Endeca founder Steve Papa wrote Toast's entire $500K angel round
“I remember we did, like, eight or 10 VC meetings, and maybe we just were naive, and, like, everybody said no, and so one of the big yeses was the founder of Ndeca, right, who wrote the whole check. He wrote, like, a half a million dollar check, and At what pri…”
Papa: Product Pricing Databases Require Three-Click Search for Monetization
“The only way you could monetize such a database is if someone could find something within three clicks. If they had to spend a lot of time looking for that pricing information, they weren't going to use it.”
Papa: Endeca's Founding Was the Birth of Modern Faceted Search
“And that was the birth of guided navigation or faceted search, which is everywhere on the internet today. You use it all the time and you don't even realize it.”
Papa: Endeca was down to under two months of cash in August 2001
“By the time we got to August, 2001, we had less than two months cash left.”
Papa: Endeca reached a $2M Q4 2001 after near-zero revenue that year
“The other thing to note here is we went from having no revenue all year, or virtually none, because we had one customer from the year before, to doing a two million dollar quarter in Q-IV, which was a very strong quarter.”
Papa: Endeca counted half of the top 100 e-commerce sites as customers
“We had half of the top 100 e-commerce sites.”
Papa: IBM spent $20M on Endeca software it couldn't build internally
“They spent twenty million dollars on us over the years and were using us for very important internal applications that they could not power with their own software.”
Papa: SAP Invested in Endeca but Refused to Discuss Acquiring It
“One of them was SAP. They were an investor in the company, and I couldn't get their corporate development team to even talk to us.”
Papa: Oracle Finalized the $1.1B Endeca Deal in Six Weeks
“From first email to announcement with Oracle was six weeks, a testament to how fast Oracle can align their teams and make something happen.”
Papa: Acquiring Endeca Made Oracle the Dominant On-Prem E-Commerce Vendor Overnight
“They basically overnight went from competing for every deal with IBM to suddenly being the dominant on-prem e-commerce company.”
Papa: Endeca could have exited to Amazon around 2005
“There were two other moments we could have exited the business. One was around 2005 where Amazon was very attracted to what we were doing.”
Papa: Reframing Endeca as e-commerce sooner could have rivaled Shopify
“If I had framed the world as e-commerce sooner, we probably would have had a much longer runway as an independent company. We would have at least had a chance to enter the world of Shopify, but we didn't.”
Toast had only two VC firms competing to invest in fall 2015
“In fact, the only two firms that were competing to back it at a reasonable valuation were my two lead investors at Indeca that fall.”