Ziften Technologies just closed on $5.5 million in its Series B financing.
And the Austin-based startup released its first software product, Behavioral Lightweight Intelligence for Stressed Systems, nicknamed BLISS, which lets companies easily manage and deploy software across Windows desktop computers.
Ziften’s software leds to “improved uptime, business alignment, performance, security, and reduction of errors and annoyances,” according to the company.
With the latest round of funding, Ziften plans to add additional software products and market BLISS.
“We are ready to deliver BLISS to IT organizations everywhere,” Mark Obrecht, Ziften’s CEO, said in a news statement.
The two year old company has raised $11.3 million so far with the latest round led by Fayez Sarofim & Co. Other investors include Andrew Busey, former CEO of Challenge Games now with Austin Ventures.
Ziften serves several Fortune 500 companies in the aerospace, chemical and publishing industries already with its BLISS software product.
Tag: technology (Page 15 of 25)
Nicole Glaros showing off her TechStars Cloud belt buckle in San Antonio
The only woman in the TechStars Cloud program, Nicole Glaros relocated from Boulder, Colorado to San Antonio with her husband, two-year-old daughter and one month old baby boy.
“It’s not a hard sell for me,” Glaros said. “To pick up and move for four months is not a big deal for us.”
Her husband Mark loves adventure and discovering new places too, she said.
“From our perspective it was an adventure,” Glaros said.
Adventurous is the perfect adjective to describe the outgoing Glaros, who is accomplished, smart, athletic and pretty and a powerful force in the technology startup world.
“TechStars is such a great environment,” Glaros said. “It doesn’t feel like work. I love what I do. “
Glaros moved into a house near Basse Road and San Pedro in January. She had just given birth to her son, Jackson, in December. Her mother also moved in, relocating for four months from Florida to help out with the kids.
“She put her life on hold,” Glaros said.
Family members are the unsung heroes of TechStars, Glaros said. While the entrepreneurs toil away 12 hour or longer days, seven days a week, spouses, kids, other family members and friends often have to adjust their lives.
Glaros knows their pain. She has worked with more than 100 startup tech entrepreneurs. Before joining TechStars, she founded three startups and worked at a technology business incubator, CTEK and other incubation programs in Colorado.
One day, Dave Cohen, a successful entrepreneur, angel investor and cofounder of TechStars, came to CTEK to pitch his idea for a new kind of technology incubator. CTEK’s leaders didn’t care for the idea much, but Glaros did. She sent an email to Cohen asking if he had time to meet her for a beer. He agreed to meet her for 30 minutes.
When Cohen arrived, he asked Glaros what her startup idea was. She said she didn’t have one. She just liked his TechStars idea and wanted to chat.
“That 30 minutes turned into three hours,” Glaros said.
Glaros ended up joining TechStars in 2007 and now serves as the managing director of the TechStars program in Boulder. She agreed to relocate to San Antonio to help Jason Seats, managing director of the TechStars Cloud with its inaugural program.
TechStars is a highly selective startup accelerator that takes about ten companies per program and provides seed funding from more than 75 different venture capital firms and angel investors. It has five TechStars programs in Boston, Boulder, New York City, Seattle and San Antonio.
The TechStars Cloud was the first accelerator program exclusively focused on cloud-based computing startups. The first class ran from January through April 11th. Each of the companies received $18,000 and access to $100,000 credit line along with thousands of dollars worth of perks including free website hosting, marketing and other services.
“The goal for me to be here was just to give Jason the resources he needed to launch the TechStars Cloud program,” Glaros said. “Working with Jason has been pure joy. He did a wonderful job.”
Seats enjoyed working with Glaros too.
“I will miss working with Nicole immensely,” Seats said. “We had very different styles that gelled quite well together. She is demanding, tough, detailed, insightful and almost always right. I tried to internalize as much of her thought processes as I could to make myself better.”
Glaros said the TechStars Cloud program was the smoothest launch of a new program in TechStars history and she credits Seats, an accomplished entrepreneur who founded Slicehost and sold it to Rackspace, with that.
Glaros was also impressed with the 11 companies to graduate from the TechStars program.
“It was really cool watching them develop,” she said. “I think the highlight is always seeing the progress of the companies. You literally see them evolve from raw potential to a real thing.”
And they appreciated her.
“She’s brilliant,” said Matt Gershoff, founder of Conductrics, in the TechStars Cloud program. “She’s super smart, confident and incredible at being able to distill complexity into a simple narrative.”
