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Chasing Tales: Invodo Harnesses the Power of Story to Drive Sales for Clients

BY STACY ALEXANDER EVANS
Reporter with Silicon Hills News

Screen Shot 2014-03-06 at 9.34.07 AMThe Lefsetz Letter is no Slashdot or Ars Technica. Yet the blog’s founder, Bob Lefsetz—a modern day philosopher of sorts, who proselytizes on everything from popular music to aging—has some compelling thoughts with surprising relevance for the tech world and business. “If you can tell a story,” proclaims Lefsetz, “the world is yours.”

Enter: Invodo, an Austin startup whose slogan is “We make video work for commerce.” Simply put, the company claims that the storytelling possibilities inherent in video, make it an indispensable tool for closing sales online.

Invodo CEO Craig Wax says he agrees with Lefsetz’ assertion, and takes it a step further. “Every great business has a story behind it,” says Wax, “Consumers choose which brands to trust based on stories. It’s hard to tell stories online with just text and pictures, though. That’s why video is such a powerfully disruptive force on the Web. In just a few seconds a video can communicate a brand story far more powerfully than a written paragraph, and that is driving every major brand to find new ways to tell stories with online video.”

Not surprisingly, like so many other startup leaders who work in the Texas state capital, Wax says Austin is the perfect place for a company that relies on creative capital because of its unusually large talent pool. “This city has producers, directors, on-camera talent, and others who have worked on everything from feature films to industrial videos,” enthuses the CEO.

The fact is, last year the Hollywood Reporter ranked the film school at the University of Texas at Austin tenth in nation, and first among schools not located in the New York or Los Angeles areas. Indeed, garnering a reputation throughout the country as the U.S. film community’s “third coast,” Austin is full of hopefuls striving for recognition as the next Sofia Coppola or Matthew McConaughey. Naturally, these artists often take second jobs in the interim. Invodo is all too happy to reap the harvest.

Actor Lara Shah has done it all: from playing the role of an aspiring entrepreneur in the independent feature film Funemployment to sexing it up in a music video for the Riverboat Gamblers. This past December she appeared in an Invodo production for Dell. “They were super-professional. It was a really efficient shoot,” says Shah emphatically. “There wasn’t the whole hurry up and wait thing,” she says gratefully, referring to shoots that can drag on for 12 or 14 hours, much of it spent waiting around for technical fine-tuning. “It was a positive experience. It was one of those well-run ships.”

Regarding client services, Wax acknowledges that client needs are diverse and may range from driving increased sales conversions from their product pages to promoting new product launches or reducing support costs. “Our first priority is always to understand the business goals, so we can build the content and technology strategy to accomplish those goals,” says Wax, “deploying the technology in a way that delivers the biggest impact.”

One happy customer is Eric Mahlstadt, Director of eCommerce at Golfsmith in Austin. He says a genuine concern for helping customers become better golfers is key to the company’s success. With that in mind, bringing the intimate retail customer service they’re known for to an online platform was one of the team’s primary goals when they considered the integration of video on the Golfsmith website.

“We teamed up with Invodo, and it’s been a really great partnership,” says Mahlstadt, “because not only do they bring a player which we can customize to the look and feel of our site…but they also help us produce the video from the ground up with the messages that we want to tell about our products…”

So it goes, in business as in art. “After nourishment, shelter and companionship,” says novelist Philip Pullman, “stories are the thing we need most in the world.”

Seven San Antonio Startups to Pitch at the InnoTech Beta Summit

By LAURA LOREK
Founder of Silicon Hills News

Seven startups will pitch at the eighth annual InnoTech Beta Summit on Wednesday.
The event, which takes place at 3 p.m. at the Henry B. Gonzalez Convention Center, will showcase some of the best and brightest new technology startups in San Antonio.
Each team will have five minutes to pitch their venture before a panel of judges. The winner will get a plaque from the Greater San Antonio Chamber of Commerce and a one-year membership in the organization.
The winner will also receive a trophy from Silicon Hills News and second and third place winners will also receive a prize.
Soloshot, a startup that makes a tripod system that automatically keeps a camera trained on a subject, won the InnoTech Beta Summit last year. And in 2012, CallGrader, a company that makes software to track sales calls, won.
Silicon Hills News readers can attend InnoTech, the day long technology conference at the Henry B. Gonzalez Convention Center for free by using the discount code BETA99 to register.
The judges for this year’s event include Pat Matthews, co-founder of Webmail.us, investor, Sharon O’Malley Burg, a technology consultant and Erach Songodwala, an angel investor.
The startups pitching include:

2013-10-10_codeup_mark_horizontal_150Codeup – is an intensive, 12-week live bootcamp that turns non-techies into computer programmers. “We all know education is broken,” according to the company. “Our solution is unique, aggressive and it works in providing our students a real future. We have 47 partner employers ready to look at our graduates.”

