So employees don’t believe in the company’s prospect.
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I discussed with him and the main thing which separates pitchbook from all the others companies is the speed like how fast they can provide any deals or any data for the companies the customers are tracking and regarding the comapny where my friend work,he mentioned there business approach is little different, first they try to cover all the assets of a firm which they want to have their ascustomer and then offer what they have more
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When you give employees stock ownership as part of their incentives, you usually have to issue additional shares to give them. This results in an increase in the number of shares outstanding of the company. When the number of shares outstanding increases without any change in your existing holdings, the percentage of your holdings decreases. This is what I think happened to the promoters’ holdings.
I think this point was asked as a question in the last Concall where somebody pointed out the dilution of equity as a drawback of ESOPs being given to employees. But it’s a standard practice that firms in initial stages of growth use.
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This is a pretty suboptimal renewal rate. Pricing is rarely an issue for products catered towards professional investors (Bloomberg charges a fortune & people still prefer it). Clearly, people don’t find the platform as useful as Tracxn claims it is.
This is a potent signal about people’s preference for the platform, a signal from which one can infer why the revenue growth is subdued.
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Hi Pranjal,
What would be a good renewal rate? Also, do you know if it has dropped over the years?
I am wondering if this low renewal rate has something to do with lower interest in PE / VC funding. Do you see a drop in renewal rate even for others too? Any idea?
Hi, Just wanted to ask where is this data available, of Pitchbook no of licencees year over year, also is it possible to get data from 2012-2016?
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Started reading about the company fairly recently. Asked one of my seniors who is working as PE investor for quite a few years now. He said that, he only used it once and pitchbook is widely used. He further said Tracxn is useful for very early stage and the pricing is of course lower as compared to pitchbook.
Disc.- not invested
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Very flattish results from tracxn,while the scenerio can change if there are rate cuts in usa which can attract vc money and eventually pickup of business
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Hopped on the recent call, Tracxn wants to bet on the Bloomberg model of sorts, they want to establish their software in educational institutions so that the graduates who enter PE or VC later are familiar with Tracxn’s software and choose them over other service providers such as Pitchbook. Long Shot?
DC: Invested
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I have some experience with Tracxn free version. The issue is that it neglects the US market where all the money is no.1. Secondly they have a free version that almost has all the functionality of the paid one except with restriction on how many investments you can see, etc. My point is either keep it paid like Pitchbook or undercut them. They charge high fees that is cheaper than pitchbook but not by much (30-40%). When your clientele will be Indians, it would be smarter to sell cheaper honestly
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I agree to be economical in the Indian Sector, as the price sensitivity is quite high in our geography, In the US and other first-world countries, the quality of data is quite important, and they don’t mind paying an extra 20% for better data or customer service, Tracxn can leverage the customer service aspect of the better value package in first world countries and India by undercutting PitchBook.
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PE and VC firms who use private company data are rich folks who have shitloads of money and are short on time. They are entirely price inelastic.
This is not a business you can compete on price.
I believe there are no pe VC investors who only use traction and do not use other more premium platforms. Hence I think traction is mostly subscribed as a second option by these rich folks to find any additional information which their most preferred platform might not have.
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Yeah makes sense, I recall one of my investment banking associates stating that Tracxn provides good value for additional or misc information.
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I work for a single family office with reasonable holdings and yet they are very picky on price. See, its not just institutions who use this. It is also HNI’s, SFO’s and LPs who need it. They will be picky and they are higher in number. Remember that the money they earn from a 10 Billion AUM company and a 10 Million AUM company wont be huge as the price per seating is same. They are pretty decent for India and Europe. Not much US as there is no financial info regarding those areas
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