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I cannot recommend it enough for people in the technology or media sectors. Many people bandy about the definitions of “disruptive technology&# or “the innovator’s dilemma&# without ever having read the book and almost universally misunderstand the concepts. I’ve characterized it in a chart below.
For years, the prevailing narrative for innovation in supply chain has focused on the disruptors: Upstarts that enter the industry with new technologies and business models to displace incumbents. Enablers take on the unglamorous role of helping incumbents stay relevant. The quiet engines driving transformation.
Until you have billions of consumers around the world using a technology, you don’t have a new wave to ride. So the existing incumbents are the defensive line. And they are not taking on any of the incumbents directly. It wasn’t DeFi, although that has also been huge. In slow motion. They look impenetrable.
Incumbents can’t react. The reason that incumbents can’t react is that their revenue and defensibility are continued by serving the high-end of the market for which it would take too much time & money for any competitors to effectively challenge. If you haven’t read his book please do yourself a favor and buy it.
Today a startup that is building tools to help incumbent address this challenge is announcing a round of funding on the back of a lot of demand for its services. Altogether Personetics’ technology interacts with some 120 million users across 30 countries. . Names that it can disclose include Metro Bank, Santander, U.S.
In the decade since the Great Recession, we have seen digital upstarts – taking advantage of disruptive technologies from AI to IoT – reshape the economy and the corporate pecking order. How has corporate venture capital changed?
Incumbents have lept onto advances in generative machine learning more aggressively than any trend in recent technology history. But generative ML differs because incumbents are pushing the envelope. Over the past decade, the most advanced machine learning systems have often been built inside the largest technology companies.
They point out perceived market risks, they might question the management team’s experience, they might worry about regulatory risk or incumbent competitive powers. One such theme was “water conservation” and we morphed it into a broader theme of agriculture technology or “ag tech” for short.
And let’s say this – they use zero technology today and I have yet to meet a single person who loves their self-storage provider. Most customers won’t drive more than a few miles to a self storage unit making the incumbents essentially local retail businesses. The value prop is pretty clear.
Others may call this dichotomy digital versus physical, the disruptor mindset versus the incumbent mindset, start-up world versus Fortune 500, or tech culture versus industrial culture. Amid the insistent drumbeat of digital transformation, those traditional, old-fashioned competencies are easily overlooked and underappreciated.
Jake Jolis is a partner at Matrix Partners and invests in seed and Series A technology companies including marketplaces and software. For the fourth straight year, the publicly traded fintechs massively outperformed the incumbent financial services providers as well as every mainstream stock index. Jake Jolis. Contributor. Contributor.
” Internet hegemons have decimated entire spaces: social networks, advertising technology, video streaming and rental, paid email, infrastructure. DAO/Foundations : open-source software is arguably the most important motive force powering innovation in technology. Paying customers in “equity.”
They incumbents might provide terrible products or services that you think you can better. I can’t tell you how incumbents will act and who else will choose to compete fiercely with us. But these markets don’t have “white space.&# They might be large markets, sure. Nobody knows that.
At heart I’m still a tech nerd from childhood and I love to see how technology is changing business and society. I love businesses that aim to massively reduce the costs of products or services in a way that makes a product or service vastly more accessibility and in which incumbents would have a hard time competing.
Incumbent human processes were cumbersome, laborious, costly, slow and demoralizing. We started with the easiest problem that technology could attempt to solve. LESSON: Technology solves silicon-intensive problems and humans solve judgment-intensive ones. We love placing technology in service of tough problems.
“Challenger” startups in banking and insurance have upended their industries, and picked up significant business, by building more customer-friendly tools and services — more personalized, easier to access and usually competitively priced — than those typically provided by their bigger, incumbent rivals.
The key purpose of being end-to-end is to deliver an even better value proposition to consumers relative to incumbent alternatives. Incumbents in these industries are very large and entrenched, but they are legacy players, making them slow to adopt new technology.
In these cases we’re asking ourselves, can this individual/partnership execute a ‘known’ playbook better than incumbents, because it’s not very interesting to put people in business who are going to be Traditional But Average.
(January 3, 2025) The New Jersey Commission on Science, Innovation and Technology (CSIT) awarded over $2.7 The funding will support pilot demonstration projects from startup companies creating technologies that mitigate the emission of greenhouse gases and other pollutants. In 2023, the NJEDA awarded more than $3.6
Similar to other insurance products, disability insurance was sold the same way for more than 20 years: using outdated technology, data science and underwriting that didn’t provide consumers an appropriate policy based on their occupation and health.
” If no major incumbent can acquire a smaller company for fear of antitrust, all the incumbents can breathe : they can decide to build an a competing product with less risk of being outmaneuvered. The other major technology companies are just as hamstrung.
The company’s aim is to enable space access at greatly reduced risk, cost, and environmental impact compared to incumbent solutions. The rocket will provide low-cost space access for science experiments, technology demonstrators, and academic payloads. The first launches of the Dorado rocket are slated for mid-2024.
After half a generation of overhyped trivialities, Large Language Models have reminded us what real technological breakthroughs look like. LLMs are compute and energy hogs, and renting state of the art bundles of compute and energy by the millisecond is what tech incumbents do best. So what’s a founder to do?
