lotus software ( called lotus development corporation before its acquisition by ibm ) was an american software company based in massachusetts .

lotus is most commonly known for the lotus 1-2-3 spreadsheet application , the first feature-heavy , user-friendly , reliable and wysiwyg-enabled product to become widely available in the early days of the ibm pc , when there was no graphical user interface .

much later , in conjunction with ray ozzie 's iris associates , lotus also released a groupware and email system , lotus notes .

ibm purchased the company in 1995 for us$ 3.5 billion , primarily to acquire lotus notes and to establish a presence in the increasingly important client – server computing segment , which was rapidly making host-based products such as ibm 's officevision obsolete .

lotus software

lotus software is a software company specialized in lotus 1 - 2 - 3 spreadsheet application .
this software license includes software subscription and support ( also referred to as software maintenance ) .
some lotus products are still available today such as lotus domino and lotus notes , but others such as lotus 1 - 2 - 3 , lotus organiser are in maintenance mode . lotus jazz , cc : mail etc have been discontinued .
the ibm software group comprises five software brands : information management , rational , lotus , websphere , and tivoli . you can learn more about ibm software at : urltoken
to learn more about the lotus awards and the lotus sustainability awards visit engage international .
this helped lotus become the second largest software company in 1983 , just behind microsoft .
ibm software services for lotus® education provides education to support many lotus offerings . for a complete list of offerings visit the web site at :
lotus is currently suing mosaic software of cambridge , and paperback software inc . of berkeley , calif . , alleging they both offer products that infringe on the lotus 1 - 2 - 3 copyright .
in 1992 lotus bought the organizer software , a time and contact manager , from threadz , which became became lotus organizer ( an electronic filofax ) .
you’re reading joel on software , stuffed with years and years of completely raving mad articles about software development , managing software teams , designing user interfaces , running successful software companies , and rubber duckies .
lotus software had the opportunity to dominate the office sector for the emerging pc market . what happened ?
in january of 1987 , lotus development filed suit against paperback software and separately against mosaic software claiming they had infinged on the lotus 1 - 2 - 3 spreadsheet software . in a related matter , software arts , the developerof the original visicalc spreadsheet software filed a separate action against lotus claiming that lotus 1 - 2 - 3 was an infringement of visicalc . briefly , lotus won the legal battles , but lost the
market share war
to microsoft . according to russo and nafziger ( 1993 )
the court granted lotus ' motion dismissing the software arts ' action and confirming that lotus had acquired all rights , including all claims , as part of the earlier transaction .
in january of 1987 , lotus development filed suit against paperback software and separately against mosaic software claiming that each defendant had developed an infringing
clone
of the now famous lotus 1 - 2 - 3 spreadsheet software . in a related matter , software arts , the developer of the original visicalc spreadsheet software filed a separate action against lotus claiming that lotus 1 - 2 - 3 was an infringement of visicalc and that such infringement claims could be brought by software arts - - even though software arts had conveyed all right , title , and interest in the visicalc computer program copyrights to lotus in an earlier business transaction . the district court granted lotus ' motion dismissing the software arts ' action and confirming that lotus had acquired all rights , including all claims , as part of the transaction .
with the headline : i . b . m . to dress some software in lotus - products wrappings .
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receive software subscription and support ( previously referred to as software maintenance ) for the period of the term .
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lotus official history ( urltoken ) , which elides the details on several of its dead - on - arrival products like beanmachine , lotus improv , and lotus symphony .
mr . kapor worked for software arts inc . before it changed its name to sapc . sapc sold lotus the name software arts and rights to visicalc in 1985 .
indeed , long before microsoft dominated the office sector , lotus software had a head start with respected products such as lotus 1 - 2 - 3 ( spreadsheet ) and lotus notes ( groupware ) . so where did it all go wrong ?
software arts sold visicalc and other assets to lotus last year and changed its name to sapc inc . ' significant implications '
lotus symphony products are standalone versions of products that are being bundled in lotus notes 8 , and are built from openoffice technology .
lotus then brought iris associates , whose technology had resulted in lotus notes , and made a number of other acquisitions as well .
ibm has dropped the lotus brand from its collaboration software products as it prepares to release a new version of notes and domino .
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but it was the arrival of lotus notes ( from iris associates ) in december 1989 that had the greatest impact on lotus fortunes .
starting in 1995 with its acquisition of lotus development corp . , ibm built up the software group from one brand , db2 , to five : db2 , lotus , websphere , tivoli , and rational .
lotus software ( called lotus development corporation before its acquisition by ibm ) is a software company with headquarters in westford , massachusetts . lotus is most commonly known for the lotus 1 - 2 - 3 spreadsheet application , the first feature - heavy , user - friendly , reliable and wysiwyg - enabled product to become widely available in the early days of the ibm pc , when there was no graphical user interface .
ibm is shutting the doors on lotus 1 - 2 - 3 , the software program that made the ibm pc and microsoft household names .
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and in april that year , lotus introduced smartsuite for windows , a software package that integrated several separate lotus applications , making it easy for a user to move between ami pro ( word processing ) , lotus 1 - 2 - 3 ( spread sheet ) , and freelance graphics .
ibm includes one year of software subscription and support ( also referred to as software maintenance ) with each program license acquired . the initial period of software subscription and support ( also referred to as software maintenance ) can be extended by the purchase of a renewal option , if available .
ontio officials tried to initiate discussions about their new spreadsheet with lotus , mr . lange said , but lotus ' s lawyers did not respond .
eager to maintain momentum from its $ 3 . 5 billion purchase of the lotus development corporation , i . b . m . announced yesterday that it would fold several of its existing offerings into lotus products and make the lotus brand name the centerpiece of its desktop and network software business .
ibm is contributing lotus symphony to the apache software foundation , re - uniting this openoffice fork with the
official
version of the project .
most people have probably forgotten the lotus clones , twin and vp planner . twin was designed to work like lotus ' 1 - 2 - 3 and advertising proclaimed it
offers you so much more , for so muchless .
paperback software published a spreadsheet software product called vp planner .
ibm provides software subscription and support with each ibm software program licensed under the ibm international passport advantage agreement . software subscription and support begins on the date the software is obtained and ends 12 months later ( on the last day of the corresponding month in the following year ) , unless the :
on may 14 , ibm quietly announced the end of the road for 1 - 2 - 3 , along with lotus organizer and the lotus smartsuite office suite . lotus 1 - 2 - 3 ' s day is done .
an article in business day on tuesday about the recent performance of the lotus development corporation referred incorrectly to the origin of one software product , lotus notes . it was created by iris associates , which was acquired by lotus last year - - not by softswitch inc . , also acquired last year .
in 1985 , lotus development acquired software arts and discontinued the visicalc program . a lotus spokeperson indicated at that time that
1 - 2 - 3 and symphony are much better products so visicalc is no longer necessary .
as a result , lotus was able to land $ 5m in venture capital funding , an incredible amount for a young software company at that time .
| state = expanded : { { lotus software | state = expanded } } to show the template expanded , i . e . , fully visible
view downloaded software , media order history , entitled software , migration history , purchase history and active renewal quotes reports at the enterprise or site level .
for blackberry enterprise server software version 4 . 0 , install service pack 3 , then install software version 4 . 0 service pack 3 hotfix 3 .
for blackberry enterprise server software version 4 . 0 , install service pack 3 , then install software version 4 . 0 service pack 3 hotfix 4 .
on its surface , this latest alliance looks like a smart one , combining blackberry’s dominance in the corporate market with lotus connections , ibm software’s fastest growing product . this will add to an existing integration between blackberry devices and lotus sametime , another collaboration software from ibm . lotus sametime gives users the ability to see if others are online . it also includes instant messaging and calendar functions .
the acquisition of programs through buyouts was also an option that lotus pursued in diversifying its product base . for example , in early 1985 lotus purchased a weakened software arts for $ 800 , 000 and paid its $ 2 . 2 million in debt . software arts had introduced the first popular spreadsheet , visicalc , which had lost its market share to 1 - 2 - 3 . in addition to visicalc , the acquisition brought lotus a number of other software programs .