Glaros played a key role in helping the companies hone their eight minute pitch to investors.
“She’s not a pushover,” Gershoff said. “She’s definitely respected. She will tell you the truth even if it’s hard to hear. She’s honest.”
Colin Loretz, founder of Cloudsnap in the TechStars Cloud program, also had high praise for Glaros.
“She was awesome to have around,” Loretz said. “She’s seen more pitches and more startups all the way through to Demo Day than anyone.”
“She sees all the problems you can possibly see,” Loretz said.
Glaros has watched entrepreneurs launch a company, exit the company through sale or acquisition and then come back to serve as a mentor in the TechStars program. She calls the mentors – successful technology entrepreneurs who volunteer their time to help the startups – the secret sauce of TechStars.
“It creates a sort of unified cycle of giving back,” Glaros said.
The startup movement gives Glaros hope that these bright entrepreneurs will go on to create jobs and innovative products that will revive the economy.
“The one thing you cannot outsource is brains, talent and creativity,” she said.
The TechStars program has a 92 percent success rate, Glaros said. TechStars latest stats show that 109 companies still operate, nine have failed and eight have been acquired.
The competition is really stiff to get into TechStars. Glaros had just finished selecting the latest companies for TechStars Boulder. She reviewed 1,172 applications for 10 spots.
“The idea is really quality over quantity,” Glaros said.
So how does an entrepreneur make the cut?
“When we’re looking at a company we’re going to take the best team,” Glaros said. “We want a really great team that is super passionate about what they do,” Glaros said. “The idea doesn’t matter much. Ideas aren’t worth anything. It’s the execution of the idea that is important.”
That means the background of the founders count the most even more than the idea they are pitching, she said. And a lot of those founders have a background in engineering, she said.
And few female engineers apply, she said.
Glaros said women also tend to be more risk-averse than men and not as likely to risk everything to startup a company. And they don’t have huge egos and ego plays a big role in being entrepreneur, Glaros said.
“You have to believe you are the only one on the planet that can solve the problem you’re trying to tackle,” she said.
But women make some of the best entrepreneurs, Glaros said.
“Women tend to underestimate how much they can do,” Glaros said. “They outperform their objectives.”
Women also tend to be very open and they ask for help when they encounter a problem, Glaros said.
Now that the first TechStars Cloud program has wrapped up in San Antonio, Glaros has packed up and returned home. But she remembers her time fondly in the city. She enjoyed visiting local restaurants with her family. She thinks San Antonio is a great place to raise kids.
And although TechStars Cloud enters it quiet period, Glaros thinks San Antonio’s startup scene is heating up under the leadership of Seats and Nick Longo at the Geekdom and others.
In Boulder, TechStars has been able to create a technology startup community. How can San Antonio replicate that?
“Community matters,” Glaros said. “When a community comes together and rallies all kinds of entrepreneurial magic happens.”
The community can help by becoming a customer of a startup, volunteering time and expertise and money.
“Embrace them – open up your address book and wallets,” Glaros said “That’s the best thing you can do.”
When successful entrepreneurs mentor and help startups a vibrant startup community can thrive, Glaros said.
“In Boulder, you can get a meeting with just about anyone,” Glaros said. “Accessibility to leadership is huge.”
Tech starscloud
View more PowerPoint from Laura Lorek
Photo courtesy of 1 Semester Startup
That’s what the co-founder, known as Dr. T, president and CEO of National Instruments, said last week during an interview with Bob Metcalfe, University of Texas professor of innovation and coinventor of Ethernet and cofounder of 3Com.
Unlike some of today’s technology billionaires by the name of Bill, Michael and Mark, both Truchard and Metcalfe finished college and obtained PhDs before becoming entrepreneurs.
Metcalfe interviewed Truchard at 1 Semester Startup Demo Day last Thursday evening in the Lady Bird Johnson auditorium at the LBJ Library and Museum. Metcalfe said Truchard played a huge role in convincing him to move to Austin from Boston more than a year ago.
Metcalfe quizzed Truchard on his background. He was born and raised in Austin County. Neither of his parents had a college degree. He received his bachelors and masters degrees in physics and a PhD in electrical engineering from UT. And in 1976, he cofounded National Instruments, in his garage in Austin with Bill Nowlin and Jeff Kodosky. The company makes test equipment and software including LabVIEW, a graphical development program. The company just reported revenue of $262 million for the first quarter of 2012, up 10 percent from a year ago and a profit of $18.6 million. It had revenue of more than $1 billion in 2011.
