Ideas|Products|Startups|VCs

Vizury Interactive, an online advertising network has raised investments from early stage VC firm Ojas Venture Partners, deal size hasn’t been disclosed.

Vizury is a technology start-up in the internet advertising space. We help advertisers achieve optimal Return on Advertising Investment(RoAI) for their internet advertising campaigns through a proprietary technology platform.

Vizury Interactive was founded in 2008 by an IIT-IIM alumni team led by Chetan Kulkarni with strong business & technology experience in the internet advertising space across international markets.

Vizury flagship platform is called as Visitor Relationship Management (VRM) which empowers advertisers to engage their website drop-off users in a 1:1 marketing conversation, resulting in both measurable and tangible value, as well as contributing to intangible branding impact. The 1:1 marketing conversation is enabled through thousands of highly personalized rich media ads that are powered by statistical modeling of user behavior, dynamic message generation module and response optimization system

Vizury key USPs are – Behavioral Re-targeting, 1:1 Dynamic Message Generation & Delivery Engine, Response Optimization, Deliver Incremental ROI and Intangible Branding Impact.

-Hitesh, vcBytes.com

A successful profit-driven organization is one that achieves a good level of profitability. In order to do this, there is a need for an effective supply chain management software. The efficacy level of the said chain relies greatly on the supply chain management software as a services.

Defined as the control of materials, information, finances and other resources as the output moves from the supplier to the manufacturer to the wholesaler to the retailer and finally to the customer. The entire network that involves these different elements is referred to as the supply chain. Each stop gives out an additional value to the product and at the same time, benefits from its passing by.

Management of the chain is focused on making sure that every single party involved in the chain is able to get the optimal level of benefits that can possibly be accessed in the whole process. It is necessary for an individual to understand this basic concept to get a good shot at how an organization’s logistics and operations go.

The product is the most important element in supply chain management. It is essential to consider various factors when determining and manufacturing the product. One of which is the demand. A product is useless if it is not something the customers want. More so, the time it takes for the product to get into the customers’ hands is also something to take note of.

Demand is possible only if the customer has access to the information pertaining to the presence and possibility of the product. Within the supply chain, information involves the different parts of the different processes the product has to go through before it gets to the hands of the consumer.

Last comes financing. It plays a major role in the supply chain since each step of the process entails specific costs. The manufacturers, for instance, gets to deal with the suppliers concerning the possible payment arrangements pertaining to the supplies of raw materials and similar needs.

Certain problems can occur within this management. These can include the distribution strategy as well as the distribution network configuration. The cash flow and inventory management can also be sources of issues within the chain.

For a business end product to be successful, an effective supply chain management is definitely a must-have. It is all about the different operations and processes that take place within an organization. Hence, it is a necessity to maintain its presence and well-being.

-Hitesh, vcBytes.com

Small and medium scale enterprises have enormous tools now to promote their product and services. Search engine keyword programs like Google AdWords and other pay-per-click (PPC) advertising campaigns have proven to be an exceptionally inexpensive method for generating web traffic, qualified leads, and online web-sale revenues.

Determining how much daily budget to set aside; knowing the right amount to spend per-click; and assessing ROI, can be much more difficult tasks

Key Considerations-

If you are an entrepreneur, there is high probability of you meeting a VC and discussing about your venture and business plan. VCs, you must remember is a group of individuals that are seeking to make profitable investments in fast growing companies.

Beside focusing your attention on the unique qualities of your business, spend some time and work on the anticipated return on investment. VC firms often want to see companies that will produce returns in excess of 30% per year on a compounded annualized basis.

Lets look at the common questions VC asks an entrepreneur -

How much capital do you need? – This is one of the most imperative questions asked by a venture capital firm. They want to know how much of their capital will be needed to bring your business to profitability (if it isn’t profitable already). They will also want to know how these investment funds will be used, and if additional rounds of capital will be required.

Who is your competition? – This is also a highly asked question from VC firms. Every business has some form of competition. Discuss the competitors in your industry, how their product/service is similar to yours, and how your product is intrinsically better or more usable than that of the competition. Present the SWOT analysis.

