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Startup Week Founder Jacqueline Hughes: The Person Behind the Community

BY SUSAN LAHEY
Reporter with Silicon Hills News

Jacqueline Hughes at Austin Startup Crawl last year at Capital Factory, photo by Laura Lorek

Jacqueline Hughes at Austin Startup Crawl last year at Capital Factory, photo by Laura Lorek

Jacqueline Hughes seems the antithesis of a typical event coordinator—what Austin Technology Council’s Grover Bynum calls “whistle and clipboard” people. Event coordinators have reputations for being frenetic, type A, wearing frozen, stressed smiles. Hughes, curled up in an easy chair at Techstars Austin, seems relaxed, chill, though she’s in the midst of putting final touches on several major events including her own creation: Austin Startup Week. She’d worked all night until 7 a.m. and was back in the early afternoon to do more.

“It’s kind of exciting to email someone at three a.m. asking for something you need and getting an answer back immediately,” she laughs. “It’s like ‘You are crazy too! What’s wrong with you? Who stays up working until three in the morning?’”

Hughes does. Regularly. Ever since she got introduced to the Austin tech community with her job as community manager for an Austin co-working site, she’s become a fixture at nearly every tech event, many of which she planned and executed. She not only created Austin Startup Week, she’s been either chief planner or involved to her elbows in numerous other events including several major events for Techstars, Made in Austin Career Fair, Rise Week and many SXSW events. The sociology major from Texas State University has become an expert in the sociology of Austin tech. It lets her exercise two of her favorite things: Getting to know interesting people and creating fun events.

The Person Behind the Community

“Sometimes, there are people out front and when you dig a little bit deeper, you find the person behind the person,” said Jason Seats, managing director of Techstars Austin. “I feel like Jacqueline’s the person behind the community. Almost anything that’s happening here, she’s really just one hop away from it, even the things she’s not directly involved in. She knows how all these things plug together, what’s involved, what kinds of things people like to do and don’t like to do. I feel like calling her a connector is underplaying it… I would be hard pressed to pull someone out of the startup community that she hasn’t done something for.”

In a town with more events than calendar days, planning something unique and fun is a huge challenge. Hughes’ take on it is: “I like to see people have fun. I like to see them happy.”

Julie Huls, President of Austin Technology Council with Jacqueline Hughes, founder of Austin Startup Week, at the ATC Battle of the Bands last year, photo by Laura Lorek

Julie Huls, President of Austin Technology Council with Jacqueline Hughes, founder of Austin Startup Week, at the ATC Battle of the Bands last year, photo by Laura Lorek

“What I observe her doing is she gets a rough plan and then she walks through it over and over in her mind,” Seats said. “Every time, she thinks up 15 more small details. Maybe this isn’t the right door for people to go in, because traffic clogs here. ..she likes people to have fun and enjoy themselves and that’s the mindset she has on. ‘Okay, I’m Joe Schmo, what will I think when I walk in? What am I going to see? Will be the music be too loud in this area? Will I be able to meet people? Will I feel awkward?’”

At the same time, Seats said, “She lets things happen the way they’re going to happen.”

Bynum, ATC senior advisor, said Hughes is not only incredibly laid back, but also transparent and eager to collaborate, let events evolve organically, give other people a voice in what the event will eventually become.

“She’s an excellent national ambassador for the city,” he said. “She recognizes that the value of Startup Week is still being determined and instead of trying to figure out what it is, she understands the community, lets different approaches be heard…she introduces the value and lets people chew on it.”
One Startup Week, he said, he wanted to bring his policy and advocacy background into the mix and offer a serious discussion on Internet policy led by a national advocacy group at City Hall. “We really didn’t know what the uptake was going to be,” he said. Though they had some concerns that the event—being less sexy and festive than other sessions—might not draw participants, Hughes encouraged Bynum to go for it. “It turned out we had a full house at City Hall when it might have just been me. That’s been a successful piece of Startup Week ever since.”

Falling Into the Startup World

In many ways, Hughes fell into the startup world and the world of event creation. A product of the Houston suburbs and its traditions—like Cotillion—she discovered a whole new world of interesting, passionate people when she went to Texas State for College.

“I had these amazing teachers,” she said. One class, A People’s History of the United States, gave her a completely new view on the world. “It was the first time I kind of learned that Christopher Columbus wasn’t the nicest guy in the world….I was interested in studying values and norms and it opened my eyes to the fact that I don’t have to fit into a square or a circle.”

imgresShe was living in Austin, a year into her master’s in sociology, when she decided to look for a program where she could get a Ph.D on environmental sociology and she and her boyfriend at the time planned a road trip to schools in Colorado, Utah, California, Oregon and Washington to find the right programs. Then they broke up. On the one hand, her plan had now disappeared and she was a little lost. But around the same time, her grandparents left her $20,000. She took off for London, then returned to the U.S. and spent the rest of the year making the money stretch, taking road trips all over the U.S. and spending tons of time alone.

“I loved it,” Hughes said. “I felt very free. I had this couch on the porch and I would lay on it and read (Harry Potter among others), then fall asleep, wake up, read some more. I napped during the day and only slept three or four hours at night. At one point I went to get a massage and the massage therapist said ‘You don’t have any stress…at all.’ I’m really glad I had that time. I don’t think a lot of people get to have that.”

