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HeyRide Disrupts the Traditional Cab Industry

Josh Huck, CEO of HeyRide

A new startup, Heyride is creating quite a shake up in the Austin transportation industry.
The company, founded in 2012, draws its inspiration from “the success of collaborative consumption companies such as Airbnb and car2go.”
Heyride has established an alternative marketplace to cabs in Austin. It’s a place where people can give and receive rides via their smartphones.
Last week, the Austin Chronicle published a cover story on HeyRide. Shortly after that the City of Austin issued a statement reporting the city had sent HeyRide a cease and desist order on Oct. 31.
The City reports that HeyRide “very closely resembles that of a taxi franchise and that any operation dispatching drivers to potential passengers ondemand requires a City Council approved Franchise Agreement, and that all drivers are required to successfully satisfy criminal background and driving history checks as set forth by the Austin City Code.”
The Austin American-Statesmen originally reported that the City had shut HeyRide down. But Josh Huck, its CEO, reported on the Austin Startups Facebook group that HeyRide is still operating.

Q. How did you come up with the idea for Heyride?

A. I was frustrated that I couldn’t get a ride during SXSW, and I wondered why I couldn’t just ask someone for a lift. I decided that it was pretty ridiculous that people weren’t able to connect in this way, as I’d been traveling around the world using services like Couchsurfing and Airbnb for years. So I decided to build it myself.

Q. How does it work?

A. You fire up Heyride, say where you are and where you want to go and a driver makes a bid on your ride. You choose who you want to ride with and they take you where you want to go. You pay electronically with your phone and the credit card you have on file.

Q. How many people are signed up for the HeyRide service currently?

A. We’ve currently signed up almost 1000 users.

Q. How many do you anticipate will use the service?

A. We’d like to take Heyride national, so we think the sky’s the limit. After Austin, we’ll be exploring new markets and spreading the word.

Q. How does HeyRide make money?

A. If you give a Heyride, you take 80% and Heyride takes 20% as a service fee.

Q. Why has the City of Austin taken action against HeyRide to shut the service down?

A. Actually, they haven’t taken any action yet. A cease and desist doesn’t mean Heyride is going anywhere. We don’t feel that the City of Austin actually understands our business model; specifically, the difference between a taxi cab company and people using a platform that enables peer-to-peer ride-sharing. Because of that, they’re standing beside old-school regulations that haven’t caught up to innovations in the marketplace. We’re confident that once we open a dialogue, we’ll be able to work together for a common goal: making Austin a better place where it’s easy to get a ride when you need one.

Q. How do you plan to deal with that?

A. We’re going to begin a dialogue with the city, mobilize our customers to raise their voices on our behalf, basically get people behind the idea of ride-sharing and take our case to people who can help us change any necessary regulations to accommodate this type of innovation.

Q. Who are your competitors?

A. There are a few similar services of note out on the West Coast, Lyft and Sidecar. But we’ve taken a different path with Heyride, creating a better user experience with more choice for the user and safety and privacy features that go above and beyond.

Q. Who makes up the HeyRide team?

A. You can find this on our About Us page at heyride.com.

Q. Is HeyRide bootstrapped? Do you plan to seek Angel of Venture Capital Investment?

A. Heyride received its Series A funding from Silverton Partners, a local venture capital group.

Q. Where is HeyRide located?

A. We’re nestled in the East Side of Austin at 1306 E 7th St.

Q. What kind of car do you drive?

A. I’m the proud owner of a silver 2005 Pontiac Vibe. It’s kind of a mutt, being half-Toyota, but I love it anyway. It gets 40 miles to a gallon, has leather bucket seats, a sunroof, an iPod adapter and a sunroof. Gonna be some rocking Heyrides in the ol’ P-Vibe!

Q. What’s your favorite local startup resource?

A. Digging on the Austin Startup Facebook Group – great place to interact in real-time with people in this community. Also, our investor Kip McClanahan’s awesome blog www.ReOverthinking.com is chock full of great resources for people who want insight into VC.