Entry Barer ? – VCs are not keen in venture which have low entry barer which implies that this business model can be replicated easily. So as an entrepreneur you should be in full command to highlight why your business model is not easily be copied and how much time it would take for a newcomer to do so. VCs are keen to know if you can have patent protection on your product or your business process.

What is the current state of venture? – VCs are keen to know the current state of your venture to understand better the progress of the venture and also where funds will be utilized. Gone are the days, simply having a great idea does not cut it anymore. Venture capital firms want to see that you have something tangible to offer rather than just a good business plan or business concept. Prior to raising venture capital, you should try to move the business along as far as possible.

Do you currently have paying customers? – Paying customers definitely brings credibility to your product since VCs perceive it as a validation for the product and would like to talk to your customer to understand their viewpoint about the product.

Founding Team Experience? – VCs look for dynamic and extra ordinary founders to back them, a great leader can develop a very good business from an ordinary idea. They will want to know if you have the proper educational background, experience, and contacts within your field to make your venture successful and profitable.  Keep your biography and your senior management team profile handy.

How will i Exit? - Lets get this very straight VC never do charity, they are business folks and would like to see a hefty return of their investment, nothing less than 7x. They would like to exit the venture either by company’s IPO or strategic sale of their equity to a large company or a PE firm.

-Hitesh, vcBytes.com

At various stages of the company’s growth and development you as founder will attract different kind of investors and they will have different expectations.

Strong ROI

• To begin with generally founders raise money from 3Fs (friends, family and fools). 3Fs have sole intent in helping the founders and have faith in their capability.  Then comes the angel investor who is taking on the most risk by investing when the company is in early stage and has yet to generate much revenue but prototype is made or and have beta users or few paying customers.Angel investor looks to make 10-20x for their investments and its justified since they take major chunk of risk. In general angel investor will sell out during one of the subsequent financing periods. Very rarely does an angel investor stay on board until the company reaches maturity.

• Venture capitalists come in later but still before the company is cash flow positive or about to breakeven. Therefore, they typically want returns of 5x for a period of 5-7years. Mezzanine financiers provide a mixture of debt and equity to more stable and established businesses so they expect blended returns of 30-40%.

2. Pay off time –

• Very few investors wish to wait indefinitely for their money. They are investing not to make you feel good but because they believe in you and your business and the ability of the business under your management (and sometimes with their additional efforts) to generate enough revenue and cash flow and/or grow large enough in value to return them their investment and their expected return within a specific time frame.

• This varies based on the investor. Angel investors prefer a shorter period of time (3 years). Private equity funds typically expect 3-4 years. VCs tend to  derive a number of benefits, so their investment are longest with a period of 5-7years.

3. Management Team

• Investor looks for great team and founder who can spearhead the vision. There are many great ideas out there. It’s not so much the idea that counts but the ability of the management team to capitalize on that idea.  The management team is the most important component. A great management team can make a good idea or a so-so company into a great company. But a great idea may never make it off the ground with poor management and a great company can go rapidly downhill with mediocre management.

4. Company Valuation

• You shouldn’t look like a fool while approaching investors without knowing the worth of your company. Spend some time do some homework, check with your fellow entrepreneurs or hire a finance consultant to evaluate the base valuation of your company. Would you know if the investor is proposing a good price for the portion of their investment? Sometimes angel investors aren’t highly financial savvy and can’t do their own valuations. You need to demonstrate how their investment will help move your business to the next level and they will be keen to know how  requested investment amount was deduced. VC firms will do their own valuation but you should be ready with yours and this will facilitate your negotiations with these firms.

5. Business Plan

• Business Plan is a critical component and investors look into it quite seriously. Good business plan should cover an overview of the market, Gap/Paint points in the market, your proposed solution to address the gap, background on the business, industry and competitor assessment, management overview, sales and marketing plan, risks, financial snapshot, goals, and the strategy to accomplish these goals. Some investors only want to see an Executive Summary – 3-5 pages – to determine if they’re interested. Then, once they’ve expressed full interest, they’d like to see the complete business plan.