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OwnLocal Buys Austin-based Sidengo

Lloyd Armbrust, Founder and CEO of OwnLocal

Lloyd Armbrust, Founder and CEO of OwnLocal

OwnLocal announced Tuesday it has acquired another Austin-based startup, Sidengo.

The terms of the deal were not disclosed.

OwnLocal, founded in 2009, creates digital ads for media companies. The addition of Sidengo “will strengthen OwnLocal’s ability to offer easy to use, inexpensive digital advertising solutions to small business customers through their media partners,” according to a news release.

Sidengo, founded in 2012 by Gabriel Garza and Jorge Gonzalez, is a powerful website builder tool that allows anyone to easily create a website. Sidengo has more than 25,000 customers with active websites built using its website builder.

“Our vision has always been to make a difference in as many small businesses as possible, and in order to have a chance to compete with the big guys, we see OwnLocal has an opportunity to take this product to the next level,” Gonzalez said in a news release.

OwnLocal’s customers include newspapers, radio stations and television stations. The company makes online digital ad campaigns for the media companies’ small business partners. It has more than 1,500 newspaper partners and 20,000 small business customers in the U.S., Canada and Australia.

“Acquiring Sidengo’s product team gives us expertise we haven’t had in the past,” Lloyd Armbrust, founder and CEO of OwnLocal, said in a news release. “They have a tried and true platform that works at the scale our partners need.”

OwnLocal plans to offer Sidengo’s website building technology only through its traditional media partners.

People Pattern Digs Marketing Data Out of Social Media

Photo licensed from iStockphotos

Photo licensed from iStockphotos

By TIM GREEN
Reporter with Silicon Hills News

Twitter emerged with a splash at South by Southwest in 2007, unleashing an ever-growing barrage of tweets, posts, photos, and other social media interactions.

People Pattern, an Austin startup, is fittingly staging its coming out party at this year’s SXSW.

The company is developing software that mines the oceans of information embedded in social media to provide insight that companies can use to develop sharply focused digital marketing campaigns quickly and efficiently.

People Pattern applies data science to analyze indicators such as the words people use and the people they associate with – their patterns – to identify specific segments and sub-segments of customers. With that information companies can tailor messages for specific groups, develop content, generate sales leads and in media planning.

“We’re able to scale it, collapse the timelines and you’re able to take action directly,” Ken Cho, a People Pattern co-founder and chief executive, said of the market research process.

Cho, a founder and former chief executive of social marketing company Spredfast, brings the digital marketing expertise to People Pattern. The data science comes from co-founder Jason Baldridge, an associate professor of linguistics at the University of Texas who conducts research in computational linguistics.

They started the company in early 2013. Now it formally launches at SxSW with an open house at its Pedernales Street offices in East Austin and an invitation-only party at Franklin Barbecue.

People Pattern looks to catch a rising wave of corporate spending on digital marketing. The Gartner Group reported that while digital marketing is still a fraction of traditional marketing spending, more companies are transitioning to digital channels and increasing spending to address them.

“Historically, hundreds of billions of dollars have been spent annually on marketing, yet businesses had no real way to measure its true impact and return on investment,” said Bryan Stolle, a partner in the Mohr Davidow venture capital firm and an investor in People Pattern. “It was also very difficult to give attribution to which marketing program or dollar actually resulted in a sale.”

Using computational methods in marketing, called quantitative marketing, provides accurate feedback on what works and enables precise understanding of customers, Stolle said.

With a venture investment, he’s betting on Cho’s marketing and entrepreneurial acumen and Baldridge’s computational expertise. “I immediately saw them as a very powerful team that could build something game-changing in the quantitative marketing field,” he said.

Mohr Davidow invested $250,000 of seed money in early 2013 and came back at the end of that year with a $4.5 million Series A round.

In the past two years, the company has been developing its software, which involves natural language processing and analytics. And it’s putting together a track record serving a range of customers, including some Fortune 500 companies.

