Jamon Crockom and David Breshears of CrockomBreshears Talk about their New Startup
What do you guys make?
We have a social networking platform with a few unique monetization components. Instead of relying on the existing advertising model of banner ads and ads words to generate revenue, we seamlessly weave consumer activity and interactive advertising into the user experience.
Much of social networking is about self-expression, learning about other people, and connecting with them based on shared interests. Lifestyle based social networks have begun popping up all over the web to address user demand for social networking to be more contextualized along these shared interests. Brands and products are integral to lifestyle. If I’m a parent I’m buying diapers and cribs and if I’m a golfer I’m buying golf clubs and shoes. Additionally, the products we buy are indexes of our identity. The fact that I drive a minivan and not a two-seater convertible is an indication of who I am. We’ve woven consumer activity into the user experience by making products a means of self-expression and social product recommendation for users, and word-of-mouth marketing for brands. It’s also a way for users to connect with one another by extending the concept of user profiles to include brands and products.
We designed the platform by first looking at where user demand was driving social networking, and found growing numbers of users migrating to sites that provided a more personalized, lifestyle-oriented social experience. Because a person’s identity is made up of a variety of lifestyle interests, they currently have to join a different niche social network catering to each of their lifestyle interests. The problem is that these sites exist in isolation from one another, and users are forced to create multiple profiles, maintain relationships across multiple networks, keep up with communication across multiple messaging systems, and deal with a variety of user experiences. So, the user experience is fragmented, and it’s a self-cannibalizing model – people just don’t have time to maintain 5 profiles, 5 networks of friends, 5 sets of photos, 5 blogs, and everything else. People are going to figure out the ones that work and that they’re most interested in and triage the rest.
So how does your platform address this problem?
We resolved the fragmented user experience problem by creating a platform that addresses niche lifestyle communities as parts of a whole. By joining one site, users have access to a variety of lifestyle communities. As a result, we offer users a single, unified online identity – one profile, one inbox, unified network management, personal expression, and communication tools, and a unified social experience.
What’s the challenge with niche social networking sites?
It’s hard to gain traction, to attract and retain users. Niche social networks generally lack brand recognition. Additionally, while advertisers are willing to pay a premium for the targeted nature of advertisements on niche social networks, they haven’t really figured out a way to effectively integrate advertising into the social environment. Banner ads and search based ads are incredibly unproductive on social sites. Although brands want to do interactive and social media advertising, this is very much a market in search of a solution. What is needed is something that integrates the brand into the community in a way that encourages user engagement. We can safely say that none of the social networking platforms we have seen have figured out a way to accomplish that goal. You can’t just bolt interactive advertisements onto a community and expect users to interact with them. When users view themselves as lifestyle consumers they actively seek out brands and products that reflect their interests, and that is really the key to successful brand integration.
So you sell it to companies that want to do social networking, and put it on their site?
We started down this path over two years ago building a niche social network from the ground up, and from that experience we learned some valuable lessons. As such, we’ve identified a target market that we think is ideally suited to leverage the advantages our platform offers – publishing companies. Publishing companies are increasingly moving onto the Web, and they have top tier, lifestyle-based content, recognizable brand names, extensive relationships with advertisers, and a broad base of existing users. With our platform, publishing companies can provide their users with seamless access to their entire content offering, unifying the user experience and massively increasing the value of this audience to advertisers.
This sounds like the next generation of advertising?
We are talking about a paradigm shift in advertising on the web. At the very time that every article that you read out there from every blogger and every analyst and everybody is saying advertising on the web is broken. Whoever comes up with the solution is going to make a lot of money. We just hope it’s us.
Best regards,
Hall T.
Wednesday, January 7, 2009
Monday, January 5, 2009
Nell Edgington of Social Velocity Talks about Socially Responsible Investing
Nell Edgington of Social Velocity Talks about Socially Responsible Investing
How did you come to Austin?
My husband and I were in graduate school in Dallas Chicago and we moved to Austin after that. Austin is the only place we wanted to live. We love it. We’ve been here for the past six years.
How did you get involved in this idea?
I’ve been working on this idea for about a year. I knew I wanted to start a business in this sector space and thought about a venture philanthropy fund. A VC fund except it makes investments into non-profits. I’ve been looking at various models in other cities. San Francisco and Boston have funds like these in which there is a social return although not a financial one. For Austin, I’m trying to build a fund to help non-profits grow and scale their business beyond incremental growth. We help them create that business plan and then pitch to investors for that growth capital. It’s a new idea in Austin to pitch for growth capital for a non-profit. We also help them diversify their revenue stream to earned income, sponsorship and more. This is an idea whose time has come and I believe it is timely for Austin. You probably know of several companies that have a social result.
What are some examples of companies in this area?
One example is Citizens Schools which is an after school program for middle school students. so Tthey bring people in who have special skills such as how to create a web site so teenagers find a connection to school. It’s proven to raise retention all the way through high school. The program works well on the national level but here in Austin they struggle because they are underfunded. We’re putting a plan together on what would growth look like. If you could grow this program through Austinto all the Austin middle schools that could benefit from it you would see a dramatic increase in retention rates in both middle and high school. Austin’s dropout rate is above the national average. It would take $300K to $500K growth capital for this program.
What are some examples of investment groups that do this?
Investors Circle in San Francisco which is similar to an angel network. They come together twice a year and review social and financial return opportunities. For example, they’ll invest in solar power companies or a company that recycles books with a portion of the revenues going to a non-profit. There are similar groups in Denver, Boston, LA, and New York. There’s a movement throughout the country in which investors seek a social return in addition to a financial return.
Any local company examples that have a social benefit in addition to a financial one?
Another example is Blue Avocado here in Austin which replaces plastic grocery bags with a reusable bag system which helps the environment.
Where can investors find out more about this?
I write a blog that focuses on this area.
Best regards,
Hall T.
How did you come to Austin?
My husband and I were in graduate school in Dallas Chicago and we moved to Austin after that. Austin is the only place we wanted to live. We love it. We’ve been here for the past six years.
How did you get involved in this idea?
I’ve been working on this idea for about a year. I knew I wanted to start a business in this sector space and thought about a venture philanthropy fund. A VC fund except it makes investments into non-profits. I’ve been looking at various models in other cities. San Francisco and Boston have funds like these in which there is a social return although not a financial one. For Austin, I’m trying to build a fund to help non-profits grow and scale their business beyond incremental growth. We help them create that business plan and then pitch to investors for that growth capital. It’s a new idea in Austin to pitch for growth capital for a non-profit. We also help them diversify their revenue stream to earned income, sponsorship and more. This is an idea whose time has come and I believe it is timely for Austin. You probably know of several companies that have a social result.
What are some examples of companies in this area?