But eventually the money was running out and it was time to get a job. She was living in Austin and knew networking was key. She got a Twitter account and started connecting with people and going to events. “Someone on Twitter told me about TabbedOut, Foursquare, I started thinking about what else you could do with apps.” This was another whole new world. When she started meeting techies and geeks, she didn’t even know there was code behind websites. But once again, she was surrounded by interesting people tackling cool projects.
After sending out 100 resumes, Hughes was hired to build membership at a co-working space. That year she attended 300 events, going from a life of near total solitude to one surrounded by people.

Bridging the City

“I spent time just meeting people for about six months,” she said. “I was that person who showed up at everything. That was what I was known for, just knowing people. I didn’t think that was really admirable. It came sort of naturally to me to meet people. I have a really good memory. I don’t remember movie quotes or actors but I’ll remember when I first met someone, where it was, what we talked about. People started putting me on a pedestal because I knew so many people. I felt like a phony, like that’s the only skill I have? So I decided to start working on my own startup.”

Hughes wanted to create a platform that would have all the city’s events listed in one place, without having to input the data. It was called Bridge the City and it was to be similar to Foursquare’s new Swarm app.

“One thing I think Foursquare is not as good at is, if I was going to Refresh Austin and it was at Buffalo Billiards, I wasn’t headed to Buffalo Billiards—I was headed to Refresh Austin.” Bridge the City would focus on the events and make it easy to find the people you wanted to meet at those events, something she said no app does well, even still.

She and her cofounders spent three months working on it, then they split up.

“We came together wanting to solve the same problem, but couldn’t align on how to get there. After we released a MVP — an events calendar – we began struggling with direction. Half of the team wanted to build something simple similar to what Swarm looks like, the other half envisioned something closer to what Do512 looks like today. In the end, neither side was willing to compromise and we split up. I think the team was looking to me to steer us in the right direction, and I didn’t step up.”

The Birth of Startup Week

Jacqueline Hughes, photo by Susan Lahey

Jacqueline Hughes, photo by Susan Lahey

Hughes still had the co-working job and started working with startup Qrank, but neither was full time. One day, when she was planning a trip to San Francisco, she created a pitch to ask the CEO of Plancast whether he was interested in hiring her to do community management for that company as well. He hired her. The idea for Austin Startup Week came after Hughes realized that people in Boulder were using the app in a really “interesting way.” Plancast sent her to Boulder where she was introduced to Boulder’s Startup Week. The organizer gave her permission to borrow as many of their ideas as she liked.

The consummate event attender, Hughes wanted to put a lot of the area’s startup activities in the same week and anchor them with something like a UT or Capital Factory demo day. Josh Baer was the first person she approached.

“I wouldn’t say I’m a very good event planner but I’m a very good event creator. I’m really good at figuring out what’s fun. I like to create fun experiences for people…. I’ve worked with some event planners who were amazing. They make my life so much easier. They go through everything I’ve done to make sure I’m not leaving anything out.”

The first Austin Startup Week was in 2011 and those early budgets were meager. One good thing about that was that they had to ferret out interesting locations, like GSDM’s entryway, that could accommodate both their budget and their crowds. Sponsors covered specific events, usually to the tune of a few hundred dollars. But this year the organization decided to take on one big sponsor for each day of the event. Some of the early sponsors included Indeed and AT&T. Meanwhile, Hughes has been responsible for more than 50 events—everything from dinner parties to Startup Week.
She’s become to go-to events person for Austin Techstars.

“I love working for Techstars,” she said. “I have never worked with a group of people who work so hard. Everyone on the team is just so good at the things they’re good at and they trust me to own and be good at the things I’m good at.”

One of the most recent events she threw for Techstars was a retreat at Marfa. She remembered the last night, when they hadn’t brought a cooler so she lined a grocery cart with trash bags and filled it with ice for beer and Seats and a couple others pulled out their guitars and played under the starlight.

“Things that are easy to do in other places are not easy to do in Marfa,” Seats said. “Just finding seating for 40 people at once and catering—we had to have four or five different restaurants cater together when we were on that trip…I think she surprised herself at how well that worked out. It could have been horrible but every part of it was so over-the-top perfect.”

Hughes knows she’s the kind of person who could work herself into the ground. Her four-year-relationship with her boyfriend, Scott Gress, helps her to stay balanced. Gress, who is also working on a startup is an intense worker too. But he helps her know when it’s time to turn off the computer and say she’s done for now.

One day, Hughes wants to be an investor. Starting a business is so hard, she said, she wants to be able to support people’s entrepreneurial ventures. Meanwhile, she’s still more comfortable being the person in the background, making things happen.

“I would love for her to become more comfortable owning the recognition for the stuff she does at this level,” said Seats. “She does so many things for so many people and they get the credit, which is noble and nice and we all are the beneficiaries of it.”

The Central Texas Life Sciences Industry is Booming

By LAURA LOREK
Founder of Silicon Hills News

Scientific researchTeVido BioDevices, a startup in Austin, recreates nipples and other body parts with 3-D printers using human cells.

iTraumaCare in San Antonio has created a life-saving clamp that quickly and easily prevents blood loss.

WiseWear, based in both San Antonio and Austin, has created a patch-like fitness device to track vital signs and more while working out.

Those are just a few of the biotech startups you will read about in this first annual issue of Silicon Hills News focused on the life sciences industry in Central Texas. This is Silicon Hills News’ second print magazine. The first, a field guide to Silicon Hills, debuted at South by Southwest Interactive in March and our Kickstarter backers made it possible. This issue is possible thanks to our advertisers: BioMed SA, the Texas State University Small Business Development Center, bankSNB, University of Texas Health Science Center at San Antonio, the Greater Austin Chamber of Commerce, Texans for Economic Progress, the World Stem Cell Summit, Geekdom and the University of Texas at San Antonio. Our next issue is on technology startups and will be published in October.

