WP Engine, the startup that specializes in hosting WordPress sites, announced Tuesday that it has received $15 million in venture capital from North Bridge Growth Equity.
The company plans to use the money to focus on its products and customer service, according to a post by Heather Brunner, the company’s CEO, on the WP Engine Blog.
TechCrunch broke the news this morning.
“The funding comes at a time of explosive growth for WordPress, which is now the most popular content management system on the Internet,” Brunner wrote. “Since our founding in 2010, we have grown alongside WordPress to power tens of thousands of websites and applications built with the WordPress platform.”
With the latest round of funding, Matthew Blodgett, a general partner at North Bridge Growth Equity, joined the company’s board.
“We are thrilled to partner with the WP Engine team as they build the next great platform company for the front lines of digital customer interaction,” Blodgett said in a news statement. “WP Engine has what it takes to win – a powerful vision, strong technology and a seasoned executive team with a track record of success. Together with their clients and the WordPress community, WP Engine is building a new breed of fast, secure, and reliable content management.”
Silicon Hills News did this profile of WP Engine in 2012. Last year, WP Engine moved out of Capital Factory into larger headquarters downtown.
Category: Austin (Page 218 of 318)
Main Street Hub announced today that it has closed on $14 million in venture capital led by Bessemer Venture Partners.
The Austin-based company manages social media communications for small to medium-sized businesses in the U.S., Canada, U.K., Ireland and Hong Kong.
Main Street Hub plans to use the funding to further develop its products and to hire sales staff in Austin, San Francisco, New York and Los Angeles.
Existing investors also participated in the round. The company previously raised $6 million.
“Keeping up with shifts in social media and other ways to connect with customers online is a full time job, but it’s not something most local businesses are staffed to manage. Main Street Hub makes the process painless and rewarding with a full service ‘do-it-for-you’ SaaS marketing platform that helps local businesses through the entire marketing funnel with a combination of people, data and innovative technology,” Co-founder and Co-CEO Andrew Allison said in a news release.
Silicon Hills News did this profile on the company last summer.
Main Street Hub charges businesses a fee to manage their social media presence online including postings on Facebook, Twitter, Yelp, Google+, Foursquare and TripAdvisor. The company designs a customer relations management platform that allows businesses to easily communicate with customers and to market to them.
The company, founded in 2010, has close to 3,000 customers and 175 employees in four offices.
“At BVP, we’re sensing a shift in power as technology levels the playing field for smaller companies and gives them access to solutions and platforms that were previously only afforded by large box stores and behemoths. Main Street Hub will be a key player in this: They make it possible for local businesses to leverage every channel and engage directly with their customers with a tailored approach that doesn’t require any change of behavior for the merchant or their customers,” Rob Stavis, partner at BVP said in a news release. “In backing Main Street Hub we are not only investing in this growing trend, but also investing in a great company and team that can execute.”
Bazaarvoice has been found guilty of violating U.S. antitrust laws involving its $168 million acquisition of rival PowerReviews.
Judge William Orrick with the U.S. District Court for the Northern District of California issued the ruling last week following a three week trial which began on Sept. 23rd. The court has scheduled a hearing on Jan. 22 to discuss sanctions for the violation.
“By acquiring its only significant rival, Bazaarvoice deprived its customers of the benefits of competition,” Assistant Attorney General Bill Baer said in a news statement. “We are pleased that the court, after carefully weighing all of the evidence, agreed with the Justice Department that Bazaarvoice’s acquisition of PowerReviews was likely to extinguish price competition and substantially diminish the pace of innovation in the market for product ratings and reviews platforms.”
“As shown during trial, Bazaarvoice executives clearly intended to eliminate competition by acquiring PowerReviews,” according to Baer. “Consistent with Bazaarvoice’s own pre-merger view of the marketplace, the evidence presented at trial demonstrated that PowerReviews was a significant threat to Bazaarvoice and that other rivals are poorly positioned to fill the competitive void created by the merger.”
Austin-based Bazaarvoice bought PowerReviews in June of 2012. The Department of Justice began its investigation shortly after the deal closed and filed a civil lawsuit against the company on Jan. 10, 2013.
Bazaarvoice issued a news release stating that the company will not make a decision on whether to appeal the court’s ruling until it concludes the remedy phase of the litigation.
“We are disappointed in the outcome of the litigation. We believe that the merger with PowerReviews has been beneficial to customers, as did the more than 100 customers who testified that they did not believe that the acquisition affected them adversely in any way,” Gene Austin, president of Bazaarvoice, said in a news statement. “Throughout this process, our focus has remained on serving our clients and providing them with a full range of social software that helps them engage more powerfully with their customers. With the Court’s decision, we’ll now do everything we can to help ensure that the final order achieves the best outcome for our clients, shareholders, and employees.”