Picture-it-settled-4C_150Picture It Settled – which bills itself as “Moneyball for negotiation.” “The behavioral software has learned negotiating patterns from parties to thousands of litigated cases in a wide variety of jurisdictions and claim types,” according to the company. “It uses that intelligence to make accurate predictions of where a negotiating round is headed in time for parties to act on it using the program’s planning tools.”

Remote-Garage-Logo_150Remote Garage – a storage service backed by the Rackspace founders’ Geekdom Fund. The company picks up customers’ belongings, stores them, and delivers them back on demand. The inventory is available to view online.

imgres-3TrueAbility – a community for technical professionals to learn, grow and (im)prove their skills. Its assessment platform, AbillityScreen, is a job simulator allowing tech pros to practice in a live environment. “Its job board helps companies validate the skills of job seekers, simplify the hiring process with stacked rankings, and enables tech pros to prove their skills by taking a technical interview in a real environment–from anywhere,” according to the company. TrueAbility graduated from the Techstars Cloud accelerator and has landed venture funding.

InnerAllyTurtlePhelps_150InnerAlly – is 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.”

SocialRest-Logo_150SocialRest– A software tool that helps businesses measure their return on investment for social media. The software tracks how “content is being shared across Facebook and Twitter; but even more valuable is the fact that SocialRest is also able to identify revenue generated because of this shared content,” according to the company.

Logo-bv-usa_150Biovideo– “provides new parents a priceless gift – a breathtaking movie, set to music, of their baby’s first day of life,” according to the company. “It films and creates more than 3,000 such personalized movies each month – delivered before the new family leaves the hospital.”

Innotech is an advertiser with Silicon Hills News

First Lyft, Now Uber Launches in San Antonio

By LAURA LOREK
Founder Silicon Hills News

Photo courtesy of Lyft

Photo courtesy of Lyft

On March 21, Lyft, the riding sharing service, launched in San Antonio.

Last week, Police Chief William McManus held a press conference announcing that Lyft drivers would be arrested and issued the company a cease and desist order, according to the San Antonio Express-News.

Next, Mayor Julian Castro announced that the city should work with Lyft and other innovative startups looking to operate in San Antonio.

“We can make Lyft, Uber and similar services work in San Antonio,” Castro wrote in a post on Facebook. “They need to meet strong standards for safety and quality (insurance, driver background checks, etc.), but they should be part of the equation. Figuring that out will take some time, but we’ll get it done. San Antonio is moving forward, not standing still.”

And on Friday, another ride sharing service, Uber, launched.

“San Antonio, The road to get here has been long, and while we’re still working to break the mold of traditional ways of thinking, we’re proud and pumped to be launching in Alamo City,” according to a blog post. “As you may already know, we’re big fans of bringing innovative and efficient transportation options to the world and are thrilled that San Antonio now gets to embrace and enjoy the Uber lifestyle.”

Uber and Lyft are not available in Austin, which has banned ride sharing services. HeyRide launched in 2012 there and was shut down by the city and then acquired by Sidecar, another ride sharing app.

The taxi industry opposes the ride sharing apps because they say that they are not safe and that they do not do background checks on their drivers. But both Lyft and Uber state that they do background checks on their drivers.

But Lyft and Uber operate in dozens of cities around the country. They have been embraced by the collaborative community that sees ridesharing as a natural evolution of the transportation industry.

Rocket to the Moon: The Stratospheric Ascent of Mass Relevance

By STACY ALEXANDER EVANS
Reporter with Silicon Hills News

Photos by Stacy Alexander Evans

Photos by Stacy Alexander Evans

One look around the offices at Mass Relevance in downtown Austin, and it’s clear this is where the cool kids come to work.

Surrounded by colorful lockers embellished with skater-style stickers and loft-like exposed vent ducts, the employees here—like new hire Courtney White who recently moved to Austin from San Diego—gush about company perks such as an on-site chef who provides lunch every day for its team of hardworking buzz-generators.

DSC_4779
Mass Relevance is what you might call a purveyor of brand congruity. These days, effective advertising via social media is all about one vision, one voice. Mass Relevance helps make that happen for its clients via razor sharp strategizing. Its client list is impressive, featuring some of the biggest names in the glamour industries of sports and entertainment, among them ESPN, Fox Sports and NBC’s The Voice.

Cofounder Brian Dainton, along with Eric Falcao and Sam Decker, joined forces in 2010 to build what Dainton calls a “company that would transform the industry.” Starting out initially as TweetRiver, Dainton and his team had a vision that soon became more expansive. “When we saw the tremendous opportunity to help brand and media companies bring social content into digital screens,” says Dainton, now serving as the company’s VP of Engineering, “we knew we had a much larger opportunity on our hands than just the TweetRiver product.”

Dainton says bringing Decker on board was key to their success. Known as the trailblazer behind Bazaarvoice, Decker had the expertise they needed in building strong, innovative, marketing technology companies. “Our hope was to weave social content across any and every digital screen,” he says, “starting with TV, and expanding now to jumbotrons, digital billboards, websites, mobile and tablets.”

