Category: Austin (Page 105 of 317)

NarrativeDX Raises Venture Capital for its Artificial Intelligence Platform Aimed at Healthcare Providers


NarrativeDX, an artificial intelligence platform that lets healthcare providers communicate with patients, announced Tuesday it has raised a round of funding.

The Austin-based startup, founded in 2014, didn’t reveal the funding amount but reported it was led by LiveOak Venture Partners, Cultivation Capital and HealthX Ventures.

Last year, in a profile on the company by Silicon Hills News, NarrativeDX officials reported they raised $1.35 million from angel investors, LiveOak Venture Partners and Capital Factory. And that the company planned to raise a $3 million Series A. The company also participated in the DreamIt Health accelerator in Philadelphia and received $50,000 in 2014.

NarrativeDX plans to use the latest round of funding to fuel growth of its natural language processing technology and artificial intelligence platform. The company collects and analyzes patient feedback and provides the data to hospitals and other healthcare providers in real time.

“We are using AI to improve healthcare experience in a way that has never been done before,” Kyle Robertson, founder and CEO of NarrativeDX, said in a news release. “Our partners have been eager to leverage our technology to better understand their patients’ experiences. The demand we are seeing is phenomenal, and we are on track to increase our client base ten times in 2017.”

In 2014, Robertson founded the company with Senem Guney.

“As a seed round investors, we are excited to follow-on our initial confidence in the NarrativeDx team by leading this Series A round,” Ben Scott, general partner of LiveOak Venture Partners, said in a news release. “With the best technical team in the industry, we strongly believe in their approach and are convinced that NarrativeDx has the ability to positively transform the patient experience and quickly boost hospital reputations.”

eRelevance Lands $5.1 Million in Venture Funding to Expand its Marketing Platform Aimed at Small Businesses

Bob Fabbio, co-founder and CEO of eRelevance Corp., courtesy photo.

Austin-based eRelevance Corp, which makes a marketing platform for small to medium sized businesses to engage customers, Tuesday announced it has closed a $5.1 million round of funding.

The company, founded in 2013, plans to use the funds to accelerate its growth by hiring more sales and marketing staff and to further develop its marketing platform aimed at small to medium sized businesses.

Rally Ventures, based in Silicon Valley, led the round with other existing investors Chicago Ventures, Miramar Venture Partners, Martin Investment Holdings and Capital Factory. To date, eRelevance has raised $13.7 million.

For 2016, eRelevance saw 444 percent revenue growth from 2015, ending the year with nearly $4 million in revenue. This year, the company is on track to surpass $10 million in revenue, said Bob Fabbio, eRelevance co-founder and CEO.

The company is seeing tremendous growth for its marketing platform with more than 900 customers primarily in the healthcare industry targeting plastic surgeons, medical spas and others. eRelevance focuses on helping those businesses generate more repeat business from their existing customers, Fabbio said.

“We bring very sophisticated marketing down to the small business market in a form factor and a price point they can afford,” Fabbio said.

Today, thousands of tech tools and marketing programs exist aimed at small to medium sized businesses. What sets eRelevance apart is its proprietary platform takes a conversational approach to marketing healthcare services to existing patients.

“In our world, our competition is MailChimp and Constant Contact and we’re displacing those kinds of software tools daily,” Fabbio said.

eRelevance’s marketing platform uses data mining, analytics and targeted content to reach customers in a variety of digital ways, Fabbio said. On average, eRelevance is generating five times return on investment for its customers every month, he said.

“What we do is we go into businesses and we help them find more business from their existing customers,” Fabbio said. “It takes the effort off their shoulders of doing very sophisticated marketing.”

eRelevance moves them from a service beyond simple email blasting to a sophisticated approach to their markets by picking and selecting particular needs and interests of their customers and then engaging them through email, texting, web and social media, Fabbio said.

eRelevance has 58 employees today and plans to be at 80 employees by the end of the year, Fabbio said.

