internet entrepreneurship course
DESCRIPTION
Internet Entrepreneurship Course. Presentation of Case Study. Joey EdelsteinAmichai Nitsan Ron OliverMichal Regev Dalit ShalomGilad Shadur Dganit Shalom. Presentation Outline: The Company The Competition The TechnologyThe Partners The Products The Investors - PowerPoint PPT PresentationTRANSCRIPT
Internet Entrepreneurship Internet Entrepreneurship CourseCoursePresentation of Case StudyPresentation of Case Study
Joey Edelstein Amichai Nitsan Ron Oliver Michal RegevDalit Shalom Gilad ShadurDganit Shalom
Presentation Outline:
The Company The Competition
The Technology The Partners
The Products The Investors
Legal & IP Issues Human Resources
The Business Model SWOT
The Market Our Analysis
Dimionet, Webglide , RichFX was founded in 1997 bythree entrepreneurs:
Tal Kerret CEOTomer Ben-Kiki PresidentYair Mann CTO
Recently completed a fourth investment round of 33M$ from first class investors
Today employs ~130 workers in 3 locations: Tel Aviv, N.Y. and Atlanta
DEMO
RichFX - The Technology
Innovative and differentiated patent-pending
technology, providing a unique solution through:
1. Better Compression (smaller size)
2. Better Streaming (shorter waiting time)
RichFX compression algorithm enables the streaming of high quality Computer Generated Video over low band-width connections.
RichFX data size is 1%-5% of MPEG files.
RichFX - The Product
The RichFX product facilitates building, transmitting and showing 3D stores.
And there a few new features in the works.
Natural UserInterface
Single page store
Immersive Experience
RichFX - Patent Registration Process
A patent serves to protect the Intellectual Property (IP)
Stages at RichFX: 1. TA University research project.1. TA University research project.
2. Negotiation with Ramot.2. Negotiation with Ramot.
4. Company registration & patent purchase.
3. Negotiation with the Professor.
RichFX - The Company’s Strategy
Product Strategy Evolution:Stage I: Technology
Stage II: Chosen Application - Advertising
Stage III: Chosen Application - E-Commerce
Phase 1: Penetration through site construction & training
Phase 2: Server licensing
Expected Revenue Stream is hard to determine:
* RichFX plays its cards very close to the chest
* Analysts don’t seem to agree on market potential
RichFX - The Market Definition
In the short term:
Leading American high-end retailers of goods that require a “shopping experience”
In the longer term:
1. Diverse retailers?
2. “Catalog” products?3. Outside the US?
4. Other applications?
RichFX - The CustomersFirst big customer.
Blahnik shoe collection
Amazing results:
800% growth in sales!
The Competitors
Surrounding RichFX is a sea of fierce competition.
Among these competitors:
RichFX - The PartnersStrategic marketing,
distribution & development
alliance
Alliance to develop e-commerce
solutions
Familiarization with RichFX Encoder
through 3D Studio
RichFX - The Partnership With RealNetworks
First and only time RealNetworks invested in a partner.
Personal involvement of Real’s CEO in RichFX
Agreement signed for two years
Benefits:
For RichFX: Reputation, distribution.
For RealNetworks: Streaming of computer generated video
RichFX - The Investors
First Round (Seed) - Polaris, Veritas, Yossi Vardi, Giza, Poalim (2.5M$)
Second Round - Led by Coral Ventures (8M$)
Third Round - RealNetworks (9M$, Valuation 36M$ before the money)
Fourth Round - led by Morgan Stanley Dean Witter (33M$, Valuation 105M$ before the money)
19981998
19991999
20002000
RichFX - Acquisition of Blue Rock
Target: To build a strong sales
and marketing force
Means: Acquisition of Blue Rock, producer of
GiftMail
RichFX acquired Blue Rock for its people, not for its product.
Strengths Weaknesses
Opportunities Threats
Superior technology
Strong financial backing
Alliance with RealNetworks
Market presence
CEO
Narrow focus
Hard sale
Lack of management experience
GiftMail
Strong growth potential for 3D e-commerce
Many potential applications
Competition…Competition…
Unclear market for 3D e-commerce
“.com” crisis
Lessons learned
A good VC can make all the difference
Sell a product, not just a vision
Comprehensive solutions are hard to sell
You can open you own doors, but it’s easier to have someone do it for you
Shortcuts are dangerous