Entrance_2
In business, as in mating, comedy, and so many other risk-taking endeavors—it’s often all about the timing. Mass Relevance was founded in 2010, a banner year for the marriage of advertising to social media. That April in New York, the Interactive Advertising Bureau held a Social Media Marketplace to sold-out crowds. Linda Cronin, executive for soft drink giant Coca-Cola, was the keynote speaker.

At this meeting, Cronin presented five ingredients for social media success:
1) Add value
2) Be transparent
3) Be consistent
4) Be receptive to change
5) Surprise and delight your consumers.
This advice almost seems simplistic by today’s standards. Mass Relevance had dreams of convergence that must have been merely a glimmer in Cronin’s eyes four years ago.

DSC_4461
Mike Dodd is a partner at Austin Ventures, the much-lauded venture capital firm that provided support to Mass Relevance in its early days. He says the backing was a no-brainer. “We invested in Mass Relevance because we saw the trifecta of success I look for in startups – strong product that companies need, tremendous opportunity in the market, and an executive team with the experience, skills, and vision to successfully lead the company.” The feeling is apparently mutual, as Dainton remarks, “We have tremendous respect for the entire Austin Ventures team, and how they’ve helped accelerate Austin’s tech startup industry.”

Dodd goes on to say that his firm is impressed by what Mass Relevance has accomplished to date, citing its partnership with social media giant, Twitter. “They were Twitter’s first certified partner licensed to re-syndicate content for display,” beams Dodd, “and are currently the only company with access to both Twitter’s firehose and Facebook’s Keyword Insights API.”

Considering the fact they also partner with Instagram, Vine, Google+, Youtube and Klout—it’s no surprise Mass Relevance works with 25 percent of Interbrand’s 2013 World’s Best Brands. Clearly, they are one of Austin’s crown jewels. Dodd is proud to report that they “continue to sign new clients and develop new social experiences that are changing the way brands and media companies interact with consumers.” It seems likely that someday soon we can say we remember them when…

Mass Relevance headquarters in downtown Austin.

Mass Relevance headquarters in downtown Austin.

How to Tap into Austin’s Investor Landscape

By SUSAN LAHEY
Reporter with Silicon Hills News

Austin skyline at golden suntrise reflected in Ladybird Lake, photo licensed from iPhoto

Austin skyline at golden suntrise reflected in Ladybird Lake, photo licensed from iPhoto

According to the PWC Money Tree, Texas was the sixth highest investment region in the country in 2013. With $1.3 billion invested it was a small player compared to Silicon Valley’s $12 billion in investments. A fact that continues to gall Austin’s startup community. The good news for startups is that, in a lot of ways, Austin is still a small town which means it’s easier to meet investors here than in it is in many markets. Angels and venture capitalists attend pitch competitions, Startup Week events, SXSW and even crazy things like Startup Olympics. But even in Austin, walking up to an investor and launching into your pitch is considered a major faux pas.
We’ve seen founders walk up to investors who are three bourbons into a networking event and launch into a pitch. We’ve seen founders joining conversations and scattering participants like roaches by putting on their “sales” voices. We’ve seen founders looking at investors they just met like guys who have been at sea for a year meeting the first woman on shore. No.
Most investors want an introduction from someone they trust before they hear your pitch. In addition, while one investor admitted: “We want to find startups pretty much when they roll out of bed in the morning, before they’ve made too many mistakes” they don’t want to waste time with startups who have no business model, no idea how much it costs to acquire a customer, no revenue model, no sales strategy, no idea of their valuation, no measure of their competition and so forth.
So we’ve included a list of some of the leading area investors. Some of the kinds of companies they invest in, and rules they have about approaching them.

Central Texas Angel Network
Central Texas Angel Network is one of the top five most active angel investment groups in the U.S. CTAN angels come from numerous industry backgrounds and invest in companies from tech startups to consumer packaged goods. Many of them work with startups at the local incubators as mentors as well as investors.
CTAN has more than 130 members who are commonly spotted at pitch events put on by the University of Texas, Capital Factory, Incubation Station, Techstars and other startup institutions, usually looking for early stage companies to make seed investments. In 2012, the angel group invested $8 million in 25 companies. CTAN has quarterly “office meetings” to informally meet and pitch to investors to get feedback on their pitches. The group also has five annual funding cycles. Startups apply at the group’s website, and those that are accepted have the opportunity to pitch and get feedback from investors. An average investment for a single investor is about $25,000.

Austin Ventures
Austin Ventures is the largest firm in Austin with a $3.9 billion fund. Austin Ventures invests in both early stage and middle market companies AV Investors have been quoted as preferring to meet startups interested in pitching them through an introduced from someone they trust. Early stage investments range from Our investments typically range in size from $500,000 proof-of-concept projects and seed financings to $40 million venture growth rounds. $25 million to $100 million. Austin Ventures is a very hands-on investor. Among its portfolio companies are Bazaarvoice, RetailMeNot, Spiceworks and Spredfast.