One example is Citizens Schools which is an after school program for middle school students. so Tthey bring people in who have special skills such as how to create a web site so teenagers find a connection to school. It’s proven to raise retention all the way through high school. The program works well on the national level but here in Austin they struggle because they are underfunded. We’re putting a plan together on what would growth look like. If you could grow this program through Austinto all the Austin middle schools that could benefit from it you would see a dramatic increase in retention rates in both middle and high school. Austin’s dropout rate is above the national average. It would take $300K to $500K growth capital for this program.
What are some examples of investment groups that do this?
Investors Circle in San Francisco which is similar to an angel network. They come together twice a year and review social and financial return opportunities. For example, they’ll invest in solar power companies or a company that recycles books with a portion of the revenues going to a non-profit. There are similar groups in Denver, Boston, LA, and New York. There’s a movement throughout the country in which investors seek a social return in addition to a financial return.
Any local company examples that have a social benefit in addition to a financial one?
Another example is Blue Avocado here in Austin which replaces plastic grocery bags with a reusable bag system which helps the environment.
Where can investors find out more about this?
I write a blog that focuses on this area.
Best regards,
Hall T.
Monday, December 29, 2008
Alan Kane of Archangel Ventures Talks about Raising a Fund for Game Developers
Alan Kane of Archangel Ventures Talks about Raising a Fund for Game Developers
What is your background?
I came to Austin in 2004 after earning an MBA in Entrepreneurship from Babson College. I started my career in gaming at Midway Games, where I was the studio CFO & COO for 4 years. Prior to Midway, I was an Investment Banker and quite frankly was not a “gamer.”
At the time, Midway had a great business plan and a bright future. My job was to focus on the business and operational side of the studio, while a very talented group of directors managed the production and creative development. The local studio grew from 35 to over 220 in just 18 months. We built out a new 40,000 square foot facility in the Domain. We released a couple of AAA titles and had a few more in the works. Then rather abruptly last summer, Midway corporate was forced to scale back their 2010 and 2011 plans, which led to a massive layoff here in Austin.
I stayed on for the transition and focused on securing employment for those who were let go. Then I decided to start my own consulting company focusing on CFO for-hire type engagements for game developers. I see so many studios that need help or want to outsource the operational and financial management side of their company, so that they can focus on making great games and not negotiating leases, bookkeeping, planning for growth, writing HR policies, etc. When I was growing up, my father was a brilliant engineer, however he couldn’t nail the business side of running his own company. So this is an issue I understand quite well.
My company provides investment capital and advisory services to game developers who are willing to do what it takes to succeed. My investments are equity stakes in actual game projects and not directly in the studio.
How much are you raising for your first fund?
For this first fund, I’m talking to successful angels and high-net-worth individuals in an effort to raise $10M to $15M and that will be structured as a typical VC fund. Over $15M the economics start to breakdown given the size of each project I am looking to fund and my investment criteria.
What are you going to provide your portfolio companies?
I’m looking for projects and studios in which there is a good fit. This is defined as a situation where there is a compelling risk reward at the project level and where the studio is willing and able to do what it takes to succeed. Let’s face it not every project is going to be the next Halo blockbuster, but if you structure the project in such a way it does not have to be, to be profitable. I will work with each portfolio company to help make this possible by investing the money, time, and energy necessary for success.
How does it work?
This is a new business model for funding game development projects and understand that each project is relatively unique.
However, without giving away the secret sauce I’ll give you a profile of an investment I will look to make. I will partner with an experienced game developer with existing technology to fund a specific project(s) rather than funding the studio itself. I will work with the studio to hash out the project (or slate of projects) budget and timeline that they are looking to produce. I will also base my investments geographically to take advantage of government matching funds programs. With these types of programs, you have a collateralized type of principle investment. In addition to a share of backend royalties, if a larger publisher is involved in the deal you can create a larger return by working with their milestone payments.
In each deal I do, I’m looking to make a return of 3-5x on a $250k-$500k investment. While this is not the typical VC target of +10x return, my risk is much lower than a traditional VC. The number of losing investments in my portfolio will be minimal due to my unique investment structure, shorter investment duration, and my liquidity events will be clearly defined.
How is it different?
Traditional investors will look at a gaming company and try to come up with a valuation for the company as a whole based on cash flow projections and a terminal value at some future event. What I do is make an investment based on a game project no more than 30 months out with a clearly defined revenue stream and terminal value. If a publisher does come into the deal great, I get a cut of that money too. The investors get their cash back out more quickly because they don’t have to wait for the company to be acquired or the studio to issue dividends. Movies are funded somewhat the same way. From an investor’s standpoint, this model works and is not simply based on the commercial success of the title.
How many projects are in the pipeline?
I currently have 6 very promising projects I’m actively looking to fund. There are another half dozen on my desk I still need to vet. Once I close my fund and word gets out I have $10M-15M to invest, I have no doubt the studios with the best projects will come looking for me. This industry needs an alternative funding model and I believe I have it.
Best regards,
Hall T.
What is your background?
I came to Austin in 2004 after earning an MBA in Entrepreneurship from Babson College. I started my career in gaming at Midway Games, where I was the studio CFO & COO for 4 years. Prior to Midway, I was an Investment Banker and quite frankly was not a “gamer.”
At the time, Midway had a great business plan and a bright future. My job was to focus on the business and operational side of the studio, while a very talented group of directors managed the production and creative development. The local studio grew from 35 to over 220 in just 18 months. We built out a new 40,000 square foot facility in the Domain. We released a couple of AAA titles and had a few more in the works. Then rather abruptly last summer, Midway corporate was forced to scale back their 2010 and 2011 plans, which led to a massive layoff here in Austin.
I stayed on for the transition and focused on securing employment for those who were let go. Then I decided to start my own consulting company focusing on CFO for-hire type engagements for game developers. I see so many studios that need help or want to outsource the operational and financial management side of their company, so that they can focus on making great games and not negotiating leases, bookkeeping, planning for growth, writing HR policies, etc. When I was growing up, my father was a brilliant engineer, however he couldn’t nail the business side of running his own company. So this is an issue I understand quite well.
My company provides investment capital and advisory services to game developers who are willing to do what it takes to succeed. My investments are equity stakes in actual game projects and not directly in the studio.
How much are you raising for your first fund?
For this first fund, I’m talking to successful angels and high-net-worth individuals in an effort to raise $10M to $15M and that will be structured as a typical VC fund. Over $15M the economics start to breakdown given the size of each project I am looking to fund and my investment criteria.
What are you going to provide your portfolio companies?
I’m looking for projects and studios in which there is a good fit. This is defined as a situation where there is a compelling risk reward at the project level and where the studio is willing and able to do what it takes to succeed. Let’s face it not every project is going to be the next Halo blockbuster, but if you structure the project in such a way it does not have to be, to be profitable. I will work with each portfolio company to help make this possible by investing the money, time, and energy necessary for success.
How does it work?
This is a new business model for funding game development projects and understand that each project is relatively unique.
