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10 Reasons Matterport will acquire GeoCV8602

WGAN Forum
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DanSmigrod private msg quote post Address this user
GeoCV 3D Tour courtesy of GeoCV

10 Reasons Matterport will acquire GeoCV

In light of Matterport’s camera agnostic announcement Monday (28 January 2019) at Inman Connect New York 2019 (ICNY19) and the pending Matterport versus GeoCV lawsuit, it is obvious that Matterport will acquire GeoCV for 10 reasons:

1. Image Quality - Simply stated, GeoCV imagine quality is far superior to Matterport. While it might seem counter-intuitive that efficiently rotating a smartphone could – and does – produce a far superior imagine quality than a now $3,000 ish big, bulky box, it does!

2. Cost of Camera – It’s likely that the GeoCV Kit announced - first - today (Friday, 1 February 2019) by GeoCV Co-Founder and CEO Anton Yakubenko, PhD in this WGAN Forum discussion costs far less to produce that the Matterport Pro 3D Camera. Plus, with the GeoCV smartphone agnostic strategy, it means every time the photographer upgrades his/her smartphone, the imagine quality (and 3D mesh) will improve (without the need to buy a separate camera). Adding the GeoCV Kit to the Matterport camera line-up of camera would empower Pros with better camera tech at a lower price point.

3. Technology – In the 3D battle of David versus Goliath, it is amazing what a small, feisty group of technologists can accomplish compared to a company that has far more investment ($66 million) (than GeoCV's $2.5 million funding), sales and employees. It’s likely that the patents and other intellectual property that Matterport will acquire will help it leapfrog forward.

4. Eliminate a Competitor – by acquiring GeoCV, Matterport takes a 3D competitor off the table before it has the chance to get major funding to scale and command an ever-increasing multiple to acquire. (Plus, the value of the acquisition would likely result in an equal or greater addition in valuation to Matterport.)

5. Acqui-Hire – From the beginning of time, Matterport job openings have always included vision computing and related tech talent. By acquiring GeoCV, Matterport not only acquires likely a dozen plus vision computing and related engineers, they are already operating as a team. Silicon Valley companies routinely Acqui-hire companies to efficiently add cohesive tech teams.

6. Anton Yakubenko – If Matterport only acquired GeoCV to add Anton Yakubenko to its C-Suite: Dayenu. Anton is an A-list brilliant, tenacious, strategist and leader that could play a key role in inspiring all 3D and 360º camera companies to seamlessly integrate with Matterport. Anton is uniquely qualified for these role because of his fluency in tech, marketing, strategy, C-Suite and any major decisions such as acquiring companies, being acquired, going public.

7. End the Lawsuit – acquiring GeoCV would end litigation which is not only costly in legal fees, but in competing for management and tech team time for depositions and court time. Simply stated, the Matterport v. GeoCV lawsuit is a distraction for new Matterport CEO RJ Pittman that needs to stay focused on exponential growth. Plus, if Matterport does not successfully defend some or all of the Matterport patents, that opens the door to other potential competitors and may inhibit potential exit strategies for the VCs funds that are over-due for cashing out their multi-million dollar investment.

8. Momentum – The Board brought in the CEO to scale the company exponentially and create deal opportunities to unlock their over-due-to-cash-out investment. JR Pittman needs to show the Board that he can act quickly, decisively to unlock and create value and to help energize the Matterport team that is overdue for validation that they are on the right team. It’s likely Matterport’s tech team routinely field calls from headhunters. Employee retention is way easier when a company is leaning into the wind with momentum.

9. Exponential Growth – acquiring GeoCV will help Matterport achieve exponential growth. At best, Matterport is likely experiencing linear growth. As I have previously written about at length in the We Get Around Network Forum, VCs seek at least a 10x return on their investment. At the very least, Matterport needs to be valued at $700 hundred million dollars. I would be surprised if it was worth half that today. Thus, the Board of Directors change in leadership with a rockstar hire.

10. Timing – The sun, moon and the stars have aligned for Matterport to acquire GeoCV: among other things, a lawsuit to act as a catalyst for the two companies to talk. A new CEO charged with exponential growth that can deliver an early, big win to help build momentum and inspire an existing team that could benefit immensely from seeing decisive leadership in the exact direction that the leadership team has targeted. Plus, if you come to the conclusion that the GeoCV 3D Tour is superior to Matterport, delaying the acquisition will cost far more money in the future.