LiveOak Venture Partners
A relatively new venture firm, LiveOak Venture Partners has expressed that it’s more open to early stage companies than some other investors. Partner Krishna Srinivasan said he doesn’t require an introduction and is interested in talking to a number of seed stage startups. Live Oak recently announced a $100 million fund for early stage companies. Its minimum investment is usually $250,000.

Silverton Partners
Silverton Partners is an Austin based company that mostly invests in tech companies. Though it has invested in several Capital Factory companies already, the company recently announced a partnership with Capital Factory whereby every Capital Factory accelerator startup with an initial $50,000 from two angel investors would receive another $25,000 from Silverton. This is on top of a $50,000 match from Capital Factory.
Generally, Silverton’s initial investments range between $200,000 and $2 million.

Triton Ventures
Laura Kilcrease, one of the managing partners of Triton Ventures, helped found Austin Technology Incubator and formerly served as Entrepreneur in Residence for the University of Texas Herb Kelleher Center for Entrepreneurship. She can frequently be seen at University of Texas pitch events and mentors many startups.
Triton focuses on spinout companies, including technology licensing spinouts, tech commercialization and early stage companies. Average initial investments range from $500,000 to $4 million. Triton also supports companies in its portfolio with additional investment and often introduces its portfolio companies to other investors.

Mercury Fund
Mercury invests in lean, early stage startups with small scientific teams and software based businesses. Initially the fund invests between $50,000 to $1.5 million and usually invests between $4 million and $6 million over the life of the company.

Wait, How Are Millennials Sparking Change Again?

By SUSAN LAHEY
Reporter with Silicon Hills News

20140325_162159The topic was supposed to be How Millennials are Sparking Change, but while the panels addressed the challenges of entrepreneurship, the dearth of STEM in the education system, the growing Hispanic population and the Austin startup culture, little was said about how millennials are sparking change until the end.

In that final panel, sponsored by National Journal and the Atlantic, Techstars managing director Jason Seats, pointed out that with the “cushy existence” of the middle class and above, millennials graduate ready to reach for the top of Maslow’s Hierarchy. “They’re looking for fulfillment right out of the gate,” which means they’re trying to do things that will be meaningful and benefit society. That’s changing the culture.”

Isaac Barchas, head of the Austin Technology Incubator said there is a higher percentage of millennials than other generation groups viewing entrepreneurship as a career path, though he said he doesn’t know what direction that entrepreneurship will take.

And Rep. Trey Martinez of San Antonio said he hoped that the entrepreneurial spirit of millennials would help reinvent government in “the confluence of the tech world meets the business world to fix the inefficiencies in government.”

Finally, Margo Dover, executive director of Skillpoint Alliance said the millennials she works with not only offer great innovation and wonderful ideas, but they level the playing field. “They don’t care about your gender, your sexual orientation or your color they want to be the best. The best leaders and the best innovators and the best business people…I am learning from them,” she said. What older people (women in particular) were taught was impolite, such as speaking out boldly and taking leadership positions, they do joyfully.

Why Millennials Are Entrepreneurs

The first panel, Millennial Entrepreneurship Panel Discussion included Bob Metcalfe, professor of Innovation and Murchison Fellow of Free Enterprise at UT, Rudy Rodriguez, managing partner of Team Venti, Grant Helmer, student and director of Longhorn Entrepreneurship Agency, Jae Kim, founder of Chi’Lantro BBQ, Ali Mavrakis, CFO of Basedrive. Ron Browstein, editorial director of Atlantic Media moderated.

Brownstein asked how the panelists had decided to take the plunge into entrepreneurship. Kim said he had always been an entrepreneur because “I was never very good at school.” He started companies when he was 21 and 25 that failed. But Chi’Lantro, he said, “seems to be doing pretty well.” Rodriguez, who grew up on South Padre Island, said his father always taught him to “swim toward opportunity.” He had taken a corporate job, he said, and was always bored and tired, and began to wonder “is this all there is?”

Metcalfe said he had “gone to school for 23 years in a row and loved it” but when he went to Silicon Valley he met Steve Jobs, David Packard, William Hewlett, and decided “If they can do it, so can I.”

Metcalfe said his biggest challenge was learning to sell.

Mavrakis said the toughest part was taking responsibility. “The buck has to stop with me. You’re going to get a lot of advice. Figure it out and do something with it.”

For Kim the most difficult part was capital. He’d maxed out his credit cards early on and the card companies were calling and asking “What’s wrong? Do you have a family emergency? Can you pay your bills?”

All the panelists agreed that if you want to start an Internet based company or a tech company it’s a lot easier and less expensive now. There’s a global audience. They also agreed with a poll Brownstein cited that said the most important factors for entrepreneurial success are persistence, people skills and knowledge of business.

“We all talk about how lucky Mark Zuckerberg was,” Metcalfe said. “When you look at what the days were like, it’s about getting through the unlucky days and exploiting the luck when it was good.”

