Loss making Ocado (formed by three former Goldman Sachs bankers in January 2000) is planning to share it’s IPO with customers; they will be given the chance to invest. The £1billion flotation is expected next month (July 2010). It takes a GS banker or three to make a profit for shareholders from a company running a £32.6million pre-tax loss last year. Guess the GS guys really understand their business plan resource and like many VC funded technology start-ups have built a brand with value. Unlike a technology business, it is going to be difficult to scale Ocado into a global business. So much easier to send 0s and 1s down the global Internet. But at least the investors are being given a chance to invest in the equity.
Cambridge Cluster company, Hotel Chocolat, have a different deliverable - loan us your money and get dividends of chocolates via the their Tasting Club. Will the Inland Revenue want a taster of “income”? No sweet equity here and no sweat equity for the 600 people who have helped build the wonderful business of Hotel Chocolat. Interesting to read that co-founder Angus Thirlwell’s father founded Mr Whippy and Prontaprint. Does bean counter and co-founder Peter Harris have similar pedigree?
Two great companies, but both with problems with scaling their businesses globally. But still I am sure that Andrew and Peter never regret leaving the technology world after meeting at Torch Computers in the early ’80s. Those were the days. How did we build and sell Baddeley Associates in five years after Torch showed great faith in us by becoming our first customer? You never, never, ever forget your first customer - the people not the company.
Hat tip: Daily Telegraph business section 8 June 2010.
Post a Comment