“Later this year, we’ll move outside of healthcare and move into other verticals,” Fabbio said.

Silicon Hills News Launches on Patreon

By LAURA LOREK
Reporter with Silicon Hills News

Plato said: “Those who tell the stories rule society.”

That is why fake news is so harmful to everyone.

At Silicon Hills News, the news is real.

For the past six and a half years, I’ve worked without a paycheck to bring technology news to the people of Central Texas. Although we started with a $12,000 grant from New Media Women’s Entrepreneurs, we have not received outside funding other than sponsorship and advertising dollars. And it’s not for trying. We’ve applied for Knight Foundation grants, International Women’s Media Foundation grants and other programs. I’ve pitched to partners, angel investors and others. Advertising and sponsorships have been difficult to come by as a bootstrapped entrepreneur who is not only running the business side of Silicon Hills News, but also attends events, writes stories, handles social media, produces the newsletter, the podcast and manages freelance contributions, events and our annual technology calendar.

Austin and San Antonio have grown as technology centers tremendously since 2011 when Silicon Hills News launched. Our site has grown to more than 40,000 unique visitors, 20,000 social media followers, 2,000 email newsletter subscribers and now thousands of podcast downloads. In that time, Silicon Hills News has launched and run three successful Kickstarter campaigns. We’ve created six editions of a 32-page print magazine. We’ve created four annual tech calendars – three for Austin and one for San Antonio. We’ve also launched a failed TV show called Slice of Silicon Hills News. And we’ve launched a successful podcast called Ideas to Invoices. We reach a global audience. Texas is our top market, followed by California, Washington, Virginia, New York, Florida, Colorado, Boston and Illinois. And while most of our traffic comes from the U.S., our second top market is the United Kingdom, followed by India, Canada, Australia, Ireland, Japan, and Germany.

Now we’re launching on Patreon, it’s a site for creators, and we need your support. All we are asking is for you to pledge just $1 a month or $12 a year to Silicon Hills News so we can continue to produce original content for the Central Texas technology community. And you’ll feel good knowing that money is staying right here in Central Texas and is being poured back into the startup community producing quality news coverage.

What are you waiting for? Please pledge today! Our goal is to get 1,000 backers so we can be around for a long, long time just like the startups we cover. And if you ever want to get in touch with me, please send me an email or call. I’m happy to meet you for coffee in a place that provides free parking. 😊

A version of this article originally appeared on Medium.

IT Security Company Lepide Selects Austin for its Global Headquarters

Aidan Simister, CEO of Lepide, courtesy photo.

Lepide announced Wednesday that it has selected Austin for the site of its new global headquarters.

The company, founded in 2005, also has offices in London and New Delhi and employs 236 people worldwide. It expects to have more than 50 people in its Austin office located at 600 Congress Avenue within the next 18 months, according to a news release.

The company chose Austin after it experienced a 76 percent rise in U.S. sales during the past year. The company makes IT security software products. Its software tracks changes in IT systems and monitors access and file permissions through a consolidated dashboard that provides critical oversight to files and folders in a network. The company caters to mid to large companies in the healthcare, insurance, finance, legal, education and government industries.

It also chose Austin for its talent, location and innovative entrepreneurial culture, according to a news release. And its growing cluster of tech companies that provide IT security services complementary to Lepide.

“We felt a real synergy between our ambitious growth plans and the Austin business culture,” Aidan Simister, CEO of Lepide, said in a news release. “We specifically wanted somewhere where there was a continuous flow of top IT talent coming from local universities like the University of Texas.”

And Austin’s central time zone location made it easy for Lepide to serve its growing base of U.S. clients, Simister said.

“The world becomes alarmed when a large data breach occurs at a large retailer or bank, as it rightly should,” Simister said. “But what’s rarely discussed is that much greater financial harm to companies and their customers actually occurs from within a company through problems like privilege abuse, poor visibility to file modifications and unchecked changes to permissions. Some of the very holes in an organization’s security ultimately exploited by nefarious hacking entities are themselves caused by poor oversight into insider IT activities.”