Founded in 2005, Bazaarvoice provides a software platform of online consumer reviews and ratings for online retailers including Dell, Best Buy, Costco and Macy’s.
Bigcommerce is hosting a job fair on Jan. 21st at its Austin office with hopes of hiring 100 new employees this year.
The company’s “Rock Your Resume concert and recruiting event” is an invitation-only event featuring a live acoustic concert by Austin’s LC Rocks. Snacks and drinks will served. The company is encouraging people to apply to its website.
“What’s exciting and different is that top candidates will get hired on the spot,” according to Bigcommerce.
The company is looking to hire people for technology support and technical operations positions.
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Bigcommerce received a $40 million Series C investment last summer from Revolution Growth and that’s fueling the company’s latest expansion. Bigcommerce founded by Eddie Machaalani and Mitchell Harper in 2009, has raised $75 million to date.
Bigcommerce’s software has already helped more than 50,000 companies launch online stores, market their businesses and build brands for just $25 a month. Its customers include Gibson Guitar, Zaggora.com and YETI Coolers.
Bigcommerce has 190 employees in Austin and 80 employees in Sydney, Australia.
Techstars Austin Alumni Atlas Wearables officially launched its fitness device last week at the Consumer Electronics Show in Las Vegas.
Atlas received quite a reception with a big write up in TechCrunch. It participated in the TechCrunch Battlefield for hardware companies at CES.
The Austin-based startup is also running an IndieGoGo crowdfunding campaign to finance the manufacture of its devices. The company has so far raised nearly $68,000 of its $125,000 goal with 24 days to go.
The company plans to ship its devices to customers by the fourth quarter of this year. The device will sell for less than $200, but the pre-order devices cost just $100.
“With a single on-wrist device, Atlas can track the body on the x-, y- and z-axes. It’s so precise, it can tell the difference between push-ups and triangle push-ups, bicep curls and alternating bicep curls and squats versus dead lifts,” according to a news release. “Atlas logs workouts with almost zero user action and keeps track of the user’s heart rate so you can see how each movement affects your body.”
The company set out to create a smarter exercise tracker, said Peter Li, its CEO and co-founder. The device relies on “inertial sensors,” to track motion and connects to a database to determine the exercise the person is doing.
In addition to Li, Mike Kasparian and Alex Hsieh are the other founders.
By INGRID VANDERVELDT
Dell’s Entrepreneur in Residence
Special Contribution to Silicon Hills News
We’re seeing more entrepreneurial activity in the U.S. than ever before – a result of factors including low cost of entry for startups, increased availability of funding for early-stage startups, and valuations for successful startups hitting an all-time high. With the New Year upon us, it’s the time we all start thinking about how this year will be different than last and what trends will have the largest impact on the entrepreneurial community in 2014. Some of my top predictions are as follows:
1. Social media space continues to grow ever-crowded. While not a new trend, social media has fully matured as a channel, with 73 percent of adults in the U.S. using at least one platform and 42 percent using multiple social networking sites. Every company needs a comprehensive, customer-driven marketing and communications strategy, and in 2014, that means knowing where your customers are and finding ways to have meaningful and personalized interactions. Over the last year, Pinterest became wildly popular among women and surpassed Twitter in total users, while new applications such as Snapchat stole attention from Facebook among the teen market.
Although the decline in Facebook usage among teens may be over-hyped, the truth is that all users, teens and adults alike, are using multiple platforms to suit their needs – LinkedIn for professional networking, Pinterest for social bookmarking, Instagram for photo-sharing, etc. With so many platforms, it’s important to have a strategy that doesn’t put all your eggs in one basket. Pay attention to demographics and make sure you are where your customers are. Entrepreneurs should also look to leverage their own personal and professional social networking activities to build their brand while integrating social across their enterprise. Also, consider taking a page out of Dell’s book by leveraging the passion, talent and networks of your employees by starting an employee advocacy program.
2. Marrying profits with purpose. Launching and maintaining a successful business is no longer just about the bottom line. We’re seeing more and more companies building sustainability and a vision beyond profits into their cultures from day one, and attracting customers and top talent in the process. Tesla may be a car company but its vision is to “expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy.” Warby Parker may sell fashionable eyewear, but the B Corp aspires to “do good in the world” for its “employees, customers, community and the environment.”
I joined Dell because I believe in its vision of technology powering human potential. Supporting entrepreneurs and empowering women in business are key tenets to who Dell is as a company. Just one example of this is the Pay it Forward initiative Dell launched last year, setting a goal to track support for one million women entrepreneurs by the end of 2015.