1 . social software treats triads of people differently than pairs . 2 . social software treats groups as first - class objects in the system .
but the success of lotus notes had attracted predators . in 1995 lotus was achieving revenues of $ 1 . 15 billion and had thousands of employees . in june 1995 ibm launched a hostile takeover bid for lotus for $ 3 . 5bn in cash . in the end , ibm succeeded and snapped up the software firm .
lotus 1 - 2 - 3 made it easier to use spreadsheets and it added integrated charting , plotting and database capabilities . lotus 1 - 2 - 3 established spreadsheet software as a major data presentation package as well as a complex calculation tool . lotus was also the first spreadsheet vendor to introduce naming cells , cell ranges and spreadsheet macros . kapor was the visicalc product manager at personal software for about six months in 1980 ; he also designed and programmed visiplot / visitrend which he sold to personal software ( visicorp ) for $ 1 million . part of that money along with funds from venture capitalist ben rosen were used to start lotus development corporation in 1982 . kapor cofounded lotus development corporation with jonathan sachs . before he cofounded lotus , kapor disclosed and offered personal software ( visicorp ) his initial lotus program . supposedly visicorp executives declined the offer because lotus 1 - 2 - 3 ' s functionality was
too limited
. lotus 1 - 2 - 3 is still one of the all - time best selling application software packages in the world ( see email from mitch kapor , 04 / 15 / 1999 ) .
one of these products was symphony ( a software package that included word processing , data management , and networking capabilities ) , but sales were disappointing . it helped matters in 1985 , when lotus bought software arts and discontinued its visicalc program .
alphaworks is ibm ' s source for emerging software technologies . these technologies include :
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church management software professional system ; church facilities , office , bookkeep . . .
lotus got its start in 1981 . over its life from 1981 to 1995 , the company launched dozens of products , but in the end only two mattered : the lotus 1 - 2 - 3 spreadsheet , which legitimized the personal computer an indispensable business tool , and lotus notes , which pioneered the market for enterprise collaboration software .
on april 16 , doug levin , ceo of black duck software , gave a presentation entitled the state of open source software and corporate software development . this conference report presents the key messages and insights from the three sections discussed during the presentation .
lotus alone among the major software vendors has continued to produce versions of its key programs for i . b . m . ' s os / 2 operating system .
but lotus carried out developing ( and buying ) new packages , and even invested in firms such as sybase ( database ) and rational systems ( programming software ) .
the death of the lotus brand is significant in the history of it , as lotus technology can be counted among the most notable enterprise software brands in the world . however , that brand was and is not nearly as notable as the ibm brand .
lotus software was a much younger company than microsoft , as it was founded in massachusetts in 1982 by 32 - year - old mitchell d . kapor . he came up with the lotus name as kapor was also a teacher of transcendental meditation techniques .
regional software license agreement applicable to your use of the software is available below ( including software preinstalled on hardware or made available to you by download , disk media or otherwise , at no additional cost ) . click here to find your regional agreement .
lotus acquisition may start trend ,
cti news , june 16 , 1998 .
' s footsteps , lotus has always had a reputation as a progressive company . in
say goodbye to lotus 1 - 2 - 3 . its day is finally done .
post - merger integration : how i . b . m . and lotus work together
it was a big success , but lotus was not out of the woods yet .
active mail processing requires lotus notes 7 . 0 . 3 or 7 . 0 . 4 , or lotus notes basic ( not eclipse ) 8 . 0 . 0 .
nextstep pioneered advanced rapid development frameworks to make it easier for third parties to deliver software for the new system . when jobs discovered that lotus was working to deliver a new spreadsheet paradigm for os / 2 , he gave the lotus team a next system and got involved in refining the software to show off the features of his new platform .
| state = collapsed : { { lotus software | state = collapsed } } to show the template collapsed , i . e . , hidden apart from its title bar
software subscription and support ( also referred to as software maintenance ) is included with licenses purchased through passport advantage and passport advantage express . product upgrades and technical support are provided by the software subscription and support ( also referred to as software maintenance ) offering as described in the agreements . product upgrades provide the latest versions and releases to entitled software , and technical support provides voice and electronic access to ibm support organizations , worldwide .
i’m joel spolsky , a software developer in new york city . more about me .
school management software professional ; 100 , 000 student database tracking and stud . . .
and now , if lotus is swallowed up by i . b . m . - - or some other big company - - it will be largely because lotus has been unable to move quickly enough to make money from its latest killer app , lotus notes .
mosaic software , inc . (
mosaic
) designed , developed and marketed a spreadsheet software product called the
twin ,
along with several other related software products . the name
twin
is no coincidence as the product was designed to work like lotus ' 1 - 2 - 3 and mosaic ' s advertising proclaimed that the
twin
software product
offers you so much more , for so much less .
lotus software was one such company , and it had a real opportunity to dominate the office productivity suite market in what was the growing pc era of the 1980s and 1990s .
as expected , the company said it would focus its efforts on expanding the sales of notes , the lotus software that allows people to collaborate over computer networks . i . b . m . said it would kill its own competing product called workgroup as well as electronic mail software that competed with cc : mail , lotus ' s more successful offering .
the program that lotus is accused of copying , visicalc , was developed by the software arts products corporation . it is widely regarded as the first innovative personal computer program , one that more than any other software product fueled the phenomenal growth of the young pc industry .
active mail processing requires a notes client , which must connect to a lotus domino server .
the ingredients of a social software is not limited with these . the key point is that
social software web / tech wiki social software evolution history memex vannevar bush arpa . licklider engelbart augmentation augmented nls office automation eies groupware johnson - lenz cscw greif cash drexer nanotechnology social computing
customer and contact management professional software ; windows only cd - rom ; single . . .
within a year lotus had released 26 other programs , including the long - promised spreadsheets for mainframes , minicomputers , and workstations . these products were successful , and lotus ' s income rose to $ 68 million in 1989 . lotus also invested in smaller companies like sybase inc . , a database firm , and rational systems inc . , a manufacturer of programming software .
ibm and research in motion announced a partnership today to sell blackberry devices fully loaded with ibm’s collaboration software . this is the first time ibm has sold blackberry devices into its business channel . lotus quickr , a document sharing application , and lotus connections , a social - software technology that helps users find people with a particular expertise , will now be available on the smartphone .
doug levin is president and ceo of black duck software . prior to founding black duck in 2002 , levin served as ceo of messagemachines ( acquired by nms communications in 2002 ) and x - collaboration software corporation ( acquired by progress software in 2000 ) . from 1995 to 1999 , he worked as an interim executive or consultant to a range of software companies , including cmgi direct , ibm / lotus development corporation , oracle software corporation , solbright software , mosaic telecommunications , bright tiger technologies and best ! software . from 1987 to 1995 , levin held various senior management positions with microsoft corporation , including heading up worldwide licensing for corporate purchases of non - oem microsoft software products . he is a graduate of the university of north carolina at chapel hill and holds a certificate in international economics from the college d ' europe in bruges , belgium .
, lotus was the first major company to offer full benefits to same - sex partners . in
certainly the suit is not without irony for lotus , which has used the same ` ` look and feel ' ' argument to zealously file copyright suits against companies it believes imitate lotus products .
the acquisition of lotus by ibm had raised eyebrows in certain circles , as lotus was actually a relaxed and socially advanced company for its time , compared to the rigid corporate nature of ibm .
but in the end ibm handled the acquisition relatively well and integrated lotus within its corporate structure .
part part number product name number lot0207 ibm lotus smartsuite millennium edition 9 . x an01fie ibm lotus none smartsuite for multiplatforms version 9 . 8 international english cd rom 128 bit media pack an01die ibm lotus none smartsuite for multiplatforms user version 9 . 8 international english cd rom 128 bit program pack
kapor served as the president and chief executive officer of lotus from 1982 to 1986 and as a director until 1987 . in 1983 , lotus’ first year of operations , the company reported revenues of $ 53 million and had a successful public offering . in 1984 , lotus tripled in revenue to $ 156 million . the number of employees at lotus grew to over a thousand by 1985 . this rapid growth led to a shakeout in the spreadsheet segment of the personal computer software industry .
lotus at this stage was still a one product company and it needed to diversify and develop new products . therefore it began investing in software start - ups and began developing completely new programs .
ibm ' s dropping the lotus brand might be viewed as a historic moment for old - timers , but also as a business - as - usual move by an industry giant . lotus has been around since 1982 , initially as the massachusetts - based lotus development corp . , which released its famed lotus 1 - 2 - 3 spreadsheet in 1983 . ibm acquired lotus in 1995 for $ 3 . 5 billion , primarily to get hold of lotus notes , then a wildly popular groupware system developed by ray ozzie ' s iris associates that was eating into ibm ' s profits .
mr . kapor resigned as chairman of lotus last july to ' ' explore other endeavors . ' ' he could not be reached for comment . a lotus spokesman said yesterday that the sapc lawsuit was ' ' entirely without merit . ' ' lotus has 30 days to respond to the suit .
in lotus development corp . v . borland international , inc . , 799 f . supp . 203 ( d . mass . 1992 ) , judge keeton applied the principles enunciated in lotus v . paperback but in a more detailed manner with respect to lotus ' contention that borland ' s quattro and quattro pro programs infringe its lotus 1 - 2 - 3 spreadsheet program by copying lotus 1 - 2 - 3 ' s menu commands , menu structure , long prompts , and keystroke sequences .
lotus began its diversification from the desktop software business with its 1984 strategic founding investment in ray ozzie ' s iris associates , the creator of its lotus notes groupware platform . as a result of this early speculative move , lotus had gained significant experience in network - based communications years before other competitors in the pc world had even started thinking about networked computing or the internet . lotus initially brought lotus notes to market in 1989 , and later reinforced its market presence with the acquisition of cc : mail in 1991 . in 1994 , lotus acquired iris associates . lotus ' s dominant groupware position attracted ibm , which needed to make a strategic move away from host - based messaging products and to establish a stronger presence in client–server computing , but it also soon attracted stiff competition from microsoft exchange server .
