Trends in Venture Funded E‑commerce

The role of investment banks will probably change as a result of the recent economic turmoil but a market  exists for matching investors with entrepreneurs touting new business concepts.  A recent Internet Retailer report notes that the e‑commerce industry still draws venture fund attention. Venture capitalists now have significant ability to predict which e‑commerce concepts will generate revenue. Projects that are getting funded share some business fundamentals:

An innovative business concept — Bag, Borrow and Steal, a business that allows consumers to rent high-​end accessories such as handbags and sunglasses, was cited as a successful b‑to‑c venture.  SellPoint, a business that creates instructional product videos and user guides for manufacturers, was cited as a successful b‑to‑b venture.

A commitment to customer service to prevent rapid-​fire and widespread negative reviews of the company via social networking

Tight financial controls that emphasize not only revenue generation but expense management.

Review the business publications in your region or network at business-​related events to discover which e‑commerce vendors have recently received venture backing.  Sign on early to handle marketing projects for these firms and help the clients grow to the next level while your own revenues increase.

[Source: Demery, Paul. New capital wave, Internet Retailer, September 2008]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.