The two pieces of advice all panelists agreed on for budding entrepreneurs are: Listen to customers, mentors, advisors and start something.

It’s About Connection

20140325_164029The next panel, How to Start, Sustain and Succeed as a Millennial Entrepreneur, included Seats, Barchas, Dover, Martinez and Michelle Skelding, senior vice president of global technology strategies for the Austin Chamber of Commerce.

All agreed that a big part of success in the Austin startup ecosystem is about what Barchas called “touching atoms.” It is key that the city has an ecosystem where entrepreneurs interact. For one thing, said Skelding, it creates collaboration, what Seats called “cross pollination of ideas across verticals. One of the benefits of that, he said is that institutional knowledge comes from interaction with an organization or ecosystem and providing situations where people can interact and learn from one another greatly reduces the time and cost of imparting institutional knowledge. Bringing people up to speed.

Most agreed that the present educational system marginalizes women, minorities and people in lower socioeconomic brackets, especially in the STEM fields. Dover, whose organization gives high school students an opportunity to get hands on in area companies and offer innovative solutions to the problem those companies face, said she never had a formal education. But she had a mentor by the name of George Kozmetzky, who said if she would meet him once a month for breakfast at 6 a.m., he would help her. And she did.

One audience member asked how someone would find out about the Austin ecosystem and Seats said it was a lot like navigating UT campus. “I got this complicated set of directions and got on campus and said ‘Where is the student activity center?’ When I got lost again, I asked someone else. You just start walking.”

After the panels, Brownstein said that, of Austin and Los Angeles, Austin was far more community oriented. The idea of starting a business in Austin is much more a process of joining a community than simply “doing your own thing.”

Adometry Dominates the Marketing Analytics Market

By AMY MCCULLOUGH
Reporter with Silicon Hills News

Photo of CEO Paul Pellman.

Photo of CEO Paul Pellman.

While the science behind Austin’s Adometry might be complex, the company’s goals are simple: To help marketing executives answer the questions, “How’s my marketing doing?” and “What should I do different?”

Sales executives have Salesforce.com. Financial executives have Oracle Financials. But marketing officers have never had a single, digital dashboard to help them assess their business efforts. Enter Adometry.

Adometry specializes in “channel attribution” and helps more than 60 clients—including Citigroup, eBay, KIA, Levi’s and Mitsubishi—determine which marketing tactics lead which customers to the point of sale.

Chief Marketing Officer Casey Carey explained: “We capture all of what we call ‘marketing event data,’ and that is information we can get about which ads, which e-mails, which search terms you were exposed to and the actions or non-actions that were associated with those exposures. … So whether it’s a credit card application, or a purchase in store, or a scheduled test drive for a car, we marry that up with conversion data and associated cost data and answer the question, ‘How’s my marketing doing?’ To put it in context, we’re processing about 20 billion marketing events per month right now for our customers.”

All this data gives Adometry insight into what their clients should do differently. For example, one client, a big box hobby and craft retailer, recently learned it should shift money in its marketing budget to different channels to increase sales without having to make big, new investments.

The client “didn’t believe in display advertising,” Carey said. “They were spending a whole lot of money on paid search. They did not believe that display was a good place for their money. Most of their advertising is Sunday circulars in the newspapers. They were investing quite a bit of money online in paid search. We brought the point of sale transactions in, ran our model, and came back and said: ‘Did you look at your digital marketing and how it’s driving sales at the point of sale?.’ Your search performance is awful; it’s not helping at all. It is money wasted. That was a major insight for them. But even more interestingly, of both the conversions that occurred at point of sale that we could attribute to digital media, 68 percent of them were influenced by a display ad. That basically said they were way underinvested in display, and there’s a huge opportunity to reconsider that. They actually took two weeks and stopped their free-standing inserts in Sunday papers and moved that money into display.”

A satisfied Adometry customer in the agency category is Dallas-based Adaptive Audience, a media trading company that seeks to fill the void between advertising technology and digital marketing strategy.

Much of Adaptive Audience’s work is aimed at retailers, and President Brandon Bethea said Adometry has been a “game-changer” for his company. Adometry data helps them track the specific channel mix that best targets certain client customers for both on- and offline sales. “We’re tagging everything at such a granular level that I’m actually able to see: Is it that (market) segment? Which channel did they reach? And within that channel, which targeting tactic? What key word search or what targeting type in display, or what publisher in display … That helps us optimize the total media budget so we can allocate more of our budget to those tactics that are working,” he said. “This simply wouldn’t be possible without Adometry.”

Senior management team in place

Adometry has passed the early startup stage and transitioned from a founder-led model to leadership from a well-rounded senior management team. Investor Austin Ventures says the company now has the technology as well as the leadership to aggressively move forward.

