219. How Matterport Can Succeed Faster with a $25 Million Fund for SDK Partners | #mttr

How Matterport Can Succeed Faster with a $25 Million Fund for SDK Partners

Commentary and Analysis by

Dan Smigrod
Founder and Managing Editor
We Get Around Network and WGAN-TV
WGAN.info/DanSmigrod

Some of the hidden gems about Matterport are Matterport SDK Partners that offer public solutions to anyone using Matterport.

Matterport often becomes a solution – rather than a tool – when paired with a 3rd party platform.

Unfortunately, my impression is that many of the Matterport SDK Partners lack sufficient funding either for further development and/or marketing of their Matterport-related solution.

Matterport could dramatically help itself – and the entire Matterport ecosystem – succeed faster if it created a Matterport VC fund of $25 million. That’s about five percent of its cash-flush balance sheet of nearly $500 million.

Matterport should offer existing Matterport SDK Partners:

1. Convertible notes of $1 million to $5 million
2. Cash grants of $250,000 to $500,000
3. Pre-paid service orders of $100,000 to $250,000

Startups are super-efficient using cash and can move faster than a large, public company.

Additionally, this $25 million initiative would show that Matterport appreciates its Matterport SDK Partners.

Since many use-cases for Matterport are only possible when mashing up a Matterport Partner Platform, Matterport should also use these Matterport marketing resources to help amplify its Matterport SDK Partners:

1. Matterport Blog
2. Matterport Webinar
3. Matterport Sales Teams
4. Trade Shows (Pay travel for Matterport Partner to demo in the Matterport booth)
5. Media Releases

My impression is that Matterport is not using its marketing resources to promote its Matterport SDK Partners. I wonder if Matterport either no longer sees the value that these partners offer or if Matterport intends to build-out its platform to include features pioneered by its partners.

Many Matterport SDK Partners are turning to the We Get Around Network - not affiliated with Matterport - for help via:

1. WGAN-TV Live at 5
2. WGAN-TV Podcast (search for WGAN-TV in your favorite podcast app)
3. WGAN Forum Podcast
4. We Get Around Network MarketPlace
5. We Get Around Network Forum
6. We Get Around Network Founder Dan Smigrod (for strategic introductions)
7. WGAN-TV Training U (in Matterport)
8. WGAN List: Matterport Partners

My impression is that - at one time – Matterport viewed Matterport SDK Partners as a direct revenue source – licensing the Matterport SDK and charging for API usage – and when it likely became apparent that it was costing Matterport more money to sign-up Matterport SDK Partners than the revenue generated, it downgraded signing up new Matterport SDK Partners.

Matterport let go marketing executives devoted to the Matterport SDK Partners initiative. Plus, Matterport recently announced plans to shrink its workforce by 30 percent by the end of 2023. Constant turnover makes it harder for Matterport SDK Partners to get marketing support.

It's been a while since Matterport has announced a new Matterport SDK Partner that offers a publicly available Matterport solution.

There was a time that Matterport leadership talked-up the potential for SDK licensing revenue in conference calls for analysts and investors.

Matterport’s early focus on SDK licensing revenue – was and is – short-sighted. The much bigger revenue opportunities for Matterport are: subscriptions, capture and add ons. Matterport SDK Partners help drive this revenue.

A $25 million VC fund by Matterport – specifically for Matterport SDK Partners – would go a long way to lift all boats and fill a venture capital gap that could have unintended consequences for cash-flush Matterport.

“Venture capital funding globally almost halved in the first six months of 2023, data from research firm PitchBook showed, highlighting a lack of enthusiasm on the part of investors as well as less demand amid sharply higher interest rates,” according to a July 6, 2023 news story by Reuters. “The 48% decline in investment … and the 19% drop-off in deal numbers comes despite huge interest in artificial intelligence startups sparked by the success of OpenAI's ChatGPT.”

Without an infusion of Matterport cash in its SDK Partners, I could imagine that we will see three things:

1. SDK Partners that abandon Matterport
2. SDK Partners that begin offering their solution to Matterport competitors
3. Matterport competitors offering funding to Matterport SDK Partners

You can share your thoughts on this topic in the We Get Around Network Forum (www.WGANForum.com) or email me: DanSmigrod@WeGetAroundNetwork.com