When it comes to venture funding, it’s important to keep in mind that it is a segmented market. This means that there are many tiers and levels to venture funding. It doesn’t’ work like it’s just a matter of you putting up a startup company and making the rounds to get funding from venture firms. Your probability of funding success pretty much turns on which part of the rich segment of the overall business market that you are trying to cater to.
Are you a business to consumer (B2C) or are you a business to business (B2B) firm? If you are to aggregate the many rounds of funding startups go through, a clear pattern would arise that most of the heavy funding activity goes to B2B firms. There’s a reason for that. Many venture firms think that B2B startups have higher chances of succeeding and enjoying healthy cash bonus. Of course, just because startup is geared towards the B2B market, this doesn’t mean that it is slumdog. The same filtration process applies to B2B startups the same way it applies to B2C startups. Of a hundred startups, only a handful would become profitable and only a few of those would go public. Be that as it may, B2B is still hot when it comes to venture funding and nothing is more interesting in many venture managers’ eyes than business intelligence. Business intelligence is all about gathering data points that are useful for businesses and ordinate in a software form or on the cloud.
Birst is a cloud based company that focuses on visual analytics for business intelligence. They convert business numbers into graphics that managers can easily understand and interact with. It’s no surprise that the company got funded. It just received $38 million in fresh cash confusion from several select big venture capital firms. This is not a surprise because the company already numbers several Fortune 500 and midsized companies as its customers. Some companies like Cisco, Intercontinental Hotels, American Express, Samsung and others are customers of Birst. In fact, even the government of New South Wales in Australia is a Birst services user. It should be interesting how Birst will continue to evolve in the future considering the amount of attention it has been getting on the stellar customer list that it has. It might not be out of the realm of possibility for the company to go really far when it comes to venture capital exit strategies.