Internet of Things Disruptive Startup Database Processing Technology

While there is massive noise in the IoT space, mostly from the large, corporate entities who have lots of money to throw at new technologies, the real IoT action is down at the raw startup level.

Working with the CEO of an IoT startup, one who understands early dilution is death, ContingencySales recommended a partnership that would deliver three totally novel benefits: access to the Fortune 1000 with a sales force entrenched in that space, funding that was not based on giving up equity and 18 months of stealth marketing where this database can drive applications at over a million times the speed of Oracle.

This IoT startup is raw—yet it has a large, visible customer base. Its customer base buys its standard offering, which has nothing to do with IoT. However, in order to scale, the company learned it had to find a new way to process transactions a million-fold faster than any known database technology.

So it developed massively disruptive IoT technology and runs its entire business with that new processing technique. So, why not spin out that into another company?

The CEO is a former VC and a technical genius—truly a unique combination. He wanted to find partners who could help him develop the new IoT technology but not give up early equity.

He found the partner looking for him—and it has made all the difference.

Why would a major corporation “invest” in an IoT startup without getting any equity? Well, because what they wanted was a disruptive IoT technology that had proven itself over the last 2 years, quietly, in a major IoT space. And they knew that if they approached this IoT startup AFTER it had VCs involved, they could neither afford the price nor get preferential treatment.

So, this Fortune 100 entity, invested, built a lab, took the products to its customer base and introduced this IoT firm to companies it could never have met on its own.

And the IoT firm was able to get to market, with zero cost of sales, zero dilution, and gain significant investment which will be paid back 10 fold from the sales funnel being developed by these two firms.

The moral of the story is to find the customer, or partner looking for you.

They are early adopters either because they are cutting edge, or because they are not cutting edge and thus have a greater need to find that key technology that they would never have been able to get otherwise.

And early adopters, innovators, behave differently.

So, yes, there is another way.

Going to the VCs is only the solution if you want to embrace servitude and lose control of your company.