GeoDisrupting Commerce: IoT, Beacons, Robots

GeoDisrupting Commerce: Iot, Beacons, Robots

retail-iot-market-map

 

These are the top companies bridging the physical and digital worlds, based on CB Insights.

Company Chart

Retail IoT Company List
Company Category Select Investors
Hiku At-Home Shopping Buttons Otter Rock Capital, Plug and Play Accelerator, Firsthand Technology Value Fund
Kwik At-Home Shopping Buttons Norwest Venture Partners, NFX Guild
Crowder Beacon Analytics And Marketing Wearable IoT World Labs
Estimote Beacon Analytics And Marketing Bessemer Venture Partners, Innovation Endeavors
Footmarks Beacon Analytics And Marketing Commerce.Innovated
Freedom Smart Labs Beacon Analytics And Marketing Kapil Goel
Kimetric Beacon Analytics And Marketing Microsoft Ventures Accelerator
Minodes Beacon Analytics And Marketing MarketTech
Monolith Beacon Analytics And Marketing Startup Wise Guys
Movvo Beacon Analytics And Marketing Caixa Capital
Proxidyne Beacon Analytics And Marketing Undisclosed
Radius Networks Beacon Analytics And Marketing Core Capital Partners, Contour Venture Partners
Resun8 Beacon Analytics And Marketing Undisclosed
Sensorberg Beacon Analytics And Marketing WestTech Ventures, Berlin Technologie Holdings
Swirl Networks Beacon Analytics And Marketing Twitter Ventures, Longworth Venture Partners, Softbank Capital
Euclid Analytics Beacon- And Sensor-Based Analytics Harrison Metal, NEA, Benchmark
Innorange Beacon- And Sensor-Based Analytics Undisclosed
Measurence Beacon- And Sensor-Based Analytics Undisclosed
RetailNext Beacon- And Sensor-Based Analytics August Capital, Commerce Ventures, Nokia Growth Partners, StarVest Partners
Scanalytics Inc. Beacon- And Sensor-Based Analytics Wearable IoT World Labs
Tamecco Beacon- And Sensor-Based Analytics Yume no Machi SoZo Iinkai
Torch Beacon- And Sensor-Based Analytics Target Accelerator Program
VideoMining Beacon- And Sensor-Based Analytics Ben Franklin Technology Partners
Viewsy Beacon- And Sensor-Based Analytics Qualcomm Ventures, Kima Ventures
Walkbase Beacon- And Sensor-Based Analytics SBT Venture Capital
Aislelabs Beacon-Based Marketing Salesforce Ventures, Rho Ventures
Beabloo Beacon-Based Marketing Baozun
Bfonics Beacon-Based Marketing Undisclosed
Blue Bite Beacon-Based Marketing Undisclosed
ConnectQuest (CQ) Beacon-Based Marketing Undisclosed
Ebizu Beacon-Based Marketing Cradle Fund
Ifinity Beacon-Based Marketing SpeedUp Venture Capital Group
Shelfbucks Beacon-Based Marketing Capital Factory
Aisle411 Indoor Mapping Cultivian Ventures, St. Louis Arch Angels
Cartogram Indoor Mapping Undisclosed
Indoora Indoor Mapping Startupbootcamp Smart Transportation & Energy
Cosy Inventory Tracking 500 Accelerator
QueueHop Inventory Tracking Y Combinator
Carttronics Loss Prevention Undisclosed
Gatekeeper Systems Loss Prevention Undisclosed
Fellow Robots Service Robots HAX, Crowdfunder
Simbe Robotics Service Robots HAX
Oak Labs Smart Dressing Rooms Wing Venture Capital, R/GA Accelerator

 

Pipeline Metrics Worth Noting: Etsy

etsyI favor entrepreneurs with a keen focus on pipeline metrics.  Etsy has some great ones worth noting:

  • Only 2% of sales goes to marketing.   Pretty amazing for a consumer facing business.
  • 93% of traffic is from organic marketing channels; leaving only 7% from paid traffic.  Note that organic includes direct and email referrals.
  • 78% of purchases are from repeat customers.  Now that’s customer loyalty.

Another interesting fact:  One reason for Etsy’s high repeat usage is that it isn’t greedy in its fees to customers.  Etsy’s revenue, as a percent of its overall gross sales to consumers, is 8-10%.  Some marketplaces charge 20-30%.