While there is always a possibility that I am wrong – I have been wrong many times on my Matterport predictions – including that Matterport and GeoCV would have a non-disclosed settlement for a confidential de minimis amount of licensing patent money that would enable Matterport to claim victory and saber-rattle others while enabling GeoCV to continue its David versus Goliath, I also have been spot on including musing two months ago that for Matterport to experience exponential growth that it was - is - essential for them to democratize 3D Tours by making its platform camera agnostic and start by adding under $500 cameras.

If you are thinking about buying a GeoCV Kit – but concerned about the Matterport versus GeoCV lawsuit – I could imagine GeoCV has already figured that into its GeoCV Beta Kit pricing that includes a free GeoCV camera kit and unlimited processing and hosting (likely for early adopters willing to jump onboard a fast moving train and are willing to accept some business risk in exchange for white-label, own all digital assets). Perhaps it is similar to Tesla offering free, unlimited charging to its early adaptors.

Sounds like a brilliant pricing strategy to me.

What do you think? Will Matterport acquire GeoCV?

Best,

Dan
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Home3D private msg quote post Address this user
Dan, you’ve written a lot of brilliant posts, but this one rises to the top. I’ll add a minor 11th reason: Geo’s accomplishment of their interior/exterior 3D modes using drone photogrammetry. While unnecessary for some homes, this is a capability which leapfrogs MP for high-end properties, really amazing. I’ve explored all Geo’s demo spaces in this mode and already shot 4 properties using DroneDeploy.

Later today I’ll post the results of my first multi-platform shoot, a 2000 sq ft unfurnished condo here in Los Angeles. I’ll be posting Matterport, GeoCV, NodalView and Zillow 3D Home versions of this space. I’m working to add Cupix to the set, delay is simply my own learning curve, not the system, so my apology to Cupix for the moment.
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Shakoure private msg quote post Address this user
@DanSmigrod ...Great analysis, Dan! I met GeoCV CEO at a NYC tech conference some months ago and while he seemed both humble and opened minded, he took great pride in the vision of his tech startup as a real competitor to MP. It'll be interesting to see where this goes.
Post 3 IP   flag post
WGAN Forum
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DanSmigrod private msg quote post Address this user
@Shakoure

Yes. Here's an update on the lawsuit.

Lawsuit: Matterport, Inc. versus GeoCV, Inc. - All Legal Documents

Best,

Dan
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Metroplex360 private msg quote post Address this user
This is the dumbest thing I've ever read from Dan on here.

This is not an anti-GeoCV post.

1. Image Quality -- Matterport is higher resolution and 100% automated; GeoCV appears over processed and I have no idea if the imagery is automated in the demos. No conclusive results.

2. Cost of Camera -- Matterport is supporting 3rd party spherical cameras now. The Pro-2 has 3 sensors on it, the GeoCV camera uses one sensor and likely is slower at capture. The Structure Sensor is lower quality than the Pro-2 sensor.

3. Technology -- Dan's argument would be better labelled as 'efficiency'. And yeah, GeoCV is totally doing things in a way that I love seeing -- less investor capital, accomplishing amazing things with a small team and innovating at rapid pace. I love this. But is this a reason to buy GeoCV? No.

4. Eliminate a Competitor -- Sure, getting rid of GeoCV would do that. So would suing them. I don't think acquiring GeoCV would add any value to Matterport any more them buying too much toilet paper for their employees.

5. Acqui-Hire - Matterport does not need new employees. They have more than enough people in the positions that they are in. I don't imagine that their Computer Vision department has any want for new faces.

6. Anton -- Would hang himself if he had to work for Matterport. I do not think Anton wants a boss.

7. End the Lawsuit -- That would be better for GeoCV than for Matterport. If Matterport does not successfully defend their patents today and bought GeoCV, then they would have to start a new lawsuit against someone else in time.

8. Momentum - Matterport is about Cortex and partnering with Insta360 and Ricoh right now. Their momentum is in partnerships and [hopefully] 3rd party integrations. Buying GeoCV doesn't make sense here.

9. Exponential Growth - I don't see how buying GeoCV would do this. Maybe if Matterport wants to start selling scans directly, as pointed out on another thread here, they should buy a scheduling company that also offers other services.

10. Timing - It's not a good time for Matterport to make silly acquisitions. They have a new CEO, presumably because the shareholders are wanting action and not to spend more money.

--

So I think that Dan is 100% wrong about all of this.

I think that Matterport needs to defend their patents because it's one of their most valuable assets. If Matterport were to be acquired, those patents have massive value. If Matterport wants to be acquired, then buying GeoCV doesn't help that initiative at all. Winning a patent lawsuit would.