Lepide’s software and dashboard allow for constant monitoring of IT systems. Its customers include Moody’s, Bank of the West and the New York Mets.

EverlyWell Lands $2 Million More in VC Funding

Julia Cheek, founder and CEO of EverlyWell, courtesy photo.

EverlyWell, the Austin-based healthcare testing platform, announced Wednesday that it has received $2 million more in venture capital funding.

The company, founded two years ago by Julia Cheek, the company’s CEO, has received $5 million in total funding.

NextGen Venture Partners led the round with participation from Jack Novak, SoGal Ventures, Full Tilt Capital and other venture capital funds.

The company has already surpassed $1 million in revenue, according to the company. It now has 15 employees and serves customers in 46 states. The company makes and sells at 12 home lab testing kits for sexual health, thyroid, metabolism, men’s health, and breast milk DHA testing, which the company is the exclusive provider of in the U.S.

EverlyWell plans to use the latest funds raised to expand and enhance its product line, hire key executives, most recent round of funding will help the company expand its suite of tests, hire key leadership positions and launch new partnerships.

“Our vision is to make healthcare services like lab testing accessible, simple, and meaningful for consumers. This additional funding enables us to accelerate our growth even more,” Cheek said in a news release. “We’re leading a major shift in the consumer health marketplace by bringing the lab to consumers’ doorsteps, and we are moving quickly to expand our channels, launch innovative tests, and deliver a world-class customer experience.”

Cheek is one of a few women-led startups that have received venture capital funding locally. Also, digital health companies with a female CEO received just 9 percent of total digital health funding in 2016, according to the company.

“Amid uncertainty in the healthcare landscape, people are taking control and becoming proactive and informed healthcare consumers. Julia Cheek and EverlyWell have reimagined the lab testing experience – providing customers an affordable, convenient, personalized solution – without having to navigate a complicated healthcare system,” EverlyWell investor Lisa Cuesta, Vice President at NextGen Venture Partners, said in a news release. “EverlyWell distinguishes itself as a reliable brand that customers can trust to deliver high-quality, consistent service so they can feel more confident making decisions about their health and wellness.”

Bitfusion Lands $5 Million in VC Funding

Bitfusion, an Austin-based startup, announced Tuesday that it has received $5 million in venture capital funding.

Vanedge Capital led the Series A round with participation from new investor Sierra Ventures and existing investors Data Collective, Resonant VC and Geekdom Fund.

Bitfusion, which participated in the 2015 Techstars Cloud program in San Antonio, makes specialized software that brings supercomputing performance to a variety of hardware devices to allow them to run any kind of application.

In addition to the funding, Bitfusion announced the beta availability of its software, Bitfusion Flex. The software lets artificial intelligence developers work quicker and more efficiently by scaling and sharing on-demand compute power.

Bitfusion co-founder and CEO Subbu Ram, courtesy photo.

“The promise of AI and deep learning is immense, but in practice, leveraging GPUs, FPGAs and other compute architectures for performance presents huge challenges for AI developers,” Subbu Rama, co-founder and CEO of Bitfusion said in a news release. “By providing an end-to-end solution focused on the unique needs around AI development and deployment, we are enabling companies to leverage these efficient architectures with very little effort. This massively accelerates time to business value for AI initiatives.”

Bitfusion raised a seed stage round of $1.45 million in 2015. The company also has offices in Silicon Valley.

CTAN is the Most Active Angel Network in the Country

The Central Texas Angel Network, known as CTAN, is once again one of the most active angel investment networks in the country, by number of deals done in 2016, according to the 2016 HALO report.

The Angel Resource Institute, along with PitchBook, released the annual report last week.

In 2016, the most active angel groups included CTAN, Houston Angel Network, Hyde Park Angel Network, Alliance of Angels, Launchpad Venture Group, New York Angels, Blu Venture Investors, RTP Capital, Queen City Angels and St. Louis Arch Angels, according to the HALO report.