And thank you to the writers for this issue: Susan Lahey, Jonathan Gutierrez. Tim Green and Leslie Anne Jones.

It’s an amazing time to be in the healthcare and biosciences industry with all the innovation going on in treatments, drug development, medical devices and more.

In Austin, the life sciences industry generates more than $1 billion in economic activity, according to a recent report from the Austin Technology Council. Its strengths are in pharmaceutical manufacturing, research and development in physical, engineering and life sciences, research and development in biotechnology, surgical appliance and supplies manufacturing and biological product manufacturing.

The industry is expected to grow with the new Dell Medical School at the University of Texas at Austin. The building is under construction now, and the school is expected to admit its first class in 2016.

A university-backed health science center can serve as a catalyst for a thriving healthcare and biotechnology industry in a city.

Look no further than San Antonio to see the impact of the University of Texas Health Science Center at San Antonio on the city. The Health Science Center serves as one of the cornerstones and catalysts of San Antonio’s bustling biosciences and healthcare industry, which employs more than one in every six jobs in San Antonio and has an overall economic impact of more than $29 billion, according to BioMed SA.
The Health Science Center has more than 3,000 students enrolled in five schools, which award 69 health-related degree specialties and pre- and post-baccalaureate certification programs.

Research organizations, private sector companies and the U.S. military drive the bioscience industry growth in San Antonio, according to BioMed SA. In addition to the Health Science Center, other major contributors to San Antonio’s industry include the University of Texas at San Antonio, InCube Labs Texas, the Texas Biomedical Research Institute, the Texas Research Park, Barshop Institute for Longevity and Aging Studies, Cancer Therapy and Research Center, Southwest Research Institute, San Antonio Army Medical Center, South Texas Accelerated Research Therapeutics and the National Trauma Institute.
Central Texas is a powerful region. When both communities collaborate and cooperate the region grows stronger and even more powerful. Cities no longer compete against each other. Austin, San Antonio and San Marcos are all thriving. The region competes globally for the best talent, resources, companies and institutions. And it has become a global hotspot for innovation in the life sciences industry with a cluster of universities, research and development institutions, medical technology startups and established companies.

Measr[food], a Smart Food Scale, Wins Intel’s Internet of Things Roadshow in Austin

By LAURA LOREK
Founder of Silicon Hills News

measr[food] Team Members Brad Hughes, V.J. Velacheri and Chris Boette

measr[food] Team Members Brad Hughes, V.J. Velacheri and Chris Boette

Americans have a problem counting calories which contributes to skyrocketing rates of obesity, said Brad Hughes, software engineer at National Instruments.

He thought Intel’s Internet of Things Hackathon might be a good place to tackle the problem.

He pitched the idea of a smart food scale connected to the Internet to measure portion size, weight and calorie content in a plate of food as well as tap into other online databases to coordinate with fitness programs.

V.J. Velacheri, a chip designer at Samsung, and Chris Boette, a full stack web developer at Game Salad, joined the team. They bought a food scale and spent Saturday and Sunday tearing it apart and hooking it up to the Internet with various sensors using Intel’s Galileo board, which packs the power of a miniature computer. Their hard work on their hardware paid off.

Their project, measr[food], won Intel’s Internet of Things Hackathon last weekend at TechShop in Austin. They received $1,500 in Amazon gift cards as a prize.

“It’s really cool that Intel is doing this and putting their money where their mouth is in the Internet of Things marketplace,” Hughes said. “Intel is giving people the tools and the power to build really cool stuff at a fraction of the price.”

Intel's Edison, "a small form factor single-board-computer."

Intel’s Edison, “a small form factor single-board-computer.”

Intel kicked off its Internet of Things Roadshow in Austin. It is hosting hackathons in 10 cities worldwide, but only three are in the U.S. In addition to Austin, Intel will host events in New York and Mountain View, Calif. Intel selected Austin because it has a campus of about 1,500 employees here with a big maker group, said Stewart Christie with Intel.

Intel cut off registration for the event at 200 people, Christie said. About half of those showed up. And a couple of hours before the event started Saturday a line formed at the front door.

Intel gave away Galileo boards and developer kits to the first 100 people. The kits contained sensors, software and other accessories.

“It’s kind of like Legos you can put the things together but you can also pull them apart as well,” Christie said.

Intel’s IoT hackers formed 14 teams but a couple of them dropped out, including a team building a wired chicken coop and another with an Internet-connected fishtank. The teams had to upload their projects to Hacker League by 2 p.m. Sunday and then pitch in front of a panel of five judges. The projects needed to use Intel’s developer kits, integrate with the Cloud and tap into online data. They also needed to have market potential.

The two second place winners included Smart Dog Collar, a fitness tracking collar for dogs, and Nursing Home Tracker, a clock-like device to monitor a patient’s environment and sends alerts. Each team won $1,000 in Amazon.com gift cards.

Three teams won third place and $500 Amazon.com gift cards. They were Car Alert, which alerts car owners when someone bumps into or breaks into their car, Save My Baby, a car seat with heat sensors and programmed to send out text messages when the temperature in a car get too hot, and GluLogic, a smart monitor to keep track of a diabetic’s medicine.

