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Stamps.com Buys Austin-based ShippingEasy for $55 Million

Katie May, photo courtesy of ShippingEasy.com

Katie May, photo courtesy of ShippingEasy.com

Stamps.com Tuesday announced its acquisition of Austin-based ShippingEasy for $55 million in cash.

ShippingEasy, which makes software to allow online retailers to organize, process, fulfill and ship their orders easily, relocated to Austin from Sydney, Australia in 2012 and is run by Katie May, an Austin native and serial entrepreneur. May has worked as head of marketing and product for Seek.com.au, which went public, according to her online profile at ShippingEasy. She then founded Kidspot, which sold to News Corp. in 2011. She earned her undergraduate degree in accounting and an MBA from the University of Texas at Austin.

ShippingEasy will operate as a wholly-owned subsidary of Stamps.com and will be led by its existing management team when the deal closes in July. ShippingEasy has 52 employees and expects revenue of $10 million this year, according to a recent Forbes article. The company also raised about $4 million, according to Forbes.

In addition to the $55 million in cash, Stamps.com has put in place some performance linked equity awards that could result in key management members receiving 87,000 shares of Stamps.com stock if they meet performance targets. Based on Stamps.com’s current share price of $91.90, that would result in about $8 million more in compensation.

ShippingEasy’s software integrates with more than 40 marketplaces, shopping carts and e-commerce platforms including eBay, PayPal, Amazon, Bigcommerce, Shopify and more.

“The acquisition of ShippingEasy represents a significant strategic investment in our e-commerce shipping business,” Ken McBride, Stamps.com chairman and CEO said in a news release. “E-commerce driven package shipping is our fastest growing segment and this acquisition will allow us to continue to accelerate our growth in this area. ShippingEasy adds an outstanding solution to our portfolio of products which will allow us to serve the needs of more customers, and will allow us to continue to solidify our leadership in e-commerce shipping.”

Stamps.com, based in El Segundo, Calif., provides postage and shipping software online to more than 650,000 customers.

USAA Wins PYMNTS/Alexa Voice Activated Technology Contest

usaaUSAA won the PYMNTS/Alexa Challenge in the “Easiest to Explain to Mom” category for its innovative use of voice recognition technology.

San Antonio-based USAA created a financial management program accessible through Alexa, the voice recognition program interface for Amazon’s Echo household device.

“What Mom or Dad doesn’t want a little help to make ends meet? The ability to do so proactively and through the use of Alexa is what USAA demonstrated with their skill,” according to PYMNTS press release. “USAA solved the big important problems that confront Moms and Dads every day but few fail to address, problems such as how to find an extra $30 to pay for their kid’s new soccer cleats, or $40 to take the family out for dinner to make the week special.”

USAA was one of 14 companies that participated in PYMNTS five week competition. Each company created an application using voice recognition technology to command Alexa to complete a payments or financial transaction.

“Often we find that our customers are really struggling to make their finances work. So what better time to help them in that decision process of what money to spend, how much money to spend and when to save then when they are shopping,” Darrius Jones, AVP Enterprise Innovation at USAA, said in a news release.

PYMNTS/Alexa Challenge announced the winners on Monday. The innovations were featured in videos, and people were able to view them and vote on PYMNTS.com over a five-week period.

“The 2016 PYMNTS/Alexa Challenge pushed the boundaries of what everyone thought Alexa was able to do, as we all learned how powerful she really is,” Karen Webster, CEO of PYMNTS.com, said in a news release.

The 2016 PYMNTS.com/Alexa Challenge Champ went to DaVincian Healthcare which created a medicine helper app aimed at elderly people with reminders for them to take their medicine and re-order medicine and schedule a delivery.

Fiserv won for best use of technology for its app to help people “remove friction from banking and financial services tasks and hasten their completion in a safe and secure way.”

Feasty/Zipscene won for most creative for a restaurant recommendation list based on a person’s preferences.

And FIS won for most disruptive for a product targeted at millennials that allows them to budget, save, plan and use wealth management tools to prepare for a secure financial future.

Lastly, Visa won for most likely to get traction. It uses voice activated commands to order and pay for items along with voice biometrics and tokens linked to Visa Checkout to verify the user and secure the transaction.

Technology Advocate Alan Weinkrantz Dies in Tragic Car Accident

Courtesy Photo of Alan Weinkrantz.