“CTAN’s position in the ARI national rankings reflects the intense time and effort our members commit to startups,” Claire England, Executive Director of Central Texas Angel Network, said in a news release. “Beyond increased funding levels, we saw record investor participation in 2016, with a 40% growth in the number of members writing checks.”

CTAN, a nonprofit organization with more than 160 accredited investor members, reported its members invested $14.2 million into 43 companies last year.

CTAN also made the HALO list of the most active angel networks in 2015.

Overall, in 2016, direct investments reported from U.S. angel groups more than doubled from 2015, according to the HALO report.

The report identified the trend of pre-money, early stage valuations declined from $4.6 million in 2015 to $3.7 million last year.

“The median round size for deals where angel groups co-invest with other investors in first round deals dropped to $950,000 from $1.6 million,” according to the report. “Median deal size from angel groups reached $127,000.”

In 2016, follow on funding accounted for 50.4 percent of deals funded by angel groups, according to the HALO report.

Texas, California, the Northeast and Southeast are the regions where new deals outpaced follow on rounds, according to Tony Knauss, co-chairman of the research committee for the Angel Resource Institute.

California accounted for 30 percent of all angel funded early-stage deals in 2016, followed by the Southeast, New York and the Northeast, all at about 10 percent, according to the report. Texas accounted for 5.4 percent of all angel deals.

Most of the deals were in the software industry with 34.3 percent, followed by healthcare with 17.3 percent, business to business with 13 percent, Internet and mobile at 11.2 percent and business to consumer at 10.3 percent.

Overall, male founders represented the bulk of funded deals with 58 percent led or founded by white male entrepreneurs, according to the HALO report, followed by 25 percent of deals led or founded by minority male entrepreneurs and 14 percent of deals led or founded by white female entrepreneurs and 3 percent of deals led or founded by minority female entrepreneurs, according to the report.

In Texas, investors wrote checks to male entrepreneurs 85 percent of the time, according to the report.

FemtoMedical, Coffee Roasting Tech and GenXComm Present at UT Austin’s StARTup Studio

The team at GenXComm, a spin out of UT Austin, courtesy photo.

By LAURA LOREK
Publisher and reporter with Silicon Hills News

The latest presentations at the Innovation Center’s monthly StARTup Studio at the University of Texas at Austin show the variety of problems professor led startups are tackling.

They included an acoustic monitoring technology to improve coffee roasting, a handheld laser device to shape bones and a wireless communications company with technology that doubles the world’s available frequency spectrum.

The innovation Center hosts the monthly invitation-only meetings at the Ernest Cockrell Jr. Hall in the Cockrell School of Engineering to showcase the latest professor led startups commercializing technology at UT Austin. The Austin Chamber of Commerce sponsors the events along with the UT Office of Technology Commercialization, the Innovation Center and WeWork.

At the event, Bob Metcalfe, inventor of Ethernet, professor of Innovation at UT Austin and director of the Innovation Center, mentioned that there are two UT Austin teams entered in Elon Musk’s Hyperloop competition.

“Unlike any other university in the country, we have two teams in this competition,” Metcalfe said.

Musk created the competition to get teams to create pods to transport people on a hyperloop at speeds of more than 700 miles per hour. The pods levitate on the track and travel using magnetic technology and kinetic energy through a high compression tube.

Next Wednesday, the UT Cockrell School of Engineering and the Innovation Center will host an event featuring presentations from the two student led engineering teams: 512Hyperloop and TexasGuadaloop. The competition is this summer in California.

The Innovation Center also supports the Longhorn Startup Demo Day which takes place next Thursday, May 4th from 5 p.m. to 9 p.m.at the LBJ Auditorium, Metcalfe said. It features student-led startups pitching their companies before a live audience.

The Innovation Center also runs an entrepreneurial advisory program in which it matches experienced professionals with professors to help them with their startups, said Louise Epstein, managing director of the Innovation Center.

