Why B2C is so hard to get funded in Austin

Why B2C is so hard to get funded in Austin

My good friend and the founder of Capital Factory, Josh Baer, wrote a post last year saying that he will invest in your B2C startup. Well, so will we. We wrote the first check for ROIKOI, which went on to raise well over $1 million, and also made investments in Bigwig Games, Blue Avocado, Deep Eddy Vodka, Dropoff, and Threadover the past two years. We were also one of the first checks for Wisecrack, but that is based in Los Angeles, and invested in the Series A for talklocal, based in DC. And we are investors in several venture capital funds, including Lead Edge Capital, which holds early positions in Alibaba Group, BlaBlaCar, and other large-outcome B2C companies but these are not in Austin so I guess I'm diverging from my point of this post. In any case, that is a total of eight B2C company investments (if you include Wisecrack and talklocal) out of a total of 33 startups we are involved with, representing 24% of our portfolio (and 18% if you exclude Wisecrack and talklocal).Real Massive also has a kind of B2C dynamic, even though it is B2B, so maybe I should count them too as they are Austin-based. But our primary focus is SaaS, for which we have holdings in 19 startups (57% of our portfolio). Both Bazaarvoice and Coremetrics were/are SaaS businesses and we have the most experience to bring to that category. SaaS is also far less risky than B2C, and that brings me to the real point of this post.

Observations on the Austin startup scene with Jason Seats, Managing Director of Techstars Austin

Observations on the Austin startup scene with Jason Seats, Managing Director of Techstars Austin

Techstars has become quite a force for startups, recently surpassing $1 billion in capital raised for the startups that have graduated from various Techstars program (see the stats breakdown). That is a staggering figure, to say the least. So I decided to kick off the New Year with an interview of our own Jason Seats, Mananging Director of Techstars Austin. I've been proud to be a Mentor of this great program since it launched.

What I learned from my top three Lucky7 posts in 2014

December 5th marked my second year of blogging personally (I had previously been a corporate blogger for 7 years at Bazaarvoice as our CEO). I began blogging primarily as a service to entrepreneurs - a form of giving back to the community that I believe is the greatest force for change. If you are wondering why my blog is named Lucky7, it is as a tribute to my amazing mother, who passed away two years ago. Myfirst Lucky7 post on December 5, 2012 was a revisit of my manifesto written to the Bootstrap Austin community on March 15, 2005, months prior to starting Bazaarvoice. Much has changed in the nine years since and it wasn't unusual at all for Austin startups to raise seed capital vs. bootstrapping in 2014.

How to select the right gift for someone you appreciate (in business)

How to select the right gift for someone you appreciate (in business)

With this being the season of giving and saying thanks, I wanted to share some thoughts on the right way to do it. Unfortunately, it is common in business to rush through your to-do list and quite often that means not thinking hard enough about what gift to give, especially when it comes to giving chotskies at tradeshows. In business, there is much mediocrity.

What I've learned about eating animals - and what the future holds (Part Two)

This is Part Two of Two in a series about our love for food, cultural practices, nutrition, the way we treat animals, what the Torah (Bible) says about eating animals, and where I think the puck is going (Part Two is the one bit about entrepreneurship, or future forecasting what I believe will be a very lucrative opportunity for the right entrepreneurs). This is more about what I've learned about these topics over the past four years in adopting a mostly vegan diet than my typical Lucky7 posts about entrepreneurship (with the notable exception I just mentioned above). I will not be offended if you stop reading now, and you now understand the context if you continue to read this series. I want you to know what you are getting into before you proceed; I believe this series will be a Matrix-type learning for you ("take the red pill, Neo") and once you know the truth you cannot "unlearn" it. You have been warned. :) Having said all of that, this is a topic that I'm very passionate about. My drive to write this series comes from the many questions I get from people about my diet, so I'm writing this to openly share what I've learned and this will also be more efficient - and comprehensive - for me than telling bits and pieces of this learning each time in conversation. My drive also comes from losing my father to a heart attack because of his diet. He was too young to pass away, and I miss him very much. I wrote a tribute to him here - he was an amazing entrepreneur and man.

Before I begin, I would like to thank my good friend, Ryan Cush (one of our best for many years at Bazaarvoice and an executive of Food on the Table, recently acquired by The Scripps Network), for discussing and reviewing this series with me. He is a wise and good man, and I always enjoy collaborating with him.

How I define the soul of entrepreneurs: you change the world (part 3 of 3)

How I define the soul of entrepreneurs: you change the world (part 3 of 3)

You create the future. Others dream about it, some write about it, many read about it. But the rare few actually create it. You are one of those rare people, and you are to be cherished by humanity for being so brave to define the future for all the rest.

"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man." - George Bernard Shaw (1856-1950)

You create the jobs. There is no company that anyone goes to work for that didn't have a brave creator at the beginning of it all. Your company can grow beyond you, but no one at your company today would be there if it were not for you giving birth.

