Web services integration start-up WebCollage Inc., is gathering momentum and is set to record $20 million in sales for 2007.
WebCollage was founded in 1999 by VP product management Eilon Reshef, chairman Eli Singer, and Gil Tayar. The company develops tools that help e-commerce companies educate and inform their customers through enhanced product marketing. WebCollage has raised $30 million to date from Sierra Ventures, Gilde IT Fund, and Cedar Fund, which has been advising it since it was first launched.
According to Reshef, and Cedar Fund partner Amnon Shoham, information is of critical importance in certain kinds of products. "Internet sales often require the provision of detailed information on products," says Reshef. "Not all products need this, but some need more information, and we supply it automatically. This need was first identified seven years ago, when it looked to everyone like e-commerce was about to die. Today, we're selling to giant companies, and have created through them an "octopus-like" network for products. Companies require subcontractors or vendors to use the same tools in order to keep the channels uniform, and we benefit through this. We started with high-tech products, and moved on to consumer and sport product categories - principally golf accessories - and financial products."
WebCollage's customers include Sony Corporation (NYSE: SNE; TSE: 8758), Samsung Electronics Co. Ltd. (KSX:5930), Royal Philips Electronics (NYSE:PHG, AEX: PHI), Cisco Systems Inc. (Nasdaq: CSCO), Intel Corporation (Nasdaq: INTC), Amazon.com Inc. (Nasdaq: AMZN), and Dell Inc. (Nasdaq: DELL).
Globes: Who needs product explanations? It sounds superfluous.
Reshef: "There are some products which you want to know exactly how they work before you buy them. Our customers have reported improvements of 6-20% in sales."
According to Shoham, WebCollage's product looks and sounds simple, but it is actually supported by a heavy technology. "Often, potential customers have seen the product and thought that they could develop something similar of their own, but after several attempts, they got back to us and bought ours."
Reshef adds that one of the product's important elements is its easy integration. "Some of the world's largest software companies are paying usage. This was the trick - make a simple product with a rich technology behind it. Penetration wasn't easy, but we're now working with Toshiba, Micron, IBM, Kodak, and others."
Where is WebCollage heading next? What about an exit?
"We’re expanding our R&D center in Israel and we're looking for people. It's a very hot field, and we've already seen companies acquired at high multiples. We want to build the company as an independent one. Inducing an acquisition is difficult, it just happens."
Published by Globes [online], Israel business news - www.globes.co.il - on August 27, 2007
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