Q. Anything else you would like to make a point of that I haven’t asked you about?

A. I love running a business in Austin.

VISA’s New Global IT Center in Austin to Create 794 jobs

The news couldn’t be better for Austin these days with its highly skilled high-tech workforce attracting new Fortune 500 companies.
First, General Motors announced plans to establish a research center in Austin, which will employ 500 workers.
Now Visa U.S.A. plans to build a new global IT center and create 794 new jobs in Austin, according to this news release from Gov. Rick Perry.
Last week, Gov. Perry announced Visa’s plans and pledged $7.9 million in incentives to the credit card company through the Texas Enterprise Fund.
“The city of Austin has proposed an economic development grant of $1.6 million if the company meets its investment and employment targets,” according to this story in the Austin American Statesman.
“Texas is competing nationally and internationally for jobs and we want companies who are looking to expand or relocate to consider the Lone Star State first and all we have to offer. Visa’s decision to build a new global IT center in Austin is a great fit with our skilled workforce and Central Texas’ reputation as a hub for high tech companies,” Gov. Perry said in a news statement.
Visa, based in San Francisco with 8,500 employees worldwide, is one of the world’s largest processors of credit card and debit payments. The company posted revenue of $10.42 billion on net income of $2.14 billion in 2011.
“Visa is continually looking for opportunities to add world-class talent to our organization,” Will Valentine, a Visa spokesperson, said in a news release. “Austin offers a vibrant technology community and business-friendly climate, and we are working closely with local officials to finalize an agreement.”

Tech Entrepreneur Mellie Price Featured on We Are Austin Tech

Mellie Price, photo courtesy of We Are Austin Tech

This week on We Are Austin Tech, Mellie Price gives advice on entrepreneurship.
“One person told me early on that the truth is right there you just have to listen to it,” Price said in the interview. “Listen to your customers. They are giving you real feedback. Be willing to hear it. If they are giving you the feedback that what you have doesn’t matter to them be willing to stop.”
Price talks about her authenticity in her relationships and how that aides her in her entrepreneurial endeavors. She founded Front Gate Tickets and web development firm Monsterbit, both of which have been acquired.
Every Tuesday, We Are Austin Tech releases a new video spotlighting someone in the community who has contributed to the city’s vibrant technology scene.

Interact ATX Seeks Bright Young Entrepreneurs For SXSW

Interact ATX wants to attract the best and brightest young startup minds to join them at South by Southwest Interactive next year.
The group, started by Maran Nelson, a senior majoring in psychology and advertising at the University of Texas, seeks to bring about 100 young entrepreneurs from all over the country to Austin this spring.
“Essentially the premise is we’re getting sponsorships to make SXSW accessible to the brightest young minds in startups today,” Nelson said.
Interact ATX just launched its website seeking applications and has already received dozens just by word of mouth advertising, Nelson said. One of the applicants includes a fellow in Peter Thiel’s 20 under 20 fellowship program. Thiel, a co-founder of Paypal, launched the program in 2011 to give some of the brightest kids under 20 a $100,000 grant and the opportunity to work on a project instead of going to college.
Nelson wants to do the same for young entrepreneurs who want to go to SXSW but cannot afford to do so on their own. She has also set up special meetings and networking opportunities for the group while they are here. And she is arranging for free housing (a couch or spare bed in someone’s home) for them during their stay.
Nelson expects to receive 500 or more applications. She’s working with 30 schools around the country and reaching out to the people on their campuses involved in entrepreneurial activities. But she’s not restricting the applicants to just college students. She wants anyone who is under 30 and has a great idea to apply.
Nelson has always had an entrepreneurial inclination. She worked with CampusCred, a Y Combinator Startup which shut down recently.
“SXSW has a ton to offer to startups,” Nelson said. “I’m really excited about being able to give people a leg up and provide them with resources they don’t have.”

