Early Release Abstract – Examining the Qualitative Attributes Used for Selecting Investment Worthy Ventures in the B2B IT Subsector

Examining the Recent History of Qualifying Investment Worthy Target Ventures in the B2B IT subsectors.

Alan D. Wilensky, Analyst and Industry Relations Advocate
bizQuirk, LLC.

Abstract

Is the The B2B IT sector a difficult arena to source and place capital or, conversely, to harvest capital out of such deals? According to a diverse pool of analysts, including several specializing in the enterprise software and services sector, the past 15 years of high-profile B2B tech company consolidations driven by certain PE funds, has resulted in a reduction in overall availability of mid stage direct placement capital deals for well-established, maturing ventures poised for growth. This reduction in capital resources, and how it came about, is a troubling tale. The epilogue is even sadder as if that were even possible, describing the pollution that occurred in the aftermath of the B2B consolidations. The selection criteria and commonsense values became out of phase, upside down, leading to long-term damages. These are the wages of fear and doubt that reliably occur when sound targeting attributes are ignored. Applying the corrective selection targeting criteria  – no MBA required – when the next phase of capitalization restarts – and we shall see that these mature, well led, clearly innovative B2B ventures come to the surface, with long-established continuities of private ownership; these ventures have been overlooked en mass for the past 15 years in the B2B IT subsectors.

While it seems a bit  farfetched to state that, “better companies were deliberately ignored in favor of the now well-known, (even infamous) weeble-companies tagged by PE’s for toxic consolidation). They were all past their prime,  overstaffed, overstuffed, having long abandoned their founders drive and vision, and eschewing the technical staff’s architectural and system acumen.  The sordid mess, in a nutshell, stank of corruption, but there is still hope….

We all know that no one can stop a true inventor –  the Edison’s, the Teslas, the Jobsian leaders….these brilliant, hard-headed, are true to themselves (and to the very wordInnovators  –  they never go away, they continue to innovate and improve, and gain more ground.  Continue reading

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A Sleigh Full of Angels; another day in the life of ThruDispatch

I was soooo nervous; Mr. East Coast Analyst turned entrepreneurial adventurer mooching around the city of San Francisco, riding up to this fine loft South of Market to pitch to…..who were these guys again? Yes, yes, a group of accredited investors – angels. These gents agreed to see me, and here I was riding their private elevator.

Woosh. There I am right in the suite, the home of Daniel Xavier Thornton (not his real name), a fabulously wealthy retired gent who made his fortune in the heyday of HP, Intel, Xerox. He worked for them all as an engineer, executive, advisor, and board member. For over 20 years, he and his close cohort have been placing seed funding east and west. These fine gents were notable for sometimes placing bets on good ideas from team-less subject matter experts; they are not impressed with voluminous business plans, they invest on the gut. Sometimes (often) they help build the teams and go hands on with operations. Sharp, mature, modest,  wise angels.

Whenever they addressed me they always used my first name in an almost formal manner, “Alan, we hate most of these Web 2.0 guys, we want to get back to investing in real inventions”. “Alan, can you tell us more about your background as an electronics technician?” “Alan, please don’t tell people who we are, you can do that blog thing, but change our names and location”.

Sure guys. Continue reading