so the lotus which is now on its way out is a dim reflection of its former self . it isn’t the great lotus , or my lotus . truth to tell , i wasn’t even positive it was still extant . even so , i’m sorry to think about the mighty brand disappearing altogether .
when the macintosh came out in 1984 , three third - party software vendors were highlighted : lotus development corp . , microsoft , and software publishing corp . ( which was known for its pfs : file database ) . at that point , a lot of the focus in the industry was on
integrated software ,
with many vendors taking the lesson from 1 - 2 - 3 ' s success that users wanted software programs that performed more of the typical business tasks . even on dos , lotus released a version called symphony , which added word processing and had a pretty good run .
ibm includes one year of software subscription and support with each program license acquired . the initial period of software subscription and support can be extended by the purchase of a renewal option , if available .
code - related questions ( “support” ) . such support for a particular version or release of the software is available only until ibm or the third party , as applicable , withdraws support for that software’s version or release . when support is withdrawn , you must upgrade to a supported version or release of the software in order to continue to receive support . see the ibm software support lifecycle policy .
ibm acquired lotus to move into software and gain a new focus . it succeeded , for the most part . while the lotus product suite itself declined under pressure from microsoft , ibm was able to use the deal to pivot its own business into software and services . ibm divested its mature hardware businesses to focus on the new growth areas ; for example , its pc business was sold to lenovo .
lotus on the other hand had released its lotus 1 - 2 - 3 spreadsheet product back in the heady days of early 1983 , when the impact of the ibm pc first began to be felt .
, lotus never regained its dominance in the desktop applications market . smartsuite still ships by default with some
how to # install # ssl certificate on lotus domino . # lotusdomino | install ssl certificate | pinterest
i fooled around with xp mode and older version of lotus 123 but needed a better . . .
this did not properly load on my windows 7 professional platform laptop . fortunately , i had another laptop with windows vista that i was successful in loading the lotus software and accessing old lotus files of mine , then re - saving as excel files . so my overall rating of this software is ok - operated fine under vista operating platform and converted to files that i could then work with in excel .
lotus has used the ' ' look and feel ' ' argument in lawsuits against two smaller companies , paperback software international of berkeley , calif . , and mosaic software inc . of cambridge . both make spreadsheets that essentially match the functions of 1 - 2 - 3 but sell at a lower price .
when microsoft excel took over clear first place , lotus was acquired by ibm in a hostile takeover in 1995 . while the expected culture war between the ultra - liberal lotus and the buttoned - down ibm never happened , the acquisition didn ' t breath any new life into lotus 1 - 2 - 3 .
i have used lotus for about 20 years . my old computer died , and i needed a new version of lotus to go with the new one . unfortunately , windows 8 supposedly is not compatible with this version of lotus , but a friend managed to install it anyway , and it works just fine .
in the acquisition of a software company , the main asset is the people and their intellectual capital .
a key event at ibm in 1969 was the decision to
unbundle
software from hardware sales .
but the move that would have the greatest impact on lotus in the long run occurred in december 1989 , when lotus shipped the first version of notes . this was a new category of software called
groupware ,
designed to allow several computer users to collaborate on documents and other projects from distant locations across a network . manzi was the exclusive marketer of the new software , developed by iris associates , inc .
by the late 1980s many companies had introduced spreadsheet products . spreadsheet products and the spreadsheet software industry were maturing . microsoft and bill gates had joined the fray with the innovative excel spreadsheet . lotus had acquired software arts and the rights to visicalc . jim manzi had become ceo at lotus in april 1986 and in july 1986 mitch kapor resigned as chairman of the board . the spreadsheet entrepreneurs were moving on . . .
with computer hardware and software sales no longer growing at the explosive rates of the 1980s , lotus could no longer count on automatic annual sales growth , and it fell far behind microsoft , the number one software company with 1991 sales of $ 1 . 84 billion . with notes , however , lotus finally had succeeded in diversifying and seemed well positioned as the personal computer industry moved into an era of constantly shifting alliances .
in the late spring of 1995 , ibm acquired lotus development and microsoft excel is the spreadsheet market leader .
lotus contends that its menu is precisely the sort of creative expression congress sought to protect in copyright law .
looking for lotus ? we renamed the project and it ' s now called hanami . read the announcement .
i needed a solution to read and convert older lotus wk4 files that would run on windows 7 pro .
even so , apple did little to capitalize upon the discovery that software would indeed sell systems , just as couch had foreseen back in 1979 . apple had a printing press for creating money , but simply left it idling while microsoft delivered low innovation software titles and raked in millions of dollars in mac software revenues .
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mr . bricklin , who remains a shareholder of sapc , now heads his own company , software garden .
microblogging has taken its place among social software components lately . the most important advantage of microblog is to provide
thus today almost any software that supports multiple users can somewhat legitimately say that they are ' groupware ' .
url : the evolution seems to omit early text environments , muds and moos , stories of / from pmc moo , or tribes in the mud worlds . also missing is the work of mathew fuller who presents a compelling definition of social software in behind the blip . where social software also involves a reflection on the relationship between groups and specific software . focusing on accessible low threshold social software environments , constructive environments . . .
vasco has been renamed onespan . our solution pages and software pages will redirect you to our new website .
the lotus development corporation has a history of developing the
killer app
- - a software application that creates such a fundamentally new and different use for the personal computer that it spawns a new market . unfortunately for lotus , the company also has a history of failing to fully capitalize on the markets it helps create .
url : one interesting fact is that
groupware
software is often called a
groupware suite
which actually emplies that it is a bundle of related software tools which enable and enhance productivity among and within groups .
matters were not helped when lotus brought a lawsuit against a number of companies including borland and its quattro spreadsheet .
at the end of each period of coverage , software subscription and support is renewable for another 12 months ( at the prevailing price ) , referred to as
annual software subscription and support renewal 12 months
. in some countries , this is automatically renewed unless licensee notifies ibm or licensee ' s ibm business partner of licensee ' s intent to not renew it . if software subscription and support is not renewed , licensee will no longer receive the benefits of software subscription and support , but licensee may still use the software according to the license agreement .
in the second quarter of 1995 ibm launched a hostile bid for lotus with a $ 60 - per - share tender offer , when lotus ' stock was only trading at $ 32 . jim manzi looked for potential white knights , and forced ibm to increase its bid to $ 64 . 50 per share , for a $ 3 . 5 billion buyout of lotus in july 1995 . on october 11 , 1995 manzi announced his resignation from lotus ( by then known as the lotus development division of ibm ) . he left with stock worth $ 78 million dollars .
, the inevitable assimilation of lotus was almost complete . while the mass employee defections that ibm so feared did not materialize , many long - time lotus employees did complain about the transition to ibm ' s culture ( ibm ' s employee benefits programs , in particular , were singled out as inferior to lotus ' s very progressive programs ) .
over the years lotus has seen its share of scrapes and scuffles , as well as triumphs , including when its hard - charging former ceo jim manzi tried to take on bill gates ' microsoft directly and came out bruised for his efforts . in addition , lotus pioneered some of the it industry ' s big
look and feel
lawsuits , as it charged paperback software , mosaic and borland with copying the lotus 1 - 2 - 3 interface .
video : dirk hohndel , vp and chief open source officer at vmware , discusses how the software . . .
↑ infoniac , ibm and cisco : attempt to unite the communication software developers . retrieved december 18 , 2007 .
with the headline : i . b . m . to offer office software free in challenge to microsoft’s line .
review the mcafee enterprise products end - of - life policy for details on support for eol software and hardware .
this second time , in the spring of 1983 , i made ray an offer he couldn’t refuse . if he’d come to lotus to help implement version 2 of lotus 1 - 2 - 3 , i’d help make sure he got the resources he needed to get his project off the ground . i thought lotus might well want to fund it , and if not , i now had lots of friends in the venture capital industry owing to lotus’ meteoric rise .
in march 1990 lotus negotiated a merger agreement with novell inc . , the largest computer networking firm . lotus wanted access to novell ' s networking technology and 1 , 500 service - oriented dealers , while novell wanted to tap into lotus ' s 1 - 2 - 3 customer base , which then stood at about five million . the deal would have created the largest personal computer software company in the world , giving lotus a competitive advantage over microsoft at a time when the networking market was growing quickly . the deal also would have gotten lotus into the lucrative operating systems market , since novell ' s netware ran 65 percent of pc networks . the deal fell apart at the last minute , however , when novell backed out , reportedly afraid of becoming lotus ' s junior partner in the merged company .
by examining the many terms used to describe today ' s ' social software ' we can also explore the origins of social software itself , and see how there exists a very real life cycle concerning the use of technical terminology .
one of areas of disagreement about the definition of social software is one of scope . sunir shah host of meatballwiki conceives of social software as being mainly about support for online communities , whereas clay shirky desires for it to also :
a proof of entitlement ( poe ) is evidence that confirms the eligible software and level of use for which you are authorized . all eligible software is provided to you subject to the terms of the ibm international passport advantage agreement .