Courtesy Photo of Alan Weinkrantz.

Alan Weinkrantz, a longtime public relations professional and advocate for the tech industry in San Antonio and Israel died Saturday in Israel after being hit by a car in an outdoor café, according to the Times of Israel.

Alan’s sudden death has shocked everyone and leaves a huge void in so many lives.

I’ve known Alan for more than two decades. When I was a young reporter for the San Antonio Light, Alan was the PR guy for Datapoint, a large computer company in San Antonio. I wrote a lot of stories about Datapoint and I spent a lot of time talking to Alan. We had mutual respect for each other.

Wes Wilson, Alan Weinkrantz, Nan Palmero and Laura Lorek at the first Techstars Cloud Demo Day party in San Antonio. Photo courtesy of Paul Ford.

Wes Wilson, Alan Weinkrantz, Nan Palmero and Laura Lorek at the first Techstars Cloud Demo Day party in San Antonio. Photo courtesy of Paul Ford.

Later, when I worked at the San Antonio Express-News, Alan and I worked on more stories together. I left the paper in 2009 and a few years later launched SiliconHillsNews.com and we kind of became co-workers. Alan and I were both early members of Geekdom. We would see each other at various events and talk in the hallway and break room. And I often used Alan’s office when he was out on the road. He left it unlocked and he told me to use it whenever I wanted. He went out of his way to be helpful to everyone.

Laura Lorek, Alan Weinkrantz and Jennifer Navarrete at Startup Grind's holiday party.

Laura Lorek, Alan Weinkrantz and Jennifer Navarrete at Startup Grind’s holiday party.

Alan also attended the Startup Grind events I put on every month whenever he was in town. He always encouraged me and was a huge fan and supporter of my work at SiliconHillsNews.com. He even took out an ad in our first print magazine. I was a huge fan of his work. He often talked about how he had invented the job he wanted. It didn’t exist, he told me. He created it. I had done the same thing. We talked about how the PR business and the news business had changed. But the need for great storytellers remained. He was a great storyteller and PR guy. Alan and I sometimes disagreed about the convergence of the PR, content creation, social media and news businesses. But I told him I admired his work. And I did. I also know Alan loved San Antonio and Israel and he always talked about his daughter, Lauren and son, Aaron.

Alan was a good person. He will be missed by many. And Startup Nation in Israel and the startup scene in San Antonio will miss him greatly. He always had a smile on his face and an encouraging word for everyone he met.

In 2013, Alan wrote a post for Silicon Hills News about then Gov. Rick Perry visiting the tech industry in Israel. Here’s Alan, in his own words, talking about his beloved Startup Nation.

“People come to Israel from all over the world to create and do new things. While you can say it’s technology in the literal sense, I think what’s going on there is something that borders on being spiritual and even possibly religious, depending on what you believe in.

It’s code.

You know, the code from the various religions, beliefs sets and the rising consciousness of our planet that are now being written into the Internet of things.

I believe that a new type of scripture is being written – one that is part of a gigantic interconnected network and massive data sets. And much of that scripture is being written, or rather, coded in Israel.

If you take into account that Israel is the home of major R&D centers like Apple, Intel, GE, Cisco, Google, HP, TI, IBM, Microsoft, eBay and recently, Facebook, much of what drives the future of the global innovation comes from this very blessed region of the world.”

Alan also loved the Beatles. And he was a huge advocate for South by Southwest Interactive in Austin. And in 2013 he wrote this article for Silicon Hills News about both of those passions.

But more recently, Alan wrote most of his posts on Medium. He was an early adopter of different technology platforms online and social media. And even when he was half way around the world, he kept in touch by posting pictures to Instagram and Facebook and responding to the posts of his friends. Alan’s photos, often taken with his iPhone, were mesmerizing. He often took pictures of everyday people and objects and they often looked like professional works of art. He had an eye for capturing the joy of daily life. He will be missed by so many.

Lorenzo Gomez, CEO of Geekdom, set up the Alan Weinkrantz Memorial Fund to help Alan’s family with funeral arrangments.

Umbel Acquires Lodestone

UmbelUmbel, an Austin-based data software company, announced its acquisition of Lodestone, a fan engagement company, in a blog post.

The financial terms of the deal were not disclosed.

Mark Drosos founded Lodestone Social Media in Austin in 2008. The company raised $100,000 in investment, according to its Crunchbase profile.

