Venture contrary

Coincided several factors - the reluctance to lose a valuable employee, breathtaking vistas, the interest of the guru, invited as an expert. In the media know-how Michael was just a bare Schelkonogova technology, investors had to choose a business model to build sales channels and even pick up management to manage the startup. Now, the project intends to become the largest supplier of ERP-systems, next generation. Serguei Beloussov, founder of Acronis and Parallels: «There was nothing left but to eliminate union activists" How did the idea to create Acumatica? - It's a story, does not fit into the overall framework. Project Acumatica separated as an independent business from the company Parallels. One of the divisions of Parallels is responsible for developing business applications for service providers. Since its foundation it has worked very active subgroup, headed by Mikhail Schelkonogovym that tried to develop a new technology is not suitable for Parallels. Acumatica technology based on the platform Microsoft (Windows,. NET, SQLServer, etc.). Major clients Parallels - service providers, such as hosting companies. Few of them work with the platform Microsoft, so we need programs that work on Windows, and Linux, Unix. Acumatica also works only on Microsoft. All attempts to get this command to stop the development that do not have much value for Parallels, without success, and I had no choice but to eliminate union activists. But in the process of advocacy, it became clear that Michael is stubborn, like all innovators, and still continue to improve the technology, which by then was already quite advanced. Then I invited as an expert, John Howell, one of the founders of Solomon Software, the former a pioneer in the field of ERP-systems. In Solomon Software, John Howell, head of marketing, responsible for commercial policy. New technology, he found it very promising, and expressed willingness to participate in the startup and the time and money. Then I decided to invest in the project. So quickly made new projects? - By the time the process rather slow. Mike wanted to create Acumatica since 1999, has been actively engaged in a project still in Parallels, around 2006. And in 2008, it became clear that technology is entirely inapplicable to Acumatica Parallels. So we created a separate company that sold you created through Parallels technology. Typically, from technology to product remains a long way. - Yes. Michael - the developer. He created a very advanced technology, but its basis was required to create specific applications that focus on a certain type of customer, build sales, that is, create a workable business model. I had no time to do it, but agreed to John Howell. He became a member of the board of directors and spends 1-2 days a week on marketing, developing sales strategies for Acumatica. A little later, managed to find a third "piece" - the head to-day management, they became Izakiel Steiner. How are the rights and obligations of shareholders, managers Acumatica? - While all together fully agree. The company is small, only the end of next year it will employ about a hundred people. There are key players - the board of directors of three people, and Iza-kiel and Michael. All the common vision of development. Of course, a formal board of directors can fire or hire a CEO, to approve the budget, but then all the decisions Izakiel. He may ask the shareholders by, for example, ask to speak with the candidate for the marketer to find a specialist to manage the engineering process, ask for advice on how to build relationships with subordinates, with the same Michael, who is also a minority shareholder. For example, it helped to find a marketer shareholders. In principle, the personnel shall be the responsibility of the CEO, but Izakiel still learning. Another example is now before the participants of the project task is to find additional investment, and I help them find it. Acumatica or from natural causes is working closely with Microsoft, is also preparing to transfer solutions to the new platform Acumatica Corporation - Azure. And Parallels long association with Microsoft, and we help Acumatica establish a relationship with them. Like looking CEO? - Five years ago, graduated from Harvard Izakiel, looking for a job and an ad came in Parallels. The company, whose headquarters was then in Washington, he worked for 4 years. Then the Parallels moved to Seattle, Izakiel move failed, and everyone was pleased with the opportunity podvernuvsheysya Acumatica. In principle, it was not obvious that Izakiel cope. Long ago, he created a small company and sold it to IBM, but it was in Argentina, the company was servicing. However, while it is very good at. Are you afraid to jinx? - Every business goes through several stages - earnings up to $ 1 million to $ 10 million to $ 100 million to $ 1 billion company with a turnover of up to $ 10 million - a small business, CEO knows every employee in the face, for control does not need a formal organization. With $ 100 million already required professional management. And most people find it difficult to survive the transition from one stage to another. What will you be considered a success? - If Acumatica released on $ 100 million in less than 5 years - it will be successful if in 5-10 years - it will be a satisfactory option, if more than 10 - failure. Who chose the business model for Acumatica? - John Howell, consulting with Izakielem. World SME is so constituted that some companies want to get software as a service part - rent and soft place in their part - to buy and deploy software on their servers. Accordingly, if you offer only one type of cooperation, we will lose significant market share. Our model is the most widely covered market, and offers ERP as a service previously did not exist. Tell us about sales model. - Acumatica sells through resellers. John Howell - ERP-business legend and inventor of this model. The model is and dignity, and disadvantages, but the coolest thing - a highly profitable for the supplier. When properly run the model resellers act as an additional sales force, marketing, etc. Many vendors of ERP-systems, for example, as NetSuites, and work through resellers, too, but have already begun to sell directly to customers. Therefore, they are both competitors and partners resellers. A Acumatica - only partner. Model sales through resellers is good on the stage of rapid growth of the business, it allows you to quickly gain traction. When it is stagnant, a further increase in revenue can only be due to displacement of their own value-added resellers, and many companies are beginning to direct sales. We are good that promise to never do work, and resellers like it very much. What difficulties encountered? - I have long known and worked closely with Michael, and with Izakielem, they are very appropriate people. But as soon as they are technical and general manager, I was surprised to find that they tend to be too self-sufficiency, trying to escape out of control. Although in some cases, before making a decision, it would cost to heed the views of shareholders. For example, I had hoped that Michael will consult on the development of technology with an experienced staff of Parallels, but Izakiel - with shareholders about the marketing. Another found that Michael very well versed in technology, but do not fully understand what to do software modules which can be developed partners, when and for whom. If it does