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

Debate Over Bike Trails in Watchung Reservation Continue at Union County Freeholders Meeting

April 22, 2017

ELIZABETH, NJ — Debate about the possible addition of trails for mountain biking in Watchung Reservation continued at Thursday night’s Union County Freeholders meeting. The county had asked for input regarding the trails in February, which sparked an outpouring of people into the subsequent board meetings.

A resolution regarding mountain biking had appeared on the agenda for ...

Feelin' Hot, Hot, Hot

The real estate market is heating up! Homes are selling quickly in the entry-level price points and things are moving in the luxury market as well. According to NJ real estate valuation expert Jeff Otteau, "For the first time in a decade, we're seeing an increase in demand for houses in the $1M to $2.5M price range ... this is a significant change."

Multiple ...

Paramedic Unit Now Stationed at the Scotch Plains Rescue Squad

The Scotch Plains Rescue Squad is pleased to announce that advanced medical care for our community and surrounding towns is now closer than ever. Since December 2016, paramedics from JFK Medical Center have being stationed at our building on Bartle Avenue.

The rescue squad provides BLS care (Basic Life Support) by Emergency Medical Technicians. This includes everything from the stabilization ...

Election Sloganeering

April 23, 2017

Dear Editor:

November seems like a long way off, but is it possible to at least hear more substantive ideas instead of recycling campaign rhetoric?

Presenting a litany of a city's or state's problems (and virtues) without offering any real solutions, improvements or original ideas is somewhat embarrassing. "Keep our schools great." What does that mean?

"We need to ...

Hypertension Clinic at Scotch Plains Public Library on Tues, May 9

April 25, 2017

SCOTCH PLAINS, NJ -- The township nurse will be available at the Scotch Plains Public Library for blood pressure checks on Tuesday, May 9 from 10:00 a.m. until 12:00 noon. No registration is required.

The Scotch Plains Library is located at 1927 Bartle Avenue, one block from Park Avenue in the center of town.

TAPintoSPF.net is Scotch Plains-Fanwood’s only free daily paper. Sign ...

Upcoming Events

Carousel_image_f3e6c40c89ebb98cd110_3ddb0e56fe15c39ee135_union_county_seal__small_

Thu, April 27, 7:00 PM

Administration Building, Elizabeth

Union County Freeholders Regular Meeting

Government

Fri, April 28, 1:00 PM

The Presbyterian Church of Westfield, Westfield

A Victorian Spring Flower Show

Home & Garden

Carousel_image_7a446abe7f0bf0b7cac5_y

Sat, April 29, 7:00 AM

Westfield Area YMCA, Westfield

Fitness 'Fun' Raiser

Health & Wellness