Umbel, founded in 2010, raised $20 million in a Series B round by Cielo Private Equity last November. To date, the company has raised $24.45 million.

Umbel’s platform lets sports, media, entertainment and nonprofit organizations better understand the data that their businesses generate so they can better engage with their customers or fan base.

“The acquisition of Lodestone will allow us to create a customized experience for each client and campaign for the first time,” H.O. Maycotte, CEO of Umbel said in a blog post. “Using Lodestone’s unique technology to gather first party data, combined with our platform’s sorting and segmenting capabilities, clients will now receive a unified front to backend integration.”

Urban Mining Gets $25 Million in Venture Capital

UrbanmUrban Mining Co., which recycles magnets, announced Tuesday it has completed a $25 million round of financing.

The Austin-based company plans to use the Series A funds to build and operate a magnet recycling and manufacturing plant at its headquarters.

“The first step towards commercializing our technology is capital intensive,” Scott Dunn, Urban Mining’s CEO, said in a news release. “and our Series A financing reflects the confidence of our team and our investors in Urban Mining’s product and business model.”

Urban Mining has a patented magnet recycling process. The company takes scrap rare earth magnets and reprocesses them into new, high performance magnets.

Urban Mining Company plans to open its lab by the end of the summer to use for prototyping magnet products for its partners and customers.

San Antonio Mulls Grants to Retain Tech Startups

The San Antonio City Council on Thursday will consider adopting a new economic incentive program that would provide $800,000 of taxpayer funds to support tech startup companies.

And it’s not available to just any tech startup.

The pilot program would specifically support the entrepreneurs and companies participating in the Techstars Cloud accelerator program in partnership with Tech Bloc, a year-old technology booster organization.

The proposed four-year pilot program called the “Techstar Talent Retention Pilot Program” would provide $200,000 a year for four years to companies participating in the Techstars Cloud program. Four companies would be eligible for up to $50,000 each in grants for each class. The program’s goal is to recruit and retain 16 companies by 2020.

In addition, the City Council will consider amendments to the Economic Development Incentive Fund to “provide for investments in entrepreneurial development activities and workforce development programs.”

“This program supports talented entrepreneurs who are building high-growth companies in San Antonio, demonstrating our commitment to becoming a globally competitive city where everyone has the opportunity to succeed,” Mayor Ivy R. Taylor said in a news release. “Partnering with Tech Bloc on this pilot program allows us to continuously improve our approach to secure promising tech entrepreneurs who are potentially building the next Rackspace or Facebook right here in San Antonio. In addition, we updated our incentive toolkit, expanding our commitment across other industries and providing more workforce development options so residents have better access to jobs created by these new companies.”

Under the proposal, Tech Bloc would manage the program for the city.

So far, 44 companies have participated in the Techstars Cloud program, founded in 2012, and only eight have remained in San Antonio.

Aunt Bertha Raises $5 Million in Venture Capital

auntbertha_logo_LRG_0Aunt Bertha, a social services search and referral platform, announced it has raised $5 million in venture capital.

Techstars Ventures led the Series B round of financing and as part of the deal, Jason Seats, partner at Techstars Ventures, will join the company’s board.

“There’s a lot of unnecessary suffering going on for many Americans including veterans, those with low income, and those with complicated medical conditions. Many don’t know about government or charitable programs that can help,” Aunt Bertha CEO Erine Gray said in a news release. “The growth capital will help us extend our lead as the number one search and referral platform for social services. We’ll also continue to partner with the most innovative health care organizations, community foundations and governments.”

AuntBertha.com is a nationwide platform that lets anyone, anywhere search for services from health and human services pgorams provided by charities and government agencies. So far, 207,500 people have used the platform.

“What we liked about Aunt Bertha was that they found a way to provide a valuable service to folks in need but also put together a business model to support it. We were impressed with their customer list, which includes some of the country’s most well-respected hospitals, foundations and health insurance companies,” Seats, Techstars Ventures, said in a news release.

ePatientFinder Lands $8.3 Million in Venture Capital

Tom Dorsett, founder and CEO of ePatientFinder, courtesy photo.

Tom Dorsett, founder and CEO of ePatientFinder, courtesy photo.

ePatientFinder, a matchmaking platform for physicians, patients and clinical trials, announced this week it has received $8.2 million in venture capital.