However, without giving away the secret sauce I’ll give you a profile of an investment I will look to make. I will partner with an experienced game developer with existing technology to fund a specific project(s) rather than funding the studio itself. I will work with the studio to hash out the project (or slate of projects) budget and timeline that they are looking to produce. I will also base my investments geographically to take advantage of government matching funds programs. With these types of programs, you have a collateralized type of principle investment. In addition to a share of backend royalties, if a larger publisher is involved in the deal you can create a larger return by working with their milestone payments.
In each deal I do, I’m looking to make a return of 3-5x on a $250k-$500k investment. While this is not the typical VC target of +10x return, my risk is much lower than a traditional VC. The number of losing investments in my portfolio will be minimal due to my unique investment structure, shorter investment duration, and my liquidity events will be clearly defined.
How is it different?
Traditional investors will look at a gaming company and try to come up with a valuation for the company as a whole based on cash flow projections and a terminal value at some future event. What I do is make an investment based on a game project no more than 30 months out with a clearly defined revenue stream and terminal value. If a publisher does come into the deal great, I get a cut of that money too. The investors get their cash back out more quickly because they don’t have to wait for the company to be acquired or the studio to issue dividends. Movies are funded somewhat the same way. From an investor’s standpoint, this model works and is not simply based on the commercial success of the title.
How many projects are in the pipeline?
I currently have 6 very promising projects I’m actively looking to fund. There are another half dozen on my desk I still need to vet. Once I close my fund and word gets out I have $10M-15M to invest, I have no doubt the studios with the best projects will come looking for me. This industry needs an alternative funding model and I believe I have it.
Best regards,
Hall T.
Monday, December 22, 2008
Jonas Lamis and Kevin Koym of Tech Ranch Austin Talk about Their New Incubator
Jonas Lamis and Kevin Koym of Tech Ranch Austin Talk about Their New Incubator
What’s new with Tech Ranch these days?
Tech Ranch Austin is a newly launched incubator in Northwest Austin. We are focused on accelerating pre-seed and seed stage technology companies that can change the world. Our team has expertise that spans software, hardware, alternative energy and emerging technologies, and we currently supports start-ups like Piryx and IPX among others.
We had a great “launch” last week where we made three big announcements:
* Collaborate with Tech Ranch executives: Pre-seed and seed stage start-ups can sign up for “office hours” to discuss their start-up issues and challenges. They will learn processes for moving their venture forward and make contacts to support funding and growth initiatives. More details at http://techranchaustin.com/?p=36
* Incubator space for technology start-ups: Tech Ranch Austin is now seeking pre-seed and seed stage technology ventures in central Texas to become residents of the Tech Ranch incubator facility in North West Austin. Team rooms with collaborative work spaces and shared services are offered at favorable month to month rates. Contact: kevin@techranchaustin.com
* Join the Tech Ranch partner network: Tech Ranch invites value added service providers from the Central Texas community to join the Tech Ranch partner network. The Tech Ranch Incubator works with some of the most exciting technology start-ups in America. We connect our partners with these start-ups to provide services that help them reach their growth and funding goals. Contact: jonas@techranchaustin.com
How are you different from other incubators?
Tech Ranch Austin’s mission is to accelerate game-changing technology ventures. The Tech Ranch team is focused on rolling up their sleeves and stepping into key roles with our portfolio companies to help them get to the next critical success level – be that revenue generation, funding, or monetization. We do this for a share of equity, and generally focus on risk and reward sharing with the start-up.
What are the services you offer?
We have space so startups can bring their teams together to work and collaborate. We also bring provide hands on guidance in areas of sales, marketing, bus dev, finance and operations – depending on the needs of our portfolio.
One of the best ways to figure out if Tech Ranch is a good fit for your venture is to sign up for one of our free “Office Hours” where we can talk about challenges and potential solutions.
How many companies do you have so far?
We are currently working with three fantastic seed stage ventures. In 2009, we hope to work with about a dozen companies.
What are the criteria to get in?
There are two complementary tracks for interested companies. We offer office space, shared services and a collaborative environment for start-up teams to work out of our incubator. If companies are interested in this, they should come by and get a tour of our facility.
For companies that believe they can take advantage of our business expertise and network, we will mutually evaluate whether there is a strong match before we engage with each other.
Can you tell us about one of the companies already in the incubator?
One of the most exiting companies in Austin right now is Piryx. Tom Serres, co-founder and CEO of Piryx noted about working with Tech Ranch, “Piryx is a seed stage venture that is out to change the world of politics by empowering everyone with a cause to run for office. Jonas Lamis and the expertise of the Tech Ranch partners has provided invaluable assistance to us as we launch our beta, build our team and move towards series A funding.”
Best regards,
Hall T.
What’s new with Tech Ranch these days?
Tech Ranch Austin is a newly launched incubator in Northwest Austin. We are focused on accelerating pre-seed and seed stage technology companies that can change the world. Our team has expertise that spans software, hardware, alternative energy and emerging technologies, and we currently supports start-ups like Piryx and IPX among others.
We had a great “launch” last week where we made three big announcements:
* Collaborate with Tech Ranch executives: Pre-seed and seed stage start-ups can sign up for “office hours” to discuss their start-up issues and challenges. They will learn processes for moving their venture forward and make contacts to support funding and growth initiatives. More details at http://techranchaustin.com/?p=36
* Incubator space for technology start-ups: Tech Ranch Austin is now seeking pre-seed and seed stage technology ventures in central Texas to become residents of the Tech Ranch incubator facility in North West Austin. Team rooms with collaborative work spaces and shared services are offered at favorable month to month rates. Contact: kevin@techranchaustin.com
* Join the Tech Ranch partner network: Tech Ranch invites value added service providers from the Central Texas community to join the Tech Ranch partner network. The Tech Ranch Incubator works with some of the most exciting technology start-ups in America. We connect our partners with these start-ups to provide services that help them reach their growth and funding goals. Contact: jonas@techranchaustin.com
How are you different from other incubators?
Tech Ranch Austin’s mission is to accelerate game-changing technology ventures. The Tech Ranch team is focused on rolling up their sleeves and stepping into key roles with our portfolio companies to help them get to the next critical success level – be that revenue generation, funding, or monetization. We do this for a share of equity, and generally focus on risk and reward sharing with the start-up.
What are the services you offer?
We have space so startups can bring their teams together to work and collaborate. We also bring provide hands on guidance in areas of sales, marketing, bus dev, finance and operations – depending on the needs of our portfolio.
One of the best ways to figure out if Tech Ranch is a good fit for your venture is to sign up for one of our free “Office Hours” where we can talk about challenges and potential solutions.
How many companies do you have so far?
We are currently working with three fantastic seed stage ventures. In 2009, we hope to work with about a dozen companies.
What are the criteria to get in?
There are two complementary tracks for interested companies. We offer office space, shared services and a collaborative environment for start-up teams to work out of our incubator. If companies are interested in this, they should come by and get a tour of our facility.
For companies that believe they can take advantage of our business expertise and network, we will mutually evaluate whether there is a strong match before we engage with each other.