Austin Ventures General Partner Tom Ball said: “I think for the first time, at the end of 2013, we kind of had all the pieces in place with respect to the management team … We’ve always had the vision for what the product needs to be. The product is in a really solid place right now. We feel it’s a great time for them to be aggressive and step on the gas here and continue. They’re already the leader in this space. We want to make sure they increase their lead on the competition. … Sometimes, when things are so technical, it’s actually quite hard to sell, because you’re selling science. And these guys have figured out how to make it simpler. … We have the full senior team now.”

Relatively new senior team hires include Carey, Vice President of Sales Paul Dodd, and Vice President of Client Services Nikhil Kumar.

Austin Ventures has been with Adometry since the beginning. The firm provided $500,000 in seed money to Adometry, back when it was called Click Forensics. Overall, Austin Ventures has invested about $10 million in Adometry.

Click Forensics was founded in 2007 in San Antonio with a series A funding from Austin Ventures and Shasta Ventures and receive series B funding from Sierra Ventures in 2008, for a total of around $21 million. It focused on reducing the click fraud that burned up dollars spent on Google Adwords campaigns. As Google began tackling click fraud in 2011, Click Forensics bought then-Washington-based Adometry to launch its suite of online marketing analytics.

Growth

“We kind of have two businesses: our Click Forensics business and our marketing analytics business, which more that doubled last year,” Carey said. “We’ll continue to see strong retention and maintaining of our Click Forensics business and expect to see triple growth on our marketing analytics business.”

Adometry closed an $8 million round of funding in 2013, again from Austin Ventures, Shasta Ventures and Sierra Ventures, and added 100 employees. In September the company moved to larger quarters in the Lakewood Center Building II on Capital of Texas Highway.

The current total employee count is about 135. More growth is expected this year, although there are no plans at the moment to seek additional funding. That could change as the year evolves, Carey said.

If Adometry did want to raise more this year, Ball feels confident they wouldn’t have any trouble: “The good news is you already have three solid venture capital firms behind it. You’ve got a bunch of other later-stage venture investors who constantly call us about this company. It’s kind of the prototypical Austin company of software as a service with a team that we’ve worked with before that has figured out a really hard problem, and now it’s really scaling. If they needed more money, I’m sure we would be there; I’m sure a lot of people from the outside would fight very hard to invest.”

Market dominance, not profitability, is the company’s current priority. With the exception of Boston’s Visual IQ, there aren’t a lot of competitors to Adometry at the moment, but it won’t be this way for long.

“Like any successful company in a market, it’s going to get crowded over the next couple of years,” Carey said. “Once you have this kind of growth and success, other people start to poke their heads up and take interest. We’re super excited to be a leader and be successful. We’ll work hard to keep driving that and keep new competition at bay.”

Google has recently stepped up is analytics game, offering similar services to Google Analytics premium customers, which Carey sees as calling attention to the entire industry.

Editor’s note: This story originally appeared in Silicon Hills News’ print magazine which debuted at SXSW Interactive

Emerging Medical Technology Symposium to Spotlight San Antonio’s Biotech Industry

Photo licensed from iStock

Photo licensed from iStock

By LAURA LOREK
Founder of Silicon Hills News

San Antonio has a long history of innovation when it comes to the biotechnology and the medical industry.

Dr. Julio Palmaz, then a professor at the University of Texas Health Science Center invented the heart stent, which restaurateur Phil Romano later backed and they eventually sold it to Johnson & Johnson for about $500 million.

The city has had other successes in drug development, medical devices, and tissue and cell research companies and military medicine.

Most recently, Teleflex bought Vidacare last October for $285 million and Austin-based ArthoCare bought ENTrigue Surgical last June for $45 million in cash. And in February of this year, Smith & Nephew bought ArthoCare for $1.7 billion.

The sixth annual Emerging Medical Technology Symposium on April 1st, the day before the InnoTech San Antonio conference, seeks to put a spotlight on all of the medical and biotechnology innovation going on in South Texas, said Gabriele G. Niederauer, vice president of research and development for ArthroCare Corp. and chair of the symposium’s organizing committee.

“The whole goal of the meeting is to provide a venue for entrepreneurs in the medical technology space to network, learn and share their experiences to foster growth of future companies,” she said.

Of all the nationwide InnoTech conferences, San Antonio has the only one that offers a half-day focused just on medical entrepreneurs, she said.

More than 150 people are expected to attend the conference this year, Niederauer said. Registration costs just $54 and includes lunch, all presentations, an evening reception and access to InnoTech the following day.

The conference kicks off with a keynote address from Catherine “Cathy” Burzik, former president and CEO and a director of Kinetic Concepts in San Antonio. She is currently general partner at Targeted Technologies and serves as director on several public boards. She’s going to talk about building high performing teams that create value and ultimately create exit value for the company.

The symposium also features the second annual pitch competition. This year, eight companies will present before a panel of judges and angel and institutional investors. The winner will receive a $1,000 check from the Targeted Technology Fund and other perks.

