Strong Opinions @marksbirch

Random thoughts from a NYC entrepreneur and investor about start-ups, technology and the people that make it all happen. Also find time for good tunes and good food.
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The busiest sector continues to be companies selling software to businesses. Marketing-software maker Marketo Inc., and analytics-software company Tableau Software Inc. priced their IPOs on Thursday night, and are set to begin trading on Friday. Tableau sold more shares, and at a higher price, than expected, according to a person familiar with the sale. Network security firm FireEye Inc. and corporate mobile-device management company Good Technology Corp. have hired banks and could list later this year, said people familiar with their plans. Another considering the leap is utility-software company Opower Inc.

A cluster of advertising-technology firms, including Criteo and YuMe Inc., are also eyeing 2013 listings, people familiar with the situation said.

Pace Picks Up on Tech IPOs” via The Wall Street Journal

It was a slow start to the year for tech IPO’s, but looks to be heating up now, especially for the B2B enterprise tech companies.

Parsing the company’s quarterly report reveals that Amazon probably made $600 million in revenue last quarter on its web services, and that could grow to a total of $3.8 billion a year by the end of 2013, giving Amazon’s web services an estimated valuation of $19 billion, were it a standalone company…
The company will announce a deal to acquire ParAccel, a well-funded startup that specializes in analytics database software. Actian CEO Steven Shine told AllThingsD that the combined company will have revenue north of $150 million and 450 employees around the world. It’s Actian’s third significant acquisition since 2011. In January it paid $162 million for Pervasive Software, a publicly held software company. Late last year it paid $37 million for Versant, beating out a bid from another company.

Actian to Acquire Big Data Startup ParAccel” via AllThingsD

Actian is Ingres…Ingres of all things! It was that little database that seemed lost within the massiveness of CA Technologies and something of an afterthought in the 90’s among RDBMS behemoths like Oracle, Sybase, and Informix.  It is now a big time player in the big data space.

nyetm:

Join fellow technologists, entrepreneurs, and investors for the NY Enterprise Technology Meetup’s (NYETM) January meetup on Tuesday 1/15/13 from 6:45pm-9:00pm!  Register here.

For our January meetup we have some exciting companies demoing their technologies, including:

  • eZ Systems - eZ Systems s a globally recognized commercial open source content management software (CMS) provider.  eZ’s leading and innovative approach takes  your organization beyond traditional web content management into creating a true digital experience with systematic optimization capabilities. The eZ Publish platform sets new standards for digital lifecycle management, including recommendations and smart web analytics functionality, coupled with an application market place of certified extensions.
  • Pursway - Pursway develops Big Data algorithms and technologies to identify not just the social network of your customers, but who influences whom to purchase.  They deliver significant increases in targeted marketing ROI by identifying purchase influencers (people whose purchases drive those of their peers), measuring the collective value of their influence, and enabling clients to target influencers.  Influencers can be activated to leverage the underutilized Word-of-Mouth channel with outsized returns - typically the top 10% of influencers account for more than 50% of total revenues.
  • MemSQL -  MemSQL is a distributed, in-memory database for real-time analytics. Founded in 2011 by former Facebook engineers, MemSQL enables engineering teams to combine transactional and analytical applications on the same data set for transformative impact.
  • Visual Revenue - Visual Revenue helps media organizations set the best possible front page right now, based on their current (up-to-the-minute) content and layout.  Their Front Page Recommendation Platform provides Editors with actionable, real-time recommendations on what content to place in what position right now and for how long. Their predictive analytics technology allows media organizations to proactively manage the cost of exposing a piece of content on a front page, whilst maximizing the return they expect from promoting it.

Always worth attending the NY Enterprise Tech Meetup.  If you have not gone, I highly recommend it as one of the better tech meetups in New York City.

B2B and enterprise applications set is alive and well in NYC,” and that “innovation not specifically related to the consumer space will continue apace.” But for “pure tech,” he added, “the center of gravity is still San Francisco, at least as our deal flow and portfolio are concerned.

Could New York’s Startup Scene Hit the Wall in 2013?” via peHUB

Roger Ehrenberg is absolutely correct here. A preponderance of “pure” technology startups will continue to emanate from Silicon Valley, but there will be more B2B enterprise application startups take shape around NYC over the coming years.

Enterprise companies are a little more wary about contributing their data to the betterment of the network. “Enterprises are not going to be as naive about data as consumers have been,” Wilson warned. “Facebook was able to take all our data, and we didn’t realize it until it was too late. I’m not sure that game could be played in the enterprise. Enterprise people are smarter.

Live from New York! It’s enterprise!” via PandoDaily

Interesting thoughts from Fred Wilson at last night’s New York Enterprise Tech Meetup about creating a network effects business in the enterprise technology market.

Fred Wilson holding court at #NYETM

Fred Wilson holding court at #NYETM

Samsung and Apple Duel in Enterprise Tech” via BloombergBusinessweek

Despite Apple’s initial lead and Google’s abandonment of the enterprise smartphone market, I fully expect Samsung to dominate in mobile enterprise tech sales.  Apple has never shown much interest changing to meet the needs of the enterprise markets.

thegongshow:

But, in 3-5 years mobile-first will not be a choice.  It will be an IQ test.  By 2015, its predicted that global internet penetration will rise from 30% -> 60% worldwide.  And the next billion internet users will skip the PC generation of the web and will only know a mobile-delivered internet.  

And in developed markets, I don’t have to look much further than my own behavior.  When I have down time between meeting in my office or on the road, I often find myself sitting in a desk chair in front of my black-screened, sleeping laptop, consuming the web on my phone.  Despite a richer, full-featured web experience with a QWERTY force-feedback keyboard and 8X the screen real-estate sitting 18-inches from my hands, I can’t be bothered to turn it on because consuming (and now even creating) internet on my phone is simply a preferable experience.

I would be wary of assumptions based largely on over-hyped macro trends or one’s own behavior.  What is being described above is a consumer mindset.  When you visit actual businesses (not VC offices), you have a different story entirely about the use of mobile in the workplace.  I have said this before, mobile-first is probably the right move when it comes to consumer.  Enterprise tech however is simply not ready yet for that transition for very good reasons.

Note that this is based on an analysis by CB Insights of “472 venture capital- and private equity-backed technology companies in the United States today with valuations, real or rumored, of greater than $100 million.” As the article rightly states, not all of these companies will reach an IPO event, but it is an interesting proxy to evaluate where investor interest lies. As is abundantly clear, B2B / enterprise tech is not some new phenomenon, but something that has been the reality for quite some time.  (via jryu)