Jason Seats, managing director of the TechStars Cloud, says hundreds of companies applied to the program. In the end, TechStars choose 11 companies. All of them are from outside of San Antonio. Seats is not revealing the company names until April 6th at TechStars Cloud Demo Day.
Nicole Glaros, one of the founders of TechStars in Boulder, will also move to San Antonio for the 13-week program with her family. Seats says the program will serve as the catalyst San Antonio needs to ignite its high-tech startup community. All of the companies will be located at Geekdom, a collaborative workspace at the Weston Centre in downtown San Antonio.
Author: LauraLorek@gmail.com (Page 343 of 352)
LauraLorek@gmail.com
By SUSAN LAHEY
Special contributor to Silicon Hills News
CEO Rodney Gibbs calls it “a scrappy little startup.” But Ricochet Labs got on the radar fast with its social-mobile-knowledge based game, Qrank.
The company was barely in its alpha stage when the BBC called on Ricochet to create Qrank trivia games surrounding the wedding of Prince William and Kate Middleton to engage its audience. Esquire magazine listed Qrank among its “80 people, places and ideas that matter right now.” And the University of Texas used it to test knowledge retention. So imagine what will happen when the company really goes live in first quarter 2012.
“That’s when we’ll begin offering it for third party use for people who have some form of content who are struggling with how to engage people using a mobile device,” said Gibbs.
Considering that knowledge and trivia games have been around forever—Gibbs says it goes back to Socrates–it’s kind of amazing that Qrank has taken the world so by storm. On the other hand, maybe it’s not. Qrank–which Ricochet Labs calls a social-mobile, location-aware platform–is a knowledge based game you can play anywhere, any time against friends, acquaintances, or strangers, on Facebook, your mobile phone or the web. The game can be built around any kind of content. It can center on a place: on a topic like politics, the arts or pop culture, or it can mix it all up. You might get a question about where you can play Chicken Shit Bingo in Austin, with a question about a recently deceased dictator, another about who wrote Canterbury Tales and another about the founders of H&R Block tax company.
And it’s new every time you play it, which is a secret to its success. Ricochet prides itself on having 30-40 percent new content every time, much of it current events.
“You see it in your morning paper, and there it is on the game,” Gibbs said.
The company curates a Qrank game all its own but it has also worked with several alpha clients to create games around those clients’ content. Instead of just words or videos as a content medium, Qrank snags customers and potential customers, getting them competing against each other, rewarding them with a squirt of dopamine and a ranking among their peers. Ricochet plans, by early 2012, to roll out a scaleable version for companies that want a new way to engage customers, on down to individuals creating a game for Mom and Dad’s 25th wedding anniversary.
One of Qrank’s alpha clients was the Texas Tribune, whose Qrank game lets readers compete over Tribune knowledge. At the end of the month, the paper gives a prize to the ranking Qranker. In December, it’s an electric guitar. Analytics says 300-to-500 people finish the game every day. The numbers rise if you add in the players who don’t finish.
“Part of the mission of the Texas Tribune is to create a more informed, aware Texas population…and one way to do that is incentivize participation with fun and humor. That’s how the Daily Show (with Jon Stewart) works,” said Reeve Hamilton, the Tribune reporter who has taken on the job of creating the Tribune’s Qrank content.
As the official Qrank curator for the paper, Hamilton creates a dozen questions based on the news from the day before and posts them to the Tribune’s Qrank game. But he started as a Qrank player.
“Everyone in the capitol community was playing this game,” he said. “We were in internal competition with each other. My goal was to beat my boss. I always used to tweet my score…that’s a bit gauche.”
“I think it’s more and more the rise of nerd culture,” Hamilton said. “I don’t really follow sports. I follow random bits of knowledge.”
Bits of knowledge are going back the other way, too. Higinio Maycotte, founder of Umbel and many other Austin startups, said his company mines information about players to provide a clear picture of who the Tribune’s audience is.
“It takes a reporter five minutes to write a question about an article he’s working on and immediately create a ton of engagement with very little effort,” he said. “We can provide really rich data back to the publication… we can tell them everything about their readers…we can tell them what (the readers) eat.”