“I was always determined to be successful, I never thought of any other option,” Truchard said.
Truchard didn’t have a business plan when he started National Instruments.
“We just started working,” he said.
They also never sought out venture capital. Instead, they secured a $10,000 bank loan and they ran the company by bootstrapping operations.
Truchard also read hundreds of books on entrepreneurs including Crossing the Chasm and Thriving on Chaos. He also consulted with the IC2 Institute at UT.
“Keep as much of your capital to yourself as possible.” Truchard advised the crowd of student entrepreneurs. He also told them to make sure they have a good idea and to find as many mentors as possible. And great technology is at the base of innovation.
And nothing beats dumb luck, he said. “Don’t exclude it.”
Truchard took National Instruments public in 1995 to offer liquidity to its employees, not because they needed to raise money.
The company culture was born when National Instruments started, Truchard said. He tries to make the company a fun place to work and focuses on cultivating a leadership culture as the company grows. The company regularly makes it on Forbes’ best places to work lists.
In response to a question from a student about how he communicates the company vision to 6,200 employees.
“Well, I’m very repetitive,” Truchard said.
To share his ideas, Truchard has used 1,500 slides throughout the years in presentations to employees. His employees took all of those slides, shrunk them and then they made a portrait of him out them and presented to him as a gift.
In Austin, software, hardware, semiconductor and information technology skills are in demand, according to Door64, a 20,000 member technology organization, which Monday released a Hiring Priority Survey of technology companies.
Startups were not included in the survey.
For the first three months of 2012, software is the biggest skill in demand. Companies are specifically looking for Java, User Interface/User Experience, Software Quality Assurance, and .NET experience.
“We all know, it is often one or two key holes in a company that can impede growth,” Door64 founder Matt Genovese said in a statement. “We are stepping up and surveying the hiring managers of a set of sizable Austin area technology companies every quarter starting now with today’s survey results, to get deliberately granular about what these hiring shortages are.”
More than half of the 54 managers surveyed reported software as their main hiring priority, followed by information technology with skills like systems administration, network engineering, project management, security.
The third priority was the hardware or semiconductor category, at 14%, meaning chip design, verification, embedded software.
The biggest software category was Java, at 16% of all respondents, 30% of the software needs. Java is still king in Austin, used for developing in a variety of business needs, from enterprise Java to mobile technologies built in Java.
Door64 will be holding the Austin Pain-point Job Fair on June 29 at the AT&T Conference Center at University of Texas.
Austin Hallock and Joe Vennix, both juniors at the University of Texas majoring in computer science, have founded Clay.io, a platform for HTML5 games.
Their startup is based at the Longhorn Startup Camp, a 30,000 square foot building at 1616 Guadalupe St., which has housed 27 student run companies during the Spring Semester. Bob Metcalfe, professor of innovation at UT, secured the space, which also served as an incubator for ten 1 Semester Startup companies. Its goal is to foster student entrepreneurship and collaboration among startups.
Clay.io is a marketplace for HTML5 games.
“The beauty of HTML5 games is they’re completely cross-platform, meaning they’ll work on mobile, as well as desktop, without having to port the game,” Hallock said. “We want to take advantage of that, and act as the app store for those games.”
Clay.io also offers an Application Programming Interface, a set of routines, protocols, and tools for building software applications known as an API, for developers to add game features. “With just a few lines of code, developers can add leaderboards, achievements, payment processing, user login, social integration with Facebook and Twitter, screenshots, and a few more features,” Hallock said.
Clay.io has released three games so far including Word Wars, which is like the popular game Boggle. People compete against others in real time.
“Since it’s an HTML5 game, it will work on your phone or tablet just as well as on your desktop,” Hallock said. “It’s gotten a great reception so far, and even made it to the front page of Hacker News.”
The other two games are Slime Volley and Falldown.
Clay.io differentiates itself from competitors like GameSalad, another game platform developer which sprung out of UT, because they’re more focused on enhancing games that can use any engine.
“There are dozens of HTML5 game engines out there so we plugin to all of the open ones and add in our extra features,” Hallock said. “If they were to open their marketplace up to other game engines then we would be competitors.”