Great metrics for a company tracking to raise $100 million in an upcoming IPO with a potential  $1.7 billion valuation.

These metrics are from Etsy’s S-1 filing as analyzed by Paul Bennetts at AirTree Ventures.

Investing in the Future of Shopping

 from Streetfight 16 JUNE 2014 BY 

Discounts. Shopping cart and cubes with percentWhat happens when you combine some of the largest and glitziest shopping malls in America – places like Copley Place in Boston, the Houston Galleria, the Stanford Shopping Center, the Westchester, and Tanger Outlet Centers – with tens of millions in investment capital in early stage digital shopping ventures? That is exactly what J. Skyler Fernandes is charged with figuring out as the head of Simon Venture Group, the new venture arm of Simon Property Group, the largest real estate investment trust in the US and the top owner of shopping malls.

A few months ago, I predicted in Street Fight that “2014 would be the year that hyperlocal goes indoors,” and “the battle will turn to reaching the shopper walking in the mall and right in front of the shelf.” Simon Venture Group is looking to invest $250,000 to $5 million per company in up to 50 companies over the next 5 years to do precisely that. Fernandes is presciently focusing on 5 areas for new investment, all of which are aimed to use the web to improve in-store shopping:

1. In-Store Data Analytics. It is ironic that data analytics for e-Commerce companies has far surpassed that of most retailers, with the exception of the largest retail chains like Macy’s and Walmart. Nomi, Euclid, RetailNext, Path Intelligence, MotionLoft and other companies are working to connect the cloud of purchase history and intent with individual bodies walking into and through stores, hoping to return some of the in-store shopping momentum that Amazon has captured.

2. Malls as Delivery Centers. With your nearby mall stocked full of inventory, why should Amazon and all of its partners be faster with next-day delivery? What about same-day, local delivery? In 2013, Simon invested in Deliv, a company which does same-day delivery from local malls, and is continuing to explore this arena.

3. The Internet of Things (IOT) in your Mall. One of my personal reasons for disliking retail shopping is how difficult it is to find your way around a large, crowded mall. Mobile devices offer the potential to change that, but the technology has to catch up to deliver more precise indoor location. Fernandes says we are still 12-24 months away from a good solution for in-store. Meanwhile, Simon recently invested in digital eyewear solution company Augmate to assist sales associates in finding you the right size and color from their shelves.

4. Building Mall Loyalty and In-Store Incentives. Retailers like ShopRite and Starbucks have done well with loyalty systems for frequent shoppers, but it is relatively rare for nearby stores to collaborate on loyalty programs. Traffic and sales in shopping malls tend to rise in step across stores, and Simon is looking for new solutions to break down data silos across stores and incentivize and reward frequent mall shoppers.

5. Improving Payment Technology. As with in-store data analytics, many mall retailers lack a complete solution linking register payments and inventory management systems, and are falling behind the best e-commerce companies. Mobile payments have been slow to come to the US, but Simon sees a better possibility for companies that link payments and a systemic retailer supply chain solution.

Corporate VCs have had uneven financial returns, but Simon is basing its new venture group on a study of best practices across successes like Google Ventures, Comcast Ventures, and Intel. One lesson is to keep the investing scope broad enough to cover adjacent sectors, and not limit deals to companies that are takeover targets or essentially outsourced business development. Simon has a window on the future of shopping, a great platform to help in-mall companies get established, and appropriate focus on ROI as its core metric of success. As the only corporate VC fund backed by a major shopping mall company, its investments should be of interest to Street Fight readers.

As for my other 2014 predictions, I also wrote that Street Fight would spin off a new site called Bar Fight. That prediction is still open.

Jason KleinJason E. Klein is the founder/CEO of On Grid Ventures LLC, and investment and advisory firm focused on the startup and reinvention of businesses capitalizing on digital and location-based technologies.  He is also the Chairman of Harvard Business School Alumni Angels of Greater New York. Follow him on twitter @JKNews.

Mobile Devices are really “Mobile Home”

girl-couch-using-mobile-phone-10815076A new Nielsen study puts to rest the common theme that mobile use is typically “on the go,” particularly with regards to shopping behavior.

A whopping 95% of tablet shoppers and 72% of smartphone shoppers who actually use their devices for purchasing do it on devices in their home.  Some other uses of smart phones in the home:

  •  86% of writing product reviews on a smartphone is in the home
  • 71% of posting comments on a product to a social network on a smartphone is in the home
  • 62% of reading product reviews on a smartphone is in the home.

