New boom times for innovative e‑commerce companies
The PE industry prefers to support and finance “disruptive business models” which, through innovative techniques and ideas, could be suitable to replace conventional business models. MyTaxi is a good example of this: a technically simple model that uses commercially available smartphones to break up a cartel of cab companies that has been in place for decades, to the benefit of customers and cab drivers. An immediately recognizable win-win situation for customers and service providers! — The fact that Daimler and Telekom got involved early on as corporate venture capitalists is impressive proof that the synapses between the “old” and “new” economies are now perfectly formed.
In principle, it can be assumed that the capital requirements for (bio)technology companies are significantly higher than, for example, in the e‑commerce sector. Moreover, the development potential of such companies is largely dependent on their patent portfolio and is often linked to long holding periods. E‑commerce platforms, on the other hand, often have an easier time of it: the last few months in particular have shown that new areas of (conventional) goods and services traffic can still be brought into a digital infrastructure with high sales figures. The service sector, such as MyTaxi, is covered just as much as the classic goods trade. For example, ‘Zalando’ has established itself very successfully in the shoes/fashion sector, ‘52Weine’ in the wine trade, ‘Brands4Friends’ in clothing, and others as well. This success attracts investors and creates incentives to expand the respective entrepreneurial activities to ever new areas.
You should really “take your time” when negotiating financing and think things through. Subsequent corrections are usually painful, expensive and lengthy.