3. It’s no longer a question of Silicon Valley or Silicon Alley. While the Valley is still seen as the epicenter of the startup universe by many, opportunity is becoming more geographically dispersed than ever before. Cities including Austin, Tennessee, Denver, New Orleans, and Detroit are all cultivating their own startup ecosystems and the number of startups founded outside of traditional entrepreneurship hubs is growing significantly. This trend is being supported by large national initiatives such as Google’s Tech Hubs and the White House’s Startup America Partnership, along with local efforts by cities across the U.S.
For entrepreneurs, the hunt for financing and top talent may make the Bay Area appear attractive but think twice before jumping on flight and heading straight to Sand Hill Road. Not only are there benefits to being a big fish in a small pond, but the competitive advantage of regional economies should also be a factor in your decision-making process. Silicon Valley may still be the right place for you if you’re in enterprise technology, as might New York City if you’re launching a media-focused startup, but know your industry and do your research as new hotbeds of innovation are emerging worldwide, and it may be easier to break through the clutter and get noticed in a less saturated market.
4. Alternative forms of payment and digital currency move into the mainstream. PayPal launched in 1999 as the first mainstream online money transfer service, creating new opportunities for merchants and entrepreneurs on the web. 10 years later, Square’s card reader made it exceptionally easy for just about anyone to accept physical credit cards at their point of sale. In 2013, a formerly obscure cryptocurrency, Bitcoin, took to the mainstream evolving into a multi-billion dollar ecosystem recognized by hedge funds and Congress. With Bitcoin BitPay processing over $100,000,000 in transactions, Bitcoins were used to purchase spots on Virgin Galactic flights to space, Lamborghinis, and OKCupid credits.
These alternate forms of payment are offering businesses a compelling way to expand their customer base, reduce per transaction costs and improve user experience. With the pace of innovation in financial transactions increasing and the desire for frictionless transactions on the rise, startups, especially those involved in e-commerce, will need to familiarize themselves with alternative currencies and payment methods. While accepting mobile payments or embracing digital currency may not be the right fit for your business, 2014 might be the right time to figure out your policy and ensure you’re taking the appropriate security measures if you do decide to try out new technology.
5. It’s time to think twice before you IPO. The nimbleness and passion that got your startup where it is today can be difficult to sustain under the watchful eyes of shareholders. Going public has been shown to zap innovation and foster short-term thinking by measuring success in quarterly earnings rather than taking the long-view.
If there’s a lesson to be learned from Michael Dell’s battle to bring Dell private in 2013, it’s that stockholders require an intense focus on short-term gains, which can sometimes be counterproductive to the long-term viability of a company. Entrepreneurs thinking about going public should take note. Will fewer companies go public in 2014 than in previous years? Probably not, but they should definitely weigh the pros and cons more carefully.
6. Women are rising to the top. Not a new trend, but, in 2014, I believe the rate at which women are taking leadership positions and “owning their potential” is going to grow at rates we can’t even fathom. For example, just yesterday it was announced that the first female law firm just opened in Saudi Arabia – something that would’ve been unheard of just 12 months ago!
With public/private partnerships such as Dell’s work with the UN Foundation, we are now in a position to create change for women on a global scale and this year we’ll continue to see increased collaboration between governments, international organizations, the private sector, and individual stakeholders to positively impact female entrepreneurship worldwide.
Ingrid Vanderveldt is an entrepreneur, investor and media personality connecting entrepreneurs to corporations. Ingrid is leveraging her business, policy and media initiatives to “Empower a Billion Women by 2020” to help provide women with tools, technology & resources. As Dell’s first Entrepreneur in Residence (EIR), Ingrid serves as the bridge from the “outside, in” connecting the entrepreneur community to the expansive resources the Fortune 50 company. Ingrid created and oversees the $100M Dell Innovators Credit Fund and The Dell Center for Entrepreneurs. In 2012, Ingrid helped architect The Federal EIR Bill with Senator Mary Landreau (LA) and Representative Mike Honda (CA), and is currently working on legislation with State Senators to bring out a State-wide EIR bill in 2013. She is also the co-founder of The Billionaire Girls Club, is a Dell Women’s Entrepreneur Network Member and serves on the UN Foundation Global Entrepreneurs Council.
Volusion announced the completion of $35 million in debt financing to expand its ecommerce software and services.
The Austin-based company secured the line of credit from Silicon Valley Bank. The company plans to use the money to further develop its software platform and to hire product, support, sales, marketing and IT workers.
The company decided to finance its growth through debt financing instead of venture capital or private equity to retain ownership. It plans to file an initial public offering in the future.