What shopping behaviors on smartphones are done on the go?

  • 50% of price-checking on a smartphone is on the go
  • 56% of store locator usage on a smartphone is on the go

So, as pointed out in Mediapost, mobile is not mobile:

“Home is where the device is most of the time and where people have the time and inclination to drill deep. They also remind us that devices have become the go-to point of entry for online information, replacing the most uncomfortable way yet devised for consuming content — the desktop PC.  But most of all, they remind us how much of shopping is an iterative, multi-screen process that occurs over time.”

Image - couch potatoAny couch potatoes out there?  What is easier when reclining, browsing on your mobile device or tapping on your laptop?

Magazines from Time Inc. and Conde Nast make content shoppable with 72Lux

 

beauty_finder_hires

From the MPA:  The Association of Magazine Media, published 5/13/13, by fbell@magazine.org

Readers look to magazines to be informed, inspired, for entertainment, and—let’s be honest—to find stuff to buy. Enter 72Lux, whose tagline is “Transforming Publishers into Retailers.” 72Lux‘s technology, Shoppable, allows digital publishers to sell products directly from within their editorial. Moreover, 72Lux has established relationships with over a hundred retailers in the apparel, beauty and consumer packaged goods industries, and has recently started moving into home, electronics and books. For any new publisher that starts working with the company, 72Lux handles all of the relationships and manages the technical integration with the retailers.

Heather Marie headshotHeather Marie, co-founder and CEO of 72Lux, was on the founding team of a digital media company called Affinity Labs directly before founding 72Lux almost three years ago. “Our biggest challenge is handling the demand. As soon as we brought our technology to market and everyone saw what it could actually do, we’ve had so much interest.” Marie, who runs a team of 10 people, estimates that 30% of their business is working with Magazine Media brands. “Publishers are increasingly enabling integrated, shoppable content because they’re seeing that it’s great for the consumer. Historically, publishers have been driving so much demand for products and not getting the credit for it, so [our technology] is something that is very obvious and easy for publishers to leverage as they begin launching their commerce initiatives.”

Several studies have shown that consumers want to buy the products that they’re reading about in magazines, but because products are often difficult to track down and buy, the demand is often left unsatisfied. It’s frustrating to the user and there is a lot of value in that placement to the advertiser and the publisher. “There is still some concern left about making sure that the content maintains editorial integrity,” said Marie. “We’re challenged with integrating the technology in a way that shows that we’re not changing editorial strategy; we’re just launching new functionality.”

Years ago, the strict separation between church and state made the idea of making content shoppable nearly impossible, acknowledged Marie. As a result, initial strategies revolved around setting up dedicated online stores on magazine websites. But the evolution of digital media makes those sentiments more fluid. “It’s not really a matter of consumers being concerned if a publisher is recommending a handbag for a particular reason. If consumers like a product, we shouldn’t make it hard for them to buy it.”

This year 72Lux added Teen Vogue (who plans to unveil their e-commerce addition in July) and Essence to their growing roster of publishers. Dawnie Walton, Deputy Managing Editor at Essence, oversees the editorial content strategy for digital at the magazine and helped spearhead the partnership with 72Lux. Still in its infancy, Beauty Matchmaker, a product finder customized for the beauty needs of Black women, launched a few weeks ago on Essence.com with initial promotion mainly via their online channels, with upcoming print promotion slated for their June issue. “Our challenge was a good one,” says Walton. “It was very early on, in trying to conceive of everything that the reader would want. We wanted to make sure that when most of our readers encountered [Beauty Matchmaker] they could find something that works for them. This tool is going to continue to grow, we’re going to continue to add recommendations and try to update it seasonally, so that is something that is always going to be a challenge that we’re faced with: making it as robust as possible.”

The technology is not restrictive, giving publishers the ability to incorporate it into their websites as well as within their tablet editions. “Essentially,” said Marie, “99% of publishers out there are looking to add e-commerce, the majority of them by the end of this year. It’s a really big goal.”