Gibbs has a background in studying people and engaging content. He has a degree in sociology from Rice University and a master’s in fine arts from UT. A Houston native, he worked for a Public Broadcasting System channel in Chicago and as a screenwriter for various television productions before joining Human Code (now Sapient) writing stories for games.
“I love the story telling,” he said. “You have all these characters and they can make different choices based on who they meet along the way…writing for games is a lot like writing for television with all these people sitting around coming up with ideas and creating the script.”
From Human Code he launched his own company, Fizz Factor, which made handheld games for the DS. His game titles included the Incredible Hulk, Spongebob Squarepants and the Tale of Despereaux. In 2004, Amaze Entertainment, looking to expand, set it sights on buying Fizz Factor and Gibbs worked as studio director. Then another technology caught his eye: the iPhone. He could see that the end was in sight for expensive, relatively static boxed games.
With his technical director at Fizz Factor, Michael Baird, he formed Ricochet Labs in 2009. They didn’t know, for awhile, what they meant to create. They liked the Foursquare idea, and knew they wanted a mobile game that was location based. And they knew they wanted something social and experiential. But what?
“We spent a lot of time talking to smart people,” Gibbs said. The company has four advisers with many credits to their names among them: Ross Fubini of Kapor Capital and Success Factors; Jason Goldman of Twitter and Google; Maycotte; Kip McClanahan of Silverton Partners and Tipping Point and Jason Reneau of Mindbites and Freemarkets. Baird and Gibbs traveled to the west coast to meet with those partners and talked to Maycotte and Reneau in Austin.
“We wanted to focus on a single solution,” Gibbs said. “These guys could talk to us about ‘Here’s what’s coming up, here’s what’s going on, this has been tried, people want that, here’s what’s working, here’s what’s not, here’s an opportunity….’”
One of his inspirations was the Alamo Drafthouse Theater which had created trivia games for its customers. The trouble was, the games were labor intensive to create and only changed about once a month. That frustrated die hard Alamo fans who visited the theater more frequently. The cofounders knew that constantly changing content was key.
When Gibbs and Baird settled on an idea, they bootstrapped it for a bit. They raised $400,000 in the seed round in spring of 2010 and are preparing to go for a series A round in early 2012. Austin, Gibbs said, is perfect soil for starting something new. Tech businesses support each other rather than scavenging talent.
“One of the things I love about Austin,” Gibbs said, “is with so much entrepreneurialism going on here there’s an acceptance of failure. There really is a culture of ‘fail faster.’ So if you try something and it doesn’t work you can just try something else. You can use half of this idea and half of that and that might work. Which is great because it’s hard to put things out whole.”
Maycotte, one of the company’s advisers, even recommended that they get some early successes going with Qrank before making the game widely available for other company’s content.
This spring, Gibbs said, one of the top three game publishers is releasing a major mobile quiz title and the BBC has a game coming out, both based on Qrank’s technology. They’ll be branded in some way connected with Ricochet Labs or Qrank.
So, for 400 points: “Which scrappy Austin startup based in a funky office under the gables of an old building looks like it’s about to take off?”
Apple declares San Antonio-based AirStrip Technologies’ cardiac patient monitoring app the best medical app for the iPhone.
The App Store editorial team selected AirStrip Technologies’ app as part of its App Store Rewind 2011, which collects the year’s top apps.
“This recognition from Apple is deeply gratifying and reinforces what clinicians across the country are saying about AirStrip CARDIOLOGY — that this is a game-changing application that is already saving lives,” AirStrip Technologies CEO Alan Portela said in a statement.
The free AirStrip Cardiology app is specially designed for clinicians to monitor patients remotely. It allows them to receive ECG data on their iPad or iPhone.
The Federal Drug Administration has approved AirStrip’s patient monitoring app and its Airstrip OB app, which allows physicians to remotely monitor pregnant women during labor.
This time, Appconomy has landed $10 million in a first round venture debt funding deal designed to accelerate its operations in China.