You define the soul of the company. It was your unreasonableness, your "craziness", your dream, and, perhaps most importantly, your values that were seeded in its birth. Others can lead and tap into that soul, but if it weren't for you there would have been no soul in the first place.

Dear Bazaarvoice, the love of a founder never dies

To: The Bazaarvoice team, both past and present

Dear Friends (for I consider each of you to be just that),

My most sincere thanks to each of you for some of the most memorable, fascinating, and uplifting days of my life over the course of the last decade.

As my time on the Bazaarvoice Board of Directors draws to a close today, I look back on what we achieved together since this company was created over nine years ago with a combination of pride and humility. Pride because together, we built something from the ground up that revolutionized how transparently commerce would be conducted. And we did it incredibly well, expanding all over the world and winning the trust of thousands of clients and many partners. Humility because I will never take for granted the great privilege it has been to lead, to serve, to learn from all of you, and to be part of our outstanding culture.

In life and in one’s career, there are periods that shine for one reason or another and for me, the most transformational period has been my Bazaarvoice years. And that’s because of all of you. What we created together is one of a kind. The effort and skill it took amazes me. The devotion and care you brought to your work, the spirit of inspiration I saw thriving around me, and the eagerness to take a big risk on a new idea will inspire me for the rest of my life. I mean that with all of my heart.

One has to look forward as well as back though, and as deeply as I have loved my time serving with you, I have confidence that Bazaarvoice has many great days that lie ahead. The same spirit of ingenuity that drove us at the beginning still churns today. The excellence of our team is unquestionable. The soul of Bazaarvoice is very much intact and the heart beats strong.

I plan to continue watching, applauding, and taking great pride in your successes as one of our largest shareholders and a most loyal fan. But most of all, I will remain grateful to all of you, every day of my life. The love of a founder never dies.

Sincerely,
Brett

Three need-to-meet startups at Shop.org to see the future of digital retail, plus the latest from Bazaarvoice

Every year I look forward to the Shop.org Annual Summit. It brings together the smartest experts and entrepreneurs working in the digital retail space for discussions about the state of the industry and solutions to some of our biggest challenges. It’s an expansive showcase of innovation and insights.

There are a number of companies exhibiting this year that I’m excited to speak with, but I wanted to highlight three in particular that all of my retail friends should check out: Edgecase, Shelfbucks, and Together Mobile.

In the interest of disclosure, I’m an investor and/or advisor (Hurt Family Investmentsportfolio) in all three of these companies (and also a former three-term member of the Shop.org Board of Directors). But there is a reason I’ve been impressed by these companies and believe in them and their value - and think retailers and brands should as well. They are all transforming multi-channel shopping in important ways. They are focused not only on conversion (still a primary pain-point in digital shopping) but also revolutionizing the customer experience.

What I've learned about eating animals - and what the future holds (Part One)

This is Part One of Two in a series about our love for food, cultural practices, nutrition, the way we treat animals, what the Torah (Bible) says about eating animals, and where I think the puck is going (that last part is the one bit about entrepreneurship, or future forecasting what I believe will be a very lucrative opportunity for the right entrepreneurs). This is more about what I've learned about these topics over the past four years in adopting a mostly vegan diet than my typical Lucky7 posts about entrepreneurship (with the notable exception I just mentioned above). I will not be offended if you stop reading now, and you now understand the context if you continue to read this post. I want you to know what you are getting into before you proceed; I believe this post will be a Matrix-type learning for you ("take the red pill, Neo") and once you know the truth you cannot "unlearn" it. You have been warned. :) Having said all of that, this is a topic that I'm very passionate about. My drive to write this post comes from the many questions I get from people about my diet, so I'm writing this post to openly share what I've learned and this will also be more efficient - and comprehensive - for me than telling bits and pieces of this learning each time in conversation. My drive also comes from losing my father to a heart attack because of his diet. He was too young to pass away, and I miss him very much. I wrote a tribute to him here - he was an amazing entrepreneur and man.

The founding of the UT Discovery Fund

The founding of the UT Discovery Fund

When I was an undergrad student at the University of Texas at Austin I very much wanted to become an entrepreneur. During those years (1990-1994), however, there was almost no support for entrepreneurship at the University. I didn't feel "developed" enough to pursue my dream, so I decided to go into consulting instead and became an entrepreneur a few years later, while I was earning my MBA.

In September 2013, I began my tenure as Entrepreneur-in-Residence at the University of Texas at Austin. I was proud to follow in the footsteps of my grandfather, who taught at UT Austin his entire career. Instead of imposing what I thought the community would be need during my time as EIR, I took a lesson from building Bazaarvoice and Coremetrics. I created a team of four very influential and entrepreneurial student leaders and asked, “What does the student entrepreneur community need?”. The four were Taylor Barnett, Verick Cornett, Dan Driscoll, and Jonathan Van. We became the “Office of the EIR”. Nick Spiller joined our team later and right after graduation he joined UT to continue the charge as an entrepreneurial catalyst across the school.