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Internet Enterpreneurship Course 2001

BANTER case study. Internet Enterpreneurship Course 2001. Dana Teltsch Shlomit Wagman Moshe Babaioff Tzachy Reinman Chezzi Lifshitz Yevgeny Mugerman. Presentation Goals. Introduce Banter. Present our lessons from Banter as a model of Start-Up company. Content. Overview

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Internet Enterpreneurship Course 2001

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  1. BANTER case study Internet Enterpreneurship Course 2001 Dana Teltsch Shlomit Wagman Moshe Babaioff Tzachy Reinman Chezzi Lifshitz Yevgeny Mugerman

  2. Presentation Goals • Introduce Banter. • Present our lessons from Banter as a model of Start-Up company.

  3. Content • Overview • History • Technology & Products • Market • Business & Finance • Lessons

  4. Company Overview • Free text classification technology. • Electronic Customer Relationship Management (e-CRM).

  5. Overview(cont.) • Founded at 1997. • 140 employees. • Privately held company. • 4 funding rounds Last (3/2000): 15 million $. • San-Francisco, U.S. Headquartered. • Jerusalem, Israel Technologycenter.

  6. History • Idea background • IDF • Octel • 6/1997, Founded by • Yoram Nelken • Rick Kohler • Yoni Rozen

  7. History(cont.) • 1998, First product - Mail Application • 1998, Betas: • Vocaltec • Verisign • 3/1999, First customer- Wells Fargo Bank. • 3/2000, 4th funding round • American VCs  New Management • Banter’s main marketing efforts from 3/00

  8. CRM Problem B2C relation, companies must manage their electronic customer relationship. • High volume. • Cost of many agents. • Communication consistency: • e-mail, chat, FAQ • Difficult business environment.

  9. eCRM Solution Integrated electronic customer contact center. Automated /Semi-Automated customer relationship management. Previous Technologies: • Forms • Rule Based • Offline Learning

  10. Still Problem… • Forms • Unappealing • Not scalable • Rule Based • Complex • Not scalable • No learning • Offline Learning • Changing environment • Lack real-time adaptation

  11. Banter’s Technology Relation Management Engine (RME): • Natural language processing. • Free text classification. • Online learning. • Adaptive Knowledge Base: • Improve accuracy. • Dynamic environment. • Noise tolerant. • Scalability - new areas.

  12. Banter’s Products • Banter Reply 4.1 - e-mail • Banter Live 1.0 - chat • Banter Self-Help 1.0- automatic real-time response • Future Generation: • Multi-language • Voice

  13. Banter Reply E-mail Query Natural Language Processing Intent Classification Feedback Customer Low Route to Agent Queue Auto Response High Confidence Agents Medium Data from Other Systems Suggested Response Approve or Choose Response Write or Edit Response Accurate Response to Customer Query

  14. Content • Overview • History • Technology & Products • Market • Business & Finance • Lessons

  15. eCRM Market • Estimated of hundreds of billions $. • Accelerating growing market. • Strong competitors.

  16. eCRM Competitors • Market Cap: 1 B$ • Customers: Bank of America, Cisco, e-Bay • Market Cap: 100 M$ • Customers: 21 of the 50 biggest companies in the world • Market Cap: 40 B$ • Partner, OEM agreement

  17. Classification market & competitors Text classification engine • Portals • Competitors • Autonomy - 3.4 B$ • New companies • Banter claims a significant technology advantage

  18. Business Model • Conservative one: • Selling products for money ! • High-End market • Pricing by: • Number of agents • Number of transactions

  19. Business Model (cont.) • OEM - become standard engine for eCRM • Pricing per customer • Siebel • Trust policy - licensing. • Enter new vertical markets.

  20. Customers 1998, Beta sites: • Vocaltec • Verisign Inc. Current Customers: • Wells Fargo Bank • Amero Bank • Zone Labs Inc. • Christianty.com

  21. First Major Customer Wells Fargo & Co. Bank • Biggest on-line interactive banking in U.S. • Bank-Client relationship - most important!. • 10,000 messages per day by 500 agents. • Less agents, better and faster communication. • Helped to improve the product.

  22. Funding Rounds 1997, Founder/Angel Rick Kohler - 0.5 M$ 4/98, Israel Seed 1999, STI Ventures 3/00, Lucent Ventures & Mayfield - 15 M$ Valuation: 60-140 M$ 2001, Coming soon: • Banks • Current invested VCs

  23. Turning Points • CEO replaces Yoram Nelken • Rick Kohler leaves • Wells Fargo Bank as first customer • Israel Seed and the American VCs • Name changes • 11/1999Aspect Software  Banter Technologies • 2/2000 Banter Technologies  Banter

  24. All the Aspects in the world... • aspect-software.com • aspect-vision.co.uk • aspectworld.com aspect.com aspectdv.com aspect-online.com

  25. Mistakes • Angel investor instead of VC. • Professional CEO hired very late. • Focus on technology on account of business. Registering in Israel

  26. Content • Overview • History • Technology & Products • Market • Business & Finance • Lessons

  27. Lessons • Choose your VCs • VCs have money • VCs need to invest • Interview them! • First class VC • Connections • Ideas filtering • Connections with best managers • Be open with the VC

  28. Lessons (cont.) • Try making competitor a partner. • Develop product with customer. • One mistake doesn’t kill a company. • The power of spirit • The founder is the heart of the company. • No need for 50% in order to make a difference.

  29. One More Lesson... “Watch one, Join one, Start one!”

  30. Thanks • Yoram Nelken - Banter • Yossi Barak - Banter • Michael Eisenberg - Israel Seed • Matt Stein - PipeLive • Roberta Chester - Hebrew University

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