Index Stock Gets $18.6 Million

Posted on 4/20/1998 by Jim Pickerell | Printable Version | Comments (0)

136

INDEX STOCK GETS $18.6 MILLION


April 20, 1998


Index Stock Photography announced in March that SCP Private Equity Partners, L.P. had
provided them with $18.6 million in venture capital to fuel an
aggressive growth of their web business and a drive to acquire additional collections.


According to Index's CEO Bahar Gidwani, the capital infusion will unleash a drive to expand
both its traditional stock photography business and its
rapidly-growing web-based image commerce. "To date, our growth has been driven by the
success of our TeleFocus image browser used by traditional photo
customers, as well as our web-based Photos To Go (www.photostogo.com) business. Now, we can
accelerate our growth and expand our market through
affiliations with partners as well as carefully selected acquisitions."


Index is one of the first stock photography services to distribute electronic photographic
images directly to consumers via on-line services. Revenues
for Photos To Go have increased by more than 30 percent per month since its launch last year,
driven by growing demand among small and home-based
business customers, innovative pricing, and affiliations with software companies, web search
engines, and content providers. Photos To Go currently
has affiliations with Borderbund, Earthlink, Ask Jeeves, and many others.


Gidwani says that 31 stock agencies have partnered with Index as a way of marketing their
images on-line without the huge cost of developing their own
distribution system. Many of these agencies are at the "test market" stage and have only
put a few thousand images on-line as they determine the type
of imagery that sells best using the Index system.


Index would not provide Selling Stock with the names of any of these "partners." It would
seem that some of the most likely partners would have been
those agencies, formerly with Kodak Picture Exchange, that had many images scanned and
keyworded when KPX went out of business. However, when we
checked with many of these agencies we were unable to find any that had decided to join
Index's marketing venture. We suspect that the agencies that
have joined Index in the use of their TeleFocus system are all very small players in the
industry.


In addition to partnering, Index intends to continue its acquistion strategy, started in
1991. They hope to acquire up to six additional agencies in
the next twelve months. Previous acquisitions were Telephoto, Profiles West and Southern
Stock. Their goal is to greatly expand the breath and depth
of the material they have available for their clients.


We did an extensive review of Index Stock in the September 1997 (Story number 103 in the
online archives). At that time we estimated that their gross
income in 1997 would be $3.8 million dollars.

"We have been extremely impressed by the Index Stock Photography management team, its
commercial success to date, and its growth potential and
strategy," commented Samuel Plum, a managing general partner of SCP. Mr. Plum is one of
three SCP executives who will join the Index Stock Board of
Directors, bringing the total number of Directors to eight.


SCP Private Equity Partners, L.P. is an equity and equity-related investment fund formed by
Safeguard Scientifics, Inc., Winston J. Churchill and
Samuel A. Plum to make private equity investments in post-venture stage companies covering a
broad range of industries. The fund has $265 million
under management.


Safeguard Scientifics had revenues of $1.985 billion in 1997 and is engaged primarily in the
business of identifying, acquiring interests in and
developing partnership companies, most of which are engaged in information technology
businesses.


SFE seeks companies capable of being market leaders in segments of the information technology
industry and which are at the stage of development that
would benefit from Safeguard's management support, financing and market knowledge.


During 1996 CompuCom, a provider of distributed desktop computer products and network
integration services, accounted for 97% of SFE's net sales. At
that time SFE owned 50% of CompuCom.


Copyright © 1998 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

Comments

Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More
Photography As A Career
It’s that time of year when high school seniors are waiting for college acceptance letters and thinking about future careers. If you know someone who is thinking about photography as a career you mig...
Read More
2014 Stories You May Have Missed
For many the end of the year is a time to review past experiences and consider whether it makes sense to chart a new course in the year ahead. Stock photography has changed dramatically for professio...
Read More
More Stories In 2014 You May Have Missed
Every so often I put together a list of the most important stories we’ve published in the recent past. If you are engaged in the business of stock photography the links below are to stories that we’v...
Read More
Getty: A Three Month Review
In all the excitement about 35 million FREE images it is worth looking back at some of things that have been happening at Getty Images in the last three months. After watching revenue decline for the...
Read More
State Of Stock Photo Industry: 2013
If you’re looking for an overview of the state of the stock photo industry as of October 2013 the stories listed below are a good place to start. Regular readers of Selling-Stock will have seen all t...
Read More
Education Market Shifts To Digital
If supplying pictures for educational use is a significant part of your business plan you need to be aware of how the market is trending toward digital delivery and how that is likely to affect the p...
Read More

More from Free Stuff