Welcome back to Inside the Mind of an NYC VC, a new series at AlleyWatch in which we speak with New York City-based Venture Capitalists. In the hot seat this time are not one but two prominent VCs in New York, David Arcara and Jeffrey Silverman, Partners at Laconia Capital Group, a late seed stage B2B venture focused on investments in the Northeast. Jeffrey and David were kind enough to provide an entertaining view of their partnership dynamic, building a firm that captures the best elements of both angel and venture investing, how the Laconia thesis leverages its LP base for entrepreneurs, and much more.
So, You Bet Your SaaS on IoT
Various estimates peg the number of Internet of Things (IoT) devices deployed in the market to be between 6 to 7 billion, and that number is expected to grow over 8 times in the next 3 years. To illustrate an example of an IoT device, imagine a parking spot with sensors installed. These sensors send data on the availability of that parking spot to a local internet-enabled gateway that ultimately communicates the information to the car drivers (through their navigation systems) in that vicinity – in this case, and in any similar scenario in which sensors enable communication between physical objects and Internet-enabled systems, we are talking about IoT devices.
The market opportunity for SaaS companies within IoT becomes huge once these devices become more pervasive. Today, the primary market opportunity for SaaS companies is centered around enterprise, web, and mobile sectors, with industries more skewed toward modern non-traditional (non brick-and-mortar) sectors. That market is less than $20 billion. With IoT devices, many traditional industries such as energy, utilities in general, construction, transportation, and the environment will be ushered in the 21st century of connectivity. That means stakes are much higher, as these multi-billion dollar industries are much bigger than the modern enterprises. There is a reason GE calls IoT the Industrial Internet of Things (IIoT).
Not only that, we anticipate that IoT will bring brand new challenges – which subsequently pave the way for opportunities – for current and next generation SaaS companies to build services and products. For example, current generation solutions might not work as they are to get similar intelligence, data, and analytics for IoT devices such as sensors and actuators.
Similarly, applications for Quality of Service (QoS), Security, Billing, Maintenance and so on all have to be reimagined (or retrofitted) in the world of IoT. As far as data is concerned, what we call “Big Data” today will look like rounding error in 3 years with the amount of data generated by 50 billion IoT devices.
NYC Tech Leaders Oppose Trump Immigration Ban
On January 30, 2017, New York tech leaders came together to stand in opposition to President Trump’s executive orders suspending entry for citizens of certain countries and limiting the refugee program. See the letter we sent to the President and you can add your name here.
Ford Credit and AutoFi Debut Platform for Faster, Smoother, Simpler Digital Vehicle Buying and Financing
DEARBORN, Mich.–(BUSINESS WIRE)–
There’s a new way for customers to purchase or finance a new Ford vehicle in minutes – right from a dealership website from anywhere, on any device – through a new platform from Ford Motor Credit Company and financial technology company AutoFi.
In addition, Ford Credit has made an investment in AutoFi as Ford Credit continues pursuing technological advances to make the financing experience better.
“By combining our fast and efficient credit-decision process with AutoFi’s online capability, we are making the customer experience faster, smoother and simpler,” said Lee Jelenic, Ford Credit director of mobility. “With its experience in used-vehicle online financing and well-developed platform, AutoFi makes it easier for us to adopt new technology quickly to meet evolving consumer expectations.”
The AutoFi platform can be used now at Ricart Ford in Groveport, Ohio, and will roll out over time to more Ford and Lincoln dealerships across the United States. The introduction comes as 83 percent of Americans say they would like to spend as little time at the dealership as possible when shopping for or buying a car, according to a new survey of more than 1,000 U.S. adults conducted online by Harris Poll on behalf of Ford Motor Company. Many of those same people, however, still want to touch and feel their new vehicle before signing on the dotted line. The new platform provides the best of both worlds.
Through the dealer website, customers have a transparent and seamless purchase and finance experience from anywhere on their mobile phone, tablet or computer. Once the online part of the transaction is complete, all customers need to do is sign the paperwork when they collect their new Ford.
