Palo Alto, CA. Vertical Venture Partners (VVP) announces the sale of portfolio company Profitect to Zebra Technologies Corporation (NASDAQ: ZBRA)
Palo Alto, CA. Vertical Venture Partners (VVP)
announces the sale of portfolio company Profitect to
Zebra Technologies Corporation (NASDAQ: ZBRA). VVP returned 4X their
investment in 30 months. “This sale showcases the VVP strategy of
investing in capital-efficient companies solving business problems that are
specific to particular industry verticals, in this case retail,” said David
Schwab, Managing Director at VVP. “Profitect sits
at the intersection of AI as a technology and the retail industry vertical
market.” The company exemplifies the characteristics that VVP seeks in
its investments:
- A CEO with substantial expertise in a specific industry
- Proven, repeatable sales traction with large, name brand customers
- A strong value proposition with CIO’s that was referenced extensively
- A shared view of success at rational exit values
- An early strategic relationship with a potential acquirer
Using machine learning and prescriptive analytics, Profitect’s
solution identifies opportunities to positively impact sales and margin for
some of the most recognized retail and CPG brands in the world. Profitectuses data from across the value chain for
improving inventory and pricing accuracy, out of stocks, supply chain
inefficiency, unsellable merchandise, and assortment discrepancies. The
solution identifies a potential opportunity and can generate suggested actions,
sending them directly to a worker’s mobile device, providing step-by-step
instructions for resolution. By enabling users to understand and act on
data Profitect customers typically
realize sales lift as well as margin and labor productivity improvement
enabling a better overall consumer experience.
Zebra will leverage the investment to accelerate the development of
its Savanna platfform through the acquisition of Profitect’s technology, talent, and skillsets. Combining
the real-time data that Zebra solutions capture, with Profitect’s access to operational data, machine learning,
and prescriptive analytics, Zebra will work with its’ partners to empower
front-line workers even more – across all verticals – with the insights they
need to make better, faster, smarter decisions.
“We are excited to join Zebra and bring our award-winning prescriptive
analytics solution to every worker at the edge,” said Guy Yehiav, Chief
Executive Officer and Chairman of the Board of Profitect,
who will be a key leader in the business integration. “Together we will ensure
the workforce of the future is more connected and optimally utilized. We value
Zebra’s support and expertise over the past five years as a key venture
capitalist. I’m proud of the contribution that Profitect’s
solution will bring to Zebra and look forward to working closely to deliver
prescriptive analytics as part of its innovative and broad solution portfolio.”
ABOUT VERTICAL VENTURE PARTNERS
Vertical Venture Partners (“VVP”) is a Silicon Valley-based venture capital
firm founded in 2015 by Dave Schwab, a 20-year veteran in early stage
technology investing. VVP focuses on making Seed and Series A investments in
B2B technology companies targeting pain points in specific vertical sectors.
The VVP team has decades of operating and investment experience gained from
diverse backgrounds in venture capital, research & development, investment
banking and advanced technology. Please visit www.vvp.vcto
learn more.
ABOUT PROFITECT
Profitect’s prescriptive analytics solution
leverages pattern detection and machine learning to identify opportunities that
impact sales and margin. Profitect takes
retail and CPG company data and identifies areas for improvement including:
inventory accuracy, out of stocks, pricing accuracy, unsellable merchandise,
and assortment discrepancies. Profitect customers
typically realize a 2-5 percent increase in sales, better consumer experience,
10-15 percent basis point margin improvement, and labor productivity
improvement within 6 months.
Doreen Thawley
Executive Assistant to David Schwab
Vertical Venture Partners
853 Alma Street
Palo Alto, CA 94301
1.408.203.2511