the data acquisition software
kids
is a software package for storing measured data by kr2000 / kr3000 series graphic recorders , al3000 / ah3000 series hybrid recorders and se3000 series field scanners , and for playing back of stored data .
imitation may be the sincerest form of flattery , but a spate of lawsuits shows computer software companies aren ' t the least bit grateful for such adulation . last week , lotus development corporation of cambridge , mass . - one of the nation ' s most well - known software developers - was sued for $ 100 million for alleged copyright infringement .
lotus cc : mail and notes installations exceed 10 million seats ,
pr newswire , august 29 , 1995 .
paperback differentiated itself further by adding function numbers and letters in front of certain commands and twin added an indicator of the amount of internal memory available to the user . both products can , however , read lotus files without modification including lotus macro files and the lotus user will find much familiarity in the overall
look and feel
of these products .
hanami - utils - 0 . 7 . 0 ( equivalent to lotus - utils - 0 . 6 . 1 )
hanami - validations - 0 . 5 . 0 ( equivalent to lotus - validations - 0 . 4 . 0 )
hanami - router - 0 . 6 . 0 ( equivalent to lotus - router - 0 . 5 . 1 )
hanami - helpers - 0 . 3 . 0 ( equivalent to lotus - helpers - 0 . 2 . 6 )
hanami - model - 0 . 6 . 0 ( equivalent to lotus - model - 0 . 5 . 2 )
hanami - view - 0 . 6 . 0 ( equivalent to lotus - view - 0 . 5 . 0 )
hanami - controller - 0 . 6 . 0 ( equivalent to lotus - controller - 0 . 5 . 1 )
hanami - assets - 0 . 2 . 0 ( equivalent to lotus - assets - 0 . 1 . 0 )
hanami - mailer - 0 . 2 . 0 ( equivalent to lotus - mailer - 0 . 1 . 0 )
lotus notes client 7 . 0 . x to 9 . 0 . 1 , installed in single - user mode .
yes . software subscription and support is included with licenses purchased through passport advantage and passport advantage express . product upgrades and technical support are provided by the software subscription and support offering as described in the agreements . product upgrades provide the latest versions and releases to entitled software and technical support provides voice and electronic access to ibm support organizations , worldwide .
lotus notes was a new category of software called “groupware , ” and was designed to exploit the growing client - server operating structure , as it allowed several users to collaborate on documents and other projects from distant locations across a network .
that year lotus bought the organizer software , a time and contact manager , from threadz , and in april lotus introduced smartsuite for windows , a software package that integrated several separate lotus applications , making it easy for a user to move between ami pro ( word processing ) , lotus 1 - 2 - 3 ( spread sheet ) , and freelance graphics . with cc : mail , a user could send mail electronically from any of the smartsuite applications . but there still was skepticism about this integrated approach .
i don ' t think the market is ready to buy software this way ,
goldman sachs analyst rick sherlund told pc week in 1993 . this was seconded , in the same article , by david watkins of borland international ,
i don ' t think customers want to sacrifice the capability of one product for the integration . there will always be demand for leading - edge products .
integrated software packages provided another area of competition for lotus with microsoft , whose office suite accounted for more than 60 percent of its application sales in 1993 .
ibm notes and domino v9 . 0 will be distributed via a media package and electronic software distribution ( esd ) .
the information contained here is for informational purposes only and pertains specifically to software licensing within the ibm passport advantage program .
part part number product name number 5724 - e71 organizer e1d43ll organizer user none annual sw s & s ; rnwl 5724 - f77 ibm lotus smartsuite 9 . x e1ctull smartsuite user none annual sw s & s ; rnwl lot0 - 204 ibm lotus 123 millennium edition v9 . x e1cf7ll lotus 1 - 2 - 3 user none annual sw s & s ; rnwl
in deciding to acquire the lotus development corporation , louis v . gerstner jr . and his team at i . b . m . had done their due diligence and drawn up a list of the people at lotus who were indispensable . a week after the initial offer for lotus in june 1995 and within a day of the decision by jim manzi , the c . e . o . , to accept the deal , mr . gerstner and john m . thompson , i . b . m . ' s software division vice president , flew to boston to meet lotus employees and then the press .
the lotus development corporation , which has sued rival computer software companies that it said had copied the ' ' look and feel ' ' of its successful 1 - 2 - 3 spreadsheet program , was itself sued yesterday on the same ground .
the company is announcing the desktop software , called i . b . m . lotus symphony , at an event today in new york . the programs will be available as free downloads from the i . b . m . web site .
i used the term ' social software ' because i am concerned with communication and collaboration on all scales , including the whole of society . thus , i see media at the scale of the world wide web as forms of social software .
for those justices who know little about software today , the record in the case includes a full - size personal computer and software illustrating the lotus spreadsheet and borland ' s version . the computer accompanies boxes and boxes of paper documents , which are always part of the record with cases that make it to the supreme court .
the idea was that the court have the opportunity to examine what the parties were talking about , in the hope of demystifying it ,
henry gutman , lead lawyer for lotus , said of the machine that became part of the record when lotus first sued borland in 1990 .
platform . however , lotus ' s dominant groupware position was soon to face stiff competition from microsoft ' s exchange server .
in any event , mr . lange said , a successful suit by sapc against lotus would have adverse effects for ontio .
lotus officials firmly maintain the sapc suit is ` ` totally without merit ' ' and will be proven so in court .
we are seeing partnerships emerge that combine hardware and software technologies . last week , microsoft and hewlett - packard announced a $ 250 million partnership that will feature microsoft software on hewlett - packard hardware to sell into data centers and cloud service providers .
i ' d rather see an emphasis on this dimension of social software than on the origin of the name itself .
“sherpa software is excellent – product , service , responsiveness , support , monthly newsletters , tech notes , moderated forums , webcast , etc . i have been using their software for ten 10 years and their products and their people are wonderful . ”
lotus had pioneered the desktop software market with the groundbreaking 1 - 2 - 3 package in 1982 and notes would become the 4 - 5 - 6 . despite its stumbling in a market increasingly dominated by microsoft , lotus understood the game , the rules and the players . what i . b . m . acquired was not only leadership in what is known as the distributed middleware market , but a presence as a forward - looking , hip player in the hottest part of the software business . with lotus as a spearhead , i . b . m . would shed its stodgy mainframe image and become the new blue .
borland says users continued to support lotus ' s product because they had learned and
invested
in the 1 - 2 - 3 program . lotus ' s competitors consequently believed that 1 - 2 - 3 users would feel compelled to stick with the program , no matter how good a new product might be . and in this case , borland asserts that because users did not want to lose the investment they had already made in spreadsheet software , it needed to include the lotus menu structure in quattro .
i . b . m . , mr . gerstner said , had just tendered an all - cash offer of $ 64 a share for lotus , a storied software maker in cambridge , mass . , and he hoped mr . manzi would come willingly to the deal . shocked and surprised , the combative mr . manzi initially refused , spent two days seeking a white knight to keep lotus independent and then grudgingly accepted the $ 3 . 5 billion buyout , the largest by far in software industry history .
but things were changing at lotus , when in october 1983 it went public . kapor however had recognised that the informal management style at lotus needed more structure , and he brought in jim p . manzi , a former management consultant , as marketing director .
the sapc suit alleges that lotus , and its founder mitchell d . kapor , used confidential information and trade secrets to imitate the ` ` look and feel ' ' of visicalc to develop the highly popular lotus 1 - 2 - 3 computer spreadsheet program .
but i came to understand that it made more sense to go into that as a stand - alone project rather than to try to graft it onto ray’s project . ultimately a different group in lotus produced lotus agenda , about which more at another time .
but it was the groupware product , lotus notes , that kept the home fires burning at lotus towers , thanks to annual maintenance contracts that brought in a steady revenue stream . this was even more so in 1994 , when sales of lotus office suite and spreadsheet packages dropped sharply , due to a combination of its late entry into the windows sector , and fierce competition from microsoft .
fun video introduction to ibm lotus notes and domino v8 - collaboration software that can help people effectively share and manage information , make business decisions quickly , and streamline the way they work . mike chvany , writer / producer / director , alyson schultz , designer
part number products only , offered outside of passport advantage , where applicable , are license only and do not include software maintenance .
original expression in the
look and feel
of computer software , when inherently distinctive , can be additionally protected as trade dress under the lanham act ; indeed , lanham act protection may become the next major vehicle for legal protection of published computer software .
