6 Reasons Why Venture Capitalist Reject a Good Startup

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There are many great business ideas out there. Some better than others, but out there nonetheless. Execution is key to a good business idea, but so are sales. It’s always a plus when your business owns something proprietary. Still as entrepreneurs try to grow their great business idea, they need the help of others. They need venture capitalist to help promote growth through investments. Here are six reasons why sometimes a venture capitalist has to reject a good startup.

You Need More Traction

Traction is key to gaining an investment. Many times a VC will tell you they need to see more traction in order to believe in the evaluation you are looking for an investment at. Your company needs to have been doing what they’re doing for sometime at a competitive rate. Sometimes traction can mean they need to see more sales. If you don’t have enough sales, it says you haven’t proven the market yet.

We Have A Competing Portfolio Company

In picking startups, VC’s have to be very wise. Not only do you not want to invest in a dud, but you also want to make sure the company you invest in is the company in that industry that you want to invest it. Sometimes VC’s have to walk away from a company because of a conflicting interest in the same industry. The last thing they want to do is bring competition amongst two of their companies.

You’re Too Late

imagesMany different trends come and go, and sometimes that could be why you don’t get an investment from a VC. Especially in the technology industry. Look at phones, there’s a new version of a phone every year, year and a half. Sometimes if you can’t get your business to a certain stage to stay ahead of the trend curve, you’ve lost.

You’re Too Early

Sometimes if an idea has not been proven yet, an investor does not want to take such a risk on the possibility that this is the new trend. What often times happens is they wait it out or leave it to research to prove its existence.

You’re Too Expensive

A business owner takes pride in what they have accomplished in putting together a business. Sometimes that can get in the way of getting an investment. While you’ve put your blood, sweat, and tears into something, an investor doesn’t see that. What they see is sales and the end product or service. So when you’re asking for X and the investor is offering Y, you can be at odds ends. You have to be willing to negotiate down sometimes even if you think your business is worth more.

We’re Unsure

Sometimes a VC can just be unsure. It could be an industry they are not familiar with or they may not fully understand the business and the projected growth rate. They may stall in order to figure things out. You need to move on or risk getting no investment.

For more on this interesting article, check out this here.

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Monotype Acquires Swyft Media

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Monotype Image Holdings, a publicly traded company based out of Woburn, Massachusetts has acquired New York based startup, Swyft Media. Monotype Image Holdings specializes in font production whereas Swyft Media specializes in selling branded digital stickers and other ad products. The acquisition figures to be very beneficial for Monotype Image Holdings. But just how much did this acquisition cost them, and does Swyft Media have a proven track record?

imgresSwyft Media was founded in 2012, but was originally TextPride. The startup has worked with popular apps like Kik, KakaoTalk, TextPlus. It’s reported that they have worked with nearly 300 brands. These include the likes of Sony, MGM, SEGA, Dreamworks, and Hearst. The acquisition could cost Monotype Image Holdings up to $27 million. They’ll pay Swyft Media $12 million upfront and another $15 million in potential earn outs.

With mobile messaging at the forefront of todays way of communicating, this acquisition should definitely help Monotype Image Holdings advance their business from a revenue standpoint. The company currently sits on Forbe’s list of America’s Top Small Companies at #100. They’ll look to build on their impressive $175 million in revenue since the companies inception in 2004. CEO Douglas Shaw wants to broaden his companies customer base. Their current customers include publishers and creative professionals. With this acquisition, he is looking to reach a younger audience based customer. Shaw is targeting the young texting teenager/young adult who use emoticons in their everyday text conversations. If this acquisition goes smoothly, Monotype Image Holdings could definitely fly up the Forbes list in the coming years.

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Consumer Electronic Show, Vegas

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This Tuesday, events will get underway at the 2015 Consumer Electronics Show in Las Vegas, Nevada. The event happens every year and is designed to showcase the new and latest tech trends for the coming year. There are expected to be 3,500 different companies there to showcase what they have ready for consumers to make their lives easier.

Some of the key categories expected to be represented as this years CES are the following:

Cheaper Televisions
The end to 1080 pixel televisions may be near. Year after year, televisions have been becoming cheaper and cheaper, even as sizes get bigger. What tech trends are expecting is that 4k televisions (televisions that stretch 4,000 pixels wide) are expected to become less expensive. At the right price, these televisions could ultimately put an end to 1080 pixel televisions.

Connected Cars
This is one many people have been looking forward to for a couple of years now. With automobile companies like Audi, BMW, Chrysler, and many more in attendance this year, they’ll be out to showcase their connected cars. A connected car is a car that is equipped with internet access and even wireless local area network

Oculus Headset
Oculus Headset

Energy Management
On the way out could be your traditional washer and dryer or dish washer. Companies have made advances in providing these sorts of home appliances that will offer a more eco-friendly solution and save you money on your energy bill.