At WhaleShark Media, the “Employee of the Month,” known as its “Top Shark” gets to spin a wheel of fortune and win a prize.
Employees nominate the hardest working WhaleShark employee and management votes on the winner.
In the past, Top Sharks have won free flights and hotel stays anywhere in the U.S., Super Bowl tickets, elliptical machines and more.
Recently, Austin-based WhaleShark added a new prize: a timed three minute shopping spree in Costco. The employee and one helper can load up on as much merchandize as they can get to the register in three minutes. Then Cotter Cunningham, WhaleShark CEO, pays for the purchases and they get to walk out of the store with the merchandise.
Recently, “Top Shark” WhaleShark employee Angela Wong hit the jackpot.
On Thursday, Angela, cheered on by 80 employees, took on Costco and won, said Brian Hoyt, head of communications at WhaleShark Media.
“The grand total – Angela is now the proud owner of nearly $25,000 in merchandise,” Hoyt said. “Including: 3 flat screens, 10 cameras, 2 computers, several Dyson vacuum cleaners and case of nice champagne!”
The wheel of fortune is just one of the ways WhaleShark rewards employees, Hoyt said. The company is focused on attracting and retaining the top technology talent in Austin, he said.
If you don’t have plans tonight, snag a ticket to 1 Semester Startup Demo Day.
It starts with drinks and appetizers at 5 p.m. and then the program kicks off an hour later with Bob Metcalfe, one of three instructors in the program and professor of innovation in the University of Texas Cockrell School of Engineering, interviewing James Truchard, president and CEO of National Instruments.
The event runs until 9 p.m. and is open to the public. It takes place at the LBJ Auditorium at the LBJ Museum and Library at 2313 Red River St.
This is the second 1 Semester Startup Demo Day. We covered the first one last fall. The Spring class is half the size of the last one. It has just 35 students and 10 companies, compared to 75 students and 20 companies for the first class. And in fact, four of the 10 student startups were in that last class. They include Solspot Systems, PowerSmart Labs, Predictable Data and Stache Studios. The other startups include AgreeOn, BeDJ, Stick.it/Breadcrumbs, NowOnCampus, Photowhoa and ReQwip. 1 Semester Startup has full descriptions of the companies on its site.
The startups will each give short pitches to investors and the rest of the audience. In addition to Metcalfe, 1 Semester Startups instructors include Joshua Baer, founder of Capital Factory and with the Department of Computer Science and Johnny Butler of the IC2 Institute and the McCombs School of Business.
For the Spring Semester, the 10 1 Semester Startup companies resided in the Longhorn Startup Camp along with 27 other student startups.
W2O Group has acquired Austin-based Ravel.
All of Ravel’s employees will join W2O Group. The company also has acquired all of Ravel’s big data technology, pending patents and software assets.
The terms of the deal were not disclosed.
CEO Jim Weiss founded W2O Group. It operates a network of marketing, communications, research and development firms with offices in San Francisco, New York, Chicago, Washington, D.C., Austin, Los Angeles and London.
“Ravel will enhance our team’s ability to predict trends based on a combination of historical information and real-time insights so that our clients achieve advantages in the marketplace,” Bob Pearson, president of W20 Group, said in a news statement.
Ravel is a one of the Austin Technology Incubator portfolio companies. Other acquisitions have included Lombardi Software to IBM and Phurnace Software to BMC.
Ravel, founded in 2010, makes solutions and insights from big data for companies.
Rackspace wants to do for San Antonio what Dell has done for Austin, said Graham Weston, its chairman.
“You’re here at the very beginning of something big” Weston said.
That was evident Wednesday at the Charline McCombs Empire Theatre in downtown San Antonio when 11 teams took to the stage to showcase their cloud-based businesses at the first ever TechStars Cloud Demo Day.
Throughout the nearly three hour event, the audience of about 350 people, which included angel investors and venture capitalists, applauded their accomplishments and they laughed a few times too.
Jason Seats and Nicole Glaros served as managing directors for the TechStars Cloud and another 75 entrepreneurs volunteered to mentor the companies. Glaros spent three months in San Antonio, relocating here from Boulder just weeks after having a baby.
While most of the companies asked for financing, Seats asked the audience not to report the details of the deals because of Securities and Exchange Commission rules on fundraising. In general, though, all of the companies have already raised money to finance their operations.
To kick things off, Dirk Elmendorf, co-founder of Rackspace, introduced the first company.
