Comments on: Locality, take two! http://warrenseen.com/blog/2006/02/05/locality-take-two/ freelance software developer Thu, 04 Mar 2010 03:46:54 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: warren http://warrenseen.com/blog/2006/02/05/locality-take-two/comment-page-1/#comment-10 warren Mon, 06 Feb 2006 05:08:04 +0000 http://warrenseen.com/blog/2006/02/05/locality-take-two/#comment-10 Hi Hrush, thanks for your response. First off, congrats on getting funded :-) This post is very much about how startups outside of the US can capitalise on the failure by US companies to see that they can expand their services beyond their borders. As I said in a previous <a target="_blank" href="http://warrenseen.com/blog/2006/02/05/location-location-location/">post</a> : "If (US startups are) not willing to do that, then don’t be surprised to see competitors with better support for multiple locations overtaking (US startups) in the near future." I thought Cleartrip provided a perfect example of how Orbitz and others have missed the boat. Bad news for them, good news for you :-) Hi Hrush, thanks for your response.

First off, congrats on getting funded :-)

This post is very much about how startups outside of the US can capitalise on the failure by US companies to see that they can expand their services beyond their borders. As I said in a previous post :

“If (US startups are) not willing to do that, then don’t be surprised to see competitors with better support for multiple locations overtaking (US startups) in the near future.”

I thought Cleartrip provided a perfect example of how Orbitz and others have missed the boat. Bad news for them, good news for you :-)

]]> By: Hrush http://warrenseen.com/blog/2006/02/05/locality-take-two/comment-page-1/#comment-9 Hrush Mon, 06 Feb 2006 04:38:05 +0000 http://warrenseen.com/blog/2006/02/05/locality-take-two/#comment-9 Warren, I happen to be one of Cleartrip's founders, and all I can say at the moment is: 1. Don't believe everything you read in blogs or newspapers (especially not newspapers associated with the Times Group in India) 2. What you've pointed out about Orbitz is phenomenally true. 3. Given #2, don't you think travel needs a better search? Warren,

I happen to be one of Cleartrip’s founders, and all I can say at the moment is:

1. Don’t believe everything you read in blogs or newspapers (especially not newspapers associated with the Times Group in India)
2. What you’ve pointed out about Orbitz is phenomenally true.
3. Given #2, don’t you think travel needs a better search?

]]> By: ben barren http://warrenseen.com/blog/2006/02/05/locality-take-two/comment-page-1/#comment-6 ben barren Sun, 05 Feb 2006 13:13:18 +0000 http://warrenseen.com/blog/2006/02/05/locality-take-two/#comment-6 yeah unfortunately alot of VC's think alot of Web 2.0 companies are too small (ie under $100m-$200m rev in 5 years, IPO'able etc "$1b Dollar Home Run") even when focused on the US and global market. Basically verticalising an opportunity is considered too small in potential. High net worth individuals and large players in the space being attacked though (eg travel, telecommunications, search etc) will be interested - however then they often lack the early insight, technical competence and arent "professional investors" investing in an "Australian version of...." So what Im doing is small angel funding from a party I know well, combined with classic bootstrapping techniques : Get the product to launch, also build enterprise revenue by licensing the technology to players in your field. The one real benefit this time is its alot cheaper to get a website up and live (ie $50k-$100k) which wasnt the case last time in 90s. Heck, someone with mortage equity gains could seed invest a business. Just dont expect anyone to simply fund a local idea, however proven. Once you launch and have success watch them follow. So the key is to fund and exploit and create economic value from that window. :) ben yeah unfortunately alot of VC’s think alot of Web 2.0 companies are too small (ie under $100m-$200m rev in 5 years, IPO’able etc “$1b Dollar Home Run”) even when focused on the US and global market. Basically verticalising an opportunity is considered too small in potential. High net worth individuals and large players in the space being attacked though (eg travel, telecommunications, search etc) will be interested – however then they often lack the early insight, technical competence and arent “professional investors” investing in an “Australian version of….” So what Im doing is small angel funding from a party I know well, combined with classic bootstrapping techniques : Get the product to launch, also build enterprise revenue by licensing the technology to players in your field.

The one real benefit this time is its alot cheaper to get a website up and live (ie $50k-$100k) which wasnt the case last time in 90s. Heck, someone with mortage equity gains could seed invest a business.

Just dont expect anyone to simply fund a local idea, however proven. Once you launch and have success watch them follow. So the key is to fund and exploit and create economic value from that window.

:) ben

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