Wearables
The Apple Watch, which made headlines along with the introduction of the iPhone 6 back in October of 2014 is already dominating the talk of this category. While it has dominated the conversation of this category, Apple will not be a participant this week at the Consumer Electronics Show. That’s not to say other companies won’t be bringing their wearables. Some will even have accessories to go with the Apple Watch.

Virtual Reality
With no release date still for the Oculus virtual reality headset for consumers to purchase, companies like Samsung have introduced their prototype. Samsung’s Oculus headset is used as an accessory to their phone.

For more on CES, check out this article here.

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Hot Spots to Travel in 2015

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Lately, traveling has become a fad of our society, and it’s no surprise why. With all of the wonderful, exotic things the world has to offer – from famous landmarks to endangered species, traveling is a great way to gain cultural experience and expand your horizons as a human being. Why not be exposed to all of these incredible, surreal sights? So, what are some of the biggest travel destinations of 2015 (without all the touristy crowds, of course)? Here’s a list of some of the most-travel-wanted hotspots for this coming year:

First is Gujarat and Hyderabad, India. As many of you know, The Jungle Book is being turned into a feature film next year, and includes a plethora of breathtaking images of the Ganges river and jungle-dense parts of India. Along with the aesthetics that India has to offer, from jungle to enchanting bazaars and mosts, it is rich in culture and history. As the birthplace of Gandhi, a majority of India is covered in mountain-top temples and colorful religious festivals. A visit to India will feel like you’re entering a whole new world, you’ll feel nothing but awe and admiration.

Serbia

Serbia

Next top travel destination? Serbia. Serbia is bordered by Carpathian mountains and the Danube river, and stands among Hungary, Romania, Croatia, and Kosovo. Though it’s geography has been a major influence to it’s trouble of the past, the blend of cultures from being surrounded by so many different countries is truly unique – and shows in it’s vast array of delicious dishes, architecture, and way of living. Monasteries and churches decorate Serbia, which remind many of it’s local inhabitants of all wars and suffering, but also stand as symbols of hope. Serbia is emerged in forests, mountains, and exotic European coffee shops and restaurants, that will all make you cringe at their beauty.

Rwanda is another top travel destination for 2015, especially since it is home to the silverback mountain gorillas. As you may know, gorillas are one of the most endangered species in the world right now, so it may not be too long before there’s never a chance for you to see them in their natural habitat. Though large, these animals are beautifully delicate with shiny coats and dark, luring eyes. Rwanda, a small country located in Central East Africa, contains many of nature’s most enticing beauties, including rainforests and volcanic jungle. It’s village people are especially remarkable, known for their agricultural skills and sweet charisma after all they’ve been through, including a terrible genocide in 1994 (which you can learn about by visiting Kigali’s Genocide Memorial Museum). Rwanda is home to an abundance of beauty, and will make your stay their life-changing.

For more insight on which places to travel to in 2015, read Huffington Post’s article on Top Emerging Travel Hotspots. And start packing your bags, because there’s no way you won’t want to take a trip to at least one of these remarkable places, if not them all.

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IBM Winning Cloud Computing Business?

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imgres-7Cloud computing has been on a huge incline of late. Mainly because it is the new efficient way to store as much data as possible without it having to be store at a location or backup location. Cloud computing is essentially how it sounds, data stored in the cloud meaning its not tangible. The biggest player in the cloud computing business is Amazon.com. However, recent news would say otherwise.

IBM, who is also in the cloud computing industry has been stealing headlines of late. IBM has secured cloud deals with some prominent customers like ABN AMRO, Thomson Reuters, and WPP. It seems IBM may have packaged in products and services they are more known for to win some Cloud business. The deals were described as follows:

Thomson Reuters: “a new multi-year services agreement with Thomson Reuters to provide IT services to employees globally.”

WPP: “a seven-year, $1.25 billion services contract for IBM to transform and manage WPP’s global technology platform”

ABN AMRO: “IBM and ABN AMRO have signed a 10-year, multibillion-dollar services agreement to manage the IT infrastructure that supports the bank’s operations globally. The agreement includes the implementation of a private IBM cloud together with further standardization and simplification of the existing IT landscape, from mobile computing to mainframe infrastructure.”

The common factor here is that IBM describes their deals to include “IT Services” or as a “global technology program.” Essentially it seems as though IBM is offering a better supplemental package that happens to include their cloud computing package as well. IBM’s other services serve as their “trojan horse” in order to get their cloud computing technology in the hands of their customers.

Overall, it seems like a great idea on IBM’s behalf, I just would refrain some believing they are knocking off the cloud computing juggernauts in Amazon.com and Microsoft. For more on this article, check it out at seekingalpha.com.

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Changes Ahead for Starbucks

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imgresStarbucks for sometime has been known as the largest coffeehouse company in the world. Starbucks did not get to where they are today by sitting back and just letting customers find them and purchase a coffee. With that said, Starbucks is always looking for ways to improve upon their coffee market hold. What more can a coffeehouse offer?