Consumers may shop for a new Ford in the showroom or from anywhere via the Ricart Ford website. After selecting a vehicle, they can apply for credit and receive a decision, choose the financing terms that make sense for them, and then review and select optional vehicle protection products – completely online on their own time. Customers then can review a final summary of the financing terms and schedule time to complete the transaction and pick up the vehicle.
“AutoFi’s platform will help cut the time people spend arranging financing and improve the experience dealerships can deliver for their customers, no matter where they are in the car-buying journey,” said Kevin Singerman, CEO of San Francisco-based AutoFi. “We think this will be a game changer for both consumers and dealers, and we are thrilled to work with Ford Credit to make this happen.”
“Technology is transforming just about every type of financed consumer purchase, and this new digital capability will help make that change for automotive purchases and deliver great experiences,” said Rick Ricart, Sales and Marketing vice president at Ricart Ford. “We are excited to be the first Ford dealership in the pilot.”
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About Ford Motor Credit Company
Ford Motor Credit Company is a leading automotive financial services company. It provides dealer and customer financing to support the sale of Ford Motor Company products around the world, including through Lincoln Automotive Financial Services in the United States, Canada and China. Ford Credit is a subsidiary of Ford established in 1959. For more information, visit www.fordcredit.com or www.lincolnafs.com.
About AutoFi
AutoFi is a technology company transforming the way cars are bought and sold. The company’s platform allows auto dealers to sell vehicles completely online by connecting buyers with lenders in a fast, easy and transparent process. AutoFi’s team includes industry leaders from enterprise software, finance, automobile and consumer sectors who previously worked at companies including Lending Club, PayPal, and SunGard. AutoFi’s investors include Ford Motor Credit Company, Crosslink Capital, Lerer Hippeau Ventures, Laconia Capital Group, Basset Investment Group, Eniac Ventures, 500 Startups and Silicon Valley Bank. For more information, visit www.autofi.com.
About the Survey
This study was conducted online within the United States by Harris Poll on behalf of Ford Motor Company between November 28 and December 5, 2016, among a nationally representative sample of 1,217 adults ages 18 years and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170122005155/en/
The Dying Art of the Thank You Note
We must see at Laconia a few dozen pitches each week, and what continues to amaze me is the lack of relationship-building skills that so many entrepreneurs seem to have.
While growing up, my parents hammered into me the courteousness and importance of writing thank you notes. During the early days of my career, I was shown how to build a business relationship, and most importantly, how to maintain one. Thank you notes were a cornerstone of relationship maintenance. And this was all before there were emails and texts to make the process so damn fast and easy.
Entrepreneurs work so hard building businesses. They identify opportunities, draft business strategies, hire people, develop technology, raise capital and sell, sell and sell! Yet, through it all, they seem to treat relationship-building like a speed bump on the road to success. It seems most people today do not understand how a simple email can leave a door open for future opportunities that might not seem obvious at the time.
I tell my entrepreneurs, and my three children, to try and do the following as religiously as they can:
Send an email to the people you have spoken to or met with by the end of that day. If it is a very important meeting go the extra mile and draft a handwritten thank you note. Yes, write an actual paper thank you note! You would be shocked by someone’s reaction when they actually get a hand written thank you note. Talk about going old school and positively differentiating yourself!
When someone connects you with another person, circle back with them and let them know how the new interaction went. So many times I will connect someone to one of my contacts and then feel like the intro fell into a black hole. Follow up with people who make introductions for you and let them know you met with their contacts and how it went. Then thank them again! A consistent follow-up will more likely encourage additional introductions.
Keep your contacts updated on your progress. Why keep news to yourself or only for those who tell you what you want to hear? Share good news.
Relationships might begin during an appropriate request, such as when looking for a new job, funding, customer introductions etc., but it is the post initial communication that builds life long relationships.