 

·       They require only a small upfront development investment.

 

·       Consumers are willing to try new things.

 

·       They can generate many users quickly (going viral).

 

·       They can generate initial revenue quickly.

 

·       Rapid valuation increases are possible.

 

However, there are also a number of reasons why they can be unattractive, including:

 

·       Attracting consumers can be unpredictable

 

o   4Square required 13 months to acquire 1 million users.

 

o   eBay required 24 months to acquire 1 million users.

 

o   AOL required 66 months to acquire 1 million users.

 

·       Monetization can be difficult.

 

o   Google generates only $24.00 per user.

 

o   Facebook generates only $4.00 per user.

 

·       Consumers can be fickle.

 

o   OMG POP generated 36 million users in less than 1 month but is now almost extinct.

 

·       Rapid valuation decreases are possible.

 

o   Stock prices of Facebook, Groupon, Zynga and Pandora all declined rapidly after IPO.

 

B-to-B investments, on the other hand, offer a number of attractions with considerably less downside risk, including:

 

·       Acquiring B-to-B users is formulaic and relatively predictable.

 

·       Buyers are driven by economics (ROI), not by fads.

 

·       Happy customers are loyal (low churn).

 

·       SaaS economic model is gaining greater traction.

 

·       Many B-to-B platforms are becoming attractive to consumers.

 

·       Valuations/Outcomes can be excellent

 

o   Stock prices of NetSuite, WorkDay, Splunk and ServiceNow all increased rapidly after IPO.

 

Bettino’s PowerPoint presentation is available on the VANJ website at www.vanj.com/archive2013.html.

 

 

 

Next Meeting  February 19

 

            The next scheduled VANJ meeting will be held on Tuesday, February 19.  The featured speaker will be Gil Beyda, Founder and Managing Partner, Genacast Ventures (www.genacast.com).  His topic will be, “Eight Keys to Yes: The 8 Questions You Need to Answer to Get Me to Write a Check.”  Advance reservations can be made by calling Clara Stricchiola at (973) 631-5680, faxing (973) 984-9634 or e-mailing clara@vanj.com and mailing a check ($35 for members, $55 for non-members) to VANJ, 26 Main Street, Chatham, NJ 07928-2402.  Registration at the door is $75 after 12:00 Noon on Monday, January 14.

 

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Berkeley Heights

Honoring Sacrifice and Service on Memorial Day

May 25, 2018

On Monday, May 28, 2018, our Nation celebrates our most solemn event, Memorial Day.  In Berkeley Heights tradition, we will honor those who sacrificed themselves so that we may continue to live in the greatest country on earth.  I invite all residents to join us for the parade festivities and, most importantly, gather at our Veteran’s Park for a brief ceremony.

America has ...

Logic and Sensible Spending Take Priority

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I will draw on my experience to deliver a great future for Berkeley Heights

I am impressed with the day-to-day leadership of our Mayor and Town Council and I hope to help them continue to do great work. As I have been doing my research since deciding to run for a seat on our Town Council, I have learned a few things about all the work that has been happening in recent years.  For example, while plans for the Stratton House development were recently announced, our ...

How the Holi Color Festival Came to Summit; Event Planner Shares Her Story

May 21, 2018

Back in India, Holi was a holiday observed by almost all states. The holiday would be declared at all educational institutes and offices. It's a two day spring festival also known as the festival of colors. The festival signifies the victory of good over bad, the arrival of spring with the fragrance of flowers in the air and aura of warmth and happiness.

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A Better Summer with the Y: Join by May 31 and Have Your Joiner Fee Waiver!

May 26, 2018

From now through the end of May, new members joining the Berkeley Heights YMCA will have their joiners fee waived, because at the Y we believe that everyone deserves to reach their health and wellness goals. With a savings of up to $95, you can focus on the perks of being a Berkeley Heights YMCA member:

Unlimited attendance to more than 100 group fitness classes a week
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The New Providence 2018 Memorial Day Parade Begins at 10 a.m. on Monday, May 28

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A Better Summer with the Y: Join by May 31 and Have Your Joiner Fee Waiver!

From now through the end of May, new members joining the Berkeley Heights YMCA will have their joiners fee waived, because at the Y we believe that everyone deserves to reach their health and wellness goals. With a savings of up to $95, you can focus on the perks of being a Berkeley Heights YMCA member:

Unlimited attendance to more than 100 group fitness classes a week
• State of ...

Fallout Continues from Lawsuit Against Mountainside; Police Chief on Administrative Leave

May 19, 2018

MOUNTAINSIDE, NJ – Police Chief Allan Attanasio is the latest member of the police department to suffer repercussions from a complaint filed against the borough on May 11.  Attanasio, who is not named as a defendant in the lawsuit, was “placed on administrative leave,” on Thursday by Borough Administrator and former Police Chief James Debbie, said  Lt. Joseph ...

Cycling Champ Laura Van Gilder Returns to Somerville Memorial Day to Defend Race Title

May 26, 2018

 

SOMERVILLE, NJ – Laura Van Gilder, 54-year-old cycling champion from Cresco, Pa., will return to defend her title at the 75th annual Tour of Somerville on Memorial Day, attempting an unprecedented fifth win in the 25-mile women's race, just one of several races that begin at 10:30 a.m..

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Upcoming Events

Sat, May 26, 9:00 AM

Miller-Cory House Museum, Westfield

Aunt Carrie's Attic Sale

Giving Back Other

Sat, May 26, 11:00 AM

Home For Good Dog Recue, Berkeley Heights,

Dog Adoption

Other

Sat, May 26, 2:00 PM

New Providence

Memoir Writing Workshops @ NPML

Arts & Entertainment

Thu, May 31, 11:30 AM

Canoe Brook Country Club, Summit

Fortnightly Club Scholarship Luncheon

Food & Drink Giving Back

Thu, May 31, 1:30 PM

Coppola Ristorante, New Providence

Lunch and Learn: Dental Implants and the ...

Health & Wellness

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Thu, May 31, 7:00 PM

Gov. Livingston Cafeteria, Berkeley Heights

Gov. Livingston Hilltop Players Host Annual Relay ...

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Don’t Make These Three Mistakes About Social Security

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