Wednesday, January 2, 2019
Reflections on 2018: Peter Cowen, Sutton Capital Partners
During the holiday season, our tradition over the last few years has been to post reflections on the past year and some predictions from Southern California's technology industry. As we close out our contributions for the end of 2018, we have a contribution from investor and investment banker Peter Cowen of Sutton Capital Partners. Sutton Capital Partners is a technology investment banking firm and we are, investors in local SaaS/subscription companies and is well known as the host of the annual Recurring Revenue Conference, which we co-host every year.
What was the biggest lesson you learned this year?
As we get more comfortable with cellphone and video conferencing, it becomes more crucial to make sure to connect in person with people. I realize I don’t see a number of friends/business colleagues as frequently as I used to and need to make a proactive effort to see them. More in-person contact is one of my 2019 goals.
What was the biggest news for your company in 2018?
We continue to focus on companies with Recurring Revenue (SaaS, Subcription) and in FinTech. One company that we have mentored, invested in and serve on the board of, is in lending and has hit a very exciting tipping point. We expect some big things in 2019.
Are there any technology innovations, gadgets, devices, software, that you found most interesting in 2018?
Reading books continues to be a big focus for me. Last year I discovered the power of optimizing Audible with WhisperSync so I can read or listen to books seamlessly. This year I learned to listen much faster (thank you Mark Suster) by starting the listen at a fast speed say 2x and then adjusting to 1.75x after 30 seconds. As a result I was able read a lot more this year—a record 32 books. Among my favorites were Thanks for Being Late (Thomas Friedman), The Alchemist (Paul Coehlo), The Virgin Way (Richard Branson), Caine Mutiny (Herman Wouk), The Five Dysfuntions of a Team (Patrick Lencioni—thanks Peter Lamson) and The Mamba Mentality (Kobe Bryant).
Finally, what's your prediction on what will be most important thing for the technology industry in the coming year?
I think it is going to be a recalibrating year for valuations—which is healthy and necessary. The macro climate will be volatile due to uncertainly from an unstable president, a slowing overall economy and the China America trade negotiations—as well as the inevitable slowing of a 10 year run. The public markets affect private valuations though the impact on private companies is usually delayed. The great companies will continue to get a premium but I think the bar will be higher for follow on financing and deals will take longer to close. I am seeing more rapid growth overall in FinTech than SaaS in general, and think this will continue. I remain VERY bullish on SoCal's tech community.
Peter Cowen is the founder of Sutton Capital Partners (www.suttoncapitalpartners.com), a technology investment bank focused on SaaS, FinTech, Infrastructure and tech-enabled outsourced business services. He is the co-founder of the Recurring Revenue Conference, the largest SoCal tech event focused on innovative business models. Peter cofounded three companies: Data Voice Solutions (computer networks), Biometric ID (biometric security) and TransDecisions (logistics optimization) that all had successful exits. He has been an angel investor in over 50 tech companies, is an LP in 5 seed funds and has served on over a dozen venture-backed boards. Peter has also been on the Faculty of UCLA Anderson for the past 10 years. He has a BA from University of Pennsylvania and an MBA from UCLA Anderson.