Appconomy has created a merchant payment system called AppWallet and offers an app for smartphones, tablets and feature phones. The company has a Chinese corporate headquarters in Shanghai and a development center in Chengdu, Sichuan province. Its U.S. headquarters is in Austin.
Qiming Venture, based in Shanghai, led the round and its managing director Gary Rieschel will take a seat on the company’s board of directors. Neusoft Corp. also took a stake along with existing investors Western Technology Investment and True Ventures.
“With these two, new cornerstone commitments from Qiming and Neusoft, Appconomy will move rapidly to bring our unique AppWallet marketplace for global brands and local merchants to China,” Steve Papermaster, Chairman and co-CEO of Appconomy, said in a statement.
By SUSAN LAHEY
Special contributor to Silicon Hills News
Left: Larry Wikelius, cofounder, vp software engineering Right: David Borland, cofounder vp hardware engineering
Existing data centers–often giant buildings filled with servers that store, analyze and process information for individual companies, the internet and cloud computing systems–pump out tremendous amounts of heat but require cooling to protect the data. Globally they consumed 31 gigawatts of energy last year—roughly the same amount as New York City consumed on its highest peak day back in 2006. Evans’ idea is to switch from giant, sweaty workhorse servers to small, efficient servers on tiny batteries.
At first people tell him he’s crazy. Not only that, but the recession causes all venture capital funds to dry up for early startups and it looks like Evans has a much longer row to hoe than he anticipated. But he and his partners continue to experiment with the idea and two years later, recession or not, his company raises $48 million in venture financing—a huge sum for a startup that doesn’t intend to manufacture its own product. A year after that Calxeda announces who will be handling the server side of its venture: server giant Hewlett Packard.
“Companies were building data centers by rivers, in Finland…everybody was working to solve the issues around the problem but nobody was working to solve the problem,” said Larry Wikelius, Calxeda cofounder and vice president of software engineering . “This is the first time somebody said, ‘We can take power out of the equation.’”
Evans is a 20-year veteran of the semiconductor industry who started Calxeda after leaving his position as vice president and general manager of Marvell’s Application Processing Business Unit in the Cellular and Handheld Group (acquired from Intel). He spent a year talking to end users about using a mobile-type power source for servers, one that would only require a tenth the energy of existing servers and would work better with servers fluctuating energy needs.
His first partners were his cofounders, Wikelius and David Borland, vice president of hardware engineering. The company planned to model the chip somewhat after those being produced by British mobile chip manufacturer, ARM, and made several attempts before figuring out how to do it. It was crucial to the founders to create a solution that could be plugged into existing data centers without major overhauls, Wikelius said.
“Too many companies say ‘If you just remove your software and change all your infrastructure we have a great product for you,’” he said. “We support standards so it’s easy to plug in to the existing infrastructure.”
But it’s not exactly plug and play, according to Fichera.
“ If you mean recompile, reload and it works fine, with some applications it works that way,” he said. “Others will have to be completely recoded.”
Still, Borland said, finding the simplest solution is part of Calxeda culture. “Calxeda is a loose Latin translation of the name we started with—Smooth Stone. “ In the David and Goliath story, he points out, when everybody else despaired in the face of a big problem, David applied the simplest answer, a smooth stone.
“We’re not interested in science projects, ideas that make you say ‘That’s really cool, but how do you apply it” Wikelius said.
Finding the simplest solution, however, has required building a complex network of partners who can speak to all the development issues. And that, too, has become part of Calxeda’s culture. The company has a dozen or so partners it talks about in its Trailblazer initiative. But it has many more it doesn’t talk about. One it has connected with is Pervasive Data Rush, a big data solution of Pervasive Software.
“Calxeda and Pervasive have a shared interest in providing solutions for one of the key challenges of IT today – the economics and energy consumption of data centers,” said David Inbar, senior director of sales and marketing of Pervasive Big Data Products and Solutions. “The problem is, typically only 15 to 30 percent of processor capacity is being utilized at any given time. The rest of the capacity is idle, but still burning energy. Pervasive DataRush technology gives people the ability to build programs that run in parallel, taking full advantage of processors to get lower costs and better energy efficiency.”
