Looking at 2011’s investments into eCommerce start ups, I noticed the following common traits of well-funded start-ups. It seems that the following characteristics make a start-up worthy of a sizable $10M to $100M in one round:
– Mobile application. Magic words: iPhone, iPad, Android
– Social media component. Magic words: Facebook, renren
– Shopping application. Magic words: Coupons, Group Buying, Buying Club
– Web-based application. Magic words: Cloud computing
– Global footprint. Magic word: China
– Localized application. Magic words: Local deals, Geolocalized
– Free(-mium) business model. Magic words: Free basic service
From that I concluded that a free global mobile application, also developed for the Chinese market, that would enable Facebook and renren users to automatically geolocalize (without tedious check-in) and get a local shopping coupon to share with friends and other members of a group buying club would be a total hit.
Or would that be another Ford T?