Can you tell us about one of the companies already in the incubator?
One of the most exiting companies in Austin right now is Piryx. Tom Serres, co-founder and CEO of Piryx noted about working with Tech Ranch, “Piryx is a seed stage venture that is out to change the world of politics by empowering everyone with a cause to run for office. Jonas Lamis and the expertise of the Tech Ranch partners has provided invaluable assistance to us as we launch our beta, build our team and move towards series A funding.”
Best regards,
Hall T.
Wednesday, December 17, 2008
Jonathan Gilliam of OneAccord Talks about his Startup Experiences
How did you get to Austin?
I attended UT-Austin and was one of the lucky few who got to stay after graduation. All my college buddies in Dallas and Houston are envious. But there are sacrifices – execs in Austin know to do well here usually means you’ll have to travel.
What is your background?
I am a business development guy, sales and deal-making are in my DNA. During the 90’s like many Austinites I morphed into the tech business and have hung around it most of my career. It’s a lot of fun.
What was your first startup?
I was a co-founder of Hush Communications. We provided encrypted email service that was end-to-end, meaning only the sender and recipient could read it. At the time, Bill Gates was defending his email in court and people were starting to realize the Internet was not as private as they had thought. We promoted “privacy” as a right and were a bit ahead of our time, it took a while for people to really care about their security online. The company is still doing well, more focused on businesses now.
Facebook changes all that, of course. I think people have just given up on privacy and are more concerned now with controlling their personal information rather than trying to hide it.
Later I spent 6 years at Deloitte in their data forensics group leading national business development for their fraud detection product, and then to another company in town doing large-scale data mining for the government.
So I sort of went from “fighting the man” to “being the man”, career-wise at least! I still believe privacy is something to be cherished, especially having seen it from the other side.
How did you get your startup funding?
We closed our last round of funding two weeks before the tech crash of 2000, and promptly moved the business to Ireland where the encryption laws were more friendly.
Interestingly, our last round was through an “online investment bank” called OffRoad Capital (get it?). We were one of the last deals they did before the crash, our “road show” was streamed online – imagine the video technology back then– and our deal actually went to a unique auction phase giving us something like a 25% higher valuation than we expected.
Wonder when someone’s going to bring that back! It was great for startups.
What are your current interests?
With OneAccord I’m focused on helping companies ramp their revenue and build out their sales and marketing strategies. I recently joined an awesome online marketing agency called Idea Interactive and last year founded an association for complex sales professionals called the Society for Business Development Professionals. So it’s been busy!
I hear you’re a blogger. What do you blog on?
My blog until now has been a grab bag of my thoughts on a number of start-uppy business topics, but more and more I’m focusing on information for companies wanting to “blow out” their top line.
What are the top three trends in the business development space?
It is an incredible time of transition for going to market. The days of calling someone you don’t know up and getting them to spend a lot of money with you are simply dead. Try calling an CIO and selling them something today; voice mail and email filters mean never having to talk to a salesperson again.
All companies need to take a hard look at leveraging new “Sales 2.0” strategies to have a chance of succeeding. This is actually a wonderful opportunity for those willing to be creative, invest and step up to the plate. More than ever it’s about relationships and trust-building and leveraging networks.
Another trend is the rising need to be information savvy. It’s less and less what you know but who you know and how to quickly find out what you don’t know. It’s just as important to have a search window at our fingertips as having an encyclopedia in our heads. This changes not only customer activity but business activity in general.
I recently blogged about another opportunity in the chaos of the financial crisis. As competitors do the drill of reigning in spending and scaling down, smart companies are stepping in and acquiring other companies on the cheap, gaining market share and taking advantage of more favorable terms. This crisis is one of those rare game-changing opportunities, if we can overcome the fear and hype.
Best regards,
Hall T.
I attended UT-Austin and was one of the lucky few who got to stay after graduation. All my college buddies in Dallas and Houston are envious. But there are sacrifices – execs in Austin know to do well here usually means you’ll have to travel.
What is your background?
I am a business development guy, sales and deal-making are in my DNA. During the 90’s like many Austinites I morphed into the tech business and have hung around it most of my career. It’s a lot of fun.
What was your first startup?
I was a co-founder of Hush Communications. We provided encrypted email service that was end-to-end, meaning only the sender and recipient could read it. At the time, Bill Gates was defending his email in court and people were starting to realize the Internet was not as private as they had thought. We promoted “privacy” as a right and were a bit ahead of our time, it took a while for people to really care about their security online. The company is still doing well, more focused on businesses now.
Facebook changes all that, of course. I think people have just given up on privacy and are more concerned now with controlling their personal information rather than trying to hide it.
Later I spent 6 years at Deloitte in their data forensics group leading national business development for their fraud detection product, and then to another company in town doing large-scale data mining for the government.
So I sort of went from “fighting the man” to “being the man”, career-wise at least! I still believe privacy is something to be cherished, especially having seen it from the other side.
How did you get your startup funding?
We closed our last round of funding two weeks before the tech crash of 2000, and promptly moved the business to Ireland where the encryption laws were more friendly.
Interestingly, our last round was through an “online investment bank” called OffRoad Capital (get it?). We were one of the last deals they did before the crash, our “road show” was streamed online – imagine the video technology back then– and our deal actually went to a unique auction phase giving us something like a 25% higher valuation than we expected.
Wonder when someone’s going to bring that back! It was great for startups.
What are your current interests?
With OneAccord I’m focused on helping companies ramp their revenue and build out their sales and marketing strategies. I recently joined an awesome online marketing agency called Idea Interactive and last year founded an association for complex sales professionals called the Society for Business Development Professionals. So it’s been busy!
I hear you’re a blogger. What do you blog on?
My blog until now has been a grab bag of my thoughts on a number of start-uppy business topics, but more and more I’m focusing on information for companies wanting to “blow out” their top line.
What are the top three trends in the business development space?
It is an incredible time of transition for going to market. The days of calling someone you don’t know up and getting them to spend a lot of money with you are simply dead. Try calling an CIO and selling them something today; voice mail and email filters mean never having to talk to a salesperson again.
All companies need to take a hard look at leveraging new “Sales 2.0” strategies to have a chance of succeeding. This is actually a wonderful opportunity for those willing to be creative, invest and step up to the plate. More than ever it’s about relationships and trust-building and leveraging networks.
Another trend is the rising need to be information savvy. It’s less and less what you know but who you know and how to quickly find out what you don’t know. It’s just as important to have a search window at our fingertips as having an encyclopedia in our heads. This changes not only customer activity but business activity in general.
I recently blogged about another opportunity in the chaos of the financial crisis. As competitors do the drill of reigning in spending and scaling down, smart companies are stepping in and acquiring other companies on the cheap, gaining market share and taking advantage of more favorable terms. This crisis is one of those rare game-changing opportunities, if we can overcome the fear and hype.
Best regards,
Hall T.
