Morning WUWT!
Over the past few days, I have been conducting some research on Net Shepherd, Idealab!, and Answers.Com. I have to say that I am very excited by the tremendous potential I see from these recently announced alliances.
I will attempt to show you who these companies are, and what their plans might be. I feel the best way to do this is to post their web URL's, and highlight excerpts from these sites.
After doing this research, I have come to the conclusion that this arrangement is just the start of something much bigger. Please be aware, that some of my comments are pure speculation, and therefore you should form your own opinion. That said, I feel that the arrangement between these entities provides a strategic alliance that will significantly benefit their shareholders.
By closely reading Net Shepherd's President's comments on their website, I feel he basically lays out the blueprint for their plans in 1999. It is easy to see how Answers.Com fits with their planned business goals. What I also really like is that Net Shepherd is now backed by the extremely powerful, experienced, and successful organization in Idealab!. I tell you, I have a hard time seeing how this partnership could fail.
Here is some of the background information I found that led me to that conclusion. Where possible I have posted the applicable links so a reader can dig deeper.
_________
Overview . . .
Idealab! just announced that they are taking a 400,000 share ownership position in Net Shepherd!
Net Shepard will take over 100% ownership of Answers.Com from Idealab!
Translation . . . Idealab! exchanged ownership of one small company for a significant piece of ownership of its new parent company.
Soooo, just who are these folks from Idealab!?
From Business Week . . . March 8th, 1999
icp.com
All told, idealab! has raised $20 million from partners who include director Steven Spielberg, Compaq Computer Chairman Benjamin M. Rosen, and former AT&T executive Robert M. Kavner II. Half of that has been invested in 30 idealab! companies over the past three years, and those companies have raised another $500 million on their own. idealab!'s $10 million investment is now worth $1 billion, Gross says, based on share prices and last-round valuations for the private companies.
Gross also has a venture-capital fund, idealab Capital Partners (ICP), to provide financing beyond seed capital to idealab! companies and for other Internet startups. That may turn out to be even more successful. ICP has raised $100 million, and at least four of its investments look ready for an IPO.
What companies does Idealab! own?
(By the way, eToys just went public and was one of the hottest IPO's to come out this year with a 300% increase in the first day!) NB: Do not skip over this URL!
icp.com
Some more information on Idealab!
Overview of idealab Capital Partners (ICP)
icp.com
ICP is an independent venture capital fund focused on Internet commerce and other early stage Internet companies, along with opportunistic investments in later stage, high growth Internet firms. Beyond its internally generated dealflow, ICP has the right to invest in up to 50% of each financing (subject to limited exceptions) of all existing and future companies after they have finished the incubation process.
The fund's goal is to achieve rates of return which are substantially superior to those available in the public equity markets. The general partner intends to reach this goal by exploiting its proprietary deal flow, through active management of the portfolio companies, and by utilizing its knowledge of the participants, technology and culture of both the Internet and venture capital industries.
ICP had its initial closing in late March 1998, and in February 1999 held its final closing, with $105 million in capital commitments. The lead investor is Moore Capital Management, a prominent global equities firm headed by Louis Moore Bacon. Other investors include Ben Rosen (venture capitalist and Chairman of Compaq Computer), Sun America, Union Bank of California, The Times Mirror Corporation, The State of Michigan, The State of California (via Grove Street Capital), Sumitomo Corporation, Ray Hunt, Finn Caspersen and the fund's managers.
How good is Answers.Com?
Note: Answers.Com is an award winning search engine site with a difference. They provide someone who enters a question on the site with the option of having a human being (not just a computer generated answer data base) search for more information for them. I understand that the applicable URL's etc. will be Emailed to the person who requested the information. I believe that the applicability of this feature in the Business to Business arena is overwhelming.
Business Week April 18th,1999
zdnet.com
Answers.Com Website
answers.com
How is Net Shepherd going to leverage their purchase of Answers.Com?
Note: I have included a copy of Net Shepherd's President's address to his shareholders (from the website). I have also bolded the sections that I feel could be a reason for the Answers.Com purchase. In my opinion, this purchase was a key part of an aggressive, and well thought out strategic plan to tackle the Business to Business market - focusing on the mutual sharing of information and intelligence.
netshepherd.com
In 1998 Net Shepherd was inducted into the Smithsonian Institute' Permanent Research Collection for its highly innovative and pioneering technology. Net Shepherd is now poised for explosive growth as an Information & Systems Business Solutions Provider, offering intelligent solutions that transform Companies using our unique cutting-edge Web technologies that are complemented by our full-line of systems integration and professional consulting services. During 1998 significant progress was made with our strategic business partners Dun & Bradstreet, Vanenburg Ventures BV and ClickChoice.com. These business partnerships have yielded important new business opportunities for the Company. The development contract with ClickChoice.com announced in August 1998 has been key in scaling our Internet Community Technology Platform and has enabled the Company to extend its technology to commercial applications beyond Internet filtering, such as Business Intelligence and Electronic Business Communities.
The successful integration and amalgamation of Chronologic Systems Inc. into Net Shepherd in 1998 enabled the scaling of our Internet Community Technology Platform. The integration also furnished the Company with the critical project management expertise and infrastructure required to enable the Company to complete software development projects sponsored by customers. In 1998 the Company successfully productized its Web-inspired business solutions. We have developed a very market-focused vision and business plan for Net Shepherd. Our annuity-based revenue streams are emerging and our new offerings are nearly complete. We have recently put in place a strong marketing, business development and sales team to pursue business opportunities around the world. The Company is pursuing an aggressive growth strategy in 1999 based on strong operating performance and institutional investment leading to a possible NASDAQ listing in 2000. In 1999 Net Shepherd will continue to grow through mergers and acquisitions, and through the successful adoption of our proprietary Internet technology and professional services in business-to-business markets. We will continue to build corporate assets that increase share value for our investors. As we look forward, in 1999 we will pursue business opportunities in three solutions areas: Business Intelligence, Collaboration Productivity and E-Business Performance utilizing our three offers: Professional Services, Proprietary Technologies and Methodologies, and Best-of-Breed Partner Solutions.
In 1999 Net Shepherd will:
Fuel growth via mergers and acquisitions with synergistic organizations;
Pursue annuity-based revenues from licencing information and technology to companies in high-growth markets;
Extend the application of our Internet Community Technology Platform into Electronic Business Communities;
and, increase Shareholder value through performance, growth and a transition to NASDAQ
Netshepherd website
netshepherd.com
_____
I strongly suggest that everyone take another look at the list of companies that Idealab! owns. "Remember, their fund's goal is . . . to achieve rates of return which are substantially superior to those available in the public equity markets."
In my opinion, they would not invest in Net Shepherd if they did not foresee a potential for significant returns on their investment. After all, they seem to have done pretty well for themselves so far! <ggg>
Just my thoughts . . .
Crazy Canuk
|
