Noah on Recombo 05

Recombo 2005

CEO Credibility:

I think that Brad McPhee’s ability articulate how he and his company have morphed with market forces  shows that he and his team are paying attention to the market and are knowledgeable of the field within which they work.  McPhee is also able to clearly articulate how his product and services work and  how those functions help his clients and make his company solid.

Management Team –

I would be somewhat concerned with the management team.  The need to expand the company from 12 to 22 is a serious concern.  I think McPhee is aware of these challenges and alludes to them as he emphasizes the need to maintain the company culture.  McPhee identifies the challenges, but simply identifying them does not necessarily mean that they can be easily overcome.

Business Model –

A key component is that the company is adaptable. Recombo has a focus on their product and they have a clear goal of a 100 million dollar business.  They have lighthouse customer a publishing firm Mindreader and plan to use them as an avenue through which they can access Mindreaders clients. Mindreader has agreed to provide access as Recombo provides financial incentives to Mindreader when business is created through this channel. Recombo is primarily trying to prove their product and services in order to demonstrate success.  I think building a solid reputation while working through known avenues will be a great way to move the company to the next step.

Competitive Products –

I wish that McPhee had expanded upon the field in which he operates.  From the discussion I was not able to discern what competition Recombo faces.

Market Readiness –

They are ready for the market and are now taking time to build a company name and reputation.  By using a proven technology and spreading the word the company will be able to expand and enter a larger market with a proven technology and company.

Technical Innovation –

The recombo connector connects multiple interfaces and systems and eliminates the difficulties of having multiple platforms within a system.  The innovation itself is a great product, but as I am not aware of the market place in which it operates I do not know if they have the ability to maintain an edge over competitors.

Exit Strategy –

I think that the exit strategy is not clear.  Although they are looking the acquisition by a major player such as IBM, the target range and the price point is not yet decided.  I think that a set target needs to be established. Perhaps it is the 100 million dollar price.

Overall Investment Status –

I would invest money with Recombo.  But, I would first need to research the market place a little more before entering the arena.  McPhee could have elaborated a little more on the competition to build a well rounded view of the company in context.   I would also want an exit strategy to be specified.

Is Recombo still in business? It seems that the latest news is from 2008.

Recombo

Just a few thoughts.

Noah