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Waldo Photos Launches in Austin and Raises $5 Million in Funding

Screenshot 2016-01-23 12.06.48Where’s Waldo?

Right here in Austin, Texas.

And they’ve just raised $5 million in venture capital to create a new photo-finding platform. Southern California venture capital firm Upfront Ventures led the round.

Rodney Rice and Michael Beaudoin, veteran entrepreneurs who co-founded HomeAdvisor and Einstein Bros. Bagels, founded the site to create a seamless photo-finding experience online in the highly fragmented $10 billion photography category.

Waldo Photos is expected to launch soon. Its platform is in closed beta right now, but users can sign up for its wait list. It will be a home base for photos taken of individuals by friends and professional photographers. Those photos will then be sent to a person’s smartphone. The platform lets photographers market and sell their photos in an efficient way.

“We believe Waldo can fundamentally change the way we memorialize our lives through photography,” rice, CEO and co-founder of Waldo Photos, said in a news release. “We created Waldo so users can toss their selfie sticks, keep their phones in their pockets and just live in the moment.”

“Rodney and Michael are one of the best teams I’ve worked with in my career,” Kara Nortman, partner at Upfront Ventures, said in a news release. Its past investments include Maker Studios, TrueCare and Overture.

Fifth Annual Austin Startup Games Takes Place Saturday

IMG_5037_2-1024x768Has it been five years already?

Silicon Hills News covered the first Austin Startup Games at uShip back in the day and every one since then. In the beginning, they called them the Austin Startup Olympics, but I think they had to change the name so as not to confuse everyone with the real Olympics. (which to my knowledge doesn’t yet offer a gold medal in beer pong.)

uShip won the first Austin Startup Games, BuildASign came in second followed by SpareFoot. But BuildASign went on to capture the crown during the summer games. And SpareFoot claimed the top prize at the third Startup Games. SpareFoot also won again last year.

So the big question on everyone’s minds in the startup community is will SpareFoot win again? To find out, head out to the fifth annual Austin Startup Games today at Fair Market. And it’s not just for fun. This is serious fundraising business. Every year, the startups raise money for local charities. This year, they aim to raise more than $57,500 for local nonprofit organizations.

The events include Ping Pong, Foosball, Beer Pong, Flip Cup, Pop-a-Shot, Darts, Shuffleboard, Connect Four, Trivia, MarioKart, Liar’s Dice (for executives of local tech startups) and the fan’s favorite: Mystery Event. In the past, the mystery event has included bull riding and jousting in an inflatable ring with a strongman.

Participating companies also competed in a canned food drive leading up to the event, which awarded the winning team, Modernize, a one-point lead heading into the contest. The team with the most points wins the games with Gold, Silver and Bronze awards. But every startup that participates receives $1,000 to donate to the charity of its choice.

“Startup Games celebrates the hardworking, competitive and fun atmosphere that drives so many successful companies in Austin, and puts that culture to work for good causes,” Dan Graham, co-founder of the Notley Fund, a newly-launched philanthropic investment firm, said in a news release. Earlier this year, Startup Games joined the Notley Fund as one of its signature programs that amplify giving in local communities.

The Notley Fund grows out of Graham’s, and his wife and co-founder Lisa’s, commitment to creating positive change. As CEO of BuildASign.com, Graham made charitable donation a part of company culture; they have contributed more than $1 million of in-kind donations to more than 1,700 local and national non-profit organizations. With the Startup Games, Dan and Lisa Graham hope to give more businesses the same power for positive change.

“Our vision is to have the top startup communities across the world competing in local events with the goal of raising $1,000,000 per year for charity,” Graham said.

Here is the complete list of teams and the charities they’ve chosen to support:

Boundless Network — Charity: Meals on Wheels and More
Capital Factory — Charity: Breakthrough Austin
Civitas Learning — Charity: Center for Child Protection
theCHIVE — Charity: CHIVE Charities
Headspring — Charity: Do It For The Love
LawnStarter — Charity: NAMI-National Alliance on Mental Illness
Modernize — Charity: Girl Start
OneSpot — Charity: Without Regrets
OutboundEngine — Charity: Austin Children’s Shelter
OwnLocal — Charity: Austin Bat Cave
RideScout — Charity: Team RWB
Sparefoot — Charity: Kure It
TrendKite — Charity: JDRF Austin
uShip — Charity: Communities in Schools of Central TX

The Austin Startup Games kick off at 12:45 pm CT at Fair Market, 1100 E. 5th Street. Doors open at 12:00 p.m. The event is open to the public. A $10 donation is suggested for admission.