That’s the kind of problem Calxeda’s been hashing over with its partners to make sure its solutions work. The founders were deliberate about the order in which they moved forward, building the company for three years before announcing its server partner. They kept their options open as long as they could, Wikelius said, because things change fast in this industry and you may have knowledge and information next year that’s missing this year.
When it did finally announce its server manufacturing partner November first, it put the little Austin startup in a whole new class. To come out of the gate with the most prominent dance partner on the floor sets the company well ahead of competitors.
And it does have competitors. Other companies in the game include Applied Micro which has an intermediate level ARM based chip for servers. But, said Fichera, Calxeda’s offering a lot of different pieces of the architecture on one server which sets them ahead in reducing the footprint and the need for power. Calxeda has other advantages. One was Evan’s experience in the mobile space. Another, Wikelius said, was the company’s intense focus on producing this product for internet and cloud server industries. Big companies couldn’t afford such focus. And finally, Evans said: “You just have to go faster than everybody else.”
Teaming up with HP puts Calxeda on a new playing field. HPs new servers will be called Redstone. They’ll take up a fraction of the space a rack of servers formerly required and will share resources. As a Wall Street Journal story put it they will “sip energy lightly.” HP announced that a typical server project of 400 servers in 10 racks would cost $3.3 million to purchase, install and operate. Redstone runs four times as many servers in half of one rack and draws a tenth the energy, dropping the price to $1.2 million.
In the near future, Fichera said, the impact of Calxeda’s work will be seen more in the transformation of the way the industry thinks about data centers, rather than in big profits. After a few years, however, it’s likely to be lucrative niche.
In the meantime, Calxeda and its partners are thoroughly enjoying themselves. The variety of working with all these partners makes Calxeda a fascinating ecosystem.
“There are a bunch of people who would never work for the same company in our partnerships, it makes a whole ecosystem,” Borland said. “It makes us much more than a chip provider.”
From the partner perspective, Inbar said, “it’s fun (working with Calxeda). We share a lot of culture.”
The partnerships work for a couple reasons. For one, Wikelius said, Calxeda is very transparent with partners and employees. For another, they’ve created a culture that invites people to rethink everything. Just because a server has always been a giant box and a small chip runs mobile phones doesn’t mean it has to stay that way.
Working in that environment, with these people is Evans’ favorite part.
“I love it,” he said. “I’m enjoying the ride.”
A bit of good news this week for San Antonio from the Milken Institute. San Antonio tops the list of best performing cities in 2011 out of 200 metropolitan areas surveyed. You can read more about it in Jennifer Hiller’s story in the San Antonio Express-News. Austin ranked fourth. But Austin continues to pump out most of the local tech news. San Antonio needs to attract more technology startups and venture funding.
And on that note, the Texas Entrepreneur Network put out a report this week that showed Austin dominates when it comes to startups receiving venture capital funding, according to this story by Lori Hawkins in the Austin American-Statesman.
More good news for Austin on the venture capital front. Texas Tech Pulse reports that Dell is launching a venture capital arm.
This story makes me want to sing “Why can’t we be friend, why can’t we be friends?” Samsung’s 1.6 million square foot nearly $4 billion memory chip factory in Austin is making the guts of the iPhone 4s and iPad 2. The Daily Tech has an interesting story on how Apple and Samsung are embroiled in a lawsuit and yet Samsung continues to pump out parts for Apple’s flagship products.
Got a bunch of snail mail that you wish you could put onto your tablet computer to sort through? No? Me neither. But a couple of entrepreneurs think it’s a problem and some venture capitalists agree with them. So Austin-based Outbox has landed $2.2 million to digitize all the stuff that comes into your mailbox and Lori Hawkins of the Austin-American Statesman has got the scoop.
Another California company relocated to Austin. This time it’s a manufacturer, Superconductor Technologies is relocating its corporate headquarters and opening up a plant in Austin.
And Bryan Mennel at AustinStartup has a post about 10 startups to watch in 2012 which includes InfoChimps, Appconomy, BlackLocus, Sparefoot, Mass Relevance and Famigo.