Monday, December 15, 2008
Eric Stumberg of Tengo Internet Talks about Tengo Internet and Municipal Wi-Fi Implementations
What does TengoInternet do?
We provide high speed internet management services for outdoor parks and campsites.
It’s mostly amenity internet with added business applications, so we provide members all the deployment and management and support networks.
Do you cover the Texas Parks & Wildlife?
We are operated a 3 year pilot with them. The pilot proved that their users wanted it; but the state parks decided that they wanted to actually manage that project internally.
Do they pay for it?
We’re ran a guest-supported pilot for three years. We use satellite to handle the remote locations. Normally when you are remote like that, you need to share the back haul costs with your regular applications. The back haul is a big component.
Sounds similar to municipal Wi-Fi. What ever happened to that?
The business model is challenged. No one wants to pay for it, except for municipal services. It’s consistent with a lot of the municipal Wi-Fi deployments – there is no quality of service or revenue guarantees - EarthLink tried to use an advertising and subscriber model in a couple of areas. They failed. If you have an anchor tenant it works. If you don’t, it won’t work.
What are you working on these days?
The extending the reach of WiFi into our customer’s networks, expanding our media platform for advertising directly to our subscribers, integrating social networking tools into tech support – such as Twitter, and others..
Where do you see Tengo Internet in 5 years?
Bigger and deeper in an expanded space. We will become the dominant player in outdoor hospitality network management services.
Best regards,
Hall T.
We provide high speed internet management services for outdoor parks and campsites.
It’s mostly amenity internet with added business applications, so we provide members all the deployment and management and support networks.
Do you cover the Texas Parks & Wildlife?
We are operated a 3 year pilot with them. The pilot proved that their users wanted it; but the state parks decided that they wanted to actually manage that project internally.
Do they pay for it?
We’re ran a guest-supported pilot for three years. We use satellite to handle the remote locations. Normally when you are remote like that, you need to share the back haul costs with your regular applications. The back haul is a big component.
Sounds similar to municipal Wi-Fi. What ever happened to that?
The business model is challenged. No one wants to pay for it, except for municipal services. It’s consistent with a lot of the municipal Wi-Fi deployments – there is no quality of service or revenue guarantees - EarthLink tried to use an advertising and subscriber model in a couple of areas. They failed. If you have an anchor tenant it works. If you don’t, it won’t work.
What are you working on these days?
The extending the reach of WiFi into our customer’s networks, expanding our media platform for advertising directly to our subscribers, integrating social networking tools into tech support – such as Twitter, and others..
Where do you see Tengo Internet in 5 years?
Bigger and deeper in an expanded space. We will become the dominant player in outdoor hospitality network management services.
Best regards,
Hall T.
Wednesday, December 10, 2008
Jamie Wallace of Childproof Straw Talks about Her Startup
How did come up with the idea for a childproof straw?
I have three toddlers! They all love yogurt and due to lack of time, I started stabbing a straw straight through the top of the yogurt container! It worked great but I got sick of the spills all over the house from the straw falling out . Same problem with juice boxes, milk cartons, drinking cups… The concept hit me out of nowhere and I grabbed some “tools” around the house and built a straw with offshoots. The addition goes through the top (or lid) and the offshoots prevent removal!
Have you done any patent searches on it?
We’ve checked and there’s no prior art. We have a provisional application filed.
How are you pursuing the market?
We started a survey to get feedback from the market. It’s went to 29 states and 5 countries in just four days. It’s overwhelmingly positive. My goal is to get it to all fifty states. This helps validate the market.
What’s the next step?
We plan to license the technology to the food/drink companies such as Coca-Cola, Pepsi, Kraft, General Mills, major straw manufacturers and more. We want “The Childproof Straw” or “Secure Straw” to be on every super market shelf, served with every child drink, and an addition to Juice or Milk cartons, pouches, boxes…
How is that going?
It takes time to work your way through the system at these large companies. Also, we have found that typically the manufacturing is ending up in China.
You may want to start with smaller, local companies to build up a base.
I agree, we are going to start focusing more of our energy that direction going forward.
What are some of the interesting feedbacks you’ve received from the survey so far?
People have been overwhelmingly excited about the idea. The product seems like a no-brainer to parents. We literally have hundreds of comments on why they like it. Here are some of my favorites!
“I could see this straw being handy for the elderly and for use in hospitals. I would not limit your marketing solely on small children.” Cedar park, TX
“Why not just replace the stupid straws on the market now with the smarter straw described here!” Pacifica,CA
“This is the kind of thing that would make a restaurant or certain brand of drink stand out above competitors. This is something moms would recommend by word of mouth as quickly as possible! "...and they even have these amazing straws...so kid friendly...!" Austin, TX
“Solves a very common child related dilemma in a seemingly easy and inexpensive way.” Vienna, VA
“My son has speech problems and is supposed to use straws instead of sippy's (for the muscles around his mouth), but I am so tired of all the spills. Thanks!” Monroe, OH
Best regards
Hall T.
I have three toddlers! They all love yogurt and due to lack of time, I started stabbing a straw straight through the top of the yogurt container! It worked great but I got sick of the spills all over the house from the straw falling out . Same problem with juice boxes, milk cartons, drinking cups… The concept hit me out of nowhere and I grabbed some “tools” around the house and built a straw with offshoots. The addition goes through the top (or lid) and the offshoots prevent removal!
Have you done any patent searches on it?
We’ve checked and there’s no prior art. We have a provisional application filed.
How are you pursuing the market?
We started a survey to get feedback from the market. It’s went to 29 states and 5 countries in just four days. It’s overwhelmingly positive. My goal is to get it to all fifty states. This helps validate the market.
What’s the next step?
We plan to license the technology to the food/drink companies such as Coca-Cola, Pepsi, Kraft, General Mills, major straw manufacturers and more. We want “The Childproof Straw” or “Secure Straw” to be on every super market shelf, served with every child drink, and an addition to Juice or Milk cartons, pouches, boxes…
How is that going?
It takes time to work your way through the system at these large companies. Also, we have found that typically the manufacturing is ending up in China.
You may want to start with smaller, local companies to build up a base.
I agree, we are going to start focusing more of our energy that direction going forward.
What are some of the interesting feedbacks you’ve received from the survey so far?
People have been overwhelmingly excited about the idea. The product seems like a no-brainer to parents. We literally have hundreds of comments on why they like it. Here are some of my favorites!
“I could see this straw being handy for the elderly and for use in hospitals. I would not limit your marketing solely on small children.” Cedar park, TX
“Why not just replace the stupid straws on the market now with the smarter straw described here!” Pacifica,CA
“This is the kind of thing that would make a restaurant or certain brand of drink stand out above competitors. This is something moms would recommend by word of mouth as quickly as possible! "...and they even have these amazing straws...so kid friendly...!" Austin, TX
“Solves a very common child related dilemma in a seemingly easy and inexpensive way.” Vienna, VA
“My son has speech problems and is supposed to use straws instead of sippy's (for the muscles around his mouth), but I am so tired of all the spills. Thanks!” Monroe, OH
Best regards
Hall T.
