David A. Steinberg
| David A. Steinberg | |
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| Born | 1970 |
| Occupation | Founder and CEO of Zeta Global, former CEO InPhonic |
David A. Steinberg (born 1970) is the founder and chief executive officer of Zeta Global, formerly Zeta Interactive and XL Marketing Corporation before that, one of several companies that he started. Zeta Global is a data-driven marketing and CRM company that integrates data, technology and marketing services, aiming to help brands acquire, grow and retain customers.
In an interview with the New York Times, he explains the types of companies he acquires and his expectations for entrepreneurs. In 2012, Inc Magazine highlighted Steinberg's corporate strategies and direction,
In 1993 David Steinberg founded Sterling Cellular, Inc. in the basement of his house in Bethesda, Maryland with the use of credit cards and a parental loan. Sterling Cellular grossed $1.3 million in sales its first year in business. It was a business that sold cellular phones. Sterling offered free, timed delivery and a warranty/repair program and a free loaner phone program from its third month. By 1997 Sterling Cellular grew to 12 retail locations and $22 million in sales.
To use the internet for selling cell phones, Steinberg broke up Sterling Cellular. He sold off the retail chain and telemarketing operations of Sterling Cellular and founded Inphonic, Inc. Over a seven-year period, Inphonic grew into the largest seller of new cell phones on the internet with over $300 million in revenue. As the public face for Inphonic, he was praised for creating and growing the online business that dominates online sales for cell phones. He was criticized for growing the business too rapidly at the cost of customer service and revenue. This contributed to the downfall of Inphonic when the financial crisis of 2007–2010 began in 2007 with the credit squeeze on all companies. In November 2007, after Steinberg resigned as CEO and Chairman of the Board, InPhonic filed a Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.
After Inphonic, Steinberg secured support to start a new corporation, CAIVIS Acquisition Corp. According to their website, CAIVIS Acquisition Corp is an investment firm looking to purchase small companies in the internet space and combine them in order to maximize their opportunities. CAIVIS acts like a holding company, aiming to achieve an economy of scale for the standard infrastructure required for internet businesses, such as human resources, legal and accounting departments. At the same time it aims for multiple arbitrage by combining the smaller companies into a larger business. Small companies typically command a price–earnings ratio (PE) of 5 while larger companies command a PE of 10.
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