“We’re always looking for new, experienced entrepreneurs who want to help our companies,” she said.

At the latest StARTup Studio, Mechanical Engineering Professor Adela Ben-Yakar presented FemtoMedical, which created a platform for making laser based surgical tools. At the event, she showed a medical device for arthroscopic bone reshaping using lasers to remove tissue.

“Ultrashort laser pulses have been shown to ablate both hard and soft tissues precisely, with no or minimal thermal damage to the surrounding tissue,” according to her presentation.

Next up, Mechanical Engineering Professor Preston Wilson presented technology for the acoustic monitoring of coffee roasting by analyzing the sound profile produced by the beans.

“During the roast, beans produce two audible cracks that determine the roast flavor and intensity,” according to the presentation. “A microphone records the cracks, and the control system software changes the roasting chamber temperature accordingly. Improved quality control leads to increased customer satisfaction and less wasted batches from over-roasting. Monitoring the roast using time or temperature is the current industry practice, but these methods are not true indications of the roast intensity.”

The last company to present was GenXComm, led by Electrical and Computer Engineering Professor Sriram Vishwawath. He was not able to attend the event, but his cofounders Hardik Jain and Stephen Gartside did. Founded in 2016, GenXComm is “bringing to market reliable, scalable full duplex or the ability to simultaneously transmit and receive in the same channel. This new powerful technology doubles the usage of the world’s available frequency spectrum,” according to the presentation.

GenXComm, earlier in April, closed on its first round of venture capital financing. It did not disclosed details of the funding.

Techstars Austin 2017 Demo Day Spotlights 10 Startups

Rohan Mathur, Guy Goldstein and Josh Ullman with WriterDuet

By LAURA LOREK
Publisher and Reporter at Silicon Hills News

At South by Southwest, Guy Goldstein came up with the idea for WriterDuet when meeting with screenwriters and filmmakers.

Goldstein created a platform, similar to Google Docs, to allow writers to collaborate on projects. Today, WriterDuet has more than 25,000 monthly users with 2,000 new members joining every week. The Austin-based company also recently branched out to new international markets like China.

WriterDuet was one of ten companies that pitched their ventures during the 88th Techstars Demo Day held in Austin at the Palm Door on Thursday.

“I think this class is phenomenal and dare I say it, I think the best Austin class that has been assembled,” said Jason Seats, now managing partner of Techstars and in charge of its venture investments.

In 2013, Seats founded the Techstars Austin Accelerator program. Amos Schwartzfarb, a mentor and serial entrepreneur, took over as managing director in 2015.

David Brown, one of Techstars cofounders

Overall, Techstars, founded in Boulder, Colorado in 2006, runs 30 accelerator programs worldwide, a venture capital fund and an enormous global network of mentors and business partners, said David Brown, one of its co-founders who attended the Techstars Austin event. It receives more than 18,000 applications annually for 300 spots in its programs, he said.

The 2017 Techstars Austin program included four international companies from France, Canada, Uruguay and Colombia. It also had companies in the U.S. from Texas, Arizona, California and North Carolina.

“Today is a celebration of the last 13 weeks of really intensive work these guys have been doing on their businesses,” Schwartzfarb said.

In the two days leading up to the program, the startups had one to one curated meetings with investors from all over the world, Schwartzfarb said. They had more than 200 meetings, he said.

“Three companies have already closed their rounds with more than $4 million in financing already,” he said.

Amos Schwartzfarb, managing director of Techstars Austin.

Techstars Austin put on two pitch sessions Thursday. The early one aimed at investors and VIPs and the later one for the community followed by a party.

At the later event, Schwartzfarb acknowledged the 130 mentors that volunteer in Austin. And in particular, he recognized the top six mentors for the latest class: Keith Casey, Erik Huddleston, Nate Pruitt, Bill Kennedy, Monique Maley and Josh Jones-Dilworth.

During the pitch session, a mentor or customer introduced each company and then the founder had two and a half minutes to present.

