VERT & ICGE, Cousins Working Together
10/29/1999 10:55 pm EDT
VERT & ICGE, Cousins Working Together
For your review,
The latest opinion by BancBoston Robertson Stephens B2B
Internet Analyst Eric Upin, on ICGE Success Story VERT.
BTW, PaperExchange is an ICGE Partner Company that is a
Near Term IPO Candidate for the fast emerging B2B
Powerhouse & Venture Capital Visionary, Internet Capital
Group.
Excerpted from:
October 29, 1999
The Web Report - Volume 2, Issue #43
eBusiness Update - Eric Upin - mailto:eric@rsco.com
VERTICALNET COVERS VIRTUALLY EVERY PROPERTY ON THE MONOPOLY BOARD,
leveraging its portfolio strategy and first mover advantage to
quickly build communities in 51-and-growing vertical industries. In
our opinion, the real story is converting these populations to
commerce-and so far so good. We are positive about the PaperExchange
deal as it accelerates VerticalNet's eCommerce strategy and serves as
a good example of ICG cousins working together. We believe
PaperExchange is a franchise player in the paper industry-a $300
billion market opportunity. In terms of the agreement, VerticalNet's
pulp and paper industry site and PaperExchange.com will share content
and give users of both sites access to PaperExchange's marketplace.
PaperExchange will get advertising space on VerticalNet's site, while
VerticalNet will receive a $500,000 up-front fee and 2-3% of
PaperExchange's commerce transactions over the next four years.
We like the VerticalNet story. We believe the B2B space does not
represent one mass market, but dozens of huge industry verticals. We
believe VerticalNet is well positioned to capture these verticals by
building a portfolio of industry-specific sites-and the company is
off to a strong start with the media model. The issues moving forward
surround the difficulty in modeling the extent to which commerce
revenues will contribute to the overall revenue mix-and at what
growth rate. But we are confident that VerticalNet's strategy is the
right approach.
Taking Care of B2B
&
Working Overtime
Source:
ROBERTSON STEPHENS
The Internet Stock Team
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October 29, 1999
The Web Report - Volume 2, Issue #43
Copyright 1999 by Robertson Stephens |
