Thursday, May 22, 2008

SemTech Panel: Investor Opportunities and Pitfalls

Eghosa Omoigui (Intel): Intel Capital is the investment arm of the Intel Corporation,
and it has $3 billion under management. 93 invest professionals are working with 422 companies on deals ranging
in size from seed stage investments to hundreds of millions of dollars. The most recent investment was in Endeca, which specializes in content aggregation and management for enterprises. We have a lot of interest in the
semantic space and have been following it for over five years. There are several deals that are currently pending
that I can't name. One is doing dynamic, large-scale ontologies - taking content and overlaying dynamic
. The company is based out of Asia and will be announced soon.

Question: How do you expect to make money on the Semantic Web? What are the monetization strategies that you are seeing?

Stephen Hall (Vulcan): It really depends on the
company and the business model. Twine will be partially
monetized via advertising, but there will be other components. In
general, Vulcan quite likes the advertising space, which will be
doubling to
$40B with room still for growth. Semantic technologies that are
impacting ad quality is another interesting area.
There are companies in that space, for example
Dapper, that are leveraging semantics to deliver
more targeted, more contextual advertising.

Amanda Reed (Palomar): There are several business
models that we are seeing out there.
Most often, it is a web service or service offering. There are licenses
in the enterprises as well, of course.
In addition, we are seeing new models where services are packaged into
boxes and bundled with software.
This is
a hybrid model that seems to be interesting to many enterprises because
of the finer control. It is important for startups to figure out how to
match the value proposition to the business model.

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