Tuesday, December 9, 2008
Michael Agustin and Tommy Tran of Gendai Games Talk about their new product GameSalad
How did you come up with the idea for GameSalad?
The idea behind GameSalad is to give people the ability to make their own games. It’s very easy to use. It’s a drag and drop interface. We have a social community and it’s easy to embed the game into other programs such as Facebook or your own blog.
Is it up and running now?
Parts of it. We are currently in closed alpha but all the tools are there to make your own games.
What kind of games can people make?
Right now, we focus on 2D games. We have developed our own engine and plug-in. We chose to go with our own plug-in rather than Flash so we can also support the iPhone. With our engine, people can make their games once and play them in a Web browser or iPhone.
How do you charge for it?
We will sell premium games through micro-payements, similar to how the App Store and the xBox360 charges $0.25 to a $1 to play a full game. For free games, we plan to make additional money with advertising. We will offer a free creation tools for beginning game designers and a pro version that lets people make games for the iPhone as well.
When will you start charging?
Sometime at the end of Q2, 2009. We also plan to make our games from the tool and sell them ready to run, over the iPhone App Store. By making our games we plan to make additional revenue and we’ll learn how to improve the tool itself.
How do find the local gaming community?
Austin has a pretty big industry, and developers here are quite helpful.
What platform does it run on?
The game engine runs as a plugin in Web browsers on all platforms. The tool will be initially Mac-based because there are statistically more designers on the Macintosh. We also like the tools on the Mac such as Xcode and Cocoa, which allow us to build rapidly and provide a polished interface.
Can we hear your Fastpitch?
Gendai Games is a game creation for the rest of us. The games market is over $2.25B worldwide with over 200M users there are more players online than all the video game consoles combined. For the long tail of game developers, it is difficult to create and publish their own works. Gendai Games is an open platform for user-created games that are playable on mobile platforms and the web. Non-programmers including designers and graphics artists make up the majority of game developers. Our tool lets them embed their game on the web and mobile phone in the same way that YouTube can be embedded. The company will use micro transactions to charge for game playing. The product is in alpha and is under evaluation by game companies like Disney, Sony, and Electronic Arts.
Best regards,
Hall T.
The idea behind GameSalad is to give people the ability to make their own games. It’s very easy to use. It’s a drag and drop interface. We have a social community and it’s easy to embed the game into other programs such as Facebook or your own blog.
Is it up and running now?
Parts of it. We are currently in closed alpha but all the tools are there to make your own games.
What kind of games can people make?
Right now, we focus on 2D games. We have developed our own engine and plug-in. We chose to go with our own plug-in rather than Flash so we can also support the iPhone. With our engine, people can make their games once and play them in a Web browser or iPhone.
How do you charge for it?
We will sell premium games through micro-payements, similar to how the App Store and the xBox360 charges $0.25 to a $1 to play a full game. For free games, we plan to make additional money with advertising. We will offer a free creation tools for beginning game designers and a pro version that lets people make games for the iPhone as well.
When will you start charging?
Sometime at the end of Q2, 2009. We also plan to make our games from the tool and sell them ready to run, over the iPhone App Store. By making our games we plan to make additional revenue and we’ll learn how to improve the tool itself.
How do find the local gaming community?
Austin has a pretty big industry, and developers here are quite helpful.
What platform does it run on?
The game engine runs as a plugin in Web browsers on all platforms. The tool will be initially Mac-based because there are statistically more designers on the Macintosh. We also like the tools on the Mac such as Xcode and Cocoa, which allow us to build rapidly and provide a polished interface.
Can we hear your Fastpitch?
Gendai Games is a game creation for the rest of us. The games market is over $2.25B worldwide with over 200M users there are more players online than all the video game consoles combined. For the long tail of game developers, it is difficult to create and publish their own works. Gendai Games is an open platform for user-created games that are playable on mobile platforms and the web. Non-programmers including designers and graphics artists make up the majority of game developers. Our tool lets them embed their game on the web and mobile phone in the same way that YouTube can be embedded. The company will use micro transactions to charge for game playing. The product is in alpha and is under evaluation by game companies like Disney, Sony, and Electronic Arts.
Best regards,
Hall T.
Wednesday, December 3, 2008
David Hooper of Minimus Spine Talks about his new Startup Using Ozone for Spinal Disc Herniations
David Hooper of Minimus Spine Talks about His New Startup
What is your background?
I went to Case Western Reserve University and then the University of Iowa for a Ph.D. in Biomedical Engineering. My dissertation was on spinal mechanics and I was fortunate enough to have Dr. Vijay Goel as my advisor and Dr. Jim Weinstein on my review committee. I spent three years in England setting up a biomechanics lab and evaluating patients after knee reconstruction. From there I came to Austin and took a position at Spinal Concepts in 1999. That was a fantastic entrepreneurial company and we did really well. When I got there, there were about 30 people and under $10M in sales. We built the company to about $80M in sales and sold to Abbott Labs in 2003. I left Abbott in 2006 and started this later in the year. Several of the physicians and executives I worked with at Spinal Concepts have invested money in Minimus and helped get the idea off the ground.
What was your primary job?
I was Abbott Spine’s VP of Emerging Technologies. In that capacity I was responsible for our Class 3 product development (non-fusion devices) and involved in identifying technology for potential acquisition or investment. I was the company’s liaison with FDA and responsible for designing clinical trials and preparing regulatory submissions. I worked with physician investigators around the country and had a team of engineers, research monitors and data managers to execute clinical trials and regulatory specialists to participate on design teams and prepare FDA submissions.
Why is there so much activity in the spinal area?
A great deal of money has been invested in spine because these patients need devices that improve their quality of life. The market is moving towards minimally invasive surgery and non-fusion but the outcomes still aren’t as good as with hips or knees. Opportunity breeds innovation.
Many of the products are relatively inexpensive to design and build and can be sold with good margins. Over the last few years, some of the regulatory hurdles have been eased- specifically with devices known as fusion cages. Since 1996- at least four companies completed clinical trials on cages and they made a great deal of money. Many other companies tried to do clinical trials but struggled with enrolling them- so no approvals. FDA down classified cages a couple years ago from Class 3 to Class 2, meaning that clinical studies are no longer required. Since then, there is a host of companies fighting for their piece of the pie and competition is fierce.
Artificial discs have been hot because the market started turning away from using cages as stand alone devices and the idea of maintain motion is appealing. Just like cages, the first disc companies getting through FDA trials were handsomely rewarded but later entrants have struggled with enrollment. These disc devices haven’t yet met expectations because it’s debatable whether or not they actually improve patient care, they introduce new risks- and they are expensive. Products like that are going to struggle in today’s health care environment.
