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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?
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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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|@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.|
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|DanSmigrod private msg quote post Address this user|
Yes. Here's an update on the lawsuit.
✓ Lawsuit: Matterport, Inc. versus GeoCV, Inc. - All Legal Documents
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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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