The Austin-based startup has raised a total of $11 million since its founding in 2013. Tom Dorsett, Tushar Jain, Greg Sweatt and Dillon Krug co-founded the company. Silicon Hills News did this profile on ePatientFinder last year.

ePatientFinder did not reveal the names of its latest investors, but it reported the funds came from a strategic healthcare technology investment syndicate.

The company plans to use the new funds to “fuel the company’s next stage of growth,” according to a news release.

Its platform works with drug makers, medical device and research organizations to connect them with physicians to identify and refer patients that might make good candidates to paritipate in a clinical trial. The U.S. Food and Drug Administration requires different stages of testing before a drug or device can be approved for sale. One of those stages involves testing the drug or device on humans in clinical trials.

The ePatientFinder platform seeks to match the best qualified patients with the latest drugs and devices being tested in clinical trials.

“The successful closing of this round of funding underscores ePatientFinder’s leadership role in solving the clinical trials recruitment challenge by leveraging the trusted physician-patient relationship and EHR data,” ePatientFinder CEO Dorsett said in a news release. “Our partners and investors share our vision to address inefficiency in the clinical trial recruitment process through the use of technology-enabled solutions. The additional financing will allow us to further expand patient access to available treatment options through our platform.”

ePatientFinder notifies physicians “when a new trial becomes available in their area; the platform uses sophisticated algorithms and an innovative three-tier filtering process to help physicians identify potential participants,” according to the release.

Investment Platform Aimed at Women, Ellevest Launches in Austin

Sallie Krawcheck, co-founder of Ellevest, courtesy photo.

Sallie Krawcheck, co-founder of Ellevest, courtesy photo.

Ellevest, a new investment platform aimed at women, launched this week in Austin.

Ellevest's co-founder Sallie Krawcheck, created the investment platform to "close the gender investing gap and redefine investing for women with a practical, goals-based approach," according to a news release. Krawcheck has nearly 30 years of experience leading financial services companies on Wall Street as a former CEO of Merrill Lynch, Smith Barney and Citi Private Bank.

The platform lets women invest in different goals and then track their progress.

"Women live longer than men, are paid less than men and take more career breaks than our male counterparts, meaning investing is crucial to women's financial health," Krawcheck said in a news release. "These differences have largely been ignored by Wall Street—but that ends today."

The Ellevest platform lets a woman enter her personal details like age, education and income and her financial goals to create an investment portfolio tailored to meet those goals. It doesn't require a minimum balance and it charges a flat rate of 0.5 percent per year of managed assets.

"The gender investing gap can cost some women more in the long term than the gender pay gap, but no one is talking about it yet," Krawcheck said. "Our aim is to educate women about this issue and give them the tools they need to take control of their finances through investing; and, in doing so, to give them the opportunity to reach their goals—whether that means buying a house, traveling the world, retiring on her own terms or all of the above."

Dell Names 16 Winners of its Internet of Things Innovation Contest

By LAURA LOREK
Reporter with Silicon Hills News

Steve Yung, CEO and Mazin Bedwan, president of V5 Systems, the platinum award winner of Dell's IoT contest.

Steve Yung, CEO and Mazin Bedwan, president of V5 Systems, the platinum award winner of Dell’s IoT contest.

The Internet of Things is making us safer.

V5 Systems created a portable outdoor security system that doesn’t need to be plugged in, can capture video, detect a gunshot and pinpoint the location it was fired from to alert authorities in real time.

V5 Systems won Dell and Intel’s Platinum award in its “Connect What Matters” Internet of Things Contest during a celebration gathering and dinner Wednesday evening at Searsucker in downtown Austin.

V5 Systems, based in Fremont, Calif., which only launched its outdoor security and computing platform in April, has installed a dozen systems in the California area including at a Bay Area Rapid Transit station and San Jose State University, said Steve Yung, the company’s CEO and founder. The system weighs just 25 pounds and runs on solar power and uses WiFi and cellular networks. It can be installed anywhere without a need to be tied to power or data cables. Its applications include everything from law enforcement to agriculture.

V5 Systems, which relies on Dell’s Edge Gateway technology, plans to add other sensors to its system like the ability to detect smells such as methane, ammonia and chlorine gases.

Joyce Mullen, Dell’s Senior Vice President and General Manager of Global OEM, including its Internet of Things division, announcing the winners of its contest.

Joyce Mullen, Dell’s Senior Vice President and General Manager of Global OEM, including its Internet of Things division, announcing the winners of its contest.