“the original echo plan called for implementing the project “bottom - up” , that is , the networking software would be implemented first , followed by the productivity tools . by “inverting” the project , we would attempt to produce the productivity tools before the networking software .
it’s tough to remember now , but in the period before microsoft office came along , it was lotus , not microsoft , that was synonymous with office software . lotus development corporation , which mitch kapor founded in cambridge , massachusetts , had a ginormous cash cow in 1 - 2 - 3 , a product which was so popular that companies bought fleets of ibm pcs just to run it .
i cheerfully confess to having a pro - lotus bias . i lived in boston during the brand’s boom years in the 1980s , an era in which the boston area was as important to the pc revolution as silicon valley was — and lotus was the single most significant boston - based tech company . then in 1994 and 1995 , i was an editor at pc world lotus edition , a special version of pc world with extra pages devoted entirely to lotus products , amounting to a magazine - within - the - magazine .
but the anticipated culture clash did not occur , although jim manzi left lotus three months after the merger and jeff papows , who joined lotus in 1993 as vice - president of the notes division , became president and ceo . ibm made lotus the heart of its personal computer software strategy and let it keep its independence and name brand .
lotus is our desktop people and i don ' t want to hear any more about it ,
said ibm chairman and ceo lou gerstner , according to the boston herald . with access to ibm ' s financial resources , lotus dropped the price of notes three weeks after the merger , and in october 1995 ibm announced an agreement with 11 communications companies , including british telecom and nippon telegraph & telephone , to carry notes on their networks .
eclipse is a platform - independent , java - based software framework . eclipse was originally a proprietary product developed by ibm as a successor of the visualage family of tools . eclipse has subsequently been released as free / open source software under the eclipse public license . it is the foundation of lotus symphony , a microsoft office - compatible productivity suite based on the open - source urltoken project .
i . b . m . made several other crucial decisions at the outset . rather than subsume lotus into the company , i . b . m . decided that lotus would become a wholly owned subsidiary and remain a visible , viable brand . its employees would continue to receive lotus paychecks and benefits and i . b . m . would not impose its corporate regulations or culture on cambridge .
i was aware of the famous ibm ' s office suite , but i thought it was something belonging to the past and would have never expected lotus ( my lotus ) to become known in ruby ecosystem . now , this name collision has caused minor confusion outside of ruby community . hackernews or thoughtwork ' s radar are clear examples . there always been the need to specify lotus for ruby .
by 1995 notes had grown to the point that ibm acquired lotus as a whole for $ 3 . 5 billion , not only for notes itself but for all of the drag - along business it created for ibm in additional hardware , software , and services .


ondeck capital is a non-bank small business lender based in new york city , with locations in denver , colorado , and arlington , virginia .

ondeck uses proprietary technology and credit models to evaluate the financial health of small businesses .

as of april 2016 , ondeck has funded over $ 4 billion to more than 40,000 small business customers in the us , australia , and canada and is publicly traded on the new york stock exchange ticker symbol : nyse : ondk .

ondeck capital seeks to extend loans and lines of credit to new small business customers by building strategic partnerships with larger established banks such as jp morgan chase and others .

ondeck capital

ondk stock price & news - on deck capital inc . - wall street journal
goldman has the lending capital part of the equation in hand , and has recognised that the online “platform” represents the most efficient method of distributing that capital to borrowers .
keep your business running smoothly . manage your working capital needs , both planned and unplanned .
on deck capital , inc . ( ondk ) dividend date & amp ; history - urltoken
loans subject to lender approval . on deck capital australia pty ltd abn 28 603753215 . ondeck® is a registered trademark . all rights reserved . please read our : privacy policy , privacy statement and website terms of use . ondeck group refers to on deck capital , inc . and its subsidiaries .
for the second time in two weeks , an alternative lending company has gone public . new york city - based ondeck capital rose in its debut earlier wednesday on the the new york stock exchange . ondeck capital ' s shares opened at $ 26 . 50 , and touched a high of around $ 28 .
as of december 2017 , ondeck capital is valued at $ 411 million , which is an increase since may of 2017 when we noted it was $ 324 million .
other startups in the space include capital access network and kabbage , and even amazon is getting into the game .
if you currently process a large number of your customer payments through square then you could qualify for up to $ 100k in financing through square capital . this is a niche based financing option but could be a good capital source for square users looking for a ondeck and kabbage competitor .
small business credit cards aren’t typically considered a kabbage or ondeck competitor , but they can be a good alternative solution if you need a small amount of capital . in fact , small business credit cards are great to have in any business’s financial toolkit regardless of what other capital you have .
ondeck capital caters specifically to small businesses , and does not allow peer - to - peer investments . instead it partners with distributors , from financial institutions to independent sales groups , to connect businesses to capital . since its launch in 2007 , ondeck has deployed more than $ 1 . 7 billion in small business loans to 25 , 000 businesses in more than 700 industries .
the forecasted range of $ 16 to $ 18 . based on late tuesday ' s pricing , ondeck capital raised about $ 200 million from its ipo , valuing the firm at about $ 1 . 32 billion .
ondeck capital reported a quarterly loss of $ 12 . 6 million as revenues fell short of expectations . at the same time , the new york firm sharply reduced its earnings projection for the rest of the year .
like square , paypal also has a capital wing of their business that focuses on lending money to merchants who process payments through paypal . they also offer their merchants up to $ 100k in financing . if you already use paypal on a consistent basis then paypal capital could be a fast financing solution .
the nonbank financial system is estimated at $ 3 . 2 trillion in the u . s . and $ 15 trillion globally , according to the bank for international settlements . foundation capital , a venture capital firm , estimates the global peer - to - peer lending industry alone will reach $ 1 trillion by 2025 .
the wall street journal , in an article entitled inside jp morgan’s deal with ondeck capital , stated that the partnership would “help the bank process applications more inexpensively and quickly , in hours instead of weeks” . there you have the delivery element .
“i looked into ondeck online and found the whole process very easy and the know your score tool was very straightforward . i’d definitely recommend ondeck to another business . ”
there are a number of online lenders out there other than traditional banks , but ondeck capital inc ( nyse : ondk ) , lendingclub corp ( nyse : lc ) and credibly all offer unique products and services that specifically cater to small businesses .
the smart box tool will help give you a better picture of your total cost of capital when you are analyzing a potential loan . this will allow you to :
new york startup on deck capital hopes to appeal to these millions of businesses with a loan application process that takes minutes to complete and can be approved within a day .
small business owners are lucky to have so many options today to get short term working capital , with ondeck and kabbage leading the way . we recommend ondeck overall for small businesses because they loan larger amounts of money with longer terms . a kabbage loan is a good option for small businesses that generate lower revenues of $ 50k – $ 250k , or who need monthly payment terms .
both lending club and ondeck illustrate the growth of the alternative lending market , despite low interest rates .
ondeck and kabbage are both great at offering short term working capital . however , this doesn’t mean there aren’t viable alternatives . for example , you may qualify for a more affordable loan if you have outstanding customer invoices or if you process your customer payments with a specific service like square or paypal . further , if you need a longer term loan , then an ondeck or kabbage competitor may be best .
we recommend an ondeck business loan over a kabbage loan because they offer lower rates for prime borrowers and can originate much larger loans . ondeck can get you a term loan much quicker than traditional financing lenders , like banks . plus , on average , ondeck is half as expensive as a merchant cash advance .
these companies are building defensible moats against bank competitors for a variety of fundamental reasons . the one area where the funding cost advantage that banks have doesn’t work for them is in areas where new credit models are required . regulators insist that banks keep disproportionate amounts of equity capital in reserve when they try new things , and while their debt capital ( ie , deposits ) is cheap , bank equity capital is quite dear . in addition , these segments generally start out with high apr models . they can support high interest rates , as by definition these customers don’t have good alternatives , and as discussed , they require high interest rates to compensate for the risk and elevated cost of capital . over time , aprs can come down dramatically , but these segments are generally dismissed in the early days as predatory or niche .
your advisor is prepared to work with over 700 different industries . no company is too niche for ondeck .
while kabbage customers don’t provide as glowing reviews as ondeck’s , kabbage also gets good reviews . one of their best features is that they require monthly payments , where ondeck requires payments every week . kabbage is also quick to fund and like ondeck they can get you the money you need in as quick as 1 day .
the company which makes mainly short - term loans to entrepreneurs who need a quick hit of capital to buy inventory or expand rapidly , plans to use the cash infusion to expand by growing its team and launching new products . ondeck uses algorithms to assess applicants based on cash flow , online sentiment and credit history .
our simple , secure web platform and mobile app make it easy to access your ondeck account anywhere , anytime .