Will Matterport acquire GeoCV? No.

About the court case - lucky for GeoCV, Delaware is closer to New York than it is to Sunnyvale.

--

I want to be clear, this post is NOT a negative post about GeoCV. GeoCV has massive potential for growth because they are offering an alternative to Matterport that may be attractive to some who prefer it to Matterport. If Matterport purchased GeoCV, they would only be doing so to get rid of it.

Do I think that Anton is the type of person to work this hard to sell his company and watch his product be thrown in the trash like garbage, never to be used again?

No. I think Anton is proud of what he has built.
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DanSmigrod private msg quote post Address this user
@Metroplex360

Thank you for your thinking on this topic. Most appreciated, even if we disagree ....

Hi All,

If Apple and Qualcomm can end their lawsuit - just as it was going to trial today (Tuesday, 16 April 2019) – perhaps it's time for Matterport and GeoCV to kiss and make-up.

There's so much to gain if Matterport and GeoCV can figure-out a win-win to end the lawsuit by Matterport.

Your thoughts?

Dan
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Wingman private msg quote post Address this user
I agree with MetroPlex360. More over if Matterport had wanted to buy GeoCV they would have not started suing it. This lawsuit raises a value of GeoCV so it would be stupid to create a publicity for GeoCV by starting it if Matterport really wanted to buy it.
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jellofan private msg quote post Address this user
Unfortunately as pointed out in the separate lawsuit page "A 5 day Jury Trial is set to start 6/14/2021" so we still have a lot of time before that deadline will force someone's hand. In the interim the Sword of Damocles is hanging over GeoCV.
Post 8 IP   flag post
WGAN Forum
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DanSmigrod private msg quote post Address this user
@Wingman

The lawsuit was filed before the new Matterport CEO was announced.

Hi All,

I've been giving my prediction – Matterport will buy GeoCV – some addition thinking.

Matterport should:

✓ invest $5 million for 20 percent of GeoCV at a GeoCV valuation of $25 million
✓ license the Matterport tech to GeoCV for $1 per month (amount not made public) with a restriction that this licensing ends with a change in control of GeoCV
✓ NOT take a seat on the board
✓ NOT attempt to influence the direction of GeoCV (let entrepreneurs do their thing)

Why Matterport should do this:

✓ enable GeoCV to publish to Matterport (and any platform GeoCV cares to)
✓ if GeoCV's tech and marketing is appealing to Pros (white label, copyright, ownership, control of content, offline enhancement of content, offline hosting, aerial 3D, etc), then Matterport will benefit from GeoCV's growth
✓ "hands off" approach to GeoCV will let GeoCV innovate at a far greater speed than if Matterport buys 100% of GeoCV. I could imagine a clash in cultures if Matterport buys 100 percent of GeoCV
✓ free-up C-suite time spent on the lawsuit
✓ I could imagine further litigation will be $2 to $3 million; use this line item as an investment instead (and signal to others that Matterport has defended and will license its tech)
✓ checks the box for a quality capture solution at less than the cost of a Matterport Pro2 Camera
✓ See 10 reasons in the original post above
✓ Plus, reaching an agreement will accelerate growth in the space (competition is good for all)

Why GeoCV should do this:

✓ sales will skyrocket without the over-hang of the Matterport law suit for two more year
✓ cash will accelerate innovation
✓ investment by Matterport will provide an endorsement to those on the sideline thinking about investing in GeoCV
✓ Ability to publish to Matterport, GeoCV and any other platform will accelerate growth
✓ The $25 million valuation will be a huge endorsement by Matterport

Blockbuster had many opportunities to buy Netflix (and, obviously did not).

What do you think? Should Matterport buy some or all of GeoCV?

Best,

Dan
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DanSmigrod private msg quote post Address this user
Video: The Mouse that Roared Trailer | Video courtesy of The Common Sense Show YouTube Channel

Hi All,

Matterport has $48 million in (relatively) new venture capital.

Am I the only one surprised that we have not seen an announcement that Matterport has acquired some or all of GeoCV?

(Perhaps GeoCV should make an offer to purchase Matterport!)

Best,

Dan
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al9901 private msg quote post Address this user
Dan, I love your posts, they keep me coming back here every once in a while, but I think you are off on this. Here's my guess:

Matterport are stuck with inferior technology, buying someone else's patent and knowledge would look REALLY bad to investors. They would have to admit someone else built a superior, cheaper and more marketable product.