One recent problem in spine is that many of the new technologies look very similar to one another. There was clearly a herd mentality surrounding artificial discs. Spine still has great potential but the products that will be successful must be differentiated, have clinical data showing they really do improve patient care- and ideally- save the health care system money. Minimus hits on all these fronts and that’s what compelled me to start the company.
What exactly is your proposed technique at Minimus Spine?
We’re working on a procedure for injecting ozone gas into a herniated spinal disc. There’s a stack of peer-reviewed literature about an inch thick that describes this technique. It’s being done every day in Europe, Asia and South America. The gas oxidizes the herniation and allows it to shrink in size, relieves pressure on the nerve and provides the patient relief from pain. Contrast that to steroids. Steroids address inflammation of the nerve but do not address the herniation. That’s why patients often have multiple injections and many go on to surgery. I believe Minimus can effectively treat patients with just one injection and reduce the number of patients that progress to surgery.
Why isn’t this available in the U.S?
The main reason that this isn’t available in the U.S. is because there is no regulatory approval. It takes a significant investment to go through the FDA and the technology has needed a better business model to justify that investment. We have the model figured out and once we go through the FDA process we would be the only injection treatment available- except for steroids which don’t’ work that well and don’t have FDA approval for spinal indications.
Our device is quite different from those being used overseas. We’ve been able to make improvements that should position us well with the FDA. Some of our angel investors are clinicians in Europe and the Middle East who are already using ozone. They feel that our patent-pending designs will revolutionize the existing market- particularly once we have FDA approval.
How long does the effect of your procedure last?
One of our surgeon advisors has been tracking a group of almost 100 patients he treated in 2002. In that group, only 15% of the patients went on surgery within 5 years, which is about half of those who receive steroids. Less than 2% were given a second injection, which is much better than steroids where the average is 2.5 injections per patient. If Minimus can cut the number of injections and the number of surgeries then we’re in great position because it’s better for patients and saves money.
Do you need a new code for reimbursement code for this procedure?
No, there’s an existing code we can use. There was a product released in the 1980s called chymopapain that was used in a manner similar to what we want to do with ozone. Chymopapain is an enzyme derived from the papaya plant. The product was hugely popular but there were a small number of well-publicized adverse events that caused the product to crash. Basically, the enzyme isn’t specific to the disc material. If it leaked out of the disc or was mistakenly injected into nerves, the enzyme could dissolve the nerve and leave the patient paralyzed. There were also some people who had an allergic reaction to the protein and died. Some clinicians still use chymopapain outside the U.S. but its not available here. Not that many doctors want to take the litigation risk. None of these problems have been reported with ozone.
Is there a patent on this technique?
They started injecting ozone into herniated discs in Italy over 15 years ago. It’s in the public domain. We have filed four patents on our product and believe that these patents will make it difficult for others to create a profitable product that can meet FDA standards.
The other aspect of intellectual property is the clinical data and regulatory approval. Some people have a misconception that once one company does a study and gets FDA approval, any future competitor can design a similar product and FDA will approve it without them having to do their own study. That’s just not true. Again, fusion cages are a prime example. It was over ten years between the first product to get regulatory approval and the eventual down classification. History has proven that the value of these approvals is great because it is always much more difficult to complete a study once there is already a product on the market. If you were a patient and Minimus had approval today, would you opt to take the FDA approved product or enroll in a study of another ozone product? Most patients will take the FDA approved product because there’s no need to take a risk on an unproven product. Likewise, most doctors will chose to use the FDA approved product because its not worth their time and energy to do an FDA clinical study. That generally holds true unless the new product is believed to be significantly better.
I’ve always said, patents are great but they are worthless if your product isn’t on the market. The spine industry changes so quickly, I believe there is just as much value in FDA approval and being early to market.
What is your background?
I went to Case Western Reserve University and then the University of Iowa for a Ph.D. in Biomedical Engineering. My dissertation was on spinal mechanics and I was fortunate enough to have Dr. Vijay Goel as my advisor and Dr. Jim Weinstein on my review committee. I spent three years in England setting up a biomechanics lab and evaluating patients after knee reconstruction. From there I came to Austin and took a position at Spinal Concepts in 1999. That was a fantastic entrepreneurial company and we did really well. When I got there, there were about 30 people and under $10M in sales. We built the company to about $80M in sales and sold to Abbott Labs in 2003. I left Abbott in 2006 and started this later in the year. Several of the physicians and executives I worked with at Spinal Concepts have invested money in Minimus and helped get the idea off the ground.
What was your primary job?
I was Abbott Spine’s VP of Emerging Technologies. In that capacity I was responsible for our Class 3 product development (non-fusion devices) and involved in identifying technology for potential acquisition or investment. I was the company’s liaison with FDA and responsible for designing clinical trials and preparing regulatory submissions. I worked with physician investigators around the country and had a team of engineers, research monitors and data managers to execute clinical trials and regulatory specialists to participate on design teams and prepare FDA submissions.
Why is there so much activity in the spinal area?
A great deal of money has been invested in spine because these patients need devices that improve their quality of life. The market is moving towards minimally invasive surgery and non-fusion but the outcomes still aren’t as good as with hips or knees. Opportunity breeds innovation.
Many of the products are relatively inexpensive to design and build and can be sold with good margins. Over the last few years, some of the regulatory hurdles have been eased- specifically with devices known as fusion cages. Since 1996- at least four companies completed clinical trials on cages and they made a great deal of money. Many other companies tried to do clinical trials but struggled with enrolling them- so no approvals. FDA down classified cages a couple years ago from Class 3 to Class 2, meaning that clinical studies are no longer required. Since then, there is a host of companies fighting for their piece of the pie and competition is fierce.
Artificial discs have been hot because the market started turning away from using cages as stand alone devices and the idea of maintain motion is appealing. Just like cages, the first disc companies getting through FDA trials were handsomely rewarded but later entrants have struggled with enrollment. These disc devices haven’t yet met expectations because it’s debatable whether or not they actually improve patient care, they introduce new risks- and they are expensive. Products like that are going to struggle in today’s health care environment.
One recent problem in spine is that many of the new technologies look very similar to one another. There was clearly a herd mentality surrounding artificial discs. Spine still has great potential but the products that will be successful must be differentiated, have clinical data showing they really do improve patient care- and ideally- save the health care system money. Minimus hits on all these fronts and that’s what compelled me to start the company.
What exactly is your proposed technique at Minimus Spine?
We’re working on a procedure for injecting ozone gas into a herniated spinal disc. There’s a stack of peer-reviewed literature about an inch thick that describes this technique. It’s being done every day in Europe, Asia and South America. The gas oxidizes the herniation and allows it to shrink in size, relieves pressure on the nerve and provides the patient relief from pain. Contrast that to steroids. Steroids address inflammation of the nerve but do not address the herniation. That’s why patients often have multiple injections and many go on to surgery. I believe Minimus can effectively treat patients with just one injection and reduce the number of patients that progress to surgery.
Why isn’t this available in the U.S?
