www.monsoonworks.com/company/press/sell_structure -
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Published on: 10/19/2007
Last Visited: 12/1/2007
To cap it all, founders Kanth Gopalpur and Clark Hale have done it on $1.85 million , and they don't need a penny more.
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"I'm invested currently in eight companies, and I've invested in others outside of Oregon, and I've never seen an entrepreneur manage resources as prudently as Kanth," said Dennis Powers, a minority investor.
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Gopalpur, Monsoon's CEO, has controlled expenses carefully.Software companies have two main expenses: salaries and office rent.Gopalpur has saved on rent by subleasing a series of different offices.
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Gopalpur launched the Powells.com e-commerce Web site in 1994 for Portland landmark Powell's Books.
He moved on to Portland music store Django's, and helped build the company's Web business to nearly half its total revenue in one year.
Gopalpur realized that many small sellers were turning to online marketplaces to sell their wares, and needed an easy, inexpensive software package to integrate inventory control and online sales.
The extra ingredient Gopalpur and his co-founders created is an automatic pricing feature that scans the Internet regularly for pricing on individual books, CDs and DVDs.The seller can then decide if he or she wants to sell always at the lowest price, or fix some other parameter for setting a price relative to the market.
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But Gopalpur says his company regularly wins customers from other software packages -- most notably, that offered by ChannelAdvisor Corp., a $30 million company that raised $30 million in venture capital this year , simply because Monsoon's software is expressly designed for media sales.