Q: How's the biz model work?
A: We are a software-as-a-service business. Our clients pay us on the basis of how busy their website is or how much they're interacting with customers.
Q: Who are your clients?
A: Brands like Best Buy and Brooks Brothers and some local brands like QVC and Revzilla.
Q: How did you get the business off the ground in 2008?
A: We started in First Round Capital's offices [the venture-capital fund begun by Josh Kopelman]. They were lead investor. Ben Franklin [Technology Partners] and Robin Hood Ventures got involved, and later we added Floodgate Fund and OpenView Venture Partners .
Q: What's the opportunity?
A: The opportunity is for marketers to stop treating consumers as if they're all alike. If you give them an effective, relevant [online] experience, they spend more and spend more often.
Q: With whom do you compete, and what differentiates you?
A: We compete with Adobe, IBM, Oracle. They take a different approach - they sell one product to a marketer, one to the IT group and one to analytics. All those groups have to talk to teach other, and once in a while the stars align. We create software that allows digital marketers to move faster and smarter, by anticipating and reacting to customer behavior in real time through one seamless interface.
Q: How much do services cost?
A: Our fee is based on how busy a client's website is and how often they interact with customers. A small client might be $75,000 a year. A large client - millions of customers - might be more than $1 million in fees annually.
Q: Your biggest challenge?
A: Growing the team; we're picky about whom we choose.
Q: How big a business is this?
A: I can say this: About one in four dollars spent online in the U.S. is going across our platform.
Q: Where's Monetate headed?
A: In a couple of years, we'll be a public company and a lot larger. We want to be here. I can't even imagine this company not being in Philadelphia.