The main reason that this isn’t available in the U.S. is because there is no regulatory approval. It takes a significant investment to go through the FDA and the technology has needed a better business model to justify that investment. We have the model figured out and once we go through the FDA process we would be the only injection treatment available- except for steroids which don’t’ work that well and don’t have FDA approval for spinal indications.
Our device is quite different from those being used overseas. We’ve been able to make improvements that should position us well with the FDA. Some of our angel investors are clinicians in Europe and the Middle East who are already using ozone. They feel that our patent-pending designs will revolutionize the existing market- particularly once we have FDA approval.
How long does the effect of your procedure last?
One of our surgeon advisors has been tracking a group of almost 100 patients he treated in 2002. In that group, only 15% of the patients went on surgery within 5 years, which is about half of those who receive steroids. Less than 2% were given a second injection, which is much better than steroids where the average is 2.5 injections per patient. If Minimus can cut the number of injections and the number of surgeries then we’re in great position because it’s better for patients and saves money.
Do you need a new code for reimbursement code for this procedure?
No, there’s an existing code we can use. There was a product released in the 1980s called chymopapain that was used in a manner similar to what we want to do with ozone. Chymopapain is an enzyme derived from the papaya plant. The product was hugely popular but there were a small number of well-publicized adverse events that caused the product to crash. Basically, the enzyme isn’t specific to the disc material. If it leaked out of the disc or was mistakenly injected into nerves, the enzyme could dissolve the nerve and leave the patient paralyzed. There were also some people who had an allergic reaction to the protein and died. Some clinicians still use chymopapain outside the U.S. but its not available here. Not that many doctors want to take the litigation risk. None of these problems have been reported with ozone.
Is there a patent on this technique?
They started injecting ozone into herniated discs in Italy over 15 years ago. It’s in the public domain. We have filed four patents on our product and believe that these patents will make it difficult for others to create a profitable product that can meet FDA standards.
The other aspect of intellectual property is the clinical data and regulatory approval. Some people have a misconception that once one company does a study and gets FDA approval, any future competitor can design a similar product and FDA will approve it without them having to do their own study. That’s just not true. Again, fusion cages are a prime example. It was over ten years between the first product to get regulatory approval and the eventual down classification. History has proven that the value of these approvals is great because it is always much more difficult to complete a study once there is already a product on the market. If you were a patient and Minimus had approval today, would you opt to take the FDA approved product or enroll in a study of another ozone product? Most patients will take the FDA approved product because there’s no need to take a risk on an unproven product. Likewise, most doctors will chose to use the FDA approved product because its not worth their time and energy to do an FDA clinical study. That generally holds true unless the new product is believed to be significantly better.
I’ve always said, patents are great but they are worthless if your product isn’t on the market. The spine industry changes so quickly, I believe there is just as much value in FDA approval and being early to market.
Wednesday, November 26, 2008
Henrik Johansson of Boundless Networks Talks about the Early Days
Boundless Network was recently named the second fastest growing company in Austin by Austin Business Journal and named the No 6 among “Best Places to Work” by the industry magazine The Counselor. I talked to Henrik Johansson, one of the founders and the COO of Boundless Network.
What does Boundless Network do?
We’re a technology-enabled services company that provide promotional products solutions to corporate customers.
What are you working on these days at Boundless Networks?
The first couple of years we were focused on growing almost exclusively through recruiting of industry salespeople and then helping those salespeople deliver value to their customers. We spent a lot of time and effort on developing a fully scalable back-office system that could handle our rapid expansion. Now we’ve evolved our technology platform to the point where it really delivers unique value to our customers, and that is increasingly starting to drive our growth .
What do you use on the backend?
We selected the Lombardi workflow product TeamWorks and have used it to streamline our supply chain and orders process. It is the foundation for the engine that is managing all the custom order needs and coordinating the activities in our supply chain. We also have invested heavily in Salesforce.com as our CRM and marketing engine and customized it to our industry. I have been impressed with Salesforce.com so far as they have really opened up their back end to external applications which have made it useful for so much more than just CRM.
Who funded you guys?
Initially we raised about a $1M from angel investors in town which converted into our Series A of $3 million from Austin Ventures and Silverton Partners. Later we raised $4M in Series B from those same firms. They have both been great partners to us. In an industry largely void of outside capital, having strong financial partners is a competitive advantage.
What did you do before Boundless Networks?
I co-founded my first startup Creditland in the Bay area in the late nineties. It was a lending marketplace and we partnered with many of the biggest banks in the US and provided them online credit approval capability. We used a heavy duty decision engine on the back end. After that I was recruited to another online financial services company in Austin called EverydayWealth. We built an online financial planning application, and grew quickly by signing up members through a network referral model.
You’re originally from Sweden. So how did you come to Austin?
I started as a management consultant with Andersen Consulting (now Accenture) in Stockholm, and got happily stuck here after a project in Dallas. I met my wife-to-be there and we moved to San Francisco where we stayed for about 6 years, before we decided to come back to Texas about 7 years ago, and then Austin was the only option. We love it here.
Best regards,
Hall T.
What does Boundless Network do?
We’re a technology-enabled services company that provide promotional products solutions to corporate customers.
What are you working on these days at Boundless Networks?
The first couple of years we were focused on growing almost exclusively through recruiting of industry salespeople and then helping those salespeople deliver value to their customers. We spent a lot of time and effort on developing a fully scalable back-office system that could handle our rapid expansion. Now we’ve evolved our technology platform to the point where it really delivers unique value to our customers, and that is increasingly starting to drive our growth .
What do you use on the backend?
We selected the Lombardi workflow product TeamWorks and have used it to streamline our supply chain and orders process. It is the foundation for the engine that is managing all the custom order needs and coordinating the activities in our supply chain. We also have invested heavily in Salesforce.com as our CRM and marketing engine and customized it to our industry. I have been impressed with Salesforce.com so far as they have really opened up their back end to external applications which have made it useful for so much more than just CRM.
Who funded you guys?
Initially we raised about a $1M from angel investors in town which converted into our Series A of $3 million from Austin Ventures and Silverton Partners. Later we raised $4M in Series B from those same firms. They have both been great partners to us. In an industry largely void of outside capital, having strong financial partners is a competitive advantage.
What did you do before Boundless Networks?
I co-founded my first startup Creditland in the Bay area in the late nineties. It was a lending marketplace and we partnered with many of the biggest banks in the US and provided them online credit approval capability. We used a heavy duty decision engine on the back end. After that I was recruited to another online financial services company in Austin called EverydayWealth. We built an online financial planning application, and grew quickly by signing up members through a network referral model.
You’re originally from Sweden. So how did you come to Austin?
I started as a management consultant with Andersen Consulting (now Accenture) in Stockholm, and got happily stuck here after a project in Dallas. I met my wife-to-be there and we moved to San Francisco where we stayed for about 6 years, before we decided to come back to Texas about 7 years ago, and then Austin was the only option. We love it here.
Best regards,
Hall T.
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