“ondeck is a business solution for the future and it’s available now . myob loans powered by ondeck assists businesses by creating cash flow and easing time restraints , two pain points smes have repeatedly told us place pressure on their businesses”
existing investors institutional venture partners , rre ventures , sap ventures , google ventures , first round capital and peter thiel also participated . ondeck has now raised a total of $ 180 million in equity and over $ 300 million in debt financing . james robinson iii , the former ceo of american express , is an investor and director .
created to support and empower small businesses , ondeck is 100 % committed to serving our customers with the smartest financing solutions and world - class service . ondeck is the secure financing service that business owners everywhere can truly rely on .
smartbiz offers fast sba loans of up to $ 350k for working capital in as quick as 30 days . if you’re a prime borrower and can wait a month or more for financing , then this is a great solution .
ondeck and kabbage offer very quick business loans . despite the fact that they have a pretty high cost of capital , most customers seem to be willing to go back for a second or third loan from these alternative lenders . the speed of funding is very helpful and convenient , even for prime borrowers who have the capacity to repay the funds quickly .
while some loans are funded by individuals or institutions like banks , ondeck last year began shifting toward funding more loans itself .
on deck capital , inc . is an on - line platform that uses a big data , analytic model to source , underwrite , and fund loans to small businesses . the company offers online tools and resources including data aggregation and electronic payment technology , and to evaluate the health of small businesses . it ' s small business loans include dental loans , restaurant loans , medical financing , restaurant financing , fast small business loans , fast small business financing , online small business loans , online applications for small business loans , small business loans online , retail capital , fast small business financing , short - term business loans , business equipment financing , small business equipment financing and merchant cash advance . on deck capital inc . is based in united states .
as a result , ondeck’s provision for loan losses more than doubled during the fourth quarter , to $ 55 . 7 million .
getting a business loan from a bank can be a nightmare even if you’re well qualified , because they’re slow and require tons of paperwork . short term loan providers have stepped in to make getting a business loan easier for small businesses . in this article , we review the rates , terms , and qualifications of the two best short term business lenders : kabbage vs ondeck capital .
current and historical pe ratio for on deck capital ( ondk ) from 2013 to 2018 . the price to earnings or pe ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share ( eps ) number . the pe ratio is a simple way to assess whether a stock is over or under valued and is the most widely used valuation measure . the current pe ratio for on deck capital ( ondk ) as of march 31 , 2018 is 238 . 33 .
the average apr for ondeck business loans was 40 . 6 % in the first quarter of 2016 . kabbage , which is not a publicly traded company like ondeck , told us that risk analysts in two separate offices confirmed an average apr of ~ 40 % .
“ondeck’s process was very streamlined . i called them up , told them what i wanted to do , filled out some paper work , and within a couple days i had the money deposited in my bank account . i highly recommend ondeck to any small business looking to grow . it has been very good for us — my business has grown 59 % since i started working with ondeck . ”
very small businesses will have trouble meeting ondeck’s minimum annual revenue requirement of $ 100k per year , but kabbage only requires $ 50k .
ondeck also offers a business line of credit in addition to a short term loan . once you are approved for the ondeck line of credit , you can use their mobile app to withdraw funds from that line quickly and easily ( shown in the middle picture above ) .
ondeck is the big winner if you need financing north of $ 150k because that is the maximum you can get with kabbage . while both companies can get you funded for small amounts , ondeck will loan up to $ 500k for businesses with better revenues and longer operating histories .
we will see greater financial benefits from our decision beginning in 2017 ,
ondeck chief executive noah breslow said in a press release .
a kabbage business loan can be a better fit than ondeck if you can’t meet ondeck’s revenue requirements or if you require monthly repayment terms . kabbage business loans are much quicker and easier to get approved for than a traditional bank . they’re also more affordable than a merchant cash advance .
know someone who’d be a great fit for ondeck in north america or australia ? you could receive a referral bonus of $ 2 , 000 .
one of the largest companies originally known as peer - to - peer lenders , ondeck runs a website where small businesses can apply for loans .
on deck capital , inc . , incorporated on may 4 , 2006 , offers an online platform for small business lending . the company ' s platform aggregates and analyzes data points from disparate data sources to assess the creditworthiness of small businesses . small businesses apply for a term loan or line of credit on the company ' s website , and using its ondeck score , the company makes a funding decision and transfers the funds .
it’s important that the repayment schedule of a working capital loan fits within a small business’s normal cash flow . some small businesses will have no problem adhering to a daily or weekly repayment schedule . for other businesses , monthly payments may seem like the only repayment schedule that will work .
ondeck loans and kabbage loans have similar costs , with both companies reporting average aprs of ~ 40 % . however , at 9 . 99 % , ondeck’s lowest possible rate for prime borrowers is lower than kabbage’s . the average apr’s include ondeck’s origination fee of 2 . 5 % on every loan , which is taken out upfront from your total loan amount . kabbage charges a single interest fee on their loans per month with no additional fees .
we are seeking to transform small business lending by making it efficient and convenient for small businesses to access capital . enabled by our proprietary technology and analytics , we aggregate and analyze thousands of data points from dynamic , disparate data sources to assess the creditworthiness of small businesses rapidly and accurately .
ondeck shares were down 15 . 5 percent at $ 4 . 75 in late - morning trading after falling as low as $ 4 . 26 .
in the fourth quarter , ondeck’s net loss attributable to shareholders widened to $ 35 . 9 million from $ 4 . 6 million a year earlier .
when applying for a short term business loan , the three main qualification requirements that the lender will consider are credit score , revenues , and time in business . kabbage is easier to qualify for than ondeck in terms of business revenues , with $ 50k + annual revenues requirement while ondeck requires $ 100k + . however , in terms of credit score , ondeck is easier to qualify for , with a 500 + requirement compared to 550 + for kabbage .
“companies like ondeck are so important – they help you build your business credit while removing stressful ups and downs in cash flow , which is really helpful for businesses like mine . last year we made about 300 watches , and this year we’ll make over 1 , 000 thanks to funding from ondeck . ”
another reason we like ondeck capital loans is that compared to other financing options , they’re very fast to approve and fund your loan . the application is online and there’s very little paperwork that you have to submit . you can get approved the same day that you apply and funded in as little as 1 business day . usually , there is no hard credit check , so applying for a loan will generally not have any impact on your credit score .
ondeck , a company that makes online loans to small businesses today announced it raised $ 77 million in a late stage round led by tiger global management .
like its digital lending peers , ondeck has been struggling with investor’ concerns over the quality of its underwriting and ability to maintain a rapid pace of growth .
just when it looked like the small business lending environment couldn ' t get any darker , the dawn of the fintech revolution has made access to business capital easier than ever . on deck , lending club and credibly are only three of the countless fintech funding options out there for today’s small business owner .
ondeck launched in 2007 to solve a major issue facing small businesses : efficient access to capital . our passion for main street and the cutting - edge technology we use to evaluate businesses based on their actual performance , not solely business owners’ personal credit scores , make it possible for us to responsibly expand access to credit . this allows businesses to spend their time where it provides the most benefit—on their customers and on growing , not looking for a small business loan .
the recent tie - up between jp morgan chase and ondeck is perhaps the best example of the value that an online lending platform has to offer to the traditional underwriting process . chase began offering loans to its roughly 4 million small business customers in partnership with ondeck in january of this year . the money comes from chase’s balance sheet , and the loans carry chase branding , with the ondeck platform taking on a kind of white - label , behind - the - scenes role .
ondeck gets an average 9 . 4 out of 10 point rating on trustpilot and 3 . 5 out of 5 - star review on yelp . they have an a + rating with the better business bureau . business owners were happy with the speed of getting an ondeck loan and the fact that they could get a loan at all after being rejected by numerous banks . there have been some complaints from people who found ondeck’s interest rates confusing and who got the impression that they could save on interest if they pay the loan back early . you cannot save money by prepaying an ondeck loan , because you agree to pay back a set dollar amount . we recommend that small businesses take the time to understand the apr of any loan before committing to it . read our ondeck review to learn more .
ondeck is also very active in responding to customers on the better business bureau ( bbb ) website , where they currently have a 78 % positive rating from customer reviews .
ondeck and kabbage both get pretty good customer reviews . both are able to retain customers for multiple loans despite their high apr costs . this speaks volumes to the customer service of each , which we have found to be very good with both businesses . however , past customers rank ondeck a bit higher on overall satisfaction than kabbage’s customers do .
ondeck reduced its gross revenue guidance for the full year to between $ 278 million and $ 288 million , down from $ 320 million to $ 328 million three months earlier .
ondeck has a very active customer service team . you can reach them by phone , email , or online live chat . you have a personal loan specialist you can reach out to at any time who will be familiar with your business’s loan . you can easily connect with your loan specialist or any of the other service options directly through ondeck’s mobile app .
ondeck was founded in 2006 and saw revenue of $ 65 million revenue last year , earning it the number 11 spot on forbes ' 2014 america ' s most promising companies list .
the interest rates charged by ondeck can be higher than traditional bank loans , but well qualified borrowers can actually see rates as low as 9 . 99 % . and even with average aprs of ~ 40 % , ondeck gets great customer reviews . that might have something to do with the fact that returning customers can qualify for lower interest rates and lower origination fees .
ondeck capital is currently in its quiet period before going public and declined to be interviewed for this story . the company offers loans from $ 5 , 000 to $ 250 , 000 with terms of between three and 24 months . decisions can be made in
minutes
and payback rates vary . loan rate examples include $ . 017 cents on the dollar for a $ 25 , 000 loan over six months ; and $ 0 . 33 cents on the dollar for $ 57 , 000 loan over 18 months , according to its website .
amid all the changes , ondeck’s originations of $ 2 . 4 billion in 2016 were up 26 percent from the prior year , less than half the pace of growth it posted in 2015 .