Bill Tyler, a diabetic, thought of the device to provide insulin dosage tracking, monitor blood sugar levels and provide reminders to take medicine, because he would like to have one. The device uses Bluetooth and WiFi to communicate online and to store data in the cloud.

Some of the Lego winners at Intel's IoT Hackathon at Techshop

Some of the Lego winners at Intel’s IoT Hackathon at Techshop

Several people also won Intel Basis watches throughout the weekend in a Lego building contest and a selfie Tweet contest. BeMyApp coordinated the event, which Intel sponsored.

In a month, the Intel roadshow team will be back for a show and tell to see how much progress the teams have made, Christie said.

Boette with the measr[food] team enjoyed the hackathon.

“I think getting people to think about applying technology to the Internet of Things from the bottom up is really useful and helpful,” he said.

Full disclosure: I served as a judge at the Intel IoT Roadshow Hackathon.

Smart Host Brings Intelligent Pricing to the Vacation Home Rental Market

By LAURA LOREK
Founder Silicon Hills News

Evan Hammer and Nick Persico, co-founders of Smart Host

Evan Hammer and Nick Persico, co-founders of Smart Host

Pricing a rental home correctly on HomeAway, Flipkey or AirBnB can put more money into a property owner’s pocket.

That’s the goal of Smart Host.

Smart Host wants to introduce intelligent pricing to the vacation rental market, said Evan Hammer, the company’s CEO and founder. Hotels and airlines have already mastered this. Yet vacation rentals are overlooking this innovation, he said.

“We help hosts make more money through market intelligence and dynamic pricing,” Hammer said.

There’s a need for this service, according to Ben Edwards, vacation rental manager and board president of the Vacation Rental Managers Association, a trade organization.

He flew in from Florida to introduce Smart Host during Techstars Demo Day in Austin on Sept. 3rd.

Smart Host is a subscription-based pricing engine for property owners or managers. The company helps them figure out the base price for a rental and then raise it for peak times or lower it as supply and demand in the marketplace changes. The goal is to increase the number of times a vacation rental home is rented at the best price, Hammer said.

“It’s a tool that is not readily available right now,” he said.

The vacation home rental market is made up of six million homes, which generate billions in annual revenue, Hammer said. When Smart Host has 1 million bookings on its site, it will net hundreds of millions in annual revenue, he said.

The startup, run by Hammer, Nick Persico and Dave Redding won the StartupBus North America 2014 competition last March.

The team of five met on the New York bus bound for Rackspace in San Antonio. They coded for five days to create a minimum viable product. In the end, they pitched SmartHost as an Android app. They won the competition. Then they went to Austin for South by Southwest Interactive. Hammer met with Jason Seats, managing director of Techstars.

Originally, Hammer applied to Techstars in New York with a different team. They didn’t get selected but they made the shortlist. Seats heard about them from the New York director. He liked the team and thought they would be a good fit for Techstars Austin.

Smart Host won a spot in the Techstars Austin class, which ran from June through August. Three of the original team members decided to continue on with the startup, Hammer said.

“Of all the teams in the last class, they were the youngest, in terms of business,” Seats said.

Smart Host spent a lot of time building their product to convince the market, investors, and partners that they could pull this off, he said.
In the end, SmartHost landed a pilot program with HomeAway, one of the largest vacation rental marketplaces in the world.

Kids and Parents Learn to Code at San Antonio Youth Code Jam

By LAURA LOREK
Founder of Silicon Hills News

Luke Wright, 16, a volunteer at San Antonio Youth Code Jam at Rackspace

Luke Wright, 16, a volunteer at San Antonio Youth Code Jam at Rackspace

Luke Wright’s eyes lit up with excitement.

“I just helped this 11 year old learn HTML and it reminded me of how I learned HTML in middle school,” he said. “Two high school students came to our school and taught us how to code.”

Wright, a 16-year-old student at Austin High School, now works as a web developer and participates in Hackathons around the country. He spent Saturday afternoon volunteering at San Antonio Youth Code Jam, a free community event sponsored by Rackspace and the 80/20 Foundation. He was one of more than 100 volunteers.

Debi Pfitzenmaier started Code Jam three years ago at a library with 30 people attending. Her teenage son, Aaron, is a programmer who volunteers at the event. This year, Rackspace hosted Code Jam with 300 kids attending and another 150 on a waitlist.

“Every year we’ve doubled in size,” Pfitzenmaier said.

Code Jam is San Antonio’s largest youth coding event for elementary and middle school students, Pfitzenmaier said.

Rackspace has sponsored the event since the first year, said Daniel Sherrill, its spokesman.

“This is another great opportunity for us to build the technology pipeline here in San Antonio,” he said. “The secret sauce for this event is the parents participate with their kids. The parents stay and learn as much as their kids.”

Code Jam featured hands on learning at different stations on coding in Java, HTML, WordPress, Javascript, Scratch, Python and more.

Debi Pfitzenmaier, founder of San Antonio Youth Code Jam with John Saddington, partner with  The Iron Yard

Debi Pfitzenmaier, founder of San Antonio Youth Code Jam with John Saddington, partner with The Iron Yard


John Saddington, partner with The Iron Yard, gave the keynote address to the kids at the beginning of the event. He started coding at 11.

“I love video games and I began asking the question how do these video games work and how do I make them,” he said.

He learned to hack the code on PC games to create his own.

By 15, he landed a job working for a subsidiary of Johnson & Johnson creating marketing websites. After high school, he attended Georgia Tech University to study engineering.