not control, it creates a lot of not-developed applications, there is a smearing effect. For example, if he said he would write a module for distribution, but if not - write-ins for customers of distribution and retail, and manufacturing. And everyone will have insufficient functional. In the first version of the system were completely unnecessary modules that now we do not sell because they are flawed. This time there is a history of any developer, but for some reason I thought that Michael knows about it. To develop a strategy Izakielyu had to hire an individual. IZAKIEL Steiner, CEO of Acumatica: «PSC does not receive profits if developing direct sales" Izakiel why you accepted the offer to work for Acumatica? - Work at Acumatica promises a great opportunity for me personally, but also large potential and the company itself. Now vary greatly and technology by itself, and how to sell and deliver to the client. These changes seriously concerned about the major players in the IT-sector. For example, the market for business applications, in which we work is focused on an approach where programs are installed on users' computers. And such small companies as Acumatica, a chance to provide the market with new features, such as business management solutions in the form of a cloud infrastructure. Chances are, the more clear that the company has already passed the stage of a startup. We got customers. But in the ERP market is quite high because the competition? - Now on the market pandemonium of the suppliers of older technology - Microsoft, SAP, Oracle, many small companies. But like Acumatica, almost none. Our main difference and advantage - in the way of delivery. Traditional vendors sell a license, then the company installs software on your own server. To do this requires the customer's own IT-specialists and the "client program" on jobs. Acumatica gives you the option to buy or lease a license for the complete solution. The first option allows you to access the application from anywhere - from any computer or mobile device connected to the Internet. This is a great advantage, because the customer does not need to think about where physically to place the application. In the second case, if rented the specific software solution, as a rule, a major customer puts the software on their servers, and co-workers by simply typing in a web browser, a specific address, gain access to your application without installing it on their jobs. That is no competition? - Several small companies. For example, there is a NetSuite (a company listed on the NYSE). Perhaps they are the most noticeable, because selling software as a service. Their main problem is that they are engaged in direct sales, although it is obvious that this model - a dead end. But NetSuite as a public company is very difficult to change. They entered the market in 1998, settled on the stock exchange in 2007, and while they did not have even a single profitable quarter. Any medium or small business can not make a profit, if trying to grow through direct sales. Acumatica free of this disadvantage and focuses on sales through resellers. Still there is a company Intacct. They are larger than us, but smaller than NetSuite, and also engaged in direct sales. Like NetSuite, they do not provide the possibility of installing software on the client's server. Who are your resellers? - As a rule, small companies, some of which sell hardware, and, as a rule, they have extensive experience in implementing turnkey solutions to end customers. How strong is the influence of shareholders on business Acumatica? - I try to turn to shareholders as often as possible and try to motivate them as much as possible. Total we have seven shareholders, three of them with a large proportion: two belong to more than half of the company. Next in size and importance to us as a shareholder - the fund Almaz Capital Alexander Galich. He became a shareholder Acumatica in November 2009 and the only one not involved in its foundation. There are two more small shareholders, who are also employees of the company, one of its founders - CTO Michael and Andrew Shchelkonogov Bulanov. I am not a shareholder, but I do have options. You seek independence? - The question is very interesting. Differences in decision-making we do not. But Michael, being a shareholder, will always be confronted with the fact that he has power less than we would like to have. And that's fine. Everybody wants to have more opportunities to influence the situation. As you are looking for employees? - We are always looking for people from our industry, and in this we are very helpful to shareholders, professionals in the IT-market. It is important that they participate in finding staff, talk with the candidates, because in the early development of each employee is key. How many people in Acumatica? - We now have 28 employees, half of them are involved in research and development (R & D), and only 8 people involved in business development. Who are your customers? - Target audience - medium-sized companies with revenues of $ 10-500 million, now the two main groups: the segment of wholesale trade and business with a high degree of intellectual property. Geographically, our main customers are in North America and Southeast Asia. Why not Europe? - Europe - a very difficult market. Each country has significant differences of mentality, their own language, accounting standards, regulatory standards. Therefore, many countries in Europe require a substantial localization of our products. And in the countries of Southeast Asia and the standards are very close to the U.S., and almost anywhere communication is in English. What challenges face? - Today, the mainstream of development Acumatica - becoming its own brand. Any ERP-system implies a solution for business-critical tasks. Therefore, the user needs to be a corporate system operate stably at any time. Few companies are willing to trust the little-known software vendors. Tell us about the dynamics of financial performance. - Revenue is growing very fast and this year close to $ 1 million next year we expect to grow to 3 times, that is, the 2011 revenues of approximately $ 3 million by 2012 - $ 8 million in EBITDA in our country, of course, the negative right now and will remain the next two years, since we are in the investment stage. Thus, to the point of return we get to the end of 2012 and obtain its first profit in 2013. How much invested in the company? - I would prefer not to specify this. Why do you need a strategic investor? - The company has a real opportunity to grow rapidly over the next three years. And to achieve this goal, we need additional funds. Requires a financial investor or IT-company? - Communicating with investors with experience in your market, always has significant advantages. First and foremost, the investor is well aware that to go through together. And, of course, it's possible assistance in finding partners, staff. Unfortunately, the vast majority of investors can only give money. And how much is needed? - $ 3-5 million How will these investments on financial performance? - Financial results, described above, implies that the attraction was held. Will the company survive without these investments? - Sure, but then growth will be much slower. The existing shareholders will not be further invest in the company? - Most likely, they can. We are open to third parties, but if you do not find a strategist, then turn to existing shareholders.