Nexit Partner Spotlight - Patrice Peyret
Patrice Peyret joined Nexit as Venture Partner in June 2005. With over two decades of experience in the global infocom industry, Mr. Peyret further strengthens Nexit's capability as an international investor in the wireless space.
Mr. Peyret is co-founder and former CEO of US-based Mobile365 Inc, the global leader in text and multimedia mobile messaging services. In May 2005, Mobile365 was nominated by Fortune magazine as one of “25 Breakout Companies for 2005”, recognized for their evolutionary advancements in the marketplace and their dynamic business performance. Mobile365 was created in 2004 through the merger of Mobileway and InphoMatch. In addition to his new role at Nexit, Mr. Peyret continues as Vice President, Corporate Strategy for Mobile 365.
Prior to founding Mobileway, Mr. Peyret served as head of engineering at Sun Microsystems for Java technologies applied to portable products such as mobile phones. As head of R&D and business development at Gemplus, the world’s largest smart card vendor, Mr. Peyret initiated the European Union funded ESPRIT project that led to the design f the world’s first RISC-based chip for smart cards.
Which industry developments or emerging echnologies currently excite you the most?
Patrice Peyret: I am particularly intrigued by those technologies that will allow mobile people to be reached by ther means than the straightforward extensions of today's cellular phone networks. WiMax or 802.16 has a huge potential in this respect. Once ubiquitously embedded in everyone's PCs, cars, set-top boxes and other devices, and combined with Voice Over IP, WiMax has the possibility to radically change the way people receive multimedia content or communicate with each other.
I am also curious about technologies that will enable the now-retiring generation of baby boomers to maximize their use of digital devices such as cameras, phones and camcorders, without becoming IT managers. A massive amount of discretionary money is available from that generation as it starts retiring, traveling and entertaining itself, but most of the recent consumer products have been devised for the Internet generation. Therefore, new developments in usability, man-machine interfaces, self-configuring devices and single-click services have huge potential.
Finally, I am very keen on technologies applicable to developing countries and emerging markets, to overcome the lack of telecommunication, banking and transportation infrastructures there and to help those countries leapfrog into the 21st century. Wireless devices, whether fixed or mobile, have a huge role to play there.
What do you look for in the companies you invest in?
PP: Obviously, the quality of the people comes first. Dedicated, enthusiastic, honest and well-organized individuals are an absolute must.
Marketing savvy comes next. Most start-ups fail to reach five years of age or five million dollars of revenue because they don't market their product or technology properly and don't understand how to sell.
Innovative technology is, of course, vital, although I rank it last. It is easy to get blindsided by innovations that never sell. Arthur C. Clarke said, “Any sufficiently advanced technology is indistinguishable from magic”, and we sometimes fall victim to the “magic” effect of cool technology.
I always try to distinguish between technology features that should really be part of someone else's product; products that should be part of someone else's company; and, finally, combinations of innovation and marketing that warrant the founding of a company and have the potential to create a whole new market or product category of their own.
What are the resources and skills needed to transform a technical innovation into a commercial success?
PP: The right place and right time are, of course, the two most important ingredients next to having the right technology. Fortunately, the “place” part can be overcome easily and cheaply with Internet communication tools such as instant messaging, web conferencing, groupware, collaborative software and free Internet telephony. Such tools now make it possible to create entirely “virtual” companies and to address customers anywhere.
The “time” ingredient is trickier. Being early or late can only be overcome with outstanding marketing skills.
One must recognize that something may be early or late, and then compensate with appropriate go-to-market strategies. I would also add the capacity to partner well. Too many companies stumble because they don't recognize the need to be part of a bigger ecosystem and are either too arrogant or too shy to secure the required partnerships with their neighbors in the value chain.
Who has inspired you personally?
PP: I ought to single out Robb Wilmot,former CEO of ICL, the UK computer giant, and now a retired business angel, chairman and CEO of many Silicon Valley startups. Robb's ability to understand “technical ecosystems” and to identify compelling services and business models is outstanding. Ten years ago, he convinced me to pack my suitcase and move from France to Silicon Valley. This was a life-changing event for me, and I continue to seek Robb's advice to this day.
Patrice Peyret's three tips for tech startups
1. Listen well
"My first piece of advice is, simply, to listen to advice. A new entrepreneur always has to do things he or she has never been trained to do, whether it is seeking financing, hiring people, setting up a board or negotiating licenses. An entrepreneur needs to learn a lot, but does not have the luxury of learning at an academic pace. Therefore, seeking advice from peers, investors, friends and colleagues is essential."
2. Choose your people
"Never forget that adding good people to your team is the single most important thing you have to do. Hire people who are better than you, and don't hesitate to hire people who are different from yourself. Have your team help you in the recruiting process. Get second opinions and do your homework of verifying references."
3. Be flexible
"Many successes come from applying a technology in an unexpected market or from unforeseen combinations of technologies. Departing from the initial course set for the company is often the best thing that can happen!"