They had a window between 2014 and 2016 to get things on track. For whatever reason, they decided that the North American market was not only the best template for 3D spaces and experiences, but that marketing this as a "one-tap-fits-all" solution for low-skilled users was the way forward. Without going too deep into the weeds on the slow, unreliable capture process, and due respect to realtors, this tech should have been made to be in the hands of 3D artists, architects, surveyors and professional photographers. I still chuckle at their "this is the SLR of 3D cameras" claim every now and again...

Now take a look at what is happening behind closed doors, Glassdoor paints a very grim picture. Rather than retracing their steps, which they cant do because I imagine they have burned through the $48m they got in 2014, they are operating boiler-room style pump and dump sales techniques. No roadmap for creating value, just get the cameras sold. This smacks of the last days of Rome; selling as much stock as possible in a modern marketplace where people talk and businesses create long term value, not just inflating the balance sheets.

My guess is that they probably know about GeoCV and have done for many years, but they are never going to go to their investors and say

"we acquired a company who has much better technology than us and put it all together at a fraction of the cost that you did and by doing the opposite of what we did, so we aren't the right people for the job. BUT give us more money and we will take this superior technology and business strategy and we will DEFINITELY do it right this time..."

I wish Anton (if he is still CEO) the very best for the future because GeoCV have done all the things Matterport should have done for their customers, and he's a very pleasant guy. Go for it!

And thanks Dan for showcasing him, especially when Matterport were, how can I put this politely? "Cannibalising their ambassadors?"
Post 11 IP   flag post
WGAN Forum
Founder
DanSmigrod private msg quote post Address this user
@al9901

Thank you for your thoughtful reply.

Your reply should be "must reading" be:

✓ Matterport Investors
✓ Matterport Board of Directors
✓ Matterport C-Level Executives
✓ And everyone else interested in Matterport and this space

If I am off on this one, it would not be my first post to be off in predicting the future:

Why Hexagon will buy Matterport (13 June 2018)
Why Google Will Acquire Matterport (24 June 2016)
Preparing Matterport for IPO or Acquisition (22 June 2017)
Matterport to explode (in a good way) (8 May 2019)

Quote:
Originally Posted by @al9901
My guess is that they probably know about GeoCV and have done for many years, but they are never going to go to their investors and say

"we acquired a company who has much better technology than us and put it all together at a fraction of the cost that you did and by doing the opposite of what we did, so we aren't the right people for the job. BUT give us more money and we will take this superior technology and business strategy and we will DEFINITELY do it right this time..."


Relatively new Matterport CEO, RJ Pittman, likely does not feel tied to the missed opportunities of the previous CEO (and likely needs to distance himself and the company through his leadership.

It doesn't take a rocket scientist to look at what GeoCV is doing compared to Matterport and conclude that Matterport needs GeoCV mobile capture tech (and leadership, team an culture).

As Matterport opens its platform to other capture solutions - first the Leica BLK360 and more recently the Insta360 One X and Ricoh Theta V and Ricoh Theta Z1 - it's obvious to me that Matterport is lacking a smartphone strategy. Investing in GeoCV checks this box on Steroids.

For clarification, it is essential that Matterport be leading the tsunami that is coming in 3D/360º capture using our mobile phones. Every day that Matterport delays investing in GeoCV is another day that other 3D/360º platforms take market share from Matterport. More importantly, delaying the adoption of Matterport.

Plus, a strategic investment in GeoCV likely boxes out potential competitors.

As I stated earlier, if GeoCV's tech and marketing is appealing to Pros (white label, copyright, ownership, control of content, offline enhancement of content, offline hosting, aerial 3D, etc), then Matterport will benefit from GeoCV's growth with an option to buy-out GeoCV. What a great way for Matterport to test strategies such as unlimited hosting via GeoCV. If it turns out that unlimited hosting 'matters' more than unlimited processing, then Matterport still wins by testing with a 3rd party partner - at arms length.

I can't help but think about Blockbuster and Netflix while writing this. Blockbuster's CEO once passed up a chance to buy Netflix for only $50 million. Let's hope that RJ doesn't repeat the same mistake for $5 million for the chance to buy 20 percent of GeoCV.

Please do share your thoughts on this here. And, please do start some new discussions with your insight.

Best,

Dan
Post 12 IP   flag post
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DanSmigrod private msg quote post Address this user
Hi All,

Here's an update on the lawsuit as of Thursday, 8 August 2019:

Lawsuit: Matterport, Inc. versus GeoCV, Inc. - All Legal Documents

Best,

Dan
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