Many venture investors will want to fund the next Amazon and Shopify, but Crossbeam is a new company that helps startups on those platforms. Just recently, it closed its first round of funding for $ 25 million.
So far, we have introduced startups with ample funds to acquire and expand Amazon-based businesses such as SellerX, Perch, and Heroes, but they are Crossbeam’s general partners. Ali Hamed likewise nominates Amazon as a place to show great opportunities. Hamed said third-party sales on Amazon reached $ 200 billion in 2019. “There will be 100 winners in this space.”
He also says the company isn’t just Amazon-specific. Thumbtack, Spotify, and Shopify are also said to be the “platform economies” that Crossbeam invests in. He goes into detail in a Medium article published in the fall of 2020.
“Rather than having a Facebook stake, we want to have an Instagram account. We want to own more third-party retailers than we have an Amazon stake. I would like to have a YouTube library rather than a Google stock.
why? The tailwinds that make these stocks more attractive also extend to those doing business on the platform. However, the capital markets have not yet embarked on the space in earnest. Traditional funds are not designed to fund the components of such platforms. The biggest problem is that many of the economic ecosystems on those platforms are just mature and there is no existing model for valuing their respective assets. “
Hamed and general partner Savneet Singh are both CoVenture partners. The company originally paid for providing technical services, but now it’s focused on lending to startups. Crossbeam is a joint venture with Co Venture, Moelis Asset Management and Fenway Summer, he explains. When the business got off to a good start, Crossbeam received an additional loan from CoVenture.
When asked about the risks of startups building businesses on one platform, Hamed may make more sense to consolidate his audience on one platform and later deploy to a variety of platforms, depending on the platform. Talk to. He argues that the key is “will the platform make money on my behalf?”
“If you try to reach out to other platforms, some will help you make money and some will not,” Hamed said in an email. “YouTube helps us because we make money from advertising on our behalf and share some of it with us. Instagram is not (except in special cases Instagram does not share advertising revenue. Hmm).[Omitted]Therefore, the “gratitude” of each platform is different. ”
Even before closing the first fund, Crossbeam was already a digital media company Wave.tv, a litigation lender Litty, an on-demand complaints startup Proof, and a third party. It has invested in six companies, Acquco, which will acquire Amazon retailers.
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Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.