“I thought that was the right thing to do,” he said. “But I was challenged in many ways. I’m autistic so I struggled in school.”

He failed his Freshman year and attempted suicide. But he got help. He went back to school and graduated with a liberal arts degree.

Saddington became an executive of a Fortune 50 company when he was 25. He then launched his own company. And he sold his second startup, Datecraft, a World of Warcraft dating website, for a big paycheck, he said.

Today, he runs the The Iron Yard, a technology accelerator, incubator and investment group in Atlanta that runs 12-week coding bootcamps that take students “from zero to hero,” he said. He’s grown the company to nine campuses nationwide with more than 30 employees.

One of the biggest challenges for young technology kids, and even professionals, is their worldview is too small, Saddington said.

“Events like this open their minds to what is possible,” he said. “And then their imagination can take them the rest of the way. I think most opportunities are lost simply because people are unaware of them.”

Children have a limited exposure to the working world, Saddington said.

“But here it’s about video games, blogging, writing, storytelling and making worlds,” he said. “Kids see they can do this for a living. It expands their horizons.”

These events also begin to plant seeds in the bigger education system about a need for change to accommodate these tech kids, Saddington said.

Michelle Lowery, co-founder of Passion Fruit Creative Group, volunteered at Code Jam to teach kids WordPress. She helped kids as young as six.

“I really liked seeing them get excited about writing something and getting it published,” she said.

Ted Oakley with his son Nathaniel at San Antonio Youth Code Jam

Ted Oakley with his son Nathaniel at San Antonio Youth Code Jam

Ted Oakley brought his son, Nathaniel, 12, to Code Jam to feed his love for technology, coding and programming.

“He’s really taken this on,” Oakley said.

Nathaniel first learned to code when he jailbroke his Playstation Portable device and then made his own games when he was ten.

At the Code Jam event, Nathaniel worked on HTML and CSS. Josh Singer, a high school senior who co-founded Apps for Aptitude and School’s Out Hackathon, helped him.

“They went way past what was on the schedule,” Oakley said. “They posted a website today. He burned through the lesson like that. Josh stuck with him all the way until after this was over.”

That’s the idea, said Pfitzenmaier.

“We want kids to take this as far as they can,” she said.

Code Jam is creating a community for parents to support their kids and their passion for computers and coding, she said.

“We are trying to equip those parents and kids to get to where they want to be,” she said. “If we can just introduce them early and get them excited about technology the possibilities are endless.”

Dallas also launched a Dallas Youth Code Jam on Saturday, based on the San Antonio event, Pfitzenmaier said. Code Jam, which is now a project of SASTEMIC at Geekdom, is expected to branch out to other cities in Texas as well, she said.

Daniel Sherrill, spokesman with Rackspace Hosting

Daniel Sherrill, spokesman with Rackspace Hosting

Massage.com Wants to Take the Stress Out of Getting a Massage

BY TIM GREEN
Reporter with Silicon Hills News

DanDan Graham wants Massage.com to work like a good massage, relieving stress for massage therapists and their customers.

Instead of kneading muscles, however, the online massage booking service does it by helping therapists find work and customers get a massage where it’s most convenient for them.

“Essentially, we want to be the live inventory of massage therapists and spa offerings for anyone, anywhere,” Graham said.

Massage.com is Graham’s first venture beyond Austin-based BuildASign, which he founded in 2005.

That venture is now a 260-employee company, operating in four countries with $57 million in revenue in 2013. Graham’s business and civic endeavors have earned accolades including being named Austinite of the Year by the Austin Under 40 group in 2012 and Ernst & Young Entrepreneur of the Year in 2013.

BuildASign attacked a market dominated by mom-and-pop operations with the concept that people would buy signs – from yard sale placards to big banners and more – over the Internet with no hands on experience.

Graham’s new business, in its first months of operation, is definitely hands on, at least for the therapists and their clients, but it seeks a similar result in a market that’s fragmented and sizable.

There are as many as 350,000 massage therapists in the U.S., according to the American Massage Therapy Association. Most are solo practitioners working at the client’s location or in a spa, health club, a healthcare setting or a massage-therapy franchise. In 2013, the massage industry generated $6 billion to $11 billion.

Massage.com’s initial play is to help individual massage therapists book appointments with clients in the location preferred by the clients such as home or office.

Graham said that Massage.com conducts background checks on therapists and customers so that both sides are comfortable with the arrangement.

Payment of $89 plus tip for an hour session is made online through Massage.com. The company takes a percentage of the fee.

Ron Shirley, an Austin logistics executive, used Massage.com to book a session and said “it worked extremely well.”

The therapist arrived at the appointed hour, he said, “and the massage was great.”

Graham said massage therapists can list with Massage.com whether they want to book 40 hours or two hours a month. “We just add their availability into our network,” he said.

Massage therapist Tony Castro used the site after hearing about it from colleague.

He said the process was easy and helped with bookings. He especially likes that he can stay close to home by specifying an area in which he’ll work.

So far, the service is available in Austin, Houston, Dallas and San Antonio.

But Graham, who continues as BuildASign CEO, has more in mind.

He plans to expand Massage.com’s services to about 6,000 spas across the country. He said the service would help spas with online marketing and fill empty slots in the appointment books of therapists who work in the spas.

“We offer a tool to say, “Hey, you don’t need become an expert in online marketing. We’ll do that for you. And we’ll just fill your vacancies and we’ll just take a small percentage of the booking fee,’ ” Graham said. “Nobody says no to that.”