The Austin Startup Games, founded in 2012, is sponsored by PwC, CBRE, Kastner Huggins Reddien & Gravelle, ScaleFactor, Geeks Who Drink, McKinley Rother DiMarco, and Easton Park.

Datical Raises $8 Million in VC Funding

imgres-1Datical, which makes software that lets companies update applications on their databases easily, announced Thursday it has raised $8 million funding.

The Austin-based startup, founded in 2012, reported that S3 Ventures led its Series B round with participation from existing investors Mercury Fund and Austin Ventures. Previously, Datical raised $6.9 million in venture capital from seven investors, according to its Crunchbase profile.

The company plans to use the funds to expand its platform, which lets companies automatically keep up with the increasing speed of application rollouts. It also plans to hire more product developers, sales and marketing staff.

“Whether our customers are using cloud or on-premise databases, we enable them to increase the speed, accuracy and security of database change,” Derek Hutson, CEO of Datical, said in a news release. “As the market turns to Datical to solve this problem, partnering with S3 enables even greater investment in our technology and provides our current and future customers with ever-increasing value.”

Datical’s customers include Fidelity Investments, GE Transportation, eBay Enterprise, Deloitte and the State of North Dakota.

“As enterprises continue to adopt DevOps as the ideal approach for application delivery, we recognize the database is quickly becoming the next area of focus for automation in IT,” Brian R. Smith, managing director at S3 Ventures said in a news release. “Datical’s combination of a leadership position in a growing market, innovative technology and an experienced team make this a natural fit for S3.”

Silicon Hills News did this profile of Datical in 2014.

Civitas Learning Buys College Scheduler

logoCivitas Learning announced Wednesday it has acquired College Scheduler, a web-based class scheduling platform for students at colleges and universities.

The financial terms of the deal were not disclosed.

College Scheduler, based in Redding, Calif., was founded by a student, Robert Strazzarino, at California State University at Chico, to solve his problems with scheduling classes and registration. Now College Scheduler serves over 175 institutions across 34 states, Canada, Australia and New Zealand, according to the company’s website.

Class scheduling is still a frustrating and antiquated process at many college campuses. College Scheduler makes it automated and easy. With the addition of College Scheduler to Civitas Learning’s Student Insights Platform students can now do class scheduling and registration online.

“We know that successfully completing college has multi-generational benefits for students and society, but far too many learners face bureaucratic and logistical barriers—especially nontraditional students. Streamlining class scheduling can help level the playing field for all students, enabling them to focus first on learning and achieving their goals, not making their class schedule work,” Charles Thornburgh, CEO and Founder of Civitas Learning, said in a news release.

All employees from College Scheduler will join the Civitas Learning team.

“From day one, our mission has been to provide students with a streamlined planning and registration experience that increases student success,” Robert Strazzarino, CEO of College Scheduler said in a news release. “With Civitas Learning, we have found a true partner in our vision of helping more students graduate worldwide. Our entire team is excited for the journey ahead and we are happy to be part of the Civitas Learning family.”

This is Civitas Learning’s first acquisition following a growth investment of up to $60 million in September 2015, led by the global private equity firm Warburg Pincus.

ATI Joins ACC to Launch Services for Life Sciences Startups in Austin

images-3Austin Technology Incubator at the University of Texas at Austin has teamed up with the Austin Community College District to launch business mentoring services aimed at life sciences startups.

The services will be available at ACC’s Advanced Commercialization ACCelerator, opening later on this year at the ACC Highland Campus. That locations will have biotechnology equipment, specialized wet lab space, conference areas and staff to help startups commercialize their products.

“We are pleased to partner with ACC to launch this important laboratory element of the Austin life sciences ecosystem,” Cindy WalkerPeach, Director of ATI’s Health/Biosciences Incubator said in a news release. “We are extremely supportive of ACC’s efforts to develop laboratory space for life science startups.”

ATI plans to provide business mentoring to startups at ACCelerator and it will help the organization with infrastructure development of systems, processes, governance, network of key individuals and funders. And ATI will establish a pipeline of prospective accelerator startup companies.