¹eligibility for the lowest rates is very limited , available only to businesses with the strongest creditworthiness and cash flows , and typically businesses that have shown an excellent payment history on prior loan products with ondeck .
ondeck expects to generate net revenue of $ 377 million to $ 387 million this year . the analysts’ average forecast is within that range , according to thomson reuters i / b / e / s .
ondeck loans go up to $ 500k with terms of 3 - 36 months . if you have $ 100k + in annual business revenue , a credit score of at least 500 , and have been in business for a minimum of 1 year , then you can pre - qualify online today within a few minutes . ondeck is easy to apply for and can fund your loan as quickly as 1 day .
the disappointing results led to a rapid sell - off of ondeck ' s shares . the firm ' s stock price fell by 29 % to $ 5 . 90 in after - hours trading monday .
the article goes on to explain that ondeck will earn a fee for originating and servicing loans of up to $ 250k in size on behalf of chase – loans that were “previously considered too small to move the needle at the big bank” . ondeck has made lending to businesses in this market segment economically viable through the use of cutting edge technology . jp morgan is attempting to capture a measure of that success for itself .
the third reason we chose ondeck is loan size and terms . they tend to approve much larger amounts than their competitors , including kabbage . ondeck provides loans up to $ 500k and may approve a loan for as much as 15 % of a business’s annual revenues . you can choose repayment terms between 3 – 36 months based on what you plan to use the loan proceeds for and how much you can afford to repay monthly .
i’m quite familiar with them . they are the pioneer in an innovative new funding model for specialty finance companies , whereby they originate loans and then sell them off entirely , without keeping any of the risk or needing to tie up any equity capital in their assets . they receive a ~ 4 % origination fee and an ongoing 1 % annual servicing fee on the assets . they benefit from a number of unsustainable trends , including :
ondeck is the largest online small business lender in the u . s . since 2007 , we’ve issued over $ 8 billion in loans for many business needs including inventory purchase , equipment acquisition , hiring , and general corporate purposes . serving more than 700 industries throughout the country , ondeck has been trusted by over 80 , 000 small businesses by providing them with a term loan or line of credit to help them build a growing and thriving enterprise .
small businesses can apply for a term loan or line of credit on our website in minutes and , using our proprietary ondeck score , we can make a funding decision immediately and transfer funds as fast as the same day .
ondeck believes that each and every team member plays an important role in our company’s success . that’s why we strive to provide you and your family with a competitive and comprehensive benefit program with a variety of options and opportunities .
ondeck summary loan amount : $ 5k – $ 500k terms : 3 – 36 months starting rates : 9 . 99 % expected apr range : 30 - 50 % funding time : 1 - 3 days credit score : 500 +
ondeck and kabbage both downplay apr when working with borrowers . instead , they like to focus on the dollar amount that the borrower will have to pay back over the life of the loan , which is called the factor rate .
like ondeck , kabbage offers a very responsive customer service program . both borrowers and applicants can reach out to their support team via phone , email , or online live chat . you can even reach out directly from their app .
so which is it ? is lending a good business , where moats and profit pools are durable and one can build billions in equity value … or is it an inevitable cash bonfire when the cycle turns ? is credit a critical lubricant for the economy , the more the better , or a creeping contagion to be limited , particularly in the “shadow” banking system ? as someone who co - led the seed round in one of the first alternative lending companies ( ondeck ) , and went on to serve as chairman , but who has not invested in a single lender since , i stand somewhat astraddle this issue . after watching closely for ten years , i remain convinced that the leaders of alt lending 1 . 0 ( specifically lending club , sofi and ondeck ) , if they can avoid getting acquired due to depressed stock prices , will build enduring platforms . i am most worried about the wave of “me , too” players that came next , alt lending 2 . 0 . most of them built their business plans on the now shifting sands of temporarily high valuations and cheap capital , and have insufficient differentiation to carve out a durable niche . i am most excited about the alt lending 3 . 0 players , who have had the ability to learn the appropriate lessons of the past decade and can both pick their spots and choose a more capital efficient path .
ondeck said that it had $ 44 . 6 million in operating expenses , up 33 % from the same period in 2015 . the firm attributed some of that increase to efforts to license its technology to banks such as jpmorgan chase .
rates are designed for short - term lending and therefore aren ' t low - a typical rate for a six - month loan is 20 cents for every dollar borrowed . the average loan is around $ 35 , 000 , says ondeck .
minimum requirements to apply : many of our financing options require a minimum of 1 year in business and $ 100 , 000 in gross annual revenue . ondeck serves over 700 industries , so it’s likely that we’re able to work with you .
“each time i took out a loan with ondeck , the interest rate went down , and i like that i can pay a little off my loan each day . the funding helped me boost my advertising and manage my cash flow . ”
ondeck is a publicly traded company on the new york stock exchange under the symbol ondk . being a publicly traded company gives you the borrower more insight into what the lender is doing because of the legal requirements public companies must abide by .
streetshares is an ondeck and kabbage competitor that offers longer term loans and line of credit products to borrowers with stronger credit profiles . if you want a more affordable loan with a longer term , this could be a good alternative option for you .
ondeck ’s unique business lending technology allows for borrowers to receive a loan decision in a matter of minutes and receive their funds in as little as one business day . instead of ruling out potential borrowers due to flawed personal credit histories , o deck focuses instead on the health of the borrower’s business . if you have less - than - perfect personal credit but are running a successful small business , you are much more likely to get approved for an ondeck loan than you would be at most banks .
however , ondeck places a ucc lien on your general business assets for all loans , and kabbage does so for loans above $ 20k . this means that the lender can seize any and all business assets if you’re unable to pay back the loan .
collateral is an asset or assets that you pledge as security for a loan . most traditional bank business loans require you to put up specific collateral , such as business equipment or machinery , as backing for the loan . neither ondeck or kabbage requires collateral .
at ondeck , we’re reinventing small business financing . we care intensely about each other , our company and the customers we serve , and are committed to making every day count . we are small enough to be nimble and strong enough to make a big impact .
from the very first call , your loan specialist is always there for you . ondeck loan specialists work with business owners like you every day , so they’ll be able to answer questions about business loans , industry challenges , and picking the best financing for your situation .
ondeck reported gross revenue of $ 62 . 6 million during the first quarter . while gross revenue was up 11 % from the same period a year earlier , it fell short of the $ 66 million to $ 69 million that the firm projected three months ago .
the graph below shows how much money each lender has loaned out from the inception of their business to 2017 . both companies have initiated more than enough loans for you to be comfortable with them , but businesses have borrowed twice as much from ondeck as they have kabbage .
as a public company , ondeck is required to regularly report its earnings , and the total value of their business is their market capitalization , which is the value of their current outstanding shares . kabbage is a privately held company so valuations available to the public are rare .
it’s important to understand each aspect of ondeck and kabbage loans in more detail to fully understand how they compare to one another . below we’ll look at loan requirements , terms , and costs to give you a better idea of which lender is the best choice for your business .
ondeck’s mobile app also makes it easy for you to get the answers you need from their customer service team . they provide contact information for your individual loan specialist and information on contacting the general support department . you can email or call their support team directly from the app .
fundbox also offers a no credit check business line of credit with up to $ 100k in financing . if you only need up to $ 100k in financing and don’t want your personal credit to factor into your approval , then fundbox is a good kabbage and ondeck competitor to consider .
developing an advantage in customer acquisition is harder than it might appear . at first blush , it might seem that all it takes is to pick an unloved segment and get to know its idiosyncrasies and tendencies well enough to create a focused channel and tailored dialogue . in practice , progressive and thoughtful traditional lenders like capital one have mined most of the segments large enough to build a business around . the only way to build a durable competitive moat based on customer acquisition is to become integrated into a channel that is proprietary , contextual and data - rich .
we ' ve learned a thing or two by working with more than 70 , 000 business owners just like you . with ondeck , you don ' t just get money in your pocket , you also get credit resources , renewal benefits and , best of all , peace of mind .
ondeck ’s mobile app is designed to help you manage your loan in a single place . the app gives an account overview of where you stand on each loan you currently have in repayment . you can also easily check the status of all account transactions including the loan payments you have made .
flexible terms and rates based on your business’ performance , and not solely personal credit history , may make an ondeck loan an attractive option when compared to a traditional bank loan . we offer a quick response to loan applications by qualifying and evaluating business performance based upon a variety of important performance metrics .
while each company advertises lower possible rates , we expect the typical kabbage and ondeck borrower to pay between 30 % – 50 % apr . this interest rate could be lower or higher depending on the creditworthiness of the borrower , the amount of the loan , and when the loan is paid back .
ondeck , a digital lender , attributed the worse - than - expected quarterly results to its decision to hold more of its small - business loans on its own balance sheet . that decision came at a time when online lenders are having a harder time selling their loans to investors at favorable prices .
ondeck and kabbage are part of a group of lenders who have come together through the innovative lending platform association ( ilpa ) to provide a disclosure tool that can help you better understand and compare the true costs of their loans . this disclosure is available after the application process , but before you commit to the loan .
minimum requirements to apply : many of our financing options require a minimum of 1 year in business and $ 100 , 000 in gross annual revenue . ondeck serves over 700 industries , so it’s likely that we’re able to work with you . just in case , here is a list of the few industries we can ' t serve
even though short - term business loans from ondeck and kabbage have high aprs , keep in mind that you end up paying them off much quicker than you would pay off a conventional bank loan . the total out of pocket cost of a short term loan is often less than the out of pocket cost of a bank loan .