“As Volusion continues to grow and power some of the most successful merchants’ online presence, we believe this new financing will give the team the flexibility it needs to tackle its goals in 2014 and beyond,” Blake English, managing director for Silicon Valley Bank in Austin, said in a news release.
Volusion, founded in 2009, currently has more than 400 employees.
The company has “aggressive expansion plans” for its products targeted at the small to medium sized business market, according to Clay Oliver, CEO of Volusion.
Upland Software has raised $19.8 million in venture capital, according to a filing with the Securities and Exchange Commission.
Austin-based Upland Software makes cloud-based management software for large companies. Its customers include more than 1,200 companies in 50 countries.
Upland plans to use the fund to improve its products, customer service and on strategic acquisitions.
The company acquired Clickability from Limelight Networks late last year. It also acquired ComSci and FileBound. Last May, the company changed its name from PowerSteering Software to Upland Software.
Upland Software, founded in 1998 in Cambridge, MA, previously raised $3.5 million in venture capital in 2011, according to its CrunchBase profile.
By LAURA LOREK
Founder of Silicon Hills News
It’s less than a month to go until the 2014 Olympic Winter Games in Sochi kicks off.
But if you can’t wait that long and you can’t travel to Russia, there’s a solution much closer in Austin.
It’s the Austin Startup 2014 Winter Games! The event begins at 1 p.m. at the Austin Music Hall on Jan. 25th. Tickets cost $10 to attend.
The Austin Startup Games are like the Olympics for nerds. A bunch of startups will come together to compete in Ping-Pong, foosball, darts, shuffleboard, flip cup, beer pong, giant Connect4, Pop-A-Shot and trivia. And if past games are any indication, these athletes will also imbibe a lot of beer and other refreshments.
The Austin Startup Games started in 2012 by entrepreneurs from eight startup companies. The goal is to give back to the community and have fun doing it. All of the money raised gets donated to local charities.
The Austin Startup Games has since doubled in size with 16 startups competing in the winter games. Those startups are Adlucent, Adometry, Boundless Network, Build a Sign, Capital Factory, Chaotic Moon, CSID, Headspring, Living Direct, Map My Fitness, Main Street Hub, Mass Relevance, SpareFoot, Spiceworks, Spredfast and uShip.
Also, the CEOs of those startups will compete in the final event of the game, which is a surprise and it will not be revealed until the games begin. Last year, the surprise event was a mechanical bull.
By LAURA LOREK
Founder of Silicon HIlls News
Pitching in Texas, photo licensed from GettyImages.com by SiliconHillsNews.com
Bootstrapping is the new normal for many high tech startups in the Austin and San Antonio area.
But a startup gets to a point where the entrepreneur needs some cash to advance their idea, buy goods and services, hire specialists, acquire customers and expand their operations.
That early money, known as a seed stage investment, can make the difference between expanding and going out of business.
That’s where angel investors can help. Angels are high net worth individuals who invest in startup companies. Some of them do it to get a five to ten times return on their investment. Others want to be involved in the startup. And some just want to invest to help others.
In Austin, the Central Texas Angel Network gives entrepreneurs a chance to pitch for dollars through a formal month long process during five funding cycles a year.
Now San Antonio has its own Angel network called SAPitch.com, which seeks to bring early-stage companies together with angel investors.
Michael Girdley, founder of Codeup and an angel investor, and Cole Wollak, entrepreneur and co-founder of SANewTech, started SAPitch.com.
“I’ve been to a lot of pitch events and I’ve been unhappy with certain aspects of them,” Girdley said. “Sometimes the caliber of the teams pitching is lacking. And other times there are people there who just want to sell insurance to people with money.”
Many times the events lacked a chance to have a conversation with the companies and to sit down with them and get to know them and share a meal, Girdley said.
In San Antonio, Girdley saw a core group of startups developing out of Geekdom and the University of Texas at San Antonio. And he knew investors who wanted to invest in startups, but didn’t know how to get involved with them so Girdley and Wollak created SAPitch.com. They will host its first event on Jan. 23rd. The 90-minute luncheon will feature a handful of startups pitching to angel investors.
“We’ve got Companies trying to raise big money and companies looking for very small money,” Girdley said.
The teams pitching at the first event include Guava, Akimbo, Embrace, Instore, Merge and Remote Garage, Girdley said. There’s still spots available for a few more companies and investors, he said. To attend, companies and others need to sign up at the website. It just costs $30 for the lunch, he said.
“We would love to talk to anyone who would want to pitch or be an investor to attend,” he said. “We curate both sides to make sure we have a good caliber of investors.”
SAPitch seeks to connect investors and startups in San Antonio, Girdley said.
“We want to accelerate the high tech growth here,” he said.