“ACC’s biotechnology program is a vital resource to Central Texas’ growing biotechnology sector,” Tyler Drake, Advanced Commercialization ACCelerator director said in a news release. “Collaborations with partners like ATI provide valuable insight and experience to further advance the commercialization of cutting-edge discoveries and technologies.”

Two Austin-based Companies Acquired by j2 Global of Los Angeles

122.w700.r1j2 Global, based in Los Angeles, announced this week it has completed the acquisition of two Austin-based companies.

j2 Global bought Offers.com, a digital media company based in Austin and MX Toolbox, founded in 2004, which provides managed IT services for small businesses worldwide. The terms of the deal were not disclosed.

Offers.com, a coupon, codes and deal site founded in 2003, has raised $7 million in venture capital, according to its CrunchBase profile.

“j2’s M&A program ended 2015 on a very high note,” j2’s CEO, Hemi Zucker said in a news release. “We are committed to drive growth globally, in part through acquisition, and completed twenty-four acquisitions in 2015 with that objective in mind. We are pleased to welcome our new business colleagues and customers around the world.”

The company also acquired Ausweb, a hosting company in Australia and On Demand Recovery, a backup computer company based in the United Kingdom.

j2 provides Internet services through its business cloud services division and its digital media division. Its business cloud services division offers Internet fax, virtual phone, hosted email, email marketing, online backup, unified communications and CRM solutions. Its digital media division offers technology, gaming and lifestyle content through its digital properties including IGN, PCMag, AskMen, Speedtest, ExtremeTech, Geek, Toolbox, TechBargains, Ziff Davis B2B and emedia.

OneSpot Hires Jon Driscoll as its Chief Revenue Officer

Jon Driscoll, OneSpot's new Chief Revenue Officer, courtesy photo.

Jon Driscoll, OneSpot’s new Chief Revenue Officer, courtesy photo.

OneSpot announced this week it has hired Jon Driscoll as its chief revenue officer.

Driscoll previously worked at Spredfast. At OneSpot, Driscoll will be responsible for sales strategy and business development. He reports directly to OneSpot CEO Steve Sachs.

Austin-based OneSpot has created a content marketing platform and its clients include Kraft Heinz, Mondelēz International, Whole Foods Market and Delta Faucet.

“Jon is an industry veteran whose significant experience leading business growth for industry innovators and building successful relationships with major brands is second to none,” Sachs said in a news release. “Content marketing has arrived and is now a central and mission critical part of marketing in general. As OneSpot moves to the next level and continues to ascend as a vital partner to the industry’s top brands, we are confident Jon will be a key figure in expanding and accelerating our leadership.”

Driscoll has more than two decades of strategic sales and client services experience. Before Spredfast, he worked at Mass Relevance. And he started his career at Trilogy Software, and was a founding member of its spin-off, pcOrder.com. A graduate of the University of Texas at Austin, Driscoll holds a bachelor’s degree in Finance.

“I am excited to be joining OneSpot’s team of visionaries, who foresaw that brands would become more like publishers and need to engage customers by building deep content-driven relationships at scale,” Driscoll said. “Content marketing is no longer a campaign effort but an integral part of how modern marketing is done. As the only cross-channel personalization platform purpose-built for branded editorial content, OneSpot is pioneering the field of Content Sequencing, and I look forward to helping further drive that momentum.”

LawnStarter Expands to San Antonio and Four Other Markets

LawnStarter-Press-Kit---Logo-200x48Lawn care is a big business nationwide.

But it’s a highly fragmented industry with a lot of mom and pop businesses.

That’s where LawnStarter has found its sweet spot. The on-demand lawn care service has found success in Austin, Orlando, Florida and Washington, D.C. hooking up lawn care providers with customers and now it’s branching out to other Texas cities including San Antonio, Houston, Dallas and Fort Worth. It also launched service this week in Jacksonville, Florida.

The Austin-based startup, founded in 2013, has created a simple-to-use online system that gives consumers the ability to easily order, manage and pay for lawn care services.

“LawnStarter’s goal is to make ordering lawn care service as easy as ordering a pizza,” Ryan Farley, co-founder and chief operating officer of LawnStarter, said in a news release. “The old, complicated way of hiring a lawn care provider is a thing of the past. Our technology, coupled with our top-tier customer service, is bringing a modern, customer-friendly approach to lawn care.”