The Austin Post’s Scott Leighton reports on Austin-based Cinsay’s acquisition of LaunchFish of Dallas.
Rackspace’s CEO Lanham Napier was on the move last week. He travelled to Washington, D.C. to meet with Rep. Lamar Smith, R-Texas, who authored the Stop Online Piracy Act, known as SOPA. The bill has many supporters who say it protects copyright online and many critics who say that it threatens to bog down Internet Service Providers with costly regulations. Politico had a story on the legislation and mentioned Napier’s visit. Napier also visited CNBC to talk about the company’s growth during the past few years.
Nick Longo, head of Geekdom, a co-working and collaboration space at the Weston Centre in downtown San Antonio, created this video to provide insight into the mission of the nonprofit organization.
Geekdom opened a few months ago and has held three Startup Ignite Hackathon events along with a 3 Day Startup San Antonio Weekend and TechStars Cloud for a day. It will also host the companies selected to participate in the inaugural TechStars Cloud program. Already companies like Zippy Kid and Alan Weinkrantz Public Relations have offices there.
Geekdom from The IMG Studio on Vimeo.
On the small screen, current TV shows like Terra Nova, a sci-fi drama and Hawaii Five-O also use the software.
Although NewTek is far from Hollywood, the San Antonio-based company is often an integral part of any movie or television show using computerized special effects. And that means the privately-held company is booming.
NewTek now occupies two buildings on San Antonio’s Northside with 120 local employees and 250 overall. It’s doubled in size since Tim Jenison, a pioneer of desktop video, moved the company to San Antonio in 1997 from Topeka, Kansas, where he founded it in 1985.
“2012 will be the biggest year in NewTek’s history,” said Jim Plant, its president and chief executive officer.
And the growth isn’t just coming from NewTek’s software. It manufactures the NewTek Tricaster, a 42-pound portable production system that fits into a backpack and allows anyone to produce broadcast-quality video from remote locations.
The Tricaster appeals to a wide array of customers from the National Basketball Association to production professionals, entrepreneurs, journalists and corporations.
Heng Dai Media, producing Music City Roots, has a TriCaster-equipped RV to travel the country and stream concerts live. Technology reporter Leo Laporte at Twit.TV has recently expanded his Tricaster-based studio.
NewTek has a long history of bringing video to the masses.
NewTek’s flagship product was the Video Toaster, released in 1990 for the Commodore Amiga computer. The product officially went away with the demise of the Commodore in 1994.
But occasionally a NewTek customer sends one in for repair, Plant said.
“People held on to them for a long, long time,” he said.
With the demise of the Video Toaster, NewTek poured all of its energy into developing and selling Lightwave, a special effects software program aimed at television shows and moviemakers. That product drove NewTek’s bottom line for a long time, Plant said.
“We made Lightwave work on everything,” said Donetta Colboch, director of public relations, who has been with the company for more than 20 years.
“The 3-D market was lot different back then,” Plant said. “People had to spend $20,000 to $30,000 for the software and another half a million for a refrigerator-sized computer to run it on.”
NewTek’s mission was and is to make video production affordable and easy, Plant said.
“It’s not hyperbole to say that Lightwave and the Video Toaster changed the entire industry,” he said.
NewTek created the next generation of the Video Toaster based on a personal computer platform and released it in 2001.
And in 2005, NewTek launched the first Tricaster.
“That’s really been the rocket booster that has propelled us through the years,” Plant said.
Schools and colleges also use the Tricaster to cover live events. Brands like the NBA use it along with media companies, entrepreneurs, companies and nonprofit organizations. Individuals like Dick Van Dyke and Adam Carolla have Tricasters to produce their own shows.
“Anybody can start a television studio,” Plant said. “Live production is accessible and doable like never before.”
NewTek is even working with Yoko Ono and the John Lennon Tour Bus to take the Tricaster on the road next year, said Philip Nelson, NewTek’s senior vice president of strategic development.
And every year NewTek holds a contest for high school students to cover the Alamo Bowl. It selects four students to produce the event live using its Tricaster.
“It’s like Willy Wonka’s golden ticket,” Plant said.