Graham said Massage.com will offer more features as it builds out.

A feature he’s enthused about is a rating system in which customers can review and rate their massage therapists and the spas in which they work. He said this should be a boon for massage therapists because those who earn high ratings should be able to draw higher fees for their services.

Massage.com’s sources of revenue include a percentage of the fee for the massage, fees for membership and subscriptions and gift card sales. Graham added that the site will offer massage-related services and products.

Massage.com is one of several companies around the country offering scheduling services for the massage business.

While most operate only in their metro areas, Zeel.com, based in New York City, has expanded to Miami, Los Angeles and the San Francisco Bay area, according to an article in TechCrunch.

Graham said that Massage.com’s nationwide spa network will set it apart from companies that book at-home massages. He’s also looking to work with hotels, corporations and nonprofit events.

And, he’s looking to repeat BuildASign’s experience in dealing with growing competition in outperforming competitors.

“I think that being first mover is great and having a great brand name is really helpful,” he said. “But ultimately we’ve got to be able to execute in the idea.”

As a name Massage.com is direct and comprehensive. And Graham found in right in his backyard.

An Austin massage therapist had owned the domain name since 1995. Screen shots of a Massage.com website from the late 1990s (viewed via the web.archive.org), show a landing page that proposes to be a one-stop shop for massages and massage products. But apparently that’s as far as the website went.

“I talked to him over the course of many months, describing where I saw the vision for Massage.com,” Graham said.

After eight months, the owner bought Graham’s vision and sold the domain name to Graham outright. But, Graham said, the previous owner has ongoing incentives as the company progresses.

So far, Graham and three others have funded the company. He said he’s not ready to disclose the amount or who the investors are.

Besides building out the website, Graham, who remains BuildASign CEO, is hiring the Massage.com management team and looking for office space.

Once ensconced, he said, “We’ll probably need to hire a full-time massage therapist to make sure everybody’s relaxed.”

NASA’s Mission to Mars Goes Through Mississippi

By LAURA LOREK
Founder of Silicon Hills News

The historic B-1/B-2 Rocket Engine Test Stand at Stennis Space Center, photo by Laura Lorek

The historic B-1/B-2 Rocket Engine Test Stand at Stennis Space Center, photo by Laura Lorek

NASA doesn’t get to Mars without first testing its rocket engines in Mississippi.

About an hour bus ride from New Orleans, Stennis Space Center, near Bay St. Louis, is the nation’s largest rocket engine test facility comprising 13,800 acres with another 125,000 acres serving as a perimeter buffer zone. The government relocated 660 families to create the site back in the 1960s.

“Stennis has a rich history of testing, aside from the Apollo 8 rocket, every American built rocket or engine that has ever put humans into space has been tested here at Stennis Space Center,” said Richard Gilbrech, its director.

A giant hunk of metal and concrete almost as tall as the Statue of Liberty is getting a lot of attention at the site these days. The historic B-2 rocket engine test stand, built in 1966, has tested Saturn V and Space Shuttle main engines.

Now it’s being refurbished to play a huge role in NASA’s mission to deep space and eventually Mars.

The 264 foot tall stand will test NASA’s Space Launch System core stage by simultaneous firing four RS-25 engines, generating two million pounds of thrust. The test will last 550 seconds or just over nine minutes, the same time required for a regular launch, said Rick Rauch, manager of NASA’s B-2 Test Stand project. That testing is scheduled for 2016, he said.

The rocket testing has an Austin connection too. NASA is working with a team of industry and academic partners, including University of Texas Cockrell School of Engineering assistant professor Charles E. Tinney, to learn about the performance of the RS-25 engines upon launch.

The Stennis rocket engine testing area is vast and desolate. A series of canals snake throughout the land linking all of the stands, which are connected with underground tunnels, to the Pearl River. And a lock and dam system allows the transport of large rocket stages on barges. The Pegasus barge, which once carried external tanks and other hardware for the space shuttle, will ferry the SLS core stage from the Michoud Assembly Center in New Orleans to Stennis for testing.

Rick Gilbrech, Stennis Space Center Director, NASA Administrator Charles Bolden and NASA Associate Administrator Robert Lightfoot at Stennis, photo by Laura Lorek

Rick Gilbrech, Stennis Space Center Director, NASA Administrator Charles Bolden and NASA Associate Administrator Robert Lightfoot at Stennis, photo by Laura Lorek

Last Friday, NASA Administrator Charles Bolden and Robert Lightfoot, NASA’s associate administrator and Gilbrech, held a press conference at Stennis for an update on the refurbishing of the B-2 test stand. That project is about 40 percent done, Gilbrech said.

In the last few years, NASA’s SLS and Orion spacecraft have made tremendous progress on NASA’s path to Mars, Lightfoot said.

“We’re going to go to Mars,” he said. “It won’t be next week. It won’t be next year. But we’re putting the capabilities in place to take folks to Mars and we’re pretty excited about it.”

“The overall goal for us is to get to a position where we are Mars ready, the other phrase I like to use is we’re earth independent,” Lightfoot said. “If you think about going to Mars, it’s a two to three year mission. The return time, because of the way orbital mechanics works, is months. We don’t get to come home in a day or two. We have to put all the technologies in place. We have to really understand our systems before we take off and go to Mars with humans. That’s our goal.”

The first stage is earth-reliant with a mission that lasts six to twelve months and returns to earth in hours. That’s the International Space Station missions. That has already been accomplished.

