Application virtualization or containers is seriously threatening the dominance of traditional OS level Virtualization. In a Survey done by ETR, Docker is growing faster than anything ever seen in history of ES. In fact, as of April 2015 Docker was at 97% usage and purchasing intention by enterprises.
The numbers for Docker’s project growth stats are shocking as well. In the past year alone, the project has experienced a 183% increase in contributors, 515% growth in projects on GitHub, and an astounding 18,082% spike in container downloads.
Container technology was in use for years, with companies like google using it in their data center for the last decade, but then came Docker. Docker is an open source project that automates the deployment of applications inside software containers. Docker did something simple butrevolutionary: they automated and massively simplified the whole process. in simple language, Docker is a tool that can package an application and its dependencies in a virtual container that can run on any Linux server. Unlike full virtual machines though, a Docker container does not include a full virtualized OS, but rather shares the OS of its host.
The Eco-system around containers is developing quickly. Docker has done fantastically at making containers appeal to developers, and the next stage is to disrupt production. Many small companies are using containers already on public clouds, but in order for containers technology to seriously threaten OS level virtualization, some components are still missing. Partly because the eco-system around containers is still very young, but also because containers are a different animal, and new technologies need to be developed in order to solve the regular issues in developing, testing, deploying, managing, monitoring and securing containers. There is plenty of room for innovations in this space, although many areas are already covered by startups.
Webelievethat we are at the beginning of a real disruption in the virtualization world, and that containers arequickly going to becomethe preferred environment to run an application. Areas in which we are interested are: networking, storage and security for containers. If you are developing something around containers, please give us a call; we would love to learn more.
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For years VCs have preached to their companies the importance of tracking metrics that accurately measure their day to day operations.
Giving advice to others is much easier than implementing it yourself, and it takes guts to honestly measure yourself. When Eitan and I started TLV Partners, one of our earliest decisions was to track our key metrics. One of our top priorities in ensuring a professional experience for entrepreneurs, therefore we defined a set of metrics around our response time. More specifically, how many days it takes us to respond to emails (“respond”), set initial meetings (“set a meeting”), return with an answer whether we would like to proceed (“answer”) and conduct due diligence (“DD”).
Once we defined our metrics (we officially began tracking this data at the beginning of this calendar year), it was time to take a look at our performance. . We were pleasantly surprised to see the results, but there was clearly still room for improvement:
There is a common belief that participating preferred is always better for investors.
Here’s a brief overview of the various liquidation preferences investors may ask for. Liquidation preferences determine how to divide the proceeds from the exit.
VCs have one common goal - they all aim to increase shareholder's value. Many Israeli entrepreneurs share this dream as they want to build long-lasting companies. This alignment of interests makes sure everyone is working to achieve the same goal.
Yet, participating preferred creates an inherent misalignment of interest between VCs and entrepreneurs.
Take for example an entrepreneur who faces a decision whether to sell the company now for $150m. His investors agree that the company’s potential could be much higher in 2-3 years. But the company would have to raise another $20M to reach said potential. Luckily, there is a late stage investor who is eager to invest in the company at a reasonable valuation. The decision should be simple - a good opportunity to increase the value at a reasonable price. But here is where the participating preferred misalignment kicks in. The entrepreneur, upon an exit, will have to pay back an extra $20m plus interest before seeing any profits. Not to mention the fact that he/she will be further diluted. VCs are professional investors and part of their job description is to take risks. Entrepreneurs are dreamers that dedicate their life to build companies. Some entrepreneurs at this point will decide to sell the company and reduce their personal risk. The investors will lose much more than the potential profit from the participating preferred.
Cloud computing is an area we find especially exciting. It has brought enormous change to the world of applications and it would be no exaggeration to say that most of the innovation in IT over the past decade has been enabled, catalyzed, or caused by cloud computing. Currently, we are in the midst of a microservices revolution, one that has, until now, been championed by containers. Through our investment in Aqua Security over a year ago, we have witnessed first hand the rapid growth this market is experiencing, and believe it will continue to proliferate enterprises across the globe. We are now on the cusp of another revolution in cloud infrastructure: the move to serverless computing.