Ask the CEO (8) - Elie Seidman, Oyster Hotel Reviews

Today 'Ask the CEO' features Elie Seidman from Oyster Hotel Reviews located in New York, New York, USA.

1. What problem (s) your company is trying to solve?

We have a very simple goal - to provide our readers with the most in-depth professional review of hotels that exist, on the web or off. Choosing a hotel while planning a vacation (we focus on leisure destinations) is a huge decision, as it involves both a significant amount of money and time. It’s also a unique purchase in that, unlike almost anything else, a hotel is a product you can’t see or use before you buy, and certainly can’t return once you’ve bought it. I’m hopeful that our hotel reviews at Oyster Hotel Reviews achieve this goal through the hundreds of photos and thousands of words we provide on each hotel.  

2. How did you finance your venture?

My co-founders and I seed financed Oyster, and Bain Capital Ventures is our main institutional (private equity/venture capital) source of financing. The firm has provided nearly $10 million of the total of $10.4 million in outside capital that we have raised since our inception in March 2008. 

Editor: I am still amazed by the amount you raised for a 1st round with only one VC. What made them tick to invest in you? Where and when do they see the exit?

3. In a difficult climate of uncertainty, how do you attract talents to join you adventure?

We’ve been fortunate in that attracting the kind of talent we want has not been a challenge. At this point, I’m a third-time entrepreneur and the experience helps – I can talk to potential recruits about the positives and negatives of start-up life. My co-founders and our senior leadership are experienced and accomplished business people, which helps reassure potential hires; being well-financed by Bain Capital Ventures has also insured that we have the financial resources needed to attract the very best talent.  

4. Could you explain your revenue model

We are advertising – both CPC and CPM – driven. At the current time we are focused primarily on solving the user’s needs and attracting customers. With time we will add various forms of advertising to the site.  

5. Who gives you inspiration when you feel down whilst leading your company?

I derive tremendous energy from the creative experience that comes from building a new product. But that’s not to say that it isn’t stressful or hard at times. Building a new company and a new product is undoubtedly an emotional roller coaster. Though it’s become somewhat trite to say, I deeply admire Steve Jobs for how he’s always stayed incredibly focused on making a better product despite the many personal ups and downs along the way. His belief that the better product wins is one that I whole-heartedly share and one that we focus on here at Oyster. My parents – who in 1984 bought me my first computer, a Mac – taught me and my brothers (one of them, Eytan, is a co-founder of Oyster Hotel Reviews) that with hard work and persistence, we can do anything we put our minds to. I draw a great deal of inspiration from my father, who has worked hard at something he loves all of his life. He recently turned 70 and is still working hard (and loving it). My personal goal is to love what I do as much as he always has. When you love work that much, it’s really not work, after all.

Editor: Wow! This is very inspirational indeed. I am sure a lot of entrepreneurs would agree with that.

And 5 Trivial questions...

a/ Fave hotel experience

Las Ventanas, Cabo, Mexico. It’s a transcendent hotel that’s worth every penny. A close second is Hotel Splendido in Portofino, Italy. 

b/ Mac or PC?

PC – Windows 7 running on a solid state disk (SSD); I’m still a geek at heart so I get the latest and greatest technical toys. I have a firm belief in the power of technology to help improve productivity, so I’m always testing the latest developments.  

c/ Explorer or Firefox?

Google Chrome – it’s faster than either of the other two browsers.

Editor: What about Safari then?

d/ MP3 or CD?

MP3 – I own several iPods and buy my music on iTunes. I’ve also ripped most of my CDs to digital at this point.  

e/ Twitter or Facebook?

Facebook. I have a personal Twitter account, but our main action is at @OysterHotels to which I sometimes contribute. I don’t Twitter much personally and don’t have any immediate plans to.

And an additional question...(Thanks Elie!)

Nikon or Canon?

The photo geeks in the audience will get this one. I’ve been an avid amateur photographer since I was 14 and I’ve had one form of Nikon SLR or another since I was 17. I switched to SLR digital around 2003. I also own a film Leica M7 and a medium format Mamiya 7. Film still produces beautiful photos but digital is far more convenient. 

Comments

[Vanessa]

How about vacation rental reviews Elie? The market for it is still young.

[Miami Beach Hotels]

I believe it is great to have online reviews that are written by professionals - it should make the comparison between hotels easier for consumers.

Look forward to your staff's visit when we open. Please visit us at http://www.MiamiHotelGrandBeach.com

Best of luck with your venture!

[Chester Hotel]

Sounds like you have a really great goal and i bet it's great visiting all the interesting places.

[Ho]

Any plans to cover hotels in Asia?

[Destination360]

If they keep on this track I see a acquisition call from TA in their future.

[Elie Seidman]

What are you thinking of when you say outsourcing?

[Hostels Valencia]

Hi Elie
do you do any outsourcing for other companies?

[Christine]

Excellent! I'm a huge fan of your site as well as a longtime hotel addict; I've even applied for a staff reporter position hoping you would eventually come over to this side of the pond. (I'm an American living in the South of France and Rome.) Keep up the great work.

[Elie Seidman]

Definitely - Coming soon.

[Christine]

Elie, do you have any plans to expand to European hotels?

[Elie Seidman]

We'll be revisiting hotels as they make major improvements or changes and we invite hoteliers to email us to let us know that they've made a chance. We will also be revisiting based on a calendar schedule.

[Ashwin Kamlani, CEO]

Elie, I have been reading a lot about your company lately and it seems that the most common criticism is that it will be extremely difficult for you to maintain current reviews, compared to your main competitor, which constantly publishes new reviews for each hotel even though they are not written by a professional or verified in any way. How would you respond to that?