As an example, Cho and Baldridge recounted work People Pattern did for a large fast food company known for its hamburger restaurants arching across the world.

The company hired People Pattern to figure out switchers, a segment of customers who go back and forth between its restaurants and those of competitors.

Cho said that within eight days People Pattern pulled in 600,000 social media profiles, harvested relevant information from posts and tweets and other interactions, and analyzed it.

People Pattern found that the hamburger chain shared 25% of its switchers with a chain of sandwich shops. The switchers subbed in sandwiches for burgers because of health perceptions.

Cho said that the switchers should be targeted with messaging highlighting the hamburger chain’s healthier options.

Beyond that core task, Cho said People Pattern matched research about customer categories that the company had learned over 35 years of market research. People Pattern also uncovered a group of “breakfast only professionals” in Sacramento, which led to a market test of all day breakfast in the California capital.

People Pattern delivered validation and contributed to product development as well as fulfilled its assigned task, Cho said.

“All in eight days,” he said. “Their CEO was blown away.”

Cho can talk marketing, personas and market all day. Baldridge matches him step for step on the technology side. He researches computational linguistics, particularly natural language processing and machine learning. He’s on leave from UT Austin during the 2014-2015 academic year to work on People Pattern.

His boss at UT said Baldridge brings strong skills to People Pattern.

“Jason is doing fundamental work in machine learning and geo-temporal grounding of natural language, among other things,” said Anthony Woodbury, chair of the Department of Linguistics at UT-Austin. “There is therefore a very close connection between Jason’s research and teaching, and his work with People Pattern.”

Cho and Baldridge had met six years ago and Cho had kept track of Baldridge. (“He was stalking me,” Baldridge joked.) When Cho shared his ideas with Baldridge, the professor, as he’s called around People Pattern, was on board.

“This guy knows what he’s doing,” Baldridge remembers thinking. “He’s got a business problem that needs to be solved by Fortune 500 companies. Cool! That’s exactly what I was looking for.”

The program that Baldridge and the other data scientists at People Pattern have developed taps into social network databases to gather information, classify words, associate people in groups, and analyze the data.

With the databases and the tools of data science People Pattern can do in days what takes months for traditional marketing campaigns to do.

“We have the potential and have shown several times that within a week we can collect hundreds of thousands of profiles and run it all through this automated pipeline that then leads into something akin to personas,” Baldridge said.

Cho said other companies are working in a similar area but none possess People Pattern’s hard-core science approach.

Stolle, for one, is encouraged by the company’s progress. “The company is definitely tracking ahead of plan – always a good sign for long-term success,” he said.

Austin Hackney United Official Program Launches

By SUSAN LAHEY
Reporter with Silicon Hills News

IMG_1216 (2)Texas Representative Tan Parker wants to make Austin the most competitive and easy place for any company in Britain to set up shop, according to UK Consul General Andrew Millar, speaking to a group of about 40 at the official launch of Austin Hackney United, a sister-cities program between Austin and a suburb of London that houses Europe’s fastest growing tech center, Tech City.

“It’s a steep hill to climb” Millar said, “but you’ve got an opportunity to get something really interesting and positive going here…. The US-UK relationship is writ large in Texas in the coolest city in Texas and in America in my opinion. You are an internationally connected city. You have an audience of 3.5 billion people with F1, SXSW is a world class event…. There are some things government does well and some things it does less well. We support wonderfully, but it takes people with passion and vision and appetite to accomplish what the people in this room have accomplished.”

Austin City Mayor Steve Adler also praised the group who had been working on the partnership since 2012. and has expanded it to relationships between Austin Community College and Hackney Community College and grassroots relationship building between startups and incubators on both sides of the pond.