small business owners are busy and not always behind a desk . this is why it’s essential in today’s business world for financing to be available on mobile devices . kabbage and ondeck do this by having their own mobile apps . each app is easy to use and will help you stay up to date with any outstanding loans you have .
overall the smart box tool is a great way to measure your loan costs more accurately and to compare those costs against other options . both ondeck and kabbage currently provide this disclosure after you finish the application process , but before you accept the loan . before you take out an online business loan , look for the smart box disclosures .
while i’ve come to be known as a skeptic on marketplace lending per se , i see a great deal of opportunity in alternative lending more broadly . that said , things are going to get harder before they get easier . valuations are down significantly , and the market volatility combined with a slowing economy will produce challenges with both default rates and access to liquidity . of the alternative lending 1 . 0 players , lending club will be a survivor , and a long term leader . while it doesn’t have many of the distinctions i note above as important , it has scale , a brand in the capital markets for producing high quality assets , and an unbelievable management team . in fact , lending club may be the best example of managerial execution in a commodity market since amazon , and like amazon , if they continue on their current path they will figure out a way to create enormous value . ondeck , in a sense , has an easier road ahead . they are very far along an experience curve with regard to the new world of small business lending , and it’s hard to imagine someone catching them . i worry about the 2 . 0 originators , which tend to be only slightly differentiated fast followers of either lending club or ondeck ; it will be very hard to be anything other than the leader in this shaky market environment .
there are relatively few examples of companies that have gotten all of these elements right , but there are some . oportun provides credit to otherwise highly disadvantaged hispanic borrowers . what a bank sees as a 620 fico , oportun sees as an employed but challenged immigrant with a spotless record of sending remittances home . sub - prime and near - prime lenders like avant and lendup have proven out extremely advanced consumer credit models in unattractive segments , and are working quickly to leverage those models into more mainstream businesses . in small business , ondeck chose a large segment that had historically been attractive but hard to serve . where a bank sees a generic smb with a business owner fico score of 650 , ondeck sees a plumber with far higher efficiency than comparable businesses in its zip code , and a glowing set of reviews on angie’s list . this hard work comes at a cost ; ondeck’s r & d expenditures , noted above , are characteristic of the successful companies in this category . you have to have real ip to win here .
renaud laplanche out at lending club , share prices tanking at both lending club and ondeck , job cuts at prosper and avant – all prompted by a general slowing of institutional investor demand for marketplace loans . if you follow the industry with even a passing interest , you’d be hard pressed not to have heard it declared dead over the past fortnight .
we keep calling these ' alternative lenders , ' and we need to stop because demand is up for these loans and they ' re becoming mainstream ,
stibel says .
with both lending club and ondeck , i see it as a sort of christmas miracle for small businesses . seeing these companies succeed means small businesses succeed as well .
bluevine offers two main products . one is invoice factoring based on the value of your invoices and the other is a business line of credit with a minimum credit score of 600 + . you’ll want to use bluevine over kabbage or ondeck if you have a low personal credit profile or if you have a lot of outstanding customer invoices ( up to $ 5 million ) .
kabbage gets good reviews , but not as good as ondeck . it has a 9 . 3 out of 10 on trustpilot and an a + better business bureau rating . customers gave good reviews because of the speed of getting the loan . businesses liked the minimal paperwork–you can apply simply by linking your business bank account , amazon seller account , quickbooks account , or other business accounts .
we believe ondeck gives small businesses the best chance of getting approved for a short - term business loan . business owners only need a credit score of 500 + , $ 100k in annual revenue , and at least 1 year of operating history to be considered . many other providers of short - term loans require credit scores upwards of 600 + and up to two years of business history .
a personal guarantee means that you’re personally responsible for payment of a loan . if your business goes under and you can’t afford the loan payments , the lender can make you turn over your personal assets ( e . g . your car or home ) to pay off the loan . a personal guarantee is common with most small business borrowing and both ondeck and kabbage require a personal guarantee .
ondeck originated $ 569 million in loans during the first quarter , up 37 % from a year earlier . the effective interest yield on the company ' s loans fell to 34 . 5 % , down from 37 . 6 % in the same period of 2015 . the percentage of loans that were at least 15 days delinquent fell from 8 . 4 % to 5 . 7 % .
most start - up originators focus on the opportunity to innovate in credit decisioning . the headline appeal of new data sources and new data science seem too good to be true as a way to compete with stodgy old banks . and , in fact , they are indeed too good to be true . building new credit models is hard , inherently time - consuming and expensive . fundamentally , you can’t figure out how to distinguish between the “goods” and the “bads” without sufficient “bads” , and “bads” cost you money . credit losses can also take some time to develop , depending on the category , and assets can behave quite differently in different economic cycles . until you have a model that is proven in a highly durable way , your cost of capital will be very high .
loans subject to lender approval . depending on the state where your business is located and other attributes of the loan , your business loan may be issued by celtic bank , a utah - chartered industrial bank , member fdic . your loan agreement will identify the loan issuer prior to your signing . ondeck® is a registered trademark . all rights reserved . 1400 broadway , new york , new york .
i’m quite excited about alt lending 3 . 0 , made up of earlier stage originators whose strategies line up with the precepts above , and who have gotten the memo about appropriate valuations and capital efficiency . for lending high flyers , as for the rest of the “unicorns” , the notion that high growth and “disruption” justify valuations detached from estimates of future cash production has gone away . companies seeking funding in the lending space today generally have less of the gold rush mentality of the alt lending 2 . 0 players , who sought to take advantage of an enthusiastic investing community ; instead , they are motivated by legitimately unmet needs and the prospect of meaningful moats . for the first time in a decade , i’m feeling like it’s a great time to be starting a lending company .
that said , i don’t think it matters whether marketplace lending ends up being a viable long - term funding strategy or not . what lending club , ondeck and others proved was that they could effectively compete with banks and build share in their respective categories . the unique way that lending club funded its assets was a feature , not the entire product . as an example , when i backed ondeck originally , it was before marketplace lending ( or “peer to peer” lending , as it was originally called ) was in vogue , and the assumption was that we would have to follow the traditional asset funding path . that path involves funding initial loans using 100 % equity , until the assets are proven out , then layering in leverage over time . this generally starts with a 50 % loan - to - value advance rate , eventually climbing to 80 - 90 % over time as / if the assets perform . ultimately , you can build a highly redundant funding machine , as ondeck has done , with essentially equal parts balance sheet funding ( using high advance rate leverage and an spv ) , rated securitizations and whole loan sales ( the prosaic , old school term for what now goes by the dazzling nom de guerre marketplace lending ) .
as an amusing aside , i’ve now been involved in two public panel discussions and multiple private conversations with lending club investors around funding models . it always goes the same way … they say that there is no more resilient model in capitalism than a marketplace model , hence the ineffable beauty of lending club . i then ask how a marketplace could be more resilient than a marketplace plus a securitization conduit plus committed multi - year balance sheet funding ( the sofi , avant and ondeck model , among others ) . following that i am branded an apostate and asked to relinquish my fintech fan club ™ membership card . in point of fact , i consider no fewer than 6 current or past lending club board participants close personal friends , and the visionary investments they made in that company cemented their reputation as great investors . i just think the reason they chose well is the classic venture capital formulation of “great founder , big market” , rather than any notion that lending club discovered the credit equivalent of cold fusion . the fact that lending club was able to scale without using equity in its loans because of the marketplace model was a brilliant strategy , but far from the most important aspect of the success of the company .
the home run is when the credit offer is not only presented in context , but also can be structured with the benefit of relevant data . fundbox lends to small businesses by advancing them payment on receivables , in what is akin to a traditional factoring transaction ( though without claim to the asset ) . they integrate with online accounting systems like quickbooks , which not only provide them access to customers , but do so in a way that allows them to learn a great deal about the creditworthiness and demand for capital of their prospective customers . bluestem brands has a business called paycheck direct , in which they integrate with payroll systems to provide access to an e - commerce catalog on credit to low fico employees ; by having access to the payroll system for both underwriting and collections , they have a massive advantage over payday lenders .
instead of having to meet with a loan officer toting income tax records , personal finance records and other paperwork , applicants upload 90 days’ worth of cash flow data . from there , ondeck grabs personal and business credit history from bureaus like experian as well as scanning publicly available records for past lawsuits . it also considers the health of an applicant’s industry and region , and checks online reviews from sites like yelp and google places .
in addition , kabbage loans have added flexibility because they work like a line of credit . you get a maximum amount of money that you can draw from as needed , and you only pay interest on money that you use . as you pay off what you borrow , those funds become available to you again ( like a credit card ) . ondeck also offers lines of credit , but the qualification requirements are stricter than kabbage .
“i remember the process being smooth and straightforward , it can be incredibly stressful ; fortunately , ondeck had quick questions and quick responses . i could see how much financing i was approved for and what that meant [ regarding payback ] . i had the opportunity to review everything before i took the loan . the speed and efficiency of the process were incredible . i was able to introduce my recoverywear line and increase sales 4x over . ”