A week in the life: The Prince, the politician and the people



It’s been a while since I stuck my oar in on the blogging front but I wanted to share with you my comings and goings with WEXO over the last week or so.

Last Saturday, WEXO were one of the Exhibitors at The Sunday Times Festival of Education at my old school, Wellington College. This was a unique event with presenters ranging from OW Rory Bremner to Michael Gove MP, Lord Baker to Germaine Greer and the Duchess of Kent to my old economics teacher John McArthur (now at ISCO). I counted 84 speakers in total who waxed lyrical on everything from dyslexia to addiction, the disadvantages of exams (too late) and British schools preparing a world class workforce. I was busy preaching the WEXO word and getting people to guess how many sweets were in the jar (217 – well done Mark Little on 210 – your £50 M&S voucher is on its way) but I did make it to the last of these talks. John Morewood, Graduate Recruitment Manager of HSBC (my old shop), Hugh Husband (McKinseys), Sir Anthony Cleaver (nice red socks) et al discussed how poor numeracy and literacy are from applicants (please at least use spell check for starters). The audience then quizzed the panel about children not knowing what to study for specific vocations (we have just started working with www.u-xplore.com to this very end). At the end, it was particularly interesting to hear the Secretary of State for Education talk about his new ambitions including a return to traditional A-levels with exams at the end of 2 years. Bizarrely, his patter sounded more socialist than capitalist and I was particularly impressed with his ability to take 6 questions in a row and then address each in turn with no more than a glass of water in his hands. There seems to be a common view (which I subscribe to) that teachers need to be better trained and supported; and that this country needs to focus more on Science, Engineering, Maths & Technology.

On Monday, WEXO were honoured to be invited to a Gala Dinner at the Royal Albert Hall to celebrate The Prince of Wales’s 25th Year as President of Business in the Community (BITC). HRH, Sir Stuart Rose, Philip Green and Stephen Howard were there to present the prizes and Stephen Fry compèred. It was uplifting to hear such homage paid to HRH. It even made me wonder whether Price Charles was in fact a force for good?! It was a shame that Sir Stuart’s Work Inspiration initiative, which WEXO wholeheartedly supports, (and as a business you can too here) was not referenced; but it was encouraging to see SMEs recognised in The Small Company of the Year Award which went to the wool company Herdy. Was it their lamb that was so delectably rustled up with the buttered spring greens and warm rosemary vinaigrette (washed down with lashings of Rothschild Viognier Vin de Pays)?

After three days of hard labour, on Wednesday evening I was due a break and got invited to go and play tennis at Buckingham Palace (pathetically childish excitement ensued). A great friend works for the royal family (now there’s a WEXO blog we’d like to read) and had been asked if she’d like to use the tennis court. The gardens at ‘BP’ are lush and beautiful and HRH has one of the biggest flower pots known to man. Sadly the only Queen in residence was of the Apoidea variety.

Robin Kennedy
Co-Founder & CEO
WEXO

P.S. As per a recent Press Release, WEXO is campaigning to let SMEs recoup the costs of a 3 month paid internship from forthcoming VAT hike. To register your support, please comment below.

Inspiration and Investment



Good morning…

Happy Birthday Sir Paul McCartney – 66 today…

All well in WEXO’s world as we approach signing up our target of 100 Godfather companies and append functionality before going live to users.

Excitingly, you can now see our first WEXO interviews with Captains of Industry in association with t5m.com’s new Prince’s Trust Channel: http://www.t5m.com/the-princes-trust (Download Silverlight on t5m to view).

I spoke with Lord Young (one time Cabinet Minister and FTSE 100 Chairman and ever active start-up investor), Lloyd Dorfman (Founding Chairman of Travelex), James Caan and Deborah Meaden from Dragon’s Den and Ex-Apprentice Tim Cambell amongst others. They share their inspirational experiences and advice for those trying to ‘get on’.

Interviews can also be seen at http://uk.youtube.com/user/the5thmedium and will soon be available here…

Otherwise, we’ve been embroiled in development and closing our angel investment round hence the radio silence but I have been inspired to put the following together for our final potential investor:

News out this morning that Bain Capital Ventures have bought a strategic 5% stake in LinkedIn for $53m in 4th round financing implying a valuation of $1Bn

http://www.latimes.com/business/la-fi-linkedin18-2008jun18,0,6631759.story

Claiming 23m users and calling themselves “professional networking” (an apparent sub-section of our term ‘utility networking’), LinkedIn claims to have relationships with executives from all FTSE 100 companies and to be able to generate revenues of $100 million this year from: premium subscriptions, blue-chip advertisers, job listings and corporate services – a much more diverse revenue base than e.g. Facebook’s advertising driven model.

This is clearly encouraging in that it highlights the appetite for Web 2.0 (and – new term – “Enterprise 2.0″) investments in an otherwise limited investment space. We have always seen LinkedIn as our closest benchmark but are spurious as to its potential in Europe with its:

* clunky interface
* focus on paying ever increasing sums of money to open up the 6 degrees of separation
* inability to engage the ‘digital natives’ / ‘generation-e’.

We obviously prefer our more niche focus on work experience in the UK whilst:

* encouraging growth based on incentive / reward
* engaging companies themselves as opposed to just (but as well as) myriads of their employees
* focusing on smaller companies and increasing ’stickiness’ through e.g. video interviews

VALUATIONS: Might sound a bit like the old price/sales or even price/click of the tech bubble but people now seem to be focusing on price/user (P/U). So (ignoring that UU’s can arguably be divided by up to multiple of 4):

* LINKEDIN (TODAY): On this implied valuation of $1Bn LinkedIn’s 23m users are worth $44 each.
* BEBO (2008): AOL paid $850m for 40m users implying P/U of $21.25
* FACEBOOK (2007): Microsoft’s strategic 5% stake in Facebook implied P/U of $300
* MYSPACE (2005): Newscorp paid $580m for 21m users implying P/U of $27.62

Our own implied valuation remains confidential…