“You get involved with city government and you realize that so much of what is important, in fact most of what is important is happening outside city government,” Adler said to the group at the invitation-only happy hour at Techstars offices on Congress. “At this point Austin aspires to be one of the truly great international cities. We may not be able to knock on the door of the mayor of London just yet but we’re not far from having, I think, that kind of position in so many areas

Rackspace’s Videographer Launches Kickstarter for Short Film

Photo courtesy of Dave Sims

Photo courtesy of Dave Sims

Dave Sims, filmmaker and storyteller at Rackspace, has launched a Kickstarter to produce a 15 to 20 minute short film set in the Joshua Tree National Park in Southern California.

“The film tells the story of a woman who while hiking in the remote desert stumbles upon an unconscious man, prompting a haunting story of survival,” according to Sims.

The Kickstarter has eight days left to run and has already raised more than $15,000, or 77 percent of its $20,000 goal with nearly 70 backers.

Sims is well known in the San Antonio technology community. He has produced videos for Rackspace for years. A lot of the support for his current project comes from “Rackers,” (the name Rackspace employees call themselves,” Sims said.

Sims budget includes all the costs to make the film for the case and crew of between six and eight people.

“Monies raised in addition to the $20,000 will cover post-production and distribution costs such as studio time to record the original soundtrack and submission fees to film festivals,” according to Sims.

Sims, a graduate of the London Film School, has produced, shot and edited four feature films and more than 50 commercials.

Perks Help to Attract and Retain High Tech Talent

By Laura Lorek
Reporter with Silicon Hills News

BigCommerce photos courtesy of the company.

BigCommerce photos courtesy of the company.

Back in the highflying dot com days, the perks at high tech companies flowed as freely as the beer from onsite kegs on Fridays.

Today, the competitive landscape for tech workers has meant another resurgence of perks to lure employees and keep them happy. And whiskey Fridays and beer bashes are back.

The perks have gone as high-tech as the companies. Last year, Apple and Facebook added egg freezing to its employee benefits package.

An informal survey of tech workers in Austin, shows some of the popular local perks include flexible work hours, comprehensive healthcare benefits programs, free lunches, fully stocked refrigerators and pantries full of snacks, telecommuting, gym memberships, pets in the workplace, standing desks, free parking and liberal vacation policies.

With more companies setting up shop in Central Texas every year, the demand for high-tech talent continues to grow.

In Austin, high tech workers make up 9 percent of the workforce or about 100,000 jobs, but the tech industry supports more than one third of all jobs in the economy, according to the Austin Technology Council. The ATC reports the tech sector contributes $21 billion annually to the local economy and tech workers, with average salaries of $155,000, are a big part of that.

BigCommerce, which provides websites and services to more than 55,000 stores, has been growing like gangbusters in Austin. It now has 280 employees

Anna Thoni, manager of enterprise accounts, joined BigCommerce two months ago from Rackspace.

One of her favorite perks is breakfast in the company kitchen. She bonds with her co-workers over oatmeal and coffee.

“It’s like being at home and being productive,” she said.

Throughout the day, she’ll pop into the snack room for Topo Chico water, nuts, fruit, cheese and little things that keep her going.

And when she needs to de-stress, she goes to the “Chillax,” relaxation room equipped with a massage chair, noise cancellation machine and dim lighting.
When she wants a little more activity, she might hop on one of the swings suspended from the ceiling near the game room.

The employees decide what kind of perks BigCommerce offers, said Steven Donnelly, its human resources director. And perks do help attract talent, he said.

“If you look at any high tech company in Austin they are touting perks on their website,” he said. Employees expect them, he said.

Yet not all wishes get granted. When BigCommerce raised its latest funding round, some employees suggested the company get a helicopter, but that didn’t seem like a good use of investor money, Donnelly said.

Bigcommerce team play (1)BigCommerce also offers good medical insurance coverage, an open vacation policy that lets people take as much time off as they wish, maternity and paternity policies, Tuesday catered lunches, scooters and skateboards to get around the office and happy hour on Fridays and the swings.

“We wanted to bring the playground into the office,” Donnelly said. “It’s OK to have a little fun when you’re at work.”

At its headquarters in San Antonio, Rackspace has a two-story spiral slide that’s quite popular with employees. It also has four Gondolas from Breckenridge Park that workers use for meeting places. The company also has food truck days in which employees can dine outside at picnic tables.

One of the popular perks at SpareFoot in downtown Austin is bring your pet to work day, said Cathy Guthrie, the company’s human resource director.

“Perks absolutely play a big role in how we are able to recruit in a hot market,” Guthrie said.

And another popular perk is its food. Everyday, the company has a chef prepare a hot meal. Recently, the chef prepared Italian sausage; herb roasted chicken, roasted new potatoes and a squash casserole for vegetarians.

SpareFoot also pays 100 percent of its employees’ health insurance premiums and offers an overall competitive benefits package and gym membership. And every employee is a stockholder.

“We have a no vacation policy, policy – you take what you need and schedule it as an adult – you self-manage,” Guthrie said. “We believe that you can balance your real life and your work life in a harmonious way.”

SpareFoot is also active in the Austin Startup Games, which it has won several years in a row. It hosts game nights and has more than 30 social and service events on its calendar for employees to participate in outside of work.

The company is hiring and expects to have 280 employees by the end of the year, Guthrie said. In the face of tremendous growth, SpareFoot also strives to maintain its fun-loving company culture, she said. Its CEO Chuck Gordon has fireside chats with employees about every six weeks.

At Capital Factory, the downtown incubator, accelerator and coworking space, employees get four weeks of paid vacation, a parking spot and a benefits package. But the real attraction is the opportunity to meet people like Peter Thiel, Slash from Guns & Roses and President Barack Obama, said Josh Baer, Capital Factory’s founder.

Capital Factory has 25 employees. But many more employees work at its startups based there. And they all get Capital Factory’s premiere downtown location, inspiring space and great views along with a stocked kitchen and catered meals twice a week, Baer said.

Perks are important in attracting talent, but companies ultimately don’t compete on perks, he said.

If a company doesn’t have a great workplace and culture, it will be hard to attract and retain employees in Austin’s hot tech market, Baer said.

“The big attraction of working at Capital Factory is you are plugged into this energy and all of this stuff going on,” he said.

Correction: the original version of this story misspelled Cathy Guthrie’s name

Ways to Get Startup Bucks in Silicon Hills

By Laura Lorek
Reporter with Silicon Hills News

iStock_000030057966Large copyThe funding landscape for startups in Central Texas has changed dramatically in the last five years.

New firms have launched like LiveOak Venture Partners in Austin and the Geekdom Fund in San Antonio.

And old firms have faded away like Austin Ventures, the big daddy of Austin’s venture capital firms.

Earlier this year, Austin Ventures reported it would not be raising another fund.

And Fortune Magazine published an article titled “The Death of Austin Ventures.”

“For decades, Austin Ventures was more than just the largest and most powerful venture capital firm in Texas. It was one of the largest and most powerful venture capital firms in the world,” according to the Fortune article. “But now it’s a zombie, slowing decaying into little more than a memory.”

Austin Ventures raised its last fund of $900 million in 2008.

And while overall venture capital deals in Austin have been on the rise, Austin Ventures’ participation has been on the decline, according to CB Insights, a venture capital research firm.

“In 2010, Austin Ventures accounted for 15% of new investment deals in Austin but, five years later, that figure had fallen to 4%,” CB Insights reported.

Despite Austin Ventures’ pullback, overall, venture capital funding is on the rise. Venture Capitalists nationwide invested $48.3 billion in 4,356 deals in 2014, up 61 percent in dollars and 4 percent increase in deals, compared to 2013, according to the MoneyTree report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.

Austin had 114 deals, which raised $620.5 million in venture capital last year, and San Antonio had nine deals with $109.5 invested.

“The change at AV isn’t failure, it’s evolution,” Joshua Baer, founder of Capital Factory, wrote in a post on Medium.
Other funding diversified sources have taken root in Austin to fill the needs of tech entrepreneurs looking to launch ventures. A few of those sources are listed below.

Equity-based crowdfunding – The Texas State Securities Commission has approved several new portals that allow entrepreneurs to raise money directly from the public for their ventures. Mass Venture in San Antonio is the first portal to receive approval. It focuses on real estate investment. The state has approved two other portals: Crudefunders and TruCrowd, both are based in Houston.

Central Texas Angel Network – one of the nation’s top five most active angel investment groups. CTAN’s investments range from $250,000 to $2 million or more. CTAN has invested more than $45 million in more than 100 companies since 2006.

LiveOak Venture Partners – Focuses on early stage tech startups throughout Texas with its $100 million fund. Its minimum investment is usually $250,000.

Silverton Partners – an Austin based company that mostly invests in tech companies. It has a partnership with Capital Factory to provide select Capital Factory accelerator startups with funding. Silverton generally invests between $200,000 and $2 million.

Geekdom Fund – a new fund, launched this year, has raised nearly $3 million to invest in early-stage tech startups in Austin and San Antonio.

Seven Women Run Tech Startups in San Antonio to Watch

Magaly Chocano, founder of Sweb Development, photo by Gary Hartman.

Magaly Chocano, founder of Sweb Development, photo by Gary Hartman.


By LAURA LOREK
Reporter with Silicon Hills News

San Antonio is the nation’s seventh largest city, yet it doesn’t have a lot of tech startups run by women and backed by venture capital.

But San Antonio’s booming life sciences industry holds a lot of promise for women-led ventures. Two women, both biotech industry veterans, lead two of the startups on this list.

San Antonio also has had some very successful technology companies run by women. In 2008, Nancy Kudla sold dNovus, a company she co-founded with her husband Frank, to Kforce for $38 million.

And Janie Gonzalez, an early Internet pioneer, founded Webhead Technologies in 1994. The web design and consulting firm is still going strong.

Bluegrass Vascular Technologies – Dr. Gabriele Niederauer took over the reins of this life sciences startup last September as president and CEO. The company is creating devices and methods to let doctors easily access veins. Last year, the company moved from Kentucky to San Antonio and landed $4.5 million in venture funding.

VentureLab – Cristal Glangchai, CEO and Founder of VentureLab, created the startup with the goal of increasing the participation of girls and women in entrepreneurial activities and the Science Technology Engineering and Math fields in San Antonio. She also wants to fill the gap of women in the workforce by reaching girls earlier and encouraging them to pursue STEM fields. The startup conducts workshops, camps and other programs targeted at girls as young as five.

InnerAlly – Cynthia Phelps co-founded this startup, which created a platform that lets people perform simple actions to stabilize their mental health. “Every year billions of dollars are forfeited to lost productivity of employees suffering from depression, anxiety, and other mental health issues,” according to the company. “By empowering workers to maintain their mental health we can dramatically reduce those losses.”

Firecat Studio – Susan Price founded this Web design and online marketing company. She also runs First Friday Co-Working in San Antonio and the annual TedXSanAntonio conference.

Sweb Development – Magaly Chocano founded her startup in 2008. She saw the market developing for iPhone apps. She launched the first do it yourself platform online for creating iPhone apps. She also landed some major clients and developed native apps for them. Her firm also does social media marketing.

Webtegrity – Kori Ashton co-founded this web design firm. The startup also offers technical classes and training. It also specializes in search engine optimization, consulting services and social media marketing. She also organized the first Wordcamp San Antonio along with Michelle Lowery.

Leto Solutions – Becky Ariana serves as CEO of this medical device company that spun out of the University of Texas at San Antonio. The startup, led by a team of four engineers, created the Aquilonix Prosthesis Cooling System. The thermoelectric cooling device fits into the socket of a prosthetic limb and runs on a five-hour battery which can be turned on or off by the wearer.

Robert Langer Takes Innovations from the Lab to the Marketplace

By LAURA LOREK
Reporter with Silicon Hills News

Bob Metcalfe, professor of innovation at the University of Texas at Austin with Dr. Robert Langer, Koch Institute Professor at MIT.

Bob Metcalfe, professor of innovation at the University of Texas at Austin with Dr. Robert Langer, Koch Institute Professor at MIT.

Known as a modern-day Thomas Edison of biotechnology, Dr. Robert Langer visited the University of Texas at Austin on Friday to inspire others who wish to emulate his success.

Langer gave UT students, faculty and guests advice on how he has started 18 companies, has written nearly 1,300 scientific research papers and received more than 1000 patents.

A Koch Institute Professor at MIT, Langer has conducted research in his lab that has led to drug discoveries resulting in billions of lives saved worldwide. He has also created more effective treatments for diseases such as cancer, diabetes, schizophrenia and alcoholism.

On the lighter side, through collaboration with Hollywood Actress Jennifer Aniston in a company called Living Proof, his chemical research has invented hair care products to add more body to dull and lifeless hair and to treat frizz.

Bob Metcalfe, Nicholas Peppas with UT and Robert Langer with MIT.

Bob Metcalfe, Nicholas Peppas with UT and Robert Langer with MIT.

Langer shared some of his experiences in an hour-long discussion with Bob Metcalfe, Professor of Innovation at UT Austin and Nicholas Peppas, Chair of the UT Biomedical Engineering Department, during a talk to about 200 people at the AT&T Executive Education and Conference Center. He later gave another talk with Metcalfe and Dell Medical School Dean Dr. Clay Johnston on spurring innovation at the new UT medical school.

Peppas gave a lengthy introduction of Langer listing many of his accomplishments and awards. Langer has won more than 220 major awards including this year the Queen Elizabeth Prize for Engineering, one of the most influential engineering prizes in the world. Peppas concluded with the quick assessment of Langer as a man who solves problems and helps others solve problems too.

Next, Peppas asked Langer: “How do you do it?”

“Now it almost seems kind of natural,” Langer said.

Langer’s Lab at MIT focuses on biotechnology and materials science. His major interest is in drug development and delivery. In the lab, his students do thesis and postdoctoral projects and experiments that often lead to breakthrough patents and products. Langer wanted to get those discoveries out of lab and into the marketplace.

For a time, he thought that if they did the work, people would use it.

“It happens some of the time, but very rarely,” Langer said. “I found that if you’re not your own champion very few people use it.”

That really was the initial motivation for Langer to spin startup companies out of his lab.

“Some of it goes back to the early ‘80s,” Langer said.

The companies could do things Langer said he and his students couldn’t like manufacturing, clinical trials and create products that get out into the world.

“These companies magnified the impact of what we were doing in the lab tremendously,” Langer said.

But the process to commercialize technology was very hard.

The Patent Process

For one thing, Langer couldn’t get a patent issued. The patent examiner turned down his patent application five years in a row and the lawyer he was working with wanted to quit pursuing it because it was costing a lot of money. He finally convinced the patent examiner to allow the patent “on polymer systems for controlled release of macromolecules” after he provided affidavits from scientific experts that the work his lab was doing was against conventional wisdom.

“Having that patent was important,” Langer said.

But it was still painstakingly difficult to get a product to market. Multi-billion dollar companies licensed his patents. But the companies would do an experiment or two a year and when the experiments failed, they gave up, Langer said. That’s when he decided to start a company and he was able to get the patents back.

“It took a long time.” Langer said. “And even then when we did it we ran into problems. Our first CEO wasn’t very good. There were all kinds of issues. You keep learning, mostly by making mistakes.”

Working with Venture Capitalists

Metcalfe recounted the first time he first met Langer at Polaris Partners, a venture capital firm based in Boston. Metcalfe, a rookie venture capitalist, was just learning the ropes.

“That first week on the job, Terry McGuire (co-founder of Polaris) invited me to a meeting with you,” Metcalfe said.

Langer presented five PowerPoint slides on sugar sequencing tools and he was seeking a $1 million investment. At the end of the meeting, McGuire gave Langer the $1 million and Metcalfe kicked $100,000 in the deal.

Polaris and Metcalfe got a handsome return on that investment, Langer said.

The story of Momenta and creating the first bio-generic drug approved by the FDA

“Momenta is a good example of the kind of things we do,” Langer said.

No one had ever sequenced a polysaccharide, which is a complex chain of carbohydrates, until Momenta, a startup Langer co-founded, tackled the problem.

“We came up with a combination of technologies using enzymes and mass spectrometry that allowed us to sequence polysaccharides,” Langer said.

Momenta focused on creating generic versions of complex drugs, in particular, the researchers created Enoxaparin, a generic version of the $4 billion drug Lovenox, which is used to prevent blood clots.

“They didn’t think we could sequence it,” Langer said. “But we did. What happened is that led to making what’s called a bio-generic. The FDA allowed the approval of this. We could show a chemical identity with the techniques we had – so the FDA gave us the approval in 2010.”

Momenta’s generic version of Lovenox made more than $1 billion in its first year, Langer said.

But Langer’s work isn’t just about making money, it’s about saving lives.

In 2008, Langer worked with the FDA during the Chinese heparin crisis. Heparin, a widely used blood thinner, became contaminated and led to the deaths of people in 11 countries, Langer said. Momenta worked with the FDA and the Centers for Disease Control to identify the contaminate and to establish new standards by which heparin could no longer kill people, Langer said.

“The deaths went to zero,” Langer said. “That would never have happened without these sequencing technologies.”

Taking products out of the lab and to market

Peppas asked Langer how he comes up with his breakthrough ideas and when does he know it’s time to commercialize them.

Fundamental research in his lab or with a collaborator has sparked almost all of the companies, Langer said.

“We’re always doing the next project,” Langer said. “We’ve been working on a number of things for many years. Something reaches a point of maturity and makes sense to have a company.”

Timing is crucial when launching a company out of the lab.

“Sometimes people start too early or too late,” Langer said. “If you start too soon, investors get tired.”

He advised students and researchers to file a patent before they publish their paper in a scientific journal.

“An early draft of a paper for me is a good time to file a provisional patent,” he said.

Peppas asked Langer when should inventors approach investors?

“What I like do, if it’s possible, is go in with a bang,” Langer said. “Have a really powerful paper in Nature or Science. Know that we filed the patent and that we have good data. Go in before that paper is out.”

The story of Living Proof

imgres-6Metcalfe asked Langer how he got involved with creating Living Proof, his hair care company in collaboration with the Actress Aniston. He recalled Amir Nashat, a managing partner at Polaris, walking into a meeting and his jet black hair was shiny and beautiful and he was promoting Living Proof’s new hair care line.

“Amir was one of my graduate students,” Langer said. “He got his PhD with me. But he ended up choosing a career in venture capital at Polaris.”

“Most of my research has been kind of basic engineering and science, if anything, applied to medicine,” Langer said.

One day, Nashat and John Flint, a partner at Polaris, visited him and asked him to tackle the problem of frizzy hair.

The science on hair wasn’t very good, Langer said. Out of the 50 products on the market to treat frizzy hair, all of them had silicone as their active ingredient, he said.

Researchers in Langer’s Lab took a material science approach to the problem. They wanted to find a material more hydrophobic than silicone to keep the moisture out. They discovered PolyfluoroEster and used it to create no-frizz shampoos and conditioners, which are one of Living Proof’s best-selling products at Sephora Stores. They also used fundamental chemistry and tapped into a library of polymers they had created to find polymers that could create more body for the hair, Langer said.

“It’s been quite exciting,” Langer said. “It’s been an interesting application of science to hair care.”

Langer also said he invests his own money in companies, but not that much. He usually does it to boost investment in a company he likes, because others follow his lead.

And although Langer has had a lot of failures in the lab, none of the companies he has started have failed.

Metcalfe asked Langer how he measures success?

“To me, the metric is helping people,” Langer said. “If you do that, and you make an impact, everything else flows.”

Six Women Run Tech Startups to Watch in Austin

Laura Bosworth, co-founder of TeVido Biodevices, photo by John Davidson.

Laura Bosworth, co-founder of TeVido Biodevices, photo by John Davidson.

By LAURA LOREK
Reporter with Silicon Hills News

The stats don’t bode well for women-run tech startups nationwide. Less than 3 percent of venture-backed startups have a woman as a CEO.

But things are changing. Groups like Women@Austin, Women Who Code and Women in Technology are shining a spotlight on female tech entrepreneurs locally. And crowdfunding, bootstrapping, government grants and angel investors are helping more women entrepreneurs to launch and grow their ventures.

In fact, Nerd Wallet named Austin as one of the top 10 places for female entrepreneurs. And here’s six women run technology startups in Austin to keep an eye on as they expand their ventures:

Spot on Sciences – Dr. Jeanette Hill founded her medical device startup in 2010. It creates a blood collection device called HemaSpot. It lets people take a blood sample safely, securely and easily from a remote location and send it to their doctor for analysis. The company is bootstrapped but has received about $2 million in research grants.

TeVido Biodevices – Laura Bosworth is the co-founder and CEO of this life sciences startup that is making nipples from human cells using 3D printers. The company recently completed a successful crowd-funding campaign and received a Small Business Innovation Research grant from the National Cancer Institute of the National Institute of Health and a grant from the National Science Foundation.

Fashion Metric – Daina Linton is a CEO and co-founder of the startup that acts as a virtual tailor. Her husband, Morgan Linton, is also a co-founder. They founded the company in Los Angeles and moved to Austin last year to participate in Techstars. They decided to permanently relocate and they recently closed on $1 million in financing. The company makes software and has a special algorithm to help people find the right-sized clothes online.

Testlio – Kristel Viidik is one of two co-founders of this startup that is a community of test engineers that test mobile apps to find bugs. The company, originally from Estonia, relocated to Austin to participate in the first Austin Techstars program in 2013. The company has raised $1 million.

Wisegate – CEO Sara Gates founded the company in 2010 and has since raised nearly $9 million. Wisegate has created a platform for IT leaders to interact and share information.

Double Line Partners – Zeynep Young founded the company in 2009 and has since grown it to $20 million in revenue and 120 employees. The startup makes software, data system dashboards and other tools to help schools improve the performance of their students in grades K-12.

The Open Cloud Institute Launches at UTSA

ociThe University of Texas at San Antonio on Thursday announced the creation of the Open Cloud Institute with $9 million in backing.

The Open Cloud Institute will focus on creating degree programs in cloud computing and big data. It will also work closely with companies in the cloud computing industry.

The 80/20 Foundation has pledged “$4.8 million to support four endowed professorships, up to two faculty research positions, 10 graduate student endowments and research funding,” according to a news release.

UTSA also received in-kind donations from Rackspace, AMD, Intel, Mellanox Technologies and Seagate. The university also received support from the Open Computer Project and OpenStack Foundation.

“By recruiting the nation’s most sought-after scholars, UTSA has developed tremendous expertise in cloud, cyber, computing and analytics. The Open Cloud Institute further builds on that strength,” UTSA President Ricardo Romo said in a news release.

“As adoption of cloud computing accelerates, the next industry that will get to harness this powerful and complex resource is academia. This will allow for increased innovation in scientific research and help to solve some of society’s grand challenges,” Graham Weston, chairman at 80/20 Foundation and Rackspace, said in a news release. “UTSA is emerging as a global leader in academic research built upon open technologies. The Open Cloud Institute will enhance UTSA’s capabilities, while boosting the supply of cloud engineers that all of our businesses need in order to power the technology companies of the future.”

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