The B1/B2 Rocket Engine Test Stand at Stennis Space Center, photo by Laura Lorek

The B1/B2 Rocket Engine Test Stand at Stennis Space Center, photo by Laura Lorek

The ISS also lets NASA test technologies routinely, Lightfoot said. It gives NASA information on how humans will deal with microgravity. It has also allowed NASA to bring in commercial companies to provide services in the lower earth orbit area. SpaceX and Orbital Sciences provide cargo shuttle service now. And earlier this week, NASA awarded a $6.2 billion contract to Boeing and SpaceX to provide crew shuttle services.

“Jumping from earth reliant all the way to Mars ready is a pretty big step,” Lightfoot said.

So for NASA the next stage for human exploration is the proving ground. The missions can be one to twelve months and they can get back to earth in days, Lightfoot said.

“By the 2025 timeframe, we want to be actively in the proving ground, testing our technologies whether it’s going to the asteroid, whether it’s just proving out the technologies we need,” he said. “And, hopefully by the mid-2030s we’re Mars ready and we’re heading that way with humans.”

Editors note: I attended a #NASASocial at Stennis Space Center last Friday with a group of space enthusiasts and NASA staff. We traveled to Stennis after a tour of the Michoud Assembly Facility in New Orleans.

Able’s New Approach to Collaborative Lending

By LESLIE ANNE JONES
Reporter with Silicon Hills News

Evan Baehr, co-founder of Able

Evan Baehr, co-founder of Able

With nearly a decade of experience as a hairstylist, Hayley Groll has a loyal clientele and proven styling chops.

But she just turned 27 and her credit score is just okay. Securing a small business loan to open her own shop looked like a no-go until a friend pointed her toward Able.

Launched in July, Able’s mission is to “empower main street entrepreneurs” like Hayley, to get a loan to build their businesses when traditional lenders have prohibitively high borrowing standards or sky-high interest rates.

Able offers a lower-cost loan by sharing the risk with backers that are sourced by the entrepreneur. In essence, Able amplifies what small business people are capable of doing with loans from friends and family: Applicants must source 25 percent of the loan amount themselves, and then Able provides the other three-quarters and manages the interest and repayment. Annual percentage rates for Able loans start at 8 to 16 percent, where other private lenders might charge 30 percent or more to the same borrower.

With the loan Groll received from Able, combined with contributions from two family members, a friend and two clients, she was able to purchase Shag Salon on South Lamar Boulevard in Austin when it went up for sale.

‘The whole process is really simple. I don’t have to deal with my clients or friends or family calling me every month wondering, ‘Where’s my money?'” Groll said.

Will Davis, co-founder of Able

Will Davis, co-founder of Able

Able’s founders are Will Davis and Evan Baehr, formerly of the high profile though unsuccessful “mail disruptor” Outbox. Outbox collected mail from its users’ mailboxes, scanned and digitized it, trading in the perceived annoyance of physical mail in favor of digital convenience. Ultimately, Outbox ran afoul of the USPS and proved prohibitively expensive.

Davis and Baehr had raised $5 million for Outbox. Some of their investors, which include Pay Pal cofounder Peter Thiel and Mike Maples of Floodgate, told them to reinvest the remaining funds to build something new.

The partners set their sights on the finance sector, which as they saw it, had yet to be transformed by the ethos of collaborative consumption in the way that companies like Uber and AirBnB have changed their respective sectors.

Their loan product is designed for growth financing. So entrepreneurs who have yet to generate revenue do not qualify. “We sit in the middle zone between start up and those that need a million-dollar loan,” Davis said. “There are all kinds of companies in that gray area.”

And they’ve retained their big-picture thinking from the Outbox days: Baehr says that they’d like to change the culture of secrecy around debt raising.

It’s easy to find entrepreneurs on Twitter trumpeting the equity they’ve raised, but Baehr questions whether that should really be such a cause of celebration. “It should have a frownie-face hashtag,” he joked. “Kudos to venture capitals for tricking people into celebrating losing part of their company.”

Baehr and Davis see the backers who participate in their loans as people to be celebrated for helping build businesses in their communities.

ableconferenceThere’s a social media component to Able’s lending approval process as well. Applicants share their business’ social media profiles with Able so that it can get a sense of the loyalty base and enthusiasm the prospective borrower possesses. Over time, Able’s algorithms will predict the likelihood of business success based on their social presence.

Baehr equates this to the pre-Internet era when a small-town banker would go and eat in a restaurant several times, and also at its nearby competitors, in order to determine if the borrower had a good chance of success.

If there are two hair salons, for instance, and one has way more reviews and five stars on Yelp and the other has fewer reviews and three stars, betting that the first one will be successful is, in Baehr’s words, “not that crazy of a hypothesis.”

Presently, Able has 15 people on staff but is looking to expand. Their offices are located on the back side of the McGarrah Jessee building in downtown Austin, and the setup is not your standard, drab lender’s office. It’s open-plan with high office chairs and a hammock and there’s a “creative” meeting room with brick façade and a funky shag rug.

So far, Able has made 50 loans, most of them to Austin-based businesses and with an average loan amount of $100,000. To date, a majority of their customers have been women, and loans have gone to supporting a whole variety of businesses. They have a handful of clients in the consumer goods space, whose businesses revolve around packaged food, clothing or cleaning products. They also have restaurants and retail spaces and, in keeping with Able’s Austin’s roots, several food trucks.