The Central Texas Angel Network Helps Startups

Jeff Harbach, executive director of the Central Texas Angel Network

The Central Texas Angel Network has 105 investors from all over Texas including one from San Antonio and others from states like Iowa, Illinois and New York and other parts of the world including Belgium and India.
And although its investors hail from far flung places, the angel network concentrates its investments locally.
“We consider Central Texas to be Austin and San Antonio,” said Jeff Harbach, executive director of CTAN.
Last year, CTAN invested $5.7 million in 22 companies and so far this year, the organization has invested $5 million in 18 companies.
In three years, CTAN investors have put more than $15 million into regional startup companies.
The Halo Report, compiled by the Angel Resource Institute recently named CTAN as one of the most active angel networks in the country. And even though CTAN does a lot of technology deals, it’s not solely focused on that industry.
“We’re industry agnostic,” Harbach said.
CTAN invests in a wide variety of companies and industries including consumer products, information technology, software, mobile and more.
“We tend to look at just about everything,” he said. “But someone looking to build a bowling alley in Buda we’re probably not the right place for them.”
Since its founding in 2006, CTAN has invested in more than 50 companies.
CTAN has five funding cycles a year. The application deadlines for each one are listed on its website. The organization also holds “office hours” at a local coffee shop ten times a year. It’s a chance for entrepreneurs to get feedback on their ventures from angel investors. Entrepreneurs have to apply in advance to participate.
“I always tell entrepreneurs to go to the office hours,” Harbach said. “It’s a good opportunity for entrepreneurs to get in front of investors. In our community, as great as it is, there aren’t a lot of meetups where you can go and talk directly to investors and get feedback.”
CTAN investors generally take an equity stake in the company they back. Some angels to debt deals. The investments range from $200,000 to $2 million.

High School Startup’s GiraffeStand For Sale on Kickstarter

This summer, a group of high school students got together for the first ever High School Startup at Anderson High School in Austin.
The four teams created four companies and four products. Two of the teams have now launched Kickstarter campaigns to market and sell their goods.
The first, Switchbox has raised $2,297 of its $15,000 goal with 49 backers and 30 days to go. The second team created the GiraffeStand, an iPad bed mount.
So far, the GiraffeStand Kickstarter campaign has raised $1,025 of its $4,000 goal from 20 backers with 22 days to go.
The GiraffeStand sprung out of frustration from Tina Bao, a graduate of TAMS in Denton, whose arms got tired when she tried to use her iPad in bed. That problem served as the catalyst for the GiraffeStand team to create a solution.
In addition to Bao, the other team members included Advaith Anand, a junior in the LASA magnet program at Lyndon B. Johnson High School, Scott Davidson of Round Rock High School and Jack Thoene of Anderson High School.