“As we enter our five new markets, LawnStarter continues to grow as an innovator and key player in America’s on-demand economy, which was estimated at $18.5 billion in 2015,” Farley said.

Austin VC Investments up 20% in 2015 to $740 Million

By LAURA LOREK
Reporter with Silicon Hills News
iStock_000030057966Large copyNationwide the venture capital industry had one of its best years ever in 2015.

And that’s true for Austin too.

Austin ended the year with $740 million in VC investments, up 20 percent from 2014, in 99 deals, according to the MoneyTree Report from PricewaterhouseCoopers LLP and the National Venture Capital Association, based on data provided by Thomson Reuters. The number of deals dropped 13 percent with 99 deals in 2015, compared to 114 in 2014.

“It’s nice to see the dollars flow into Austin at this level,” said Larry Westall, partner with PricewaterhouseCoopers, based in Austin.

Software deals attracted the most money in Austin and nationwide, followed by biotechnology investments, according to the MoneyTree report.

The slowdown in the fourth quarter in deals in Austin doesn’t mean there will be a slowdown in 2016, Westall said. There may be some leveling off because of macroeconomic news with the Presidential election, oil prices, Isis activity, stock market fluctuations and China’s cooling economy, Westall said. But new investments are definitely seeing headwinds in 2016 locally, he said.

In 2015, Austin led the state in venture capital investments followed by Dallas with $214 million in venture capital in 29 deals, Houston with $161 million invested in 30 deals and San Antonio with $55.5 million in five deals, according to the MoneyTree Report.

Overall, Texas attracted $1.17 billion in 2015 in venture capital invested in 163 deals, down 18 percent in dollars invested from 2014, according to the MoneyTree Report. The number of deals dipped nearly 13 percent to 163 in 2015, down from 187 in 2014.

In Austin, the number one deal for the year was Civitas Learning attracting $60 million in venture capital, followed by Aeglea Biotherapeautics with $44 million, Mirna Therapeutics with $41.8 million and SpareFoot with $30 million.

In the fourth quarter, Austin companies received $100 million in venture capital, down 52 percent from the previous quarter in 16 deals, also down from 32.

In Austin, the top deal in the fourth quarter was Phunware with $19.3 million in investment, followed by Savara Pharmaceuticals with $18.5 million, Trendkite with $10.7 million, TVA Medical with $8.7 million and Vital Farms with $8 million.

Nationwide, venture capitalists invested $58.8 billion in the U.S. in 2015, up 16 percent from 2014, marking the second highest full year total in the last 20 years, according to the MoneyTree Report.

For the fourth quarter of 2015, venture capitalists invested $11.3 billion into 962 deals, down 32 percent in dollars and 16 percent in deals compared with the third quarter.

“While a handful of unicorns and late-stage funding rounds by nontraditional investors continue to grab the headlines, more than half of all deals in 2015 went to seed and early stage companies, with more than 1,400 companies raising venture capital for the first time,” Bobby Franklin, President and CEO of NVCA said in a news statement.

“It was a great year for Austin in terms of overall progress,” said Krishna Srinivasan, partner in LiveOak Venture Partners in Austin. “In the 16 plus years of being in the business, we saw this as the best year for entrepreneurial investment in quality and quantity of deals.”

First financings are improving immensely, Srinivasan said. LiveOak Venture Partners made five new company investments in 2015 and several follow on investments, he said. It also had its first exit in December when its portfolio company, StackEngine sold to Oracle.

“It was our biggest year in terms of financing,” Srinivasan said. “We are seeing a lot of activity.”

Srinivasan doesn’t expect a slowdown going into 2016. The technology industry in Austin is stronger than ever before, he said. Even if the rest of the country starts to slow down, Austin’s technology industry will remain strong, he said.

“Overall the ecosystem is achieving some good maturation,” Srinivasan said. “Talent is moving here from other parts of the country…We’re seeing more interest from the coastal investors. We should see a lot more coastal activity for follow up activity in much greater numbers this year.”

Increasing Diversity in Austin’s Tech Ecosystem

By LAURA LOREK
Reporter with Silicon Hills News

Hugh Forrest, director of SXSW Interactive, heading up a Tech Talk on Diversity at the Austin Chamber

Hugh Forrest, director of SXSW Interactive, heading up a Tech Talk on Diversity at the Austin Chamber

South by Southwest, the nation’s largest technology conference, has worked hard to tackle diversity in technology to get more people who are not middle aged white guys as speakers and participants, said Hugh Forrest, director of SXSW Interactive.