Entrepreneurs Roundtable Graduates 10 Promising New Ventures

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Entrepreneurs Roundtable Accelerator has graduated its fourth and largest class. Startups in the ERA IV program receive a $40,000 investment, access to nearly 200 mentors, free and subsidized services, and three months of office space at ERA new office in Manhattan.  ERA grads have solid success rates for follow-on funding: nine out of ten from ERA’s first class raised follow on funding, and subsequent classes are on track for about the same.  ERA’s portfolio of 40 companies is worth an estimated $150 million today.

Entrepreneurs Roundtable Accelerator Spring 2013 Graduates:

1. Acquaintable

acquaintable

Acquaintable is a new and clever online dating service to meet friends-of-friends, bringing the social graph to online dating.  If you indicate you like someone, and he/she does the same,  Acquaintable makes the connection. Fifteen percent of beta users returned daily.  I asked 15 friends over 40 if they would use this if they were single and in college, and they all said “you bet!”

2. Cognical

cognical

Cognical offers a service for lenders, providing an algorithm-based underwriting engine to helps lenders identify the loan applicants that will pay them back.

3. Consignd

consigned

Consignd provides a way for anyone, particular popular Pinterest users and bloggers, to set up their own eCommerce site.  Influencers with large followings can create their own storefronts and recommend other people’s products in exchange for 25 percent of any sales.

4. EasyPairings

easy pairings

EasyPairings helps restaurants hire new staff quickly, automating much of the process of finding active job seekers with the necessary qualifications.

monaeo5. Monaeo

Monaeo incorporates geolocation into tax preparation, and provides audit-worthy tracking of location to minimize taxes for mobile executives and rich folk.

6. Startist

startist

Startist brings creative people together to collaborate on projects ranging from film and the arts to games and technology by allowing the showcasing and discovery of work.

7. Suitey

suitey

Suitey plans to disrupt the residential real estate broker business. It combines the best of online real estate services and brokers, and saves money for home buyers.

8. TheSquareFoot
thesquarefoot

TheSquareFoot enables commercial real estate prospective tenants to search for executive suites, industrial, retail and office spaces.  Launched in Houston, TheSquareFoot has 75% of the market online, and moving into Dallas next.

9. Trendalytics

trendalytics

Trendalytics crunches the social web and provides insights on fashion trends.  Ideal for fashion retailers, manufacturers, and fashionistas.

10. VocalizeMobile

vocalize

VocalizeMobile hooks small businesses with a free service to manage their online ratings, then helps them with a suite of marketing tools to improve their web and mobile presence  across online directories like Google Places, Yahoo Local, Yelp, Mapquest and YellowPages.

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Clark Gilbert’s New Math

Deseret Digital CEO Clark Gilbert, at the Borrell conference this week, laid down the gauntlet in new metrics for newspaper companies:

Illustration from cityweekly.net

Illustration from cityweekly.net

  • Media companies should get 25% of their total ad revenue from digital.
  • 45% of revenue should come from “digital services,” including e-commerce.  {side note:  check out 72Lux and WSJSelect for some new developments}.
  • Clark said McClatchy Co. is over 20% of ad revenues from digital, The New York Times is over 30%, and Gannett Co. was 33%.

More here:  http://www.netnewscheck.com/article/24805/deseret-throws-down-digital-gauntlet-nos

OnGridVentures Top VC Deals of 2012

Here’s our list of the top Venture Capital deals of 2012 in our sectors, culled from the VentureBeat Top 15 list:

Big Data-Enabled, Next Generation Content

Drilling Info, $166 million

Drilling Info might have the least interesting name on this list, but what it offers is certainly attractive — so much that it raised $166.2 million in a major Q1 funding round. It offers a SaaS-based oil and gas business-intelligence platform, and it claims to be the “most complete source of North American and offshore waters oil and gas information.” It’s easy to see how a company offering easy access to that kind of data could get some serious cash. The round was raised by Insight Venture Partners, Battery Ventures, and Eastern Advisors Private Fund, with Vaquero Capital advising the deal.

Big Data Enabled

Box, $125 million

Cloud storage and collaboration startup Box had a huge year with lots of developments including its OneCloud syncing solution, the opening of an international headquarters in London, and more. But one of its biggest pieces of news was when it raised $125 million in fresh capital for aggressive growth around the world. This latest big round was led by General Atlantic, with participation from Bessemer Venture Partners, DFJ Growth, New Enterprise Associates, SAP Ventures, Scale Venture Partners, and new investor Social+Capital Partnership.