Sarah Azan and her sister, Hannah Oiknine, cofounded Babbler

In an interview before her pitch, Hannah Oiknine, CEO and co-founder of Babbler, based in Paris, France, said she joined the Techstars program to expand its product in the U.S.

“Techstars was the best way for us to accelerate the business strategy and expand our network,” she said.

Oiknine and her sister, Sarah Azan, cofounded the company and raised $2 million in venture capital in France. They hired two more employees in Austin and they have 14 employees in Paris.

“Every company needs media coverage regardless of the size of the industry. Because it builds visibility, credibility and sales,” Oiknine said during her pitch. “That’s why companies spend more than $160 billion a year on PR.”

PR is hard because PR is broken, Oiknine said. So, she created Babbler as the best way for reporters to receive trustworthy information from sources. Babbler connects reporters with public relations professionals at companies to provide relevant information to the beats that they cover.

More than 1,000 companies like Yelp, Edelman and Pinterest use Babbler and more than 6,000 reporters are on the platform. More than 1,200 stories get picked up every week, Oiknine said. Last year, Babbler generated $645,000 in revenue.

“Our product is now live in the U.S. and we can hit a much bigger number in expanding in the rest of the world,” she said.

The four cofounders of Invomatic

The head of another international startup, Javier Martinez, CEO and cofounder of Invomatic, an online invoicing company aimed at large businesses, met Schwartzfarb at a coworking space in Bogota, Colombia.

When they were accepted into the Techstars Austin program, all four co-founders moved to Austin from Bogota.

“We are a completely different team from the team that arrived here,” he said. “They gave us the tools to think about our business in entirely new ways…It changed us very radically.”

Invomatic landed a large travel agency in Colombia as a customer. It is helping them process 200,000 invoices a month and they are saving money by using Invomatic, Martinez said.

Marcus Carey, CEO and founder of Threatcare

“The mentors and startup community in Austin have been fantastic,” Martinez said.
Marcus Carey, CEO and founder of Threatcare, based in Austin, wanted to participate in the Techstars Austin program to learn more about running and scaling his software as a service platform that spoofs hacker attacks on a computer network to help companies guard against malicious attacks.

“The Techstars network, the training and the mentorship helped me out on my journey as a CEO,” Carey said. “Techstars has affected every aspect of our business. It’s been a great experience.”

Threatcare now has seven full time employees and plans to bring on two more in the next month, Carey said. The company has also raised $2 million in funding.

“Companies spend $90 billion annually on customer security,” Carey said during his pitch.

“Now these are all great companies,” he said. “But the problem is there is no such thing as a silver bullet when it comes to cybersecurity so their customers are still going to get hacked. At Threatcare, we help our customers constantly diagnose gaps in their cybersecurity through people, process and products.”

Last month, ThreatCare did $68,000 in bookings, Carey said.

Josh Jones Dilworth, a serial entrepreneur in Austin and a long-time mentor in the Techstars Austin program, introduced Prospectify, based in Scottsdale, Arizona. Dilworth is already a customer.

“If you are a sales person…Prospectify is the thing we’ve been waiting for a decade or more. It’s the closest thing to a Holy Grail for sales that I’ve seen,” he said.
Noah Spirakus is the CEO and co-founder of Prospectify and Matt Ekstrom is cofounder.

“Because of bad data, sales reps are only spending 30 percent of their time selling,” Spirakus said.

So, they created Prospectify to allow sales reps to target the right customers at the right time, Spirakus said. The platform uses artificial intelligence and data to provide business to business sales staff with correct and timely information.
Since Prospectify launched, the platform has been growing at more than eight percent week over week, Spirakus said.

“The market isn’t static so let’s stop buying lists or sales data that are,” Spirakus said.

The other startups presented included:

NUKERN – Phil Rivard, CEO and founder of Montreal, Canada-based Nukern, which is making billing automation tools for web hosting resellers.
“With three clicks, we automatically bill our clients, the right amount at the right time,” Rivard said.