Starbucks announce this month they will be adding beer, wine, and evening snacks to thousands of cafes, widening lunch offerings, and rolling out mobile ordering. These additions should help widen the gap between Starbucks and the rest of the group.

Starbucks expects to double its US food revenue to over $4 billion with the expansion of food choices. With 11,900 cafes in the United States, Starbucks is expect to bring beer and wine to nearly 3,000 of those cafes. This maneuver projects to bring in an additional $1 billion in new sales.

Maybe most importantly about Starbucks shake up is the addition of mobile ordering and payment system. Many companies at the height of the technology boom are turning to alternative methods of ordering food or merchandise. With many security breaches and credit card hackers out there, people are looking for alternate methods of payment. Some companies have turned to Apple Pay, eWallet, and some friends will transfer money through PayPal or Venmo. Starbucks has tackled both these obstacles. It’s unclear how Starbucks will adopt mobile ordering and its new payment system but it should function very similar to the aforementioned methods.

Starbucks serves approximately 70 million customers worldwide across 21,000 shops. Such changes will have a huge affect on their business longterm. According to some, its projected that during the fiscal year of 2019, Starbucks will generate revenue in the neighborhood of $30 billion. An astonishing number to think of considering during 2014′s fiscal year, Starbucks produced revenue of $16 billion. Starbucks will have a lot of work ahead of them to implement such changes but it seems worth it in the long run.

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Barcelona

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As one of the worlds most popular tourist destinations, Barcelona is one of greatest cities in the world. Home to about 1,620,943 people, it is the second most populated city in Spain after Madrid. But what about it makes it so great and popular? Lets take a look at three things that contribute to what makes Barcelona one of the greatest cities out there.

1. Camp Nou
Camp Nou is the arena where European football powerhouse F.C. Barcelona plays. Despite this mainly being for the avid sports fan, it still remains one of Barcelona’s most popular attractions. Seating 99,000 people, the fan experience of watching Lionel Messi and the rest of the squad is like no other. The largest arena in all of Europe, if you have the opportunity to catch a game it is highly recommended.

barcelona--644x3622. Montjuïc
Montjuïc is a broad shallow hill that overlooks the harbour to the southwest of the city centre. From this point in Barcelona, you can see some incredible views. If you can make it to the top of the hill, you reach the point where many military bases once stood. The Montjuïc Castle, built in 1640 and rebuilt in 1779, still remains there today. Another cool aspect of Montjuïc is that it is home to many sport facilities built for the 1992 Summer Barcelona Olympics.

3. La Rambla
La Rambla is the city’s most famous street and it’s filled with tons of activity. You won’t necessarily get the authentic Barcelona feel here as it tends to be heavily populated with tourists. Due to this, businesses located near by have tailored themselves to the tourist using pavement cafes and souvenir kiosks. While roaming La Rambla, you can see many cultural landmarks that have lived within Barcelona for some time. These include Liceu, Barcelona’s renowned opera house which opended in 1847, Teatre Principal, the oldest theatre in Barcelona, Centre d’Art Santa Mònica, a museum of contemporary art, and Virreina Palace, a place where they host museum exhibits and cultural events.

Barcelona is a beautiful city with many more attractions to experience. Check out what else Barcelona has to offer here at touropia.com.

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Alfred, Your Butler

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Have you ever seen a movie like Batman where they make having a butler look like the coolest thing around? Maybe it’s time you got your butler. But how? imgresFor $99 a month, you can now have your very own butler, Alfred. No not the actual Alfred, Michael Caine, but your very own butler. Once a week for a month, Alfred will come to your house and perform such tasks like laundry, grocery shopping, dry cleaning, clean the house, tailoring, pharmacy requests as well as more. Alfred launched Tuesday November 18th in Boston and New York. It is a very similar service to others and as a result, Alfred is partnering with those other services. These services include Instacart (grocery), Washio (laundry), and Handy (housecleaning).

The idea behind Alfred is simple. While some may think it is very cool to have your own somewhat personal butler, the point of Alfred is to accomplish all those extra things you wanted to get to but didn’t have the time to. Alfred essentially adds the 25th hour that many people desire.

Prior to its launch, it started as just a one person service that co-founders Marcela Sapone and Jessica Beck would use. They also extended it to friends while studying at Harvard Business School. They never saw it scaling to become an actual business. It has tested through a six month beta and has returned over 10,000 hours to customers.

There is a lot of confidence in Alfred as it is backed by at least $2 million in investments. These investments came from Spark Capital, SV Angel, and Crunchfund. Spark Capital has had some success with startups as they have invested in Twitter before. At the 2014 TechCrunch Disrupt competition in San Francisco, Alfred beat out 26 other startups in winning $50,000.

For more on Alfred, visit their website helloalfred.com.

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