The companies presenting include Claresta Solutions, TVA Medical, Leto Solutions, Wisewear, Chiron Health, StemBioSys, ClotFree and ENTvantage Dx. The judges include Jordan Kaufmann, president of Cardiovate and winner of the 2013 pitch competition, Mike Troy, CEO of FlashScan and Daniel R. Lee, CEO of Aperion Biologics Inc.

With the new Dell Medical School in Austin, this region will have even more biotechnology and medical startups. And the Targeted Technology fund, a venture capital fund focused on the biotechnology industry, is already raising its second fund, Niederauer said.

idealAsset is Match.com for IP

By SUSAN LAHEY
Reporter with Silicon Hills News

Photo licensed from iStock Images

Photo licensed from iStock Images

Intellectual property should be a sexy asset to sell.

After all, you’re peddling pure potential: “Take this patent and make yourself a star…or at least solve some problem faster and more cheaply than you would have been able to yourself.” But in reality, IP sellers and buyers have to contend with a veritable ocean of patented ideas, many of which are worthless or irrelevant to what you’re doing. All of which are written in legalese so you can’t quickly ascertain what they do or how it might help you. And by the time a buyer and seller connect, the idea may be obsolete.

And if you’re someone with only a couple of patents to sell, fuggedaboudit.

The way IP has always been sold, as idealAsset CEO Tom Hochstatter says, is like trying to sell a house by leading with the concrete’s tensile strength. What the buyer wants to know is “How many bedrooms? How big is the kitchen?”

Photo licensed from iStock

Photo licensed from iStock

But Hochstatter’s new product, idealAsset, aims to change all that. His company calls it the Match.com for IP. Individuals or companies join and list their IP; idealAsset creates listings with more “buyer empathy,” matching the patented idea with what a buyer is looking for. Within moments, IP assets are matched to interested buyers. idealAsset doesn’t guarantee a marriage, but it gets the conversation going.

idealAsset is one of the companies pitching at the 2014 SXSW HATCH Pitch Competition.

Marketing IP Correctly

“IP licensing and commercialization is hard,” said Mike Millard, Director of Innovation, Seton Hospital/Ascension Healthcare. “It’s not like a widget. It’s a one relationship sale and just finding that person, even that part is hard…. idealAsset really cuts down on the research time needed to strike a deal. You want to get to the face time.”

“IP is usually commercialized by the top 10 percent of inventors,” said Courtney Landers, Director of IP, Calavista Software and previously VP of IP for Emergent Technologies—also an idealAsset customer. “For the most part, people in the industry don’t have a background in sales and marketing and don’t want to do the legwork to pick up the phone and make 100 calls to find out who might want this IP,” Landers said. And a broker takes 30-to-50 percent of the profit.

“I like the fact that I can put assets in there to scale and within minutes of loading them up with idealAsset, I’m sitting there with warm introductions to interested buyers,” Landers said. “I don’t know of any other tool that even comes close to that.”

idealAsset was incubated at Fluid Innovation, an IP brokerage started in 2005. When Hochstatter came on in 2007 with his tech background that includes Microsoft, IBM, Yahoo and a couple of startups, he suggested the company create tools and solutions for the IP commercialization industry, such as its licensing platform. idealAsset was one of the tools they conceived that will become its own company. Hochstatter likes to think of Fluid Innovation as an innovation accelerator.

“If we find another cool idea we might pull it into Fluid, fool around with it, incubate it for awhile and spin it out.”

Like Amazon for IP

“It takes almost an entire year to do an IP deal,” he said. “It’s hard and silly and there’s no good reason for it. It takes 347 days on average, if it ever gets done. It’s like pandas mating, and you really have to help them or it’s not going to happen.”

This is especially true for people with one or a few patents whose chances of finding a buyer and making a profit from their IP is miniscule. idealAsset offers a relatively fast, inexpensive alternative. Subscriptions range from $199 per person per month to $10,000 a month for an enterprise customer with unlimited access. Transaction fees range from 5 percent to 15 depending on your subscription level.

idealAsset also uses scrapers and crawlers to aggregate IP from companies that are not signed customers. If a buyer bites on one of these properties, idealAsset informs the owner of an interested buyer and invites it to become a member.

One of the huge benefits of idealAsset, Landers said, is that it provides a way for IP sellers to attach a reasonable value to the patents they’re trying to sell.

“More deals fall apart (at pricing) than anything,” Landers said. “With idealAsset if you’re looking for a technology you can start gathering a fair price point on the commercial data…. That’s a huge value…at the end of the day your IP really is worth what someone is willing to pay for it.”

But another benefit is the partnerships and ideas that may emerge from idealAsset. Being able to see various patents on the market may spark ideas.

“I’m an ideas advocate,” said Hochstatter. “I’m centered on the idea, not who owns it. I want to find the best home, the next place for that idea in that continuum…that’s my responsibility.”

Editor’s note: this article originally appeared in Silicon Hills News’ print magazine, which debuted at South by Southwest Interactive.

