All in Disruptive Technology

Life Pulse Health

Ario Technologies Inc., a software-as-service company that delivers augmented reality (AR) technology to the industrial workforce enabling immediate and easy access to communal knowledge, announced today that the company is offering Ario Connect, a video calling application employing AR, for free throughout Q2 for 90 days. On March 31, 2020, the complimentary application first launched to existing customers in response to the novel coronavirus (COVID-19) spread and temporary, global migration to remote work.

Forbes

Rent The Runway, the designer women’s fashion rental service, is private and doesn’t publish earnings but it would be surprising if it was profitable. It is valued at a cool $1 billion.

Stitch Fix, the online personal styling service, makes money but its earnings are erratic. It is valued at $2 billion, over 50 times EBITDA (earnings before interest, taxes, depreciation and amortization).

Farfetch, the luxury fashion boutique marketplace, has never made a profit and every year it loses more money than the year before. It is valued at nearly $4 billion.

How do these new fashion companies convince investors to buy in at these values?

Venture Beat

During CES 2019, Verizon announced the Built on 5G Challenge, a nationwide search for solid 5G innovations that could be commercialized using its low latency, high bandwidth millimeter wave 5G network. Today, the carrier announced three winners across the fields of AR, VR, and artificial intelligence, earning $1 million, $500,000, and $250,000 prizes, plus special 5G lab access to develop their projects.

Harvard Business Review

Last year, when SAP spent $8 billion to acquire the online research firm Qualtrics, a price that was roughly 14 times the company’s projected 2019 sales, SAP’s CEO defended the deal by citing a statistic. Companies that create a new category typically capture 76% of the total category market capitalization, he said. Since Qualtrics created the category in which it played, the CEO said, this deal would payoff despite the steep premium.

"As a percentage of the overall grocery retail market, Amazon’s $350m in Q1 grocery sales (annualized – that’s $1.4bn) is pretty small fry. But its mouthwatering 30% year-on year-growth suggests that CPG manufacturers that don’t have a clear strategy for how to engage with Amazon now risk missing out on big opportunities further down the road, says e-commerce data firm One Click Retail."

"The Goodwater Index helps entrepreneurs understand the overall health of the venture capital funding environment for consumer tech. The monthly score (41.9 in March 2017) is a simple assessment of fundraising prospects for consumer tech companies, offering perspective on how much the market has improved or worsened over the last few months or years."