AirStrip Technologies Changes the Way Doctors Practice

BY RANDY LANKFORD
Reporter with Silicon Hills News

Dr. Cameron Powell, a San Antonio obstetrician, likes to joke about the only time he was ever propositioned in a church parking lot. When Trey Moore, a software developer, invited him to have coffee in 2004 Powell assumed it was to talk about a doctor for his wife.
But Moore wasn’t concerned with just one baby. He wanted to talk about thousands.
Referring to the cutting-edge mobile technology of the day, a PalmPilot, Moore asked, “If you could see any information on a device like this, that would transform the way you practice medicine for yourself and for your patients, what would it be?”
Powell had a ready answer.
“I’m never just sitting at the mom’s bedside while she’s in labor. I’m seeing patients, I’m scrubbing up, I’m in surgery, I could be in my office, I could be anywhere. And I generally rely on the nurse to relay to me the condition of the mother verbally; just describe what’s happening with the baby’s heart tracing and the mother’s contraction patterns. If I could see that waveform data on a device like that in real-time that would change everything.”
And it has.
Fast forward 18 months from that initial meeting and Powell and Moore were keynote speakers at Apple’s Worldwide Developers Conference, explaining their new way in which doctors could monitor patients’ conditions from anywhere in the world.
Today, the company Moore and Powell founded, Airstrip Technologies, serves thousands of patients in hundreds of hospitals with its AppPoint software platform, securely sending patient information directly from hospital monitoring systems, bedside devices and electronic health records to a clinician’s mobile device.
Airstrip’s development platform enables the creation of device-neutral applications able to scale and adapt to an ever-changing world of mobile operating systems and hardware. FDA-cleared, CE-marked and allowing for compliance with HIPAA regulations, the AirStrip platform delivers live waveform and other relevant clinical data, not just to obstetricians, but to healthcare professionals in numerous fields such as cardiology, telemetry, home healthcare and geriatrics.
“The OB application is the proof of concept for the broader suite of what we do,” explains the company’s Chief Strategy Officer Bruce Brandes. “In fact, one in six babies born in the U.S. today is protected by AirStrip OB.”
Most of that meteoric growth has taken place since the introduction of Apple’s iPhone in 2009. “We had a handful of customers,” says Brandes, “but when the iPhone came out and opened up Apple’s Software Developer’s Toolkit, Trey saw that and shifted all the development from Windows to the iPhone. ‘This is the future of mobility,’ he said, ‘this device.’ That’s when we really started to scale in earnest.”
AirStrip has not only increased its size, according to Brandes, it’s also expanded its scope.
“We’re expanding the platform to include all the other elements of data a physician or team of physicians needs to see. Not only when they’re within the hospital but increasingly, as the reimbursement model of healthcare shifts from yesterday’s that’s based on an episode of care to today, where it’s based on clinical outcomes and ultimately to tomorrow, when it will be based on population health from chronic diseases, you’re going to see a shift in the use of our application.
“AirStrip will be of use not only in the hospital but across the entire continuum of care, so that we’re mobilizing data pre-hospital, before the patient ever arrives, in the ambulance for example, all the way through monitoring those patients who are at high risk in their homes so we can proactively intervene before an event happens that sends them to the hospital.”
Dr. Jane Atkerson, a San Antonio physician who has seen AirStrip work at the Baptist Health System, says she wouldn’t want to be without it. “I’ve been an AirStrip user since it started. The speed at which the screens upload, going seamlessly between data and tracings, is wonderful. I’ve made it part of my everyday care for my patients in labor.”
Brandes sees a day when mobile technology will render distance irrelevant in patient care.
“We’re riding the coattails of this mobility revolution. What we’re uniquely focused on doing is riding that revolution to specifically leverage mobility to address the challenges healthcare’s always faced that have never been able to solve because it took a transformational technology like mobility to change the way in which things work.
“We like to say our technology essentially eliminates all the traditional geographical boundaries that have historically restricted healthcare. You could have a cardiologist in New York City consulting on a patient in rural West Virginia. It could be someone in a remote area of Africa. And we’re seeing that today. Our clients are using this now.”
And it all started with a cup of coffee.