Austin-based Startup Burpy Delivers

By AMY MCCULLOUGH
Reporter with Silicon Hills News

Burpy-1Aseem Ali was a carless freshman at the University of Texas at Austin living in an apartment complex. When he could work around friends’ schedules and borrow cars to get to the grocery store, he could get fresh food and produce. But due to the inconvenience, he found himself eating a lot of Ramen noodles. And he got tired of it.

Thus, the seeds of online grocery delivery service Burpy.com, for which Ali now serves as CEO, were planted.

Burpy has had fast success: It officially launched in Austin in fall 2013 and will become profitable this quarter. Burpy also serves San Antonio, Dallas and Houston and plans to expand elsewhere in the Southern United States.

While Burpy has some Austin competitors, like Couch Potato and Munchy Mart, those services only offer convenience store products on wheels, while Burpy will bring you anything you can find at Costco, HEB, Wal-Mart and Whole Foods, including meat and fresh produce. In addition to groceries, Burpy also delivers products from Office Depot.

Ali, now a senior in mechanical engineering, said many of Burpy’s consistent customers are “elderly folk, young professionals—people that don’t have the time (to shop)–and working mothers.”

When Burpy began, it charged a delivery fee of $15 to $20. More than two months ago, the fee was dropped. Now, profits come from product markup. Customers can select items from more than one store with a minimum order requirement of $35 per store.

“Let’s say I order products from Costco and Whole Foods. If you order $35 from Costco and $35 from Whole Foods, there won’t be any charge,” Ali said. “We’re seeing a trend of more and more people coming back using the site. The biggest challenge (to getting customers) initially was when we did have a delivery fee. People were hesitant to pay a delivery fee and a markup. Now we only have a markup fee, and people are getting addicted.”

One satisfied downtown Austin customer recently praised the company in a Yelp review for the store and product variety it offers. “Jose A.” wrote on Feb. 2:

“We’ve used (Burpy) several times so far for delivery to our downtown office and have been very pleased. Drivers communicate status and ask you questions about substitutes via text/e-mail, and if there are delays, they’ll let you know. And we LOVE the fact that you aren’t limited to one particular store, or to a bunch of local, organic stuff (we do order that too, though) when someone wants Diet Coke!

“Growing pains? Maybe a few. I’ve noticed a few minor website glitches, but I know they’re a growing startup and have always listened to our feedback. It can only get better from here, and everyone in our office has become huge fans!”

Nationally, there are competitors more similar to Burpy: Instacart is an online grocery business that serves Boston, Chicago, D.C. and San Francisco, and FreshDirect serves New York City.

Ali said Burpy is able to be successful because of today’s technology. Many well-funded grocery startups failed in the 1990s because of pricey investments in infrastructure like delivery vehicles and warehouse space. Now, “everyone has a strong piece of technology in their back pockets now. Drivers have smart phones. … Whenever an order comes in, we send out texts to shoppers in an area with the order number, zip code, cost of delivery. There’s an accept or decline button. If they accept, a text comes with a link to shopping orders and delivery information.”

Burpy launched its beta version targeted at UT students in March 2013. During its official launch in Austin in September 2013, Burpy brought in $4,500 in revenue. The company has grown every month and will be profitable this quarter. They are on track to bring in more than $80,000 this month.

So far, the company has had only one investor—Azim Makanojiya—who has put $500,000 into Burpy. Ali and Makanojiya met threw a family connection, and like Ali, Makanojiya became an entrepreneur as a college student. While at the University of Houston, he first entered the e-commerce space in 2007, with wrist-band.com, a manufacturer of custom-made silicone wristbands. He now also serves as CEO of CorporateRecycles.com, which recycles and disposes of company IT appliances.

Makanojiya is not surprised at Burpy’s success and plans on participating in a Series A funding round that will likely occur this year.

“The hardest part about startups is actually grinding it out for a good year,” he said. “You lose motivation. A lot of roadblocks come your way—things you never even anticipated. … I always though if Burpy was actually executed correctly and done correctly, it would be a great success. … I think the execution was the big X factor in this business, and I think the team is doing a phenomenal job with that.”

In addition to Ali, Burpy’s management team comprises students who worked together in a UT Longhorn Startup class: CTO Sharez Prasla, CFO Safan Abdul, COO Alishah Momin and CMO Azim Momin.

In addition to finding more delivery drivers, a challenge for Burpy is finding the best payment platform for its employees. The company tried a direct-deposit method but dropped it due to the two-to-three-day transfer time. Burpy also tried prepaid VISA debit cards, but, like PayPal, the inherent fee structure made it unpopular with drivers. Burpy is currently working with Google Wallet, which provides about 80 percent of the features they want.

“I think technology in the next year or so will catch on and cater to these type of business product lines where there needs to be a platform where an instant transfer of funds can happen,” Makanojiya said.

Editor’s note: This story first appeared in the Silicon Hills News print magazine which debuted at SXSW Interactive.

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