E-commerce; Social Frameworks

Fab, $117 million

Social shopping startup Fab had a big year, and it recently announced that it sold $6.5 million worth of goods between Nov. 23 and Nov. 29, which is a very good number to kick off the holiday season. With that kind of traction, we’re sure its many investors — Atomico, Pinnacle Ventures, re-Net Technology Partners, Mayfield Fund, DoCoMo Capital, Menlo Ventures, Andreessen Horowitz, Baroda Ventures, and First Round Capital — were glad they put up more than $100 million back in July. Fab CEO Jason Goldberg also informed us that his startup raised another $16 million in October and November at the same terms as the July round, bringing the total to an impressive $117 million. Fab also recently said it plans a “pivot” in 2013, so we’ll see how that pans out.

Social Frameworks, Next Generation Content 

Pinterest, $100 milion

Pinterest, now the third most popular social network in the U.S. after Facebook and Twitter, had a hard time getting VCs’ attention when it first started out. But it didn’t appear to have much trouble raising a new $100 million round in May. The round was led by Japanese web retailer Rakuten, with participation from Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital, Glencoe Capital, and other angel investors. As 2012 has continued, Pinterest has gained more traction. Recently, it added pin previews inside Twitter and opened its doors to business accounts.

Health Efficiency, Social Frameworks

Castlight Health, $100 million

Castlight Health, one of two health care companies to make this list, dubs itself as “the leader in health care transparency.” It offers consumers and companies comprehensive data about the price and quality of health care, ideally to help them save money while also improving their care. The company attracted astellar $99.9 million investment in May from T. Rowe Price, Redmile Group, Allen & Company, Maverick Capital, Oak Investment Partners, U.S. Venture Partners, and Venrock Associates.

Social Frameworks

Github, $100 million

GitHub, easily one of the most exciting startups of the year, caught a lot of attention in July for raising nearly $100 million for a Series A round. (It could be the biggest Series A ever.) Investors Andreessen Horowitz and SV Angel clearly believe in GitHub’s mission of supplying social coding tools to developers. The company has grown quite popular since its launch in 2008, and it has more than 1.7 million members who have shared more than 3 million code repositories. It recently hired Vlado Herman, the former CFO of Yelp, to help it manage its huge round of funds.
Read more at http://venturebeat.com/2012/12/28/top-venture-capital-deals-2012/#qQ7hmThIhFLXi8qk.99

One King’s Lane wants to be the King of Home Décor

SF e-commerce retailer One King’s Lane is on track to double revenue in 2012, to $200 million. Its clear vertical focus on home décor is working, with a magazine-like, highly graphic approach.  Each day the site launches up to three thousand new home products assembled around inspirational decorating themes.

The news:  One King’s Lane just closed a $50 million Series D financing,  led by Institutional Venture Partners, expected to be their last round.  Also participating were existing investors Kleiner Perkins Caufield & Byers, Greylock Partners, Tiger Global Management, and new investor Scripps Networks (parent of HGTV, which could bring terrific synergies).  Total raised to date is $116 million.

Breakeven is forecast at $400 million revenue, in 2013 or 2014. One King’s Lane takes no inventory itself, relying on the manufacturers and third parties.  Staff of 350. A quarter of One Kings Lane’s traffic is via mobile, more on holidays and weekends.

Sources:  Pando Daily, Forbes, Techcrunch.

The Wall Street Journal bets on e-commerce with 72Lux

E-commerce is a key component of a next-generation content model, and the Wall Street Journal has taken a big step in this direction by launching a launching a shoppable gift guide for the holiday season, with more to follow for Valentine’s Day and Mother’s day in 2013, as reported in Advertising Age.

72Lux is “the software that sits behind the site and lets them create any form of content that is shoppable,” according to Heather Marie, 72Lux’s 28-year-old CEO.

Wall Street Journal Select allows readers to purchase the gifts — which range from a $2,900 Tag Heuer watch to a $19.95 book about home-brewing beer — directly from WSJ Select.  Customers can add products from participating retailers, which include Nordstrom, Best Buy, and Coach, to a single shopping cart and pay for them all with one payment.

“The release of the gift guide is really the new beginning of a more-concerted effort to develop additional revenue streams around commerce,” said Alisa Bowen, the chief product officer at Wall Street Journal parent company Dow Jones.

More from Advertising Age here.

Plus, the Wall Street Journal even promoted the site with a full page ad, Monday, December 8, 2012, page b8: