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.”

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.

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


Jun. 6, 2019 |