The Dell and Intel contest ran from October of last year to March. Dell received more than 1,000 entries from 73 countries and ultimately selected 16 winners, said Joyce Mullen, Dell’s Senior Vice President and General Manager of Global OEM, including its Internet of Things division.

A year ago, Dell formed its IoT division to help its customers with connecting sensors and machines to the Internet and analyzing data in real time to improve their operations.

The Internet of Things is a huge multi-billion dollar market growing at a rate of nearly 17 percent a year, according to International Data Corp., a research firm. It reports the market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020 with devices, connectivity and IT services making up the majority of the market.

Jason Shepherd, Dell’s director of strategy and partnerships for IoT.

Jason Shepherd, Dell’s director of strategy and partnerships for IoT.

The Internet of Things isn’t new, said Jason Shepherd, Dell’s director of strategy and partnerships for IoT. Dell’s customers in the energy field or manufacturing or dozens of other industries have been using sensors in their operations for years and extracting data, he said. What’s different today is that IoT solutions have become so much cheaper with a drop in computing prices and broadband Internet access which makes it easier than ever for customers to connect more devices and analyze their operations more intelligently to increase efficiency and save money, Shepherd said.

Today, IoT devices are prevalent for consumers including everything from Apple’s Watch to Fitbit health trackers. But industrial and commercial applications including cold chain monitoring of the temperature of food from the field to the factory to the grocery store offer huge opportunities and savings for businesses, Shepherd said.

For example, today more than 30 percent of the world’s food is spoiled in transit before it ever gets consumed, Shepherd said. Temperature sensors monitoring that food along its life-cycle could greatly reduce waste and increase supply, he said. Dell is working with partners to do just that, he said.

Also, IoT smart building applications using sensors to manage commercial buildings to cut down on energy use by turning off lights and adjusting the thermostat can result in huge savings to businesses, Shepherd said. Dell is focusing on manufacturing, buildings, energy and agriculture applications, he said. It works with partners ranging from 10-person startups to giant corporations like General Electric.

It’s also going after smart departments to make incremental changes instead of tackling entire smart cities at once, Shepherd said.

“We’re going to bite off stuff that is meaningful and doable and has an immediate impact,” he said.

Data collection in the IoT space can be like a bad episode of House Hoarders, Shepherd said. Companies collect all kinds of data and send it into storage and then get a big bill, he said. It’s like sending Federal Express packages to yourself all day and putting them into the garage and never opening them. Dell’s partnership solutions seek to make sense of the data a company collects and help them sort through what they need to keep, he said.

The winners of the Dell and Intel “Connect What Matters” contest presented all kinds of applications of smart devices connected to the Internet and yielding better solutions for companies.

For example, N.io, a 30-person startup, with its U.S. headquarters based in Broomfield, Colo., created an agriculture monitoring system. Deep Sky Vineyard in Wilcox, Arizona, uses the system to track its 15,000 vines of grapes and to water them when necessary.

“It talks to the vines,” said Blake Duhame, N.io’s program director.

The result is higher grape yields, less water wasted and greater production efficiency overall, he said. N.io’s system uses a Dell Gateway computer in the field to collect and transmit data wirelessly to a dashboard that the vineyard owners can then monitor in real time. N.io won a Gold Award in Dell and Intel’s contest.

Silver Award winner We Monitor Concrete tracks concrete production from the quarry to the construction site and monitors its temperature throughout the process to ensure the highest quality building materials. The concrete talks to the computer.

Another Silver Award winner, Elm Energy and DynOptix uses infrared sensors to detect a person’s body temperature in case they are running a fever. It is in test pilot with a hospital maternity ward right now. The system will not issue a visitor’s pass to anyone running a fever. The idea is to cut down on people who are sick spreading their illness, said John Redmond, founder and CEO of DynOptix. It could eventually be used in airports, schools and businesses like food service, he said.

The other Gold Award winners include: Eigen Innovation, a quality control system uses thermal imaging cameras in a factory for real time monitoring, Iamus, a smart streetlamp system, RiptideIO, smart customer and building monitoring software for small retailers and SoftwareAG, a predictive maintenance solution.

Other Silver Award winners include AZLOGICA, Blue Pillar, Califbr8 Systems, Daliworks, Independent Automation, Onstream, PixController and PV Hardware.

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