Last year, SXSW declared diversity in tech as its trend event with high profile black speakers like Jesse Jackson and Maxine Williams.

And at SXSW, 33 percent of the speakers are female, Forrest said.

“That’s higher than other tech conferences, but not as high as SXSW would like it to be,” he said. “SXSW has also worked to get more black speakers.”

But that’s not enough, he said.

“I’m painfully aware we have barely scratched the surface of this issue,” he said.

To discuss ways to encourage diversity in Austin’s technology industry, a group of community leaders met Wednesday morning for a “Tech Talk on Diversity” at the Austin Chamber of Commerce.

Forrest co-hosted the gathering with Michele Skelding, senior vice president of global technology and innovation at the Austin Chamber of Commerce. The heads of the Austin Black, Hispanic and Asian Chambers of Commerce attended along with startup founders and community leaders.

Austin needs a lot more mentorship and role modeling, said Jan Ryan, a successful serial tech entrepreneur and head of Woman@Austin with more than 600 members.

“We need more visibility,” Ryan said. “We need to spotlight those that do it well.”

Women@Austin is now featuring a profile of a woman entrepreneur on its website.

Women and minorities in Austin also need more access to funding sources, Ryan said.

Tam Hawkins, interim president of the Austin Black Chamber, said Austin technology companies and entrepreneurs must level the playing field and make opportunities accessible to everyone.

“Diversity is not a feel good, kumbaya feeling, it changes the world,” she said. “It changes business, it changes families.”

“We’re in the room, but we’re not being heard,” said Donell Creech, founder of Griot Media. “That’s where the inclusion part comes in. That’s where we have to realize we need to dig that this is a game of chess and not checkers.’’

Mikaila Ulmer, founder of BeeSweet Lemonade talks about the challenges kid entrepreneurs face.

Mikaila Ulmer, founder of BeeSweet Lemonade talks about the challenges kid entrepreneurs face.

Dominique Bowman, senior development officer at Huston-Tillotson University, said the university has a computer science program but folks don’t reach out to them. Its students often get placed with Facebook or Google but they would also like to have opportunities with startups, she said.

“We need to do more around reaching out to HBCUs (Historically Black Colleges and Universities)” said Natalie Cofield, cofounder of Urban CoLab in Austin.

Black and Latino/Latina entrepreneurs need that inspiration and aspiration by seeing others that look like them, said Preston James, Entrepreneur in Residence at the McCombs Business School at the University of Texas at Austin. He’s also co-founder and CEO of E3 Angel Network, focused on providing resources and funding to minority entrepreneurs.

“There’s plenty of deal flow out there,” James said. “The big challenge I see is how do we get them access to the resources that are critical to build entrepreneurial talent.”

James also sees an opportunity for corporations to help more ethnically diverse entrepreneurs startup their own companies.

And one of the ways to tackle diversity in tech is to encourage more genuine collaboration, James said.

Vi Nguyen, co-founder of Homads, an online marketplace for sublets, said it is helpful to see women who are doing the same thing. She seeks them out in the Austin tech community for advice.

Ashley Doyal, co-founder of RecruitHER, said diversity in technology workplaces creates a path to wealth for minorities and women.

Amy Beckstead, a labor and employment attorney founded Mama’s Austin, a 500 women referral network. It’s important for companies to address obligations people have outside of work, she said. Companies need to figure out solutions like part time tracks to keep women in the workforce and let them have a path to power, she said.

The networking group, Mama’s Austin, refers jobs and leads to each other, she said.

“There is not a better feeling in the world than to see someone you’ve helped get the job that they want,” she said.

Mehron Azarmehr, head of Azarmehr Law Group in Austin, said diverse workplaces aren’t just about feeling good, but they are about making money and performing better.

“One single thing I’ve learned from being a lawyer and also managing people we do much better when we have a diverse staff,” he said. “Everyday I’m noticing how well diversity works not because it’s a feel good thing but because our clients like it.”

“Functionally for business owners and entrepreneurs, if you have a diverse group in ethnicity and gender you are just going to do better in the service industry,” he said. “Your clients will like it. Your employees will like it. And you will make money.”

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