We set up Piton Capital having experienced first-hand the power of businesses based on network economics at Autotrader, Betfair and QXL Ricardo.
Fundamentally, such a company has a product or service that gets better the more people use it. The classic example is the telephone – not very useful for the first person owning it, but very powerful when everybody has one. The Internet has enabled a whole new range of sectors to organize around this principle. That is particularly true where large and fragmented user groups can now be connected.
This dynamic of a product or service getting better with more users leads to winner-takes-all markets, which sometimes plays out on a global level, like with Betfair or Skype, and sometimes locally, like with marketplaces where logistics, language, payment and trust play an important role.
We only invest in businesses that we believe have the potential to benefit from network effects. Unusually however, we are stage- and style-agnostic, and will invest from seed to late stage.
Choosing network economics as the focus of our investments means that we contribute the most valuable part of our knowledge and experience to the right businesses. And this lets us continually learn and improve our input to the companies we invest in.
We are entrepreneurs
We’ve been through the entire life cycle, from start-up to exit many times over, when we say “we understand”, we can back it up.
We recognise that good entrepreneurs are a rare breed, in many respects change agents who bring about economic and social progress. At Piton you will find a sense of camaraderie and respect for the entrepreneurial life. And it is a true privilege to work with clever, ambitious and motivated entrepreneurs, backing them to attain the commendable goals they have set themselves.