8

OneSpot Brings Relevance to Internet Ad Space

BY LESLIE ANNE JONES
Reporter with Silicon Hills News

Matt Cohen, president and founder of OneSpot

Matt Cohen, president and founder of OneSpot

Matt Cohen is an old-school content guy.

Two decades ago Cohen built the Houston Chronicle’s first website and developed the paper’s digital strategy. At the paper, Cohen noted that whenever they did reader surveys, subscribers always ranked the paper-edition advertisements among the top three things they most appreciated. Those ads were useful. They let people know when sales were happening.

But somehow the utility and appeal of print ads doesn’t translate easily into the digital space. And what works on a highway billboard can seem annoying and irrelevant when directly translated to a website masthead.

“There’s no reason at all I shouldn’t be seeing things that are interesting to me,” Cohen said of web ads. “I buy things all the time.”

With the rise of social media, companies are placing more emphasis on delivering substantive value in their digital communication. This is happening alongside a long-term trend toward greater authenticity and ‘real’ interaction between brand and customer. The result of these two trends is that businesses are creating more articles, blogs and videos that are entertaining and/or informational, often entirely sans sales pitch.

“It’s not, ‘Buy, buy, buy right now.’ It’s about creating a relationship with the brand.” Cohen said.

But there’s a pipeline problem. Once that corporate content is created – how to get it to people beyond those visiting the company’s website? That’s where Matt Cohen’s idea for OneSpot comes into play: Put ads for corporate content into traditional web ad spaces, but make the placement decision based on an advanced understanding of the intended individual.

OneSpot’s proprietary technology helps companies build their brand’s audience by using advanced, multi-level audience targeting to improve media placement decisions.

OneSpot’s system has access to about 94 percent of the American Internet audience, chief marketing officer Adam Weinroth explained. The company analyzes a wide range of user behavior and leverages that data using its technology, which is based on machine learning and predictive modeling, to determine when a certain person should see a certain ad. So someone who is perusing recipe sites might see a link to a cooking article produced by Whole Foods (one of OneSpot’s clients) in the recipe site’s ad space.

“A lot of money goes into content creation,” Cohen said. “What we have is a value proposition: take a fraction of that budget to drive a multiple of the results companies are already seeing.” It’s a way to make the whole online publishing ecosystem work better, he says: Consumers get content that’s relevant to them, advertisers reach the right people, and publishers get money for ads that are more than just a necessary annoyance.

Programmatic advertising and real-time bidding on digital ad space has built up over the last five years. Once that infrastructure was cemented, Cohen’s idea coalesced and he founded OneSpot in early 2012. Previously, he’d been a partner at Austin venture capital firm G-51 Capital.

Steve Sachs,  CEO of OneSpot

Steve Sachs, CEO of OneSpot

The first year was mainly spent building the software and enrolling a few beta customers. It was clear to Cohen he needed to bring on someone with marketing experience and connections to the advertising world. In February 2013, Steve Sachs came on as CEO.

Formerly an executive vice president at Time Inc., Sachs used to oversee the Real Simple, Cooking Light and Southern Living brands. Since he became CEO, OneSpot has worked to expand its offerings and clients. Many of its current clients come from the food, health and beauty sectors. Since all of these categories routinely roll out new products, they also tend to produce a lot of brand-related content for their markets. Companies that produce a lot of branded content have the most to potentially gain from using OneSpot.

In November 2013, OneSpot held a series A and raised $5 million led by Mohr Davidow Ventures, a leading Silicon Valley VC firm investing in the digital marketing space.

Adtech is a nascent addition to the Texas startup scene. “We’re bringing a piece of New York to Austin,” Sachs said. Cohen and Sachs are excited to be leading local development of the sector.

The company has a sales presence in Chicago and New York. Engineering and customer care is based in Austin. Over the next year, Sachs and Cohen plan to continue building their client roster and improving the capabilities of their software. In late August, OneSpot unveiled its new Facebook sequencing capabilities. The company can now use Facebook’s real-time ad exchange to place its clients’ content into Facebook users’ news feeds.

BeHome247 Strikes Partnership with Kaba to Make Products for the Vacation Rental Market

header-logoBeHome247, an Austin-based maker of automated controls for the home, has struck a partnership with Kaba Oracode, a maker of keyless door locks.

Together, the company are going to work together to provide products for property managers active in the vacation rental market. The companies made the announcement at HomeAway’s RezFest 2014 in Nashville, the vacation rental industry’s technology conference for professional vacation rental managers.

Kaba Oracode makes keyless door locks that let property managers issue time-sensitive codes to access a home without a key or keycard. And BeHome247, founded in 2006, sells property control software that lets homeowners monitor and control their property remotely including door locks, thermostats, pool systems and more from a tablet, smart phone or computer. Its the prefers home automation and energy control system for HomeAway Software Enterprise Control.

“Partnering with BeHome247 is a natural extension for us to provide best in class service to our growing base of vacation rental customers,” Stephen Pollack, vice president of marketing for Kaba, said in a news release. “To be able to include the Oracode application on the BeHome247 dashboard and mobile applications is a major step forward in the convenience of generating and managing lock user codes.”

Behome247 and Kaba share the same vision for the property management market, Michael Walther, CEO of Behome247, said in a statement.

Kaba, based in Switzerland and founded 150 years ago, has 7,500 employees in more than 60 countries.

BeHome247, an Austin Technology Incubator company, launched in 2006 and makes software so homeowners can control devices hooked up with sensors in their home via the Internet on a dashboard. Its software controls more than 125,000 homes.

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