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A little bit about me

Hi. While this blog is a part of Seed Catalyst’s website, I realised over the initial few weeks that a lot of you are first introduced to the firm via the blog rather than our home page.

So to introduce myself - I’m a business consultant working with early stage technology firms to help streamline their strategy and go-to-market approach and support them for fund raising. 

With this blog, I aim to capture key market trends that I see in the industry, the ecosystem and cross-plays in some of the more interesting and upcoming sectors, as well as cover interesting companies that I meet. 

I will also be addressing vexing and interesting valuation and deal/term-sheet structures that would be of interest to technology start-ups at various stages of their growth.

So let’s get started...

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Market trends
Google, Cisco, Microsoft - and Apple? PDF Print E-mail
Blog - Market trends
Thursday, 18 February 2010 21:07
Windows v0.0

 

 

Cisco is quite a ubiquitous name on acquiror lists for sell-side mandates in the networking equipment space. The list begins from there and then extends on. But one of the things that stood out when I was looking at their acquisitive history for a mandate was how supportive they have been of employees who branched out on their own. As smaller startups they had the advantage of being more agile, had a ready customer in Cisco and once established, they generally found a potential buyer in Cisco itself - and for a good price!

The joke goes that Cisco’s acquisitions are generally within 100 miles of San Jose (yes yes I know.....there’s Tandberg.....it’s a joke guys! )

Google has been following a similar trend. Employees go ahead, spread their wings and then come back into the fold – so to speak.

Microsoft besides the acquisitions has established the Biz Spark program where they provide support to start-ups in a number of other ways – both for tech support as well as market development.

A brief search, but I couldn't find any equivalent for Apple....they seem quite protective about concentrating the research and development in-house. There has always been a general feedback from industry about the closed nature of Apple’s platform but this seemed like quite another aspect of it.

I wonder if that’s an element of corporate culture here and if it in any way signifies the environment within the firm - would be great to hear from experts in organizational development.

How do you encourage innovation within a firm without stifling it at the individual level?

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Motorola integrates CPE and mobile divisions PDF Print E-mail
Blog - Market trends
Wednesday, 17 February 2010 11:14
Nokia 260 S Mediamaster -digital tuner

 

 

The Motorola move to integrate the set top box and handset divisions made me pause for a long while and think. The possibilities it opened up for the end customer seemed huge at first glance. And then I got to thinking about all the ways it’s going to be beneficial for Motorola.

Let’s start from the end of the chain. The end customer for the firm traditionally hasn’t been you and me. It’s the operators. That may be mobile operators like Verizon and Vodafone for the network and handset business. It may be cable and IPTV operators for the network and CPE business. There may be some commonality in the customers e.g. quad-play operators – those offering phone, internet, TV and mobile.

But with the handset division, the proposition is different. The focus is largely on driving pickup by the end consumer – you and me. This implies that the opportunity open to the Motorola - more than just bringing all the boxes under one roof (CPE and mobile) - is the integration of the services platform and the high growth which it entails.

It places the Company in a position to control the consumer experience both within and outside the home - delivery and storage of the entire range of consumer content – be it movies, pictures, music, videos; controlling the digital home. What's the next frontier - games?

The move makes further sense when you look at the valuations of set top box businesses. Over the last two years, most of the large STB businesses have been acquired at <1x revenue multiples.

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