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B.A.S.H.H. Founder Lani Rosales Keeps Austin Authentic

By SUSAN LAHEY
Reporter with Silicon Hills News

Lani Rosales, photo by Annie Ray

Lani Rosales, photo by Annie Ray

“There’s not one business meeting I go to where I can’t cuss and wear flip flops,” said Lani Rosales, explaining one reason why—when she married her husband, Benn Rosales—she agreed to include in their vows that she’d never force him to leave Austin.

Many people know Lani Rosales by name or reputation, but few have a clue how many hats she wears. She is co-founder (with Benn) of the Big Ass Social Happy Hour (B.A.S.H. H.). She’s the fierce administrator of the nearly 9,000-member Austin Digital Jobs Facebook Group where she admonishes anyone on the site “Do not post anything for sale or you’ll die instantly.” She’s chief operating officer of AGBeat, of which Benn is CEO. She’s the face of their organization who, at the first Ignite Austin, gave an etymology of curse words. She’s the tender-hearted kitten lover who in one minute tells her nearly 3,000 Facebook friends and 10.5 thousand Twitter followers “buy my book, BITCHES” and in the next shares a heartbreaking post about the loss of their son, Kennedy.

In an entrepreneurial world where egos abound and many people aspire to celebrity status, Lani and Benn Rosales hold ground in understated, earthy Austin culture like Spartans prepared for siege. A couple of closet introverts, they befriend everyone, their contributions rarely spotlight their primary business—AGBeat—and Lani’s social media voice always translates as authentic and personal.

“She’s not afraid of ripping someone’s face off if they’re a fraud a scam artist…,” said Kyle Bailey, a close friend and B.A.S.H.H. volunteer who’s amazed at Rosales’ willingness to be call it as she sees it, rather than play business politics. “She’s judicious about it…there are a lot of people talking smack, but for Lani it’s about ‘Who are you hurting?’”

The Rosaleses run the American Genius website, which started as Benn Rosales’ blog about real estate and has expanded into a site that also covers technology and entrepreneurship. From there, the couple started the Austin Digital Jobs, B.A.S.H.H., BizBashh—a networking event for startups—and Spark of Genius, a business camp for decision makers. Lani also co-authored the book Real: A Path to Passion, Purpose and Profits in Real Estate.

The Birth of B.A.S.H.H.

Benn Rosales started AGBeat in 2006 as realtorgenius.com, hoping to write about national real estate issues without impacting the brokerage where he worked. When the Board of Realtors demanded that he stop using the word “realtor,” in his URL, Lani Rosales said, he had to decide whether to fight back or play the victim. He chose to complain about the organization picking on the little guy, and overnight his blog exploded, from a few thousand visitors a week to 60,000 a month. That’s how the couple got into publishing. Some of those visitors were entrepreneurs who commented that the content was useful to them as well, which inspired expansion of AGBeat’s focus.

“We have this really naïve idea that we can change people’s lives…,” Lani Rosales said. The focus is producing content with meat. “If we can tell a reader one thing that leads him to saving some time and money, that’s a huge win for us and helps them to focus on their lives. It’s embarrassing if someone opens the site and looks at the top couple headlines and just…eh. We haven’t appealed. We haven’t done our job. I would rather have zero stories in a day than 10 fluff stories.”

B.A.S.H.H. started as a small collection of early Twitter users who had befriended one another online and decided to meet up in person. Bailey calls it “a room full of introverts.” It was Benn Rosales’ idea to formalize it, and it has grown into an event that draws hundreds of people every month to network and hang out. It still has that core group, but has expanded into other events, like the BizBashh, connecting job seekers and recruiters.

“It has been our mission to more meaningfully connect people online by taking them offline, both socially and professionally, all the way down to helping people all the way back in 2008 to find jobs through our personal connections, which was essentially the birth of ADJ,” Benn said “We knew we had to do something more long-lasting to help Austin to maintain its talent.”

“Several startups have been created there,” Rosales said, “Businesses, marriages…” It often happens, she said, that a new transplant will arrive in Austin and be instantly welcomed and introduced to B.A.S.H.H.ers networks. “Everybody has their arms open when you come to the city…it’s part of the Southern hospitality. Nobody is from here so they’ve all had that experience of having to come here and rebuild.”

The only downside, the weakness of Austin, she said, is that while people will introduce you to everyone in their networks, they often hope for you to do work for free, which is “not kosher.”

The Story of Lani and Benn

Lani Rosales, photo by Susan Lahey

Lani Rosales, photo by Susan Lahey

Rosales IS from here. She grew up in Austin and planned to be a journalist in high school. But when assigned her a story about a student who wasn’t expected to live to graduation, she balked. “It felt cheap and salacious and extremely invasive,” Rosales said. In that case, her teacher told her, she’d never make it as a journalist. So she switched to English. Her father had a rule that if she stayed in Austin for college she had to study abroad, so she spent two semesters in Spain, studying at the University of Salamanca—founded in 1134. When her school session was done, she asked for a little more money from family to get a trip to Italy and was told she had made “the last withdrawal from the family bank.” Fortunately, she had a ticket to get home but arrived broke and directionless.

She met Benn at a Starbucks they both frequented, and, she said “We’ve been inseparable ever since.” He had moved to Austin from Oklahoma to work for Apple, with a background in upper management, marketing, public relations and UX and UI. But when his brother needed help with branding and marketing his real estate firm, Benn wound up making that his full time gig. He hired Lani to help with marketing.

She says, almost apologetically, that they’re one of those “disgustingly in love couples.” She’s the public face of the company. He’s the boss.

“Part of our secret is that we decided early on who is the boss, and who takes responsibility for failures, which removes the power struggles that hold most couples back from working together,” Benn said. “Lani is the yin to my yang, and vice versa, especially with fleshing out ideas.”

The couple has had several major blows over the last 10 years. In 2005, they learned they were expecting a child, but Kennedy had several major health issues and was stillborn. Two years later, Lani’s brother Aaron, her “best friend outside of my marriage” was killed in a car accident. And in June, Benn, whose family has a history of heart disease, was told he needed an emergency quadruple bypass.

For a long time, they didn’t share the loss of Kennedy with anyone but close friends. But by the time of Benn’s triple bypass, because of the kind of friendships they’ve built in the community, they felt like it would be a betrayal not to share. Because Benn’s heart condition is genetic, Lani said the “super long term plan” is that he would not have to work and she could go write in a cabin someplace.

Benn– who stood outside Rattlesnake Inn at the November BizBashh, sardonically wondering why someone hadn’t filled in the last open space between two buildings—said their mission is really about the preservation of Austin.

“Our long term contribution is in the conservation of Austin as it is. Although it may remind people of California, it is NOT California. It isn’t SXSW. It isn’t a lot of things people think it is. It’s a home away from home, it’s a place people call home. It’s wonderful people. It’s beautiful hill country and lakes, it’s a small town and it is a natural wonder that doesn’t really need to change to be special.”

So there Bitches!

Experiment Engine Gets $1 Million in Seed Funding

Claire Vo, co-founder and CEO of Experiment Engine, photo by Laura Lorek

Claire Vo, co-founder and CEO of Experiment Engine, photo by Laura Lorek


Austin-based Experiment Engine announced Tuesday that is has closed on a $1 million seed funding round.

The company received funding from Founder Collective, based in New York and Boston, Mercury Fund in Houston and Austin Angel Investors Dan Graham, CEO of BuildASign and Rony Kahan, Co-founder of Indeed.com.

Experiment Engine, which recently graduated from the Austin Techstars program, offers a software as a service web and mobile platform that allows companies to test different versions of their products. The testing is known as A/B test as it compares two different versions of a website, mobile application or other product to Experiment Engines marketplace of conversion experts. Those experts provide “ready-to-test page versions that are shown to live traffic for Experiment Engine’s customers.” The customers determine which is the best version.

“By providing on-demand access to skilled conversion rate optimizers, Experiment Engine has helped early customers triple tests run per month and drive conversion gains averaging 20 percent,” according to a news release.

The company plans to use the funds to expand its platform and on sales and marketing.

“Having run hundreds of A/B tests over our careers, my co-founder and I have a first-hand appreciation of the true impact continuous optimization delivers,” Claire Vo, Experiment Engine’s CEO and co-founder, said in a news release. “By closing this seed round, we have the resources to accelerate our business and deliver our optimization solution to marketers who want to truly ‘Always Be Testing.’”

Upland Software Acquires Solution Q for $5.8 Million

156956LOGOAustin-based Upland Software has acquired Toronto, Canada-based Solution Q for approximately $5.8 million and plans to retain all of the company’s employees.

It’s Upland Software’s seventh acquisition in three years and is part of the company’s overall strategy to expand its products and services, according to a news release.

Upland, which has 340 employees, plans to retail all of Solution Q’s employees and management.

The acquisition broadens Upland’s Entreprise Work Management software products by adding Solution Q’s Eclipse product line geared to midsize organizations. Solution Q’s Eclipse customers are in the healthcare, education and financial services industries.

“We’re very pleased to welcome the Solution Q team to the Upland family,” Jack McDonald, Chairman and CEO of Upland Software, said in a news release. “This acquisition adds another built-for-purpose product to our family of cloud-based Enterprise Work Management applications and represents the latest step in our commitment to making Upland Software the global leader in this category.”

Upland, which recently went public and is traded on the Nasdaq under the symbol UPLD, provides cloud-based Enterprise Work Management software.

BikeTexas Teams up With Spinlister

imgresSpinlister, the peer-to-peer bike sharing service that launched in Austin last month, has signed a deal to sponsor BikeTexas, an organizations that encourages and promotes bicycling.

Spinlister plans to help BikeTexas with marketing and logistical support for its new BikeTexas parking and valet programs. It plans to offer the services to event organizers to promote bicycling in Austin. BikeTexas is also listings its fleet of 150 bikes on Spinlister to raise funds.

“With Spinlister’s support, we’ll be able to build a sustainable bike parking and bike valet program to serve the local community. These new services, along with the revenue expected from our rental fleet, will help fund our initiatives to create positive change in Austin for generations to come,” Robin Stallings, the Executive Director of BikeTexas, said in a news statement. “Now, when travelers come to Austin they will not only be renting bikes but helping the community long after they are gone.”

Google Fiber Austin Announced 1 Gigabit Internet Pricing Plan at its New Downtown Headquarters

Mark Strama, head of Google Fiber in Austin, photo by Susan Lahey

Mark Strama, head of Google Fiber in Austin, photo by Susan Lahey


By SUSAN LAHEY
Reporter with Silicon Hills News

Google Fiber will house its Austin headquarters in the former Austin Children’s Museum at 201 W. Colorado, Mark Strama, head of Google Fiber announced Monday.

Strama said he hopes the 23,000 square foot building will be Austin’s “Living Room.” He was harking back to the opening of Whole Foods when John Mackey said the headquarters building was a “Love letter to the City of Austin.”

Google hopes to have concerts, hackathons, town hall meetings and other events in the space, which is also a DIY production studio. A giant, two-million pixel screen looms over the entrance area. It can receive up to six video feeds at once.

The coolest thing about 1 Gbps upload and download speeds is that it will change the shape of the internet, Strama said. It will become less a place from with to draw information and more of a place where anyone can share information, which means developers will have a whole new world to play in.

“A lot of the applications we have today wouldn’t have worked on dial-up (internet),” Strama pointed out, including Facebook.

Strama announced Google Fiber’s pricing plan, including one plan of $300 for construction and no monthly fee; $70 a month for a gigabit Internet service and $130 a month for TV plus, which includes access to more than 150 high definition channels. AT&T is also offering 1 Gbps for $70 a month.

The company also revealed its Austin installment van with art done by local artist Mike “Truth” Johnston.

In October the company announced it would launch in South and Southeast Austin, making Austin the second city—after Kansas City—to receive Google Fiber. It will begin taking orders in December. Strama said the company wasn’t giving a specific date because it doesn’t want to set a mark and miss it. Google originally announced its intentions to launch by mid-year 2014.

AT&T has been expanding its 1Gbps GigaPower service throughout Austin. San Marcos based Grande Communications has also been rolling out 1 Gbps in Austin.

HomeAway’s Brian Sharples’ Entrepreneurial Journey

By LAURA LOREK
Reporter with Silicon Hills News

Brian Sharples, courtesy photo from HomeAway

Brian Sharples, courtesy photo from HomeAway

As a serial entrepreneur, Brian Sharples, co-founder of HomeAway, has learned many lessons on his entrepreneurial journey.

He recounted several of them with Bob Metcalfe, professor of innovation at the University of Texas last week. Metcalfe interviewed Sharples, CEO of HomeAway at the Longhorn Startup Demo Day.

HomeAway has 1,900 employees worldwide, including about 1,000 in Austin in five locations. The company lists more than 1 million vacation rental homes in 190 countries. It went public in 2011 and has a market capitalization of $2.8 billion and its stock, listed as AWAY on the Nasdaq Stock Exchange, currently trades for around $30.50 a share.

The Early Years

First off, Metcalfe asked Sharples if he had a lemonade stand or paper route and to talk about his early entrepreneurial roots.

Sharples said he had done all of those things. And his entrepreneurial instincts came from his dad, who was an entrepreneur, electrical engineer and a pioneer in analog to digital conversion. He invented a digital panel meter. His invention is in the Smithsonian.

“He worked for himself, he didn’t have bosses, he had employees,” Sharples said.

Sharples grew up in an entrepreneurial environment in a suburb of Boston called Braintree. His family had a vacation house in Maine. He ended up attending Colby College in Maine and later got accepted to Stanford’s business school.

Grappling with Failure

Bob Metcalfe and Brian Sharples at Longhorn Demo Day

Bob Metcalfe and Brian Sharples at Longhorn Demo Day

Metcalfe asked Sharples about his biggest entrepreneurial failure.

Sharples, at 27, raised $1 million from Kohlberg Kravis Roberts
Venture Capital Fund to create a marketplace for selling used autos. He rented out Candlestick Park in San Francisco and built a huge auto sales event for thousands of people.

“It was like a rock concert for buying cars,” Sharples said.

He bet all of his money on that first event. On a Saturday, they opened the doors and by 11 a.m. a freak storm with 85 mile per hour winds blew in and destroyed the place.

“It turned from a beautiful event one minute to how do we make sure no one gets killed,” Sharples said. “People got hurt but no one got seriously injured.”

Eventually, Sharples created iMotors, a derivative of that business, and ultimately raised $120 million and was doing $25 million in revenue by 1999. But when the dot com crash happened they couldn’t sustain the business. They ended up selling the assets for $85 million to AutoNation.

Moving to Austin

So Sharples decided to get out of the auto business. He moved to Austin and got involved with IntelliQuest, an 11-employee company providing Dell with market research information. Sharples got to know the founder really well. He ended up cutting a deal where Austin Ventures and Sharples each took a third of the company. They took the company public in 1996 and Sharples ran it for four years.

“One of the things I learned from that experience is it’s really nice to have a partner,” Sharples said.

In entrepreneurship, a lot of people associate that with being the lone wolf, Sharples said. But it’s a lot more powerful if you have a partner, he said. So when Sharples decided to launch HomeAway he wanted a partner and Austin Ventures introduced him to Carl Shepherd, a merger and acquisition expert who became co-founder of HomeAway.

In 2005, Sharples and Shepherd created HomeAway, then known as WVR, a global vacation home business. The idea was to create the Expedia of vacation rentals and to acquire great businesses around the world. Raised $405 million and did 22 acquisitions in total, Sharples said.

“HomeAway took a great deal of money to create,” Sharples said. And to get that kind of money, an entrepreneur has to have a track record of success and returning money to investors, he said.

The IntelliQuest Initial Public Offering and later sale to WPP Group made about a 25 times return on Austin Ventures investment, Sharples said.

“Once you’ve succeeded like that for investors, investors like to back people who have done it before,” he said.

Founding HomeAway

Austin Ventures agreed to back HomeAway for $50 million initially and they issued a press release saying they had given Sharples $50 million for a new venture. That check made people listen to them, Sharples said.

Sharples and Shepherd hired McGarrah Jessee, an Austin-based Ad Agency, to come up with the name HomeAway. The owner of the website domain name ended up being an RV park owner in the United Kingdom. They were able to negotiate with him and buy it, Sharples said.

Originally Sharples thought they would buy vacation properties around the world and rent them to club members. But through his research, he found there were 7 million homes alone in Europe for rent. It was a much bigger market. So they decided to build a platform and make the properties available to book online.

Before doing the platform, Sharples and Shepherd spent four months doing research on the project. They found out Expedia paid $73 million for a company that had the same model as HomeAway and a year later it was gone. So he met with Rich Barton, the CEO of Expedia, in Seattle and he took them through the entire deal. Expedia tried to turn the business into a hotel business. The homeowners viewed their homes as their personal property and they wanted to talk to people and they didn’t want to do everything online. The conversation was critical.

Within the next two years, everyone in the HomeAway marketplace will become online bookable, Sharples said. The marketplace has changed. It wouldn’t have worked ten years ago, or even five years ago, but it works now, he said.

Thinking About Worst Case Scenarios

Bob Metcalfe at Longhorn Startup Demo Day

Bob Metcalfe at Longhorn Startup Demo Day

Metcalfe pointed out that the Longhorn Startup class instructors teach their students to fail fast. But Sharples, he said, studies others who have failed and seeks to avoid the failure altogether.

Because of his first failure in the auto business, Sharples said he became paranoid and studied all the things that could go wrong in his next ventures.

He advised other startup entrepreneurs to study others, study worst case scenarios and think about risk.

“People spend so much time in their pitches on how everything could go right, they need to devote a little more time and scenario planning on how they could go wrong,” Sharples said.

For example, HomeAway bought Vacationhomes.com in the U.S. for $40 million just to prevent a competitor from buying it, Sharples said.

“We don’t just study failures of other companies, which we did in the early days, but we calculate all the ways we could fail and we try to prevent them,” Sharples said.

Sharples favorite recruiting question is to ask job candidates to talk about something they’ve failed about in their life. And the second question he asks is what did they learn from it.

He also looks for humility in his employees.

“I just don’t have the patience for ego,” Sharples said. “I think it sets up a horrible dynamic within a company when people are operating for personal gain or personal showboating. I’m all for being super competitive. But within a team, you can’t be super competitive. Building a company is a team sport.”

The introduction song for Sharples when he entered the stage was Rusted Root’s “Send Me on My Way,” which he says they may use in their next commercial campaign because it sounds like HomeAway.

Rackspace’s Thanksgiving Day Food Drive Helps Needy Families

By LAURA LOREK
Reporter with Silicon Hills News

Rackspace's Lawrence "SugarBear" Reyes and his infant daughter greet the crowd at Rackspace's Thanksgiving Day Food Distribution event.

Rackspace’s Lawrence “SugarBear” Reyes and his infant daughter greet the crowd at Rackspace’s Thanksgiving Day Food Distribution event.

A voucher for a free turkey and a box of food items from Rackspace came as a surprise to Robin Dysart.

Crestview Elementary School sent the voucher home with her daughter.

“It means the world to us, we’ve been having some difficulties for the last few years,” Dysart said Saturday. Her car overheated while she waited in the line to pick up the donated food. So she parked the car and walked up to the Rackspace headquarters with her daughters to get their Thanksgiving Day dinner. Two Rackspace employees, Rackers as they are known, carried the boxes to her car. They posed for pictures with the girls and gave Dysart hugs.

Dysart, who has a college education, hasn’t been able to find work for the past few years. She’s battling to hold on to her house and take care of her daughters, ages, 5 and 8, and a 12-year-old son.

“It really does mean a lot, we’re so grateful and everybody here is so friendly, it’s a really heartwarming thing that they are doing,” Dysart said.

Rackspace partnered with the San Antonio Food Bank in its eighth annual Fill a Box, Feed a Family Thanksgiving Food Drive. This year, Rackspace gave away 2,500 turkeys and 2,500 boxes of food, double its goal from last year. It’s the largest food distribution event in San Antonio, said Erika Borrego, chief operating officer with the San Antonio Food Bank.

“This is a low income area so there are a lot of families in need here,” Borrego said.

The cars began lining up at 5 a.m. Saturday morning at Rackspace’s headquarters, known as the Castle, on Walzem road in Windcrest. And Rackspace began distributing the food boxes at 8 a.m. By noon, the organizers had received almost 1,200 vouchers.

Allie Howard with Rackspace, wearing a turkey hat, and getting into the spirit of the Thanksgiving Day Food Drive

Allie Howard with Rackspace, wearing a turkey hat, and getting into the spirit of the Thanksgiving Day Food Drive

More than 100 Rackers worked volunteer shifts on Saturday to hand out the boxes. Despite the rain, the event seemed a festive one with a D.J. spinning tunes, some of the volunteers dancing and entire families helping to hand out the boxes. Some Rackers even had babies strapped to their backs.

“It’s great to see Rackers show up to serve their community,” said Melissa Gray, Rackspace’s senior director of corporate responsibility. “It’s about team work today.”

The San Antonio Food Bank’s goal for November is to raise 1 million pounds of food and Rackspace estimated it gave away about 90,000 pounds of food on Saturday, Gray said.

“This is the biggest volunteer event we do every year at Rackspace,” she said.

The entire family volunteers to help out at the Rackspace Thanksgiving Day event

The entire family volunteers to help out at the Rackspace Thanksgiving Day event

Lots of friends and families volunteered to help out.

Lawrence “SugarBear” Reyes, Rackspace’s ambassador of culture, wore a head to toe turkey suit. And his infant daughter also donned a turkey costume. They greeted and entertained the crowd as the line of cars waited.

Many children in the community surrounding Rackspace don’t get enough to eat on a daily basis. Some local schools have 90 percent or more of their students qualifying for free or reduced lunch program. Rackspace identified the families who received the vouchers through the school system.

Karen Kohler, family specialist with the Camelot Elementary School in the North East Independent School District volunteered at the event Saturday.

“This is amazing because so many of our families really struggle with having enough money to make ends meet,” Kohler said. “And so especially with having the holidays and having a bigger meal these families want to provide it for their families, but it’s expensive. These families are so excited and grateful and appreciative.”

During the long holidays, the kids are used to coming to school for a free breakfast and lunch, so it is difficult for families to provide them with those meals during school breaks, Kohler said.

“They’ll make this last a long time,” Kohler said. “They’ll use ever bit of that turkey.”

This year, Rackspace gave Camelot Elementary 260 vouchers for its 500 students in the school so just about every family that needed one got one, Kohler said.

“We’re so grateful to Rackspace and San Antonio for doing this for our community,” Kohler said.

The Thanksgiving Food drive is part of Rackspace’s Rack Gives Back effort to support the local community and ensure that every family in the neighborhood is able to celebrate the holiday, said Allie Howard, spokeswoman with Rackspace. She wore a turkey hat for the occasion.

About 350 cars per hour visited Rackspace during the food distribution event, which ran until about 3 p.m., Howard said. Rackspace also provided free taxi rides to neighborhood families that walked to the event. So they could get their boxes home safely and easily. It’s a huge logistics undertaking with three semi-trailer trucks filled with food. Forklift operators delivering pallets to the distribution stations and dozens of Rackers, donning rain ponchos, directing the flow of traffic and checking for vouchers.

“Asking for help this time of year is not the most fun thing to do, it’s humbling, Howard said. “But the people that come to our events they feel like it’s more of a party and a celebration. It’s just a very positive experience.”

Rackspace Video posted below by Dave Sims

Rackspace’s Chairman Invests Millions in its Stock

Graham-Weston-2Rackspace Chairman Graham Weston has been bullish on his company since he made his initial investment to found the hosting company in 1999.

And now, he’s investing even more in the San Antonio-based managed cloud company.

This week, Weston announced he has purchased $2.5 million or 58,400 shares of the company’s stock on the open market on Nov. 18th, according to documents filed with the U.S. Securities and Exchange Commission.

And Weston plans to buy $2.5 million more in the company’s stock during the next year.

“My willingness to invest in Rackspace expresses my belief in the company’s future. I believe we can be the trusted partner to the rising wave of businesses who need help managing their cloud,” Weston said in a news statement. “One reason for my belief is the strong traction that Rackspace has demonstrated. I’m also confident in the leadership of our new CEO, Taylor Rhodes, and in his commitment to delivering Fanatical Support to our customers.”

Rackspace’s shares, traded under the symbol RAX on the New York Stock Exchange, closed Friday at $44.92, up more than 1 percent. Its stock hit a new 52 week high, according to Tickerreport.com. Its 52 week low was $26.18.

Before the recent purchase, Weston held 13.2 percent of the company’s outstanding common stock.

The Latest Crop of Startups from Longhorn Startup Demo Day

By LAURA LOREK
Reporter with Silicon Hills News

Vaibhav Gupta and Ray Xu, two of the founder of Lyte Labs at Longhorn Startup Demo Day

Vaibhav Gupta and Ray Xu, two of the founder of Lyte Labs at Longhorn Startup Demo Day

From a ring that monitors glucose levels for diabetics to a mouth guard which tracks concussions in athletes, twelve student-run startups showcased their innovative ideas at the 7th Longhorn Startup Demo Day.

The event held at the Lady Bird Johnson auditorium at the University of Texas at Austin Thursday drew several hundred spectators including students, mentors, investors and entrepreneurs. The evening kicked off with five-minute presentations from the startups followed by Bob Metcalfe, professor of innovation at UT, interviewing Brian Sharples, co-founder and CEO of HomeAway, the world’s largest vacation rental home company.

“Our companies get better every year, but why are they getting better every year? They are different people every year, but they are getting better and better and it’s fun to watch,” said Metcalfe, one of the program’s instructors.

This semester’s trends included medical devices, mobile applications and several companies with products geared to meet the needs of students. Some already had revenue and customers.

“The entrepreneurs coming into our class and coming into Capital Factory are just so much more mature. They are just so much further along. They don’t make stupid mistakes,” said Joshua Baer, Longhorn Startup instructor and executive director of Capital Factory. “They know more coming into it.”

Ben Dyer, serial entrepreneur and Longhorn Startup instructor, agreed.

“They just continue to get more polished and have more interesting plans,” Dyer said. Some of the startups have been in the class the previous semester like Everywhere Energy, which makes a cell phone battery charger, and Noki, formerly known as Air Type, creator of a virtual keyboard, and they have that advantage, he said.

“Everybody who presented was incredibly polished,” Sharples said…”The ideas were fantastic.”

Sharples wanted to know more about several of the startups and he was interested in investing in a few. He said experience helps the startups execute the ideas more effectively and he encouraged them to think big and partner with people who do have more experience.

The biomedical device startups included Lyte Labs and Gray Matter Technologies.

Gray Matter Technologies at Longhorn Startup Demo Day

Gray Matter Technologies at Longhorn Startup Demo Day


With all the news about the dangers of concussions for athletes, the team of engineers behind Gray Matter Technologies came up with a solution. They developed G-Force, a smart mouth guard to diagnose and track a concussion.

The team developed a microchip to fit into a mouth guard. It is currently working to solve the battery problem, said Tanner Avery, a senior studying mechanical engineering and the company’s CEO. The device would sell for $99 and allow users to collect data on any kind of head impact in any sport, he said. The device will be targeted to young athletes and their parents. It can track and store data in the cloud over an athletes’ lifetime to monitor injuries.

Mark Johnson, also a senior studying mechanical engineering, pitched Gray Matter’s technology on stage. The other founders include Frank Cerasoli, a senior majoring in computer science and physics and Steve Franklin, a senior majoring in mechanical engineering.

“Inside a G-Force mouth guard, you’ll find the same technology inside an Apple I-Watch,” Johnson said. The founders have bootstrapped the company for the past six months and invested their own money to create a prototype. Now it’s looking for its first round of seed funding to beta test the mouth guard, Johnson said. They also have a patent pending on the device.

“Head injuries are always going to be a part of sports and if we can’t prevent them we should do everything we can for the players who suffer them,” Johnson said. “Part of that is taking an injured player and removing them from the game so they don’t continue to get hurt.”

Lyte Labs at Longhorn Startup Demo Day

Lyte Labs at Longhorn Startup Demo Day

Lyte Labs makes a smart ring that monitors glucose levels in people with diabetes via a smart phone. The company eventually seeks to replace glucose test strips with its non-invasive technology.

Lyte Labs’ hardware uses near-infrared spectroscopy for detecting glucose levels in the blood, said Viabhav Gupta, a senior majoring in electrical engineering and computer science. Its software will collect data from the device on glucose levels, he said. The team is made up of six other students. They are hoping to have the device on the market by 2017.

Noki at Longhorn Startup Demo Day

Noki at Longhorn Startup Demo Day


Other engineering projects included Noki, previously known as Air Type, which has created an invisible keyboard for an iPad or other tablet. Its technology involves wearable hand devices that reads finger movements and hand gestures and allows users to type on any surface.

Everywhere Energy created a shoe sole insert called Eversole that generates energy that can charge a mobile phone. Its tag line is “be your own battery.”

Other startups tackled problems students and student organizations face on campus.

Hapback developed an event sponsorship marketplace to connect small to medium events with sponsors, said William Labanowski, a business honors and computer science double major and a senior. The site is focused on Austin for now with plans to expand nationwide.

Hapback has already found sponsorships, ranging from $1,000 to $7,500, for different events at the UT campus, Labanowski said.

In an interview following the presentations, he said the class helped Hapback immensely by connecting them seasoned mentors.

Damon Clinkscales volunteered to mentor Hapback and met with them once a week. He worked with them on the technology behind the website built with Ruby on Rails.

“I think it has great potential,” Clinkscales said. “On both sides of the equation, you have two parties that need help.”

The team behind Choreo.io at Longhorn Startup Demo Day

The team behind Choreo.io at Longhorn Startup Demo Day


Choreo created a mobile app and website for dancers to manage their dance life. It seeks to foster a nationwide community where dancers can collaborate and share information.

“Existing technology does not work for dancers,” said Bri Connelly, a senior in computer science and a competitive dancer.

Choreo’s online centralized community allows dancers to search for videos and tutorials on various dance routines and genres and to plan and promote events in one place.

The other startups included:

Tastebud – a mobile app that partners with 30 Austin eateries to provide discounts to diners on meals served during off peak hours.

GamePlan– Jeremy Hintz pitched a mobile phone event planning app that let students and alumni at the University of Texas schedule events surrounding UT football games.

Texas Custom Apparel – T-shirts for students designed by students.

OnePay – an online bill payment and money management site targeted at university students.

Study Huddle – a collaborative peer-to-peer app that helps college students improve grades by connecting with one another on homework, projects and other assignments outside of class.

Greek Link – an app that connects students who belong to fraternities and sororities on college campuses nationwide.

Greek Link at Longhorn Startup Demo Day

Greek Link at Longhorn Startup Demo Day

12 Austin Companies Make Deloitte’s Technology Fast 500 List

us_tmtf500Twelve Austin companies made Deloitte’s annual Technology Fast 500 list, up from eight companies last year.

Deloitte ranks the fastest growing private and public companies in the technology industry. Five of the companies made the list last year and again made the list this year including Kinnser Software, 181, Bazaarvoice, 186, SailPoint, 233, HomeAway, 404 and SolarWinds, 405.

Phunware ranked highest on the list at the number four spot growing at 17,716 percent from last year, according to Deloitte. Q1 Media hit the list at 69th spot. And One Source Networks ranked at 160.

Others on the list included Cirrus Logic at 266, Zenoss at 299, Asure Software at 459 and Starmount at 498.

The full list can be found at Fast500.com.

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