San Antonio’s CallGrader In DreamIt Ventures Philadelphia

Jon Dobbertin. co-founder of Call Grader


By L.A. LOREK, Founder of Silicon Hills News

At InnoTech San Antonio’s beta summit earlier this year, CallGrader won the competition.
The group of four close-knit friends created a software as a service customer application program for companies in the heating and cooling industry. They worked out of Geekdom on their venture.
A few months later, CallGrader applied and got selected to participate in the incubator program DreamIt Ventures, based in Philadelphia.
In September, Jon Dobbertin, Dan Garcia, Ben Niemietz and Chip Mobley all packed up and flew to Philadelphia. They rented two one-bedroom apartments close by the accelerator. Their wives, all four are expecting babies within four months of each other with the first due date set for Dec. 1, stayed in San Antonio.
“It’s been a little crazy,” Dobbertin said. He was in town last weekend and stopped by Geekdom for the 3 Day Startup San Antonio pitches on Sunday night. “We’ve been flying back and forth. But it’s been a phenomenal experience.”
The program has allowed Call Grader to expend its network, Dobbertin said. Every week, they meet with business people and listen to seminars from entrepreneurs who have been there and done that.
Dobbertin especially liked talks with Duck, Duck Go Founder Gabriel Weinberg and David Rose, founder of Gust.
CallGrader had a beta product in the marketplace when it entered the program, but now the company has launched and its revenues are projected to exceed what the team originally forecast by the end of the year, Dobbertin said. He declined to provide specifics.
“We’ve had a really successful launch out of Beta,” he said.
CallGrader has also pivoted into a cloud-based platform for providing businesses a way to efficiently communicate with customers. It has also built a rich database that allows companies to get all kinds of information on their customers including social media profiles to better tailor their service, Dobbertin said. And next year, it’s rolling out a chat platform, he said.
The DreamIt program has been hectic but it has pushed the team members to do more work in a short period of time than they would have gotten done on their own, Dobbertin said.
“We’re working around the clock, seven days a week and putting in 14 hour days,” he said. “In that three months we were able to do 12 months worth of work.”
CallGrader receied $25,000 in cash and $75,000 worth of credits for free hosting from Rackspace, Amazon and Azure. It has also received another $20,000 worth of legal and accounting services, Dobbertin said. But the most valuable part of the experience has been the mentorship and network the team received, he said.
To get to the next level, CallGrader plans to raise a seed round of investment, Dobbertin said. The company would like to raise its money in San Antonio so they can stay here. But they have already applied to the Benjamin Franklin Technology Fund, which would require Call Grader to be based in Philadelphia, Dobbertin said.
“We hope to find our funding here so we don’t have to move everyone to the East Coast,” he said.
Call Grader shows what’s possible for startup companies in San Antonio, said Alan Weinkrantz, a public relations expert who knows the team.
“It’s nice to see a company start and incubate here and go on to get accepted to a top tier incubator and relocate to Philadelphia.”

DreamIt Ventures recently expanded its program to Austin. It is based at Capital Factory. DreamIt Ventures just selected its first class of companies. They will have their demo day at SXSW 2013.

HomeAway’s Sharples Wins National Entrepreneur of the Year Services Award

Brian Sharples, Co-Founder and CEO of HomeAway, photo courtesy of Ernst & Young

HomeAway’s CEO and Co-Founder Brian Sharples won the highly prestigious Ernst & Young National Entrepreneur Of The Year 2012 Services Award.
The award recognized Sharples’ vision as an entrepreneur in discovering and creating a new marketplace for consumers to find vacation homes. HomeAway, based in Austin, is now the world’s largest vacation rental marketplace.
Sharples was honored at the Entrepreneur Of The Year gala in Palm Springs, Calif. Awards were given in nine additional categories. All Ernst & Young Entrepreneur Of The Year Award winners were selected by an independent panel of judges from 244 regional award recipients.
“Brian’s ability to first see an opportunity and then develop a successful business model in an industry that was relatively unheard of just 10 years ago is the mark of a true entrepreneur,” said Bryan Pearce, Americas Director, Entrepreneur Of The Year, Ernst & Young LLP, said in a news release. “He saw a gap in the market and build a world-class business to fill it.”
To read more about Sharples’ entrepreneurial journey, read this 2011 story in Silicon Hills News.