When it comes to growing that proportion, however, m obile money — based on simpler technology and with an easier onboarding process — wins out, and it is set to capture more market share faster than traditional banking in the region. Neobanking, based on mobile technology too, falls somewhere in the middle of the two). .
After developing a network of telehealth, diagnostics and pharmacies for consumers, digital health company Truepill is targeting healthcare incumbents like health payers, providers and employer groups. We talk in technology that you are either arming the ‘rebels’ or the ‘empire,’ and in their case, they work with both.
You can’t simply drop a bunch of electric scooters in a market and hope to compete with the data and software advantages of the incumbents. But perhaps one of the biggest overlooked advantage of the incumbents is just how massively complicated it is to run a global or even national or even city version of a transportation company.
It will also use the investment to continue building out its technology, specifically to help build out better, AI-based techniques of processing and parsing pictures that are taken on smartphones — by their nature small in size. Insurtech is hot on both sides of the Atlantic.
Booz Allen Hamilton, the Virginia-based, defense-focused IT consulting firm, today announced the launch of a corporate venture capital arm, Booz Allen Ventures, that will initially put $100 million toward “strategic” defensive and offensive technologies.
It used to be that if you were a fintech startup or, for lack of a better term, a digitally native financial services business, you might be eyeing an acquisition from an incumbent in the industry. But lately, fintech upstarts are the ones doing the acquiring.
It’s not about technology and it’s not about business models, but it’s about us,” Brody continues. Reinvent your incumbent enterprise before you’re disrupted by another, or you risk becoming obsolete. What technologies are disrupting us, and which should we adopt? but how is it different?” Brody says.
On banking competitors, Ikigai’s founders argue that existing incumbents and challengers both have “significant” failings. Going with banking-as-a-service providers actually makes it easier to execute on our vision,” claims de Picciotto.
However, if you’re already an incumbent at a large health system with a compelling Covid-19 use case, then you’re in a really good spot. Startups with direct Covid-19 solutions are still experiencing sales challenges due to friction around technology integration, physician workflow, and culture adoption. “
Mambu , a Berlin-based startup that describes itself as an SaaS banking platform — providing, by way of APIs, technology to banks and others to power lending, deposit and other banking products — has closed a round of €110 million (about $135 million at today’s rates). The funding gives Mambu a post-money valuation of €1.7
Of course the VC is looking to have specificity in how you plan to spend the money you’re going to raise and plans that show a pie chart that says, “25% on marketing, 30% on technology and R&D, 20% on infrastructure, 25% on G&A” do not get funded. So it’s incumbent on you to know what a smart business plan and use of cash looks like.
Incumbent giants therefore could lose a sizable chunk of market share if a company could just manage to weave together China’s manufacturing proficiency and agility with the modern tech startup philosophy of “moving fast and breaking stuff.”. His first startup was a successful casual, mostly mobile gaming outfit known as ELEX Technology.
Yet, technology adoption within the real estate community as a means to fundamentally disrupt how physical assets behave and how transactions occur was lagging up until the last couple of years. quickly making real estate technology one of the fastest growing venture asset classes. The connective thread here is the use of technology.
David Friend is a serial entrepreneur, six-time founder, and the current co-founder and CEO of cloud storage company, Wasabi Technologies. Discount airlines, cell phones (not smartphones) and integrated circuits are good examples of the “faster, cheaper, simpler” variety, because they simply displaced familiar incumbents. David Friend.
Cards have an estimated payments volume of $900 billion per year, and yet 95% of these transactions are being processed by local incumbents, asserts Pomelo. Clocktower Technology Ventures makes $25M bet on Latin American fintechs. incumbents. “It This round caught our eye for a few other reasons. market with different dynamics.
As generative AI captivates Startupland, startups will do what they have always done: integrate new technology to build transformative businesses. Incumbents have seized the moment with Microsoft, Adobe, & others integrating generative AI into their products quickest. What are these moats?
For new entrants looking to take advantage of the advent of LLMs and disrupt the status quo by going upstream of these incumbents, we’ve done a deep dive into Bloomberg, Morningstar, and Verisk’s stories. In doing so, each built the beginnings of what are now category-defining businesses.
The technology industry is often thought of as being the domain of the young and the new. We see an emphasis on young founders (“40 Under 40”), innovative ideas and disruptive challenges to legacy brands, incumbent companies and “old” ways of thinking.
But it pivoted within the last several years to general-purpose computing as well as generative AI technologies, like text-generating AI models. ” It’s tough for any cloud provider to compete with the incumbents in the space — i.e., Google, Amazon and Microsoft. . For perspective, AWS made $80.1 billion and $26.28
Larger banks and other financial service providers are getting a lot more serious when it comes to competing with upstarts that are disrupting their businesses with fresher approaches and newer technologies. The funds — coming from a single investor, Motive Partners — values Backbase at €2.5 billion ($2.6 billion).
The company was founded in 2018 by Shamir Karkal, Angela Angelovska, Isaac Hines and Alex Lipton to simplify digital payments and storage in a regulatory compliant way and build on blockchain technology. It was acquired by BBVA in 2014 for $117 million and shuttered earlier this year.
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