Who founded Wikibuy?
Wikibuy was established in 2016 by Jonathan Coon an Austin-based entrepreneur. He is the one who owns it. At that time, the venture was funded by venture capitalists, and the most prominent among them was Capital Factory. Capital Factory is an Austin-based fund that focuses primarily on businesses based out of Austin, Texas. Their prime focus is tech-based companies or companies that tend to leverage out the use of technology.
It was an ideal candidate for Capital Factory and is based in Austin; it was a natural choice for funding. In the initial days, the association of Wikibuy with Capital Factory Fund did wonders for the promoters. They had a ready source of inspiration and ideas as to how to go about setting up a running concern.
One of the Wikibuy platform’s prime focuses is that they tended to be a lot of tech-enabled. Thus having started out in partnership with a fund that understood technology did them wonders. Like most venture capitalists, Capital Factory Fund was focused on finding the maximum returns for their capital and finding a suitable suitor for the matured venture when the time arose.
The buying out of Wikibuy
Capital One in 2018 acquired the controlling stake in who owns Wikibuy and has since been running the company. The role of the venture capital provider, Capital Factory, turned to that of a minority stakeholder and still participating in the continued success that is Wikibuy.
One of the most vital points of Capital One is that it strongly leverages technology to meet its ends. Thus a tech startup was just complementary to the operations of a more traditional bank in more ways than one. For Capital One, the buyout of Wikibuy was a further extension of their belief in technology and an additional step into the retail and online shopping space.
Founded in 1994 in Virginia, Capital One was at the start of a credit card company. It branched out into loans and retail banking in 1994, a good four years after its inception. But more than anything else, Capital One is a household name in most of America because of the high visibility that it enjoys in the areas of operations. Capital One relied on technology to enable its working. It was a bank that tried to max out the technology.
For Capital One, the buy-out of Wikibuy was an entry into retail and online shopping. In many ways, since it was a bank that understood technology, the new concern operations were in sync with the parent bank from day one. In many ways, the influential Capital One had been a strong driver of the Wikibuy platform’s growth since its take over in 2018.
How marketing became a driving force?
Suppose ever there was a driving force in the growth and establishment of Capital One as a household name in the United States. In that case, it has to be marketing. The power of marketing enabled Capital One to be the preferred operator for people seeking liquidity and fast cash.
Thus with Wikibuy, Capital One was able to give the necessary marketing push to make it one of the most preferred shopping applications available in America. Understanding technology for most folks is not an easy affair. Still, with Capital One and Wikibuy, the synergies were all too telling in the platform’s growth in the shopping space.
Would there have been a Wikibuy if not for Capital One?
Wikibuy was backed in the initial days by the venture capitalist Capital Factory Fund of Austin. One of the operating features of venture capitalists is finding the maximum value for their investments. This is why startup companies are made to list on the bourses as quickly as possible so that the venture capitalist can find value for his investments.
In the case of Wikibuy, the role of Capital One Bank was that of the facilitator of price discovery. It enabled the Capital Factory Fund to realize a return on investment. We must point out that the venture capitalist did not completely exit from the Wikibuy investment. It retained minority shareholding even after Capital. One entered the picture.
For Wikibuy, having Capital Factory to advise and guide the buy out by Capital One Bank was really a blessing. It would never have been easy to deal with a big bank without such backing.
What seems to be the future?
With over $28 billion in annual revenue, Capital One sees further possibility in the Wikibuy platform. Online sales are booming. It is no surprise that the bank seeks to further leverage the Wikibuy application’s presence into the future. There is no telling what the future would tend to bring but rest assured that Wikibuy would be one of the drivers of growth for Capital One in the near-to-far time frame.
When consolidation of the online discount applications does occur, the Wikibuy platform’s association with Capital One will stand it in good stead. There is no better guarantor of success than to have a strong capital base to further expand and consolidate in the marketplace.