Nelson recounts how NewTek’s Founder Jenison was quoted a long time ago saying “In the next 20 years, your favorite TV show will be made by you or someone you know.” That day has arrived and Tricaster makes it possible, Nelson said.
With the Videotoaster, NewTek aimed to democratize media through video tapes. NewTek sent out more than 300,000 copies of its “Revolution” video in the early 1990s, Donetta Colboch said.
“On the average each of those copies was seen by seven additional people,” she said. Then along came the Internet and everything moved from video tapes to digital production online.
Donetta Colboch, director of public relations for NewTek, gives a tour of the San Antonio-based company’s office. The privately held company makes Lightwave 3D software that TV and movie makers use. The software was used in Avatar, Titanic, Monsters Inc. and dozens of other movies. NewTek also makes a portable production studio called a Tricaster that makes broadcast-quality production more affordable and accessible to the masses.
We’ll publish a story later on today interviewing Jim Plant, NewTek’s president, about the company’s growth and its outlook for 2012.
Susan Strausberg knows how to dig into financial information and make it accessible to the masses.
She founded Edgar Online in 1995, grew the company to 200 employees, took it public in 1999 and then left in 2007 to pursue other passions.
Two years ago, Strausberg and her husband, Marc, moved from New York to Austin and created a startup called 9W Search, a sophisticated financial search engine primarily for mobile users.
“We’re enabling a huge underserved market to access financial information in the easiest possible way,” Strausberg said during a recent interview and meeting at Lola Savannah coffeehouse in Austin. 9W provides key company information, five years of financial data, people information for each company, a live stock quote as well as footnotes to financial statements.
To illustrate the ease of use, Strausberg showed off 9W Search’s capabilities on her iPad. She compared the financial results of three companies: Rackspace, Dell and IBM. 9W Search’s database contains information on approximately 12,000 US public companies. The tool gave real-time financial results in an easy to understand format. It culled and compiled data like revenue per employee, market capitalization, share price, earnings and more.
What differentiates 9W Search from other financial search engines is its ability to pull select metrics that Strausberg has deemed extremely valuable from vast and incomprehensible amounts of online data. She has selected the metrics based on her years of experience in working with financial data.
9W Search has the ability to sort through all the data because of a new data standard, extensible Business Reporting Language, known as XBRL. The U.S. Securities and Exchange Commission has mandated that companies provide financial statement information in this format which vastly improves the transparency of reported data. Strausberg’s former company, EDGAR Online, played a key role in making the data interactive by creating “sets of definitions, or taxonomies, to enable the automatic extraction and exchange of data. Interactive data taxonomies can be applied — much like bar codes are applied to merchandise — to allow computers to recognize that data and feed it into analytical tools,” according to the SEC.
“Most financial information companies have hand-keyed their data.,” Strausberg said. “This new technology changes the way we can take data and turn it into actionable information.”
That’s the sweet spot for 9W Search.
“9W Search identifies a manageable set of key financial items from the thousands of different data points that are important in accessing a company’s financial picture,” Strausberg said. “We democratize access to financial information and make it usable for the average person.”
Who wants access to this information?
“People who need to see a picture of the market at given moment in time, ” Strausberg said.
Sales people, potential employees researching a company, students, companies, analysts, private
wealth managers, individuals, nonprofit organizations, real estate agents, anyone who needs to
do financial research, she said.
“Data equals information, equals knowledge, equals power,” Strausberg said. “If anything, there is too much data, she said. “It’s difficult to do competitive analysis and complete research easily with most financial search sites. 9W Search culls the gems from the ocean of data and arms our users with actionable information.”
And what exactly does 9W Search mean? It’s an old Vaudeville joke, Strausberg said.
Here’s a version:
“9W is the answer to a question.What is the question?”
Q: “Herr Wagner, does your name begin with a V?”
A: “Nein, W!”
9W Search has four employees currently and is seeking $600,000 in funding to further develop and market its product, Strausberg said. The company has a pilot test of the search engine available on its website. 9W Search plans to first provide a free version and subsequently charge for later releases.