Seven Startups Debut Out of 3 Day Startup San Antonio

Jackie Davis, cofounder of ReInVintage, a vintage clothing marketplace

By L.A. LOREK, Founder of Silicon Hills News

During the 72-hour period that made up 3 Day Startup San Antonio, seven companies formed.
Some pivoted. Most did market research to validate their ideas. And few of the 40 participants in the program slept.
The weekend culminated with a pitch event Sunday evening in which the teams showed off all their work.
“Audius.co had the greatest pivot,” said Nick Longo, director of Geekdom , which hosted the event, and a mentor. They went from their original idea of synchronizing live streams for bands on smart phones to creating an app for church sermons back to a tweak on the original idea of creating a synchronized app for the people in the audience at concerts and other events to connect, Longo said.
Michael Girdley pitched the $2.99 app to a standing room only crowd at Geekdom Sunday night. The crowd seemed receptive to the idea. He even orchestrated a demonstration by asking the crowd to point the browsers on their smart phones to Audius.co. Then they dimmed the lights and some of Audius.co’s team members jumped around on stage with their mobile phones flashing lights.
“Their original idea didn’t have a good revenue model,” Longo said. “The second idea had a worst one. The third idea had a well laid out winning business model.”
ReInVintage also got kudos from Longo for having “the most bonded team.” Their idea for a marketplace of vintage clothes for buyers and sellers with a custom tailoring option did not waiver from the beginning. The team of nine members spent the weekend building out the site, creating a marketing plan, doing market research and fine-tuning their business plan.
Jackie Davis, a marketing analyst with Rackspace, led the team. During her pitch, she wore a powder blue vintage sleeveless sheath dress from the 1970s, which she bought on eBay for $4 and altered herself to fit.
She already runs a vintage clothing business out of her bedroom. She launched the venture a few years ago and it’s profitable. She buys the clothes from thrift stores and on eBay. One of her passions is to keep old clothes from ending up in landfills.
“Polyester never, ever biodegrades,” she said. “This business is good for people and it’s good for mother earth.”
Later, the ReInVintage team got an award for best dressed and for “besties” or being the most spirited and bonded team. They even set up a smoothie machine in their conference room and supplied the team with fruit smoothies throughout the weekend.
Pat Condon, a mentor for 3 Day Startup San Antonio and a co-founder of Rackspace, liked the ReInVintage team.
“I really like niche businesses that serve an under-served audience,” Condon said.
This is the fifth 3 Day Startup San Antonio Condon has participated in.
“I think it’s the best class we’ve had here,” Condon said “We’ve got a lot more broader representation from Trinity, St. Mary’s, UIW and UTSA. More diversity equals more success.”
Condon also liked Monk’s Toolbox, a mobile phone app for microbrewers to automate their back-end operations.

Biggest 3 Day Startup San Antonio pitch night ever, says Geekdom. Photo courtesy of Geekdom.

A few of the members of Monk’s Toolbox came from the brewing industry and knew the pain firsthand of microbrewers trying to handle everything from inventory to accounting.
“Something that replaces excel and spreadsheets for small business is a good idea,” Condon said.
The key to success for the teams during the weekend is to keep it simple, Longo said.
“If they can keep it simple, they can add stuff later,” he said. “The idea is to get to a minimum viable product that they can release.’’
The mentors helped save two teams from demise during the weekend because they started to get off track, Longo said. He declined to say which teams.
In the end, they all had polished presentations.
ArtPrint.me was a renegade team. It didn’t receive enough votes to make the final cut on Friday night. But some people decided to revive the idea and work on it during the weekend. In the end, they created a marketplace to allow consumers to buy prints of art at coffee shops.
“Spreading art throughout the world by turning every wall into a store,” said Lauren Anzaldua, a senior at the UTSA, who pitched her team’s concept.
TutorU grew out of David Riedel’s experience as a senior studying cyber security at UTSA. The site connects students with tutors around the clock.
“This is going to go somewhere,” said Daniel Dawson, a software engineering student at Trinity and a member of TutorU team.
The other teams included Airloom, a cloud-based site for storing precious family photos, videos and audio recordings and SocialRest, a portal for app developers to get code fixes from social media sites like Facebook and Twitter.
The diversity of the people in attendance made the event special, said Alan Weinkrantz, who runs his own public relations firm and served as a mentor to the teams.
“I’ve met everyone from a doctor who has some business ideas to a guy who works in a Sprint store,” Weinkrantz said. “There’s a broad social economic perspective of people who are all turned on by the idea of being able to do something on their own.”
Events like 3 Day Startup San Antonio actually serve as a better catalyst for igniting the city’s tech and biotech startup community than formal institutions like StarTech and BioMedSA, Weinkrantz said.
“They serve a purpose for institutions but not the startup community,” he said. “This is the space that is doing innovation not the traditional institutions that are trying to lob on to a place like this.”
Luz Cristal Glangchai, who runs the 3 Day Startup San Antonio program, called the weekend “a lab for entrepreneurs.”
“It’s amazing what they have been able to accomplish in a weekend,” she said.

Geekdom is a sponsor of Silicon Hills News

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