Lisa Ganderson, cofounder of The Wed Clique

THE WED CLIQUE – Lisa Ganderson and Rachael Classi, are the founders of The Wed Clique, based in Charlotte, North Carolina.

Ganderson spent more than 500 hours with 16 vendors to recreate an image she found online for her wedding.

“As a bride, I only dealt with this one time,” she said. “Vendors and venues, they deal with this problem every single day.”

The Wed Clique provides a platform for wedding venues to sell curated vendor packages to their clients. The site takes care of all the backend payments. The company makes money on a monthly subscription fee and a 10 percent transaction fee on every wedding booked.

In the last month, The Wed Clique has already acquired more than 400 vendors. It is now rolling out throughout the rest of the Southeast, she said.

CITYCOP – Nadim Curi, CEO and Marcelo Dotti founded CityCop, based in Montevideo, Uruguay. It is a social platform for community watch that enables you to fight crime and protect your loved ones by actively reporting crimes in your community and the areas you care about. CityCop currently has more than 200,000 users.

Shreyas Karnik, founder, David Lemphers, CTO and founder and Chris Couhault, CEO and founder of Super.


SUPER – Super, based in Palo Alto and Austin, uses machine learning to help homeowners save time and money on pool cleaning. It handles scheduling, payments and logistics.

Chris Couhault, CEO and founder and David Lemphers, CTO and founder and Shreyas Karnik, founder, launched pilots across San Antonio and Austin and in the last month grew revenue from $800 a month to $15,000 a month. Right now, it is catering to the $8 billion pool maintenance and repair market. But it plans to apply its approach to the home maintenance industry.

SCALEFACTOR – ScaleFactor, based in Austin, is run by Kurt Rathmann, CEO and founder and Corey Bach, CFO and founder.

“Poor cash flow is the number one killer of small businesses,” Rathmann said.
ScaleFactor is an automatic bookkeeping and cashflow management platform that analyzes everyday financial operations for the 29 million small and medium sized businesses and 55 million freelancers in the U.S.

Last year, ScaleFactor had 135 customers and $1.8 million in revenue.

Kurt Rathmann, CEO and cofounder of The ScaleFactor

Optimizely Buys Austin-based Experiment Engine

Claire Vo, cofounder and CEO of Experiment Engine, courtesy photo

Optimizely, based in San Francisco, announced Wednesday it has purchased Austin-based Experiment Engine.

The financial terms of the deal were not disclosed.

Experiment Engine, a graduate of the Austin Techstars program, creates tools and services that help companies test products online.

Claire Vo, Experiment Engine’s CEO and Founder, will join Optimizely and continue to manage the product and team through the integration; several Experiment Engine team members will also join Optimizely full-time.

In November of 2014, Experiment Engine raised a $1 million seed stage round from Founder Collective, Mercury Fund and Austin angel investors Dan Graham, cofounder of BuildASign and Rony Kahan, cofounder of Indeed.com.

Optimizely creates platforms for companies to experiment with customers. Experiment Engine worked as a technology partner with Optimizely. It used Optimizely’s open developer platform to build its solutions.

“Together with Experiment Engine’s tools for experimentation project management, reporting and analysis, and program oversight, Optimizely will be even more powerful for organizations to run experiments, share information more efficiently and iterate faster than ever before,” according to a news release.

“Enterprises become leaders by embracing experimentation in every aspect of their business, from product development to customer experience,” Dan Siroker, co-founder and CEO of Optimizely, said in a news release. “As the pace of experimentation increases, there’s a greater need for coordinating and managing programs across multiple stakeholders and various levels within the organization. Several of our customers are already using Experiment Engine, so it’s a natural fit to integrate our products. With Optimizely and Experiment Engine joining forces, our enterprise customers will be able to enable thousands of collaborators to work together to deliver tens of thousands of experiments per year.”

Optimizely’s customers include ABC, Atlassian, eBay, FOX, IBM and The New York Times.

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