Business & Finance

Press Releases

“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.

Sign Up for E-News

 

            “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.

 

TAP Into Another Town's News:

You May Also Like

Sign Up for E-News

Scotch Plains/Fanwood

Union County College Closed Tuesday March 14 Due to Pending Storm

March 13, 2017

CRANFORD, NJ - Due to the impending snow storm, all campuses of Union County College will be closed on Tuesday, March 14, 2017.

Home Staging Tips for a Successful Sale

First impressions are lasting. So it makes sense that to get the best value when selling your home, you should start with its curb appeal to entice potential buyers to come inside your home. When likely buyers enter the front door, you want them to realize this is the home for them to create new memories.

A Realtor can help you to identify small household changes, both outside and in, that ...

St. Patrick's Day Festival Success

March 21, 2017

Dear Editor:

The Fanwood Irish Festival presented by Sheelens's Crossing on March 11th and 12th was a terrific success! The heated tent provided a perfect venue for a late-winter revelry that included performances from Blarney Stew, Michael Murphy and Billy Wilkins. Dancers from the Marie Moore School of Irish Dance and the Shea - Jennings School of Irish Dance dazzled the ...

How Can I Build a Better Relationship with My Child?

March 20, 2017

One way to help children belong is to focus on building positive relationships with them. Strong positive relationships can go a long way toward helping children learn to cooperate and be responsible. Four ingredients of strong relationships are:

Showing respect
Having fun
Giving encouragement
Showing love

Parents often complain that their children do not respect them.

Employee Training for Businesses and Non-Profits Available at UCC's Industry-Business Institute

March 23, 2017

ELIZABETH, NJ - The Industry-Business Institute (IBI) at Union County College  offers any size business or non-profit organization the opportunity to use grant funding to provide training in basic skills and/or management workshops for current employee. The IBI lends their mobile computer lab (up to 20 laptop computers) to employers who host these programs at their place of ...

Upcoming Events

Carousel_image_c160434b600335b7c3bf_willow_grove_presbyterian

Sat, March 25, 8:00 AM

Willow Grove Presbyterian, Scotch Plains

Sharing the Quilts XXXIV

Arts & Entertainment Giving Back Home & Garden

Carousel_image_0f733fffd8456bf12f57_satenrich

Sat, March 25, 9:00 AM

Mother Seton Regional High School, Clark

Mother Seton Saturday Enrichment Program Begins ...

Education

Carousel_image_39b4a0157c7b527b5c8a_scotch_plains_rescue_squad_outside

Sun, March 26, 8:00 AM

Scotch Plains Rescue Squad, Scotch Plains

Scotch Plains Rescue Squad Pancake Breakfast