“I liked Keen from the very beginning,” he said.
Keen.io gives mobile developers the data they need to optimize their applications.
“The Keen team has that magic” Elmendorf said.
That team includes Ryan Spraetz and Dan Kador, formerly with Salesforce and Kyle Wild, formerly with Google. All of them are engineers, best friends and they have been working together since high school 13 years ago. All three quit their jobs within three days of starting the TechStars Cloud program. They relocated from San Francisco and moved into an old 4,000 square foot bed and breakfast in the King William neighborhood.
“What we came in with three months ago is so far from what we have created today,” Spraetz said. “The Tech Stars Cloud program has just been amazing.”
Keen.io reinvents analytics for mobile applications, Spraetz said.
“Every mobile application is its own universe filled with information generated by millions of users,” he said.
Keen.io allows companies to create their own custom analytics using its platform.
“In the last three months we’ve designed and built the first version of our program,” Spraetz said. Today, more than 100 mobile apps use Keen.io to track their analytics.
“We’re looking for active mentorship from smart and engaged investors,” Spraetz said.
The next presenter, Emergent One created a platform that allows any company to easily create an Application Programming Interface or API, which is a set of tools for building software applications.
“APIs are immensely valuable for all kinds of businesses,” said Kevin Pfab, its CEO. Best Buy recently introduced an API that it projects will double its business, he said.
But right now, building APIs is hard, Pfab said.
“What may seem like a small project turns into a massive one,” Pfab said.
That’s where Emergent One comes to rescue. It has an API generation platform that allows a company to create a custom API in hours instead of months and years, Pfab said. He showed a technical demo to illustrate how easy the process was. The platform also provides deep analytics on how a company’s API is being used, he said.
“The entire API solution is being offered right out of the box,” Pfab said. “And you can get started in minutes.”
Emergent One’s platform allows a company to build a new API faster and cheaper than ever before, he said.
The baby-faced Pfab also drew the loudest laugh from the crowd when he announced that between himself and his partner, Mike Taczak, they also “share 46 years of experience being alive.”
Mentor Paul Ford with SoftLayer introduced Callisto.fm, a real-time engagement analytics site for media creators and distributors. Its platform can tell them who’s using their content and for how long. It wants to replace Neilsen and Arbitron’s media ratings services.
Callisto.fm provides real-time metrics for online content.
“When your video goes viral in Japan you will know it before anyone on the planet,” said Michael Sitarzewski, Callisto.fm’s cofounder and CEO. The platform also provides information on social activity like how many times the content has been tweeted or posted to Facebook, he said.
“This stuff is amazing and we’re having a blast building it,” he said.
Callisto.fm is the only company measuring real time user engagement across all media platforms, Sitarzewski said. It offers its products with pricing starting at $50 a month.
The other team members include Travis Silverman, Richard Jones and Chris Roth. Callisto.fm is fully funded. It has already raised $700,000 from DFJ Mercury and TechStars. But it might seek another round of funding later on this year.
Conductrics, which helps companies increase their customer conversions via its platform, has already snagged Pfizer and Under Armour as customers, said Matt Gershoff, co-founder.
The company’s software allows companies to tailor their website to different customers depending on where they are coming from and what their interests might be. For example, Under Armour can tailor its site to offer cold gear to people from snow states and heat gear to people from sunshine states, Gershoff said.
Conductrics has created a very simple API that lets developers build apps customized for different customers, he said. The company has already optimized 12 million decisions for its customers.
In addition to Gershoff, Nate Weiss is a co-founder and chief technology officer.
CloudSnap is tackling the Software as a Service, known as Saas, marketplace with a Saas in a box solution, said Colin Loretz, co-founder.
“Saas spending is projected to reach $16 billion in 2013,” Loretz said.
Cloudsnap allows web applications to connect together. About 60 percent of companies are trying to integrate their web applications and they find the process time consuming, expensive and risky, Loretz said.
“We know these issues firsthand as we used to be those expensive consultants,” Loretz said.
For example, Unbounce can’t take leads and put them into Salesforce. Cloudsnap fixes that. It makes it easy to snap together your application with out writing any code, Loretz said. CloudSnap supports more than 100 applications today, he said.
“Cloud adoption is next space race,” he said.
Cloudsnap connects Basecamp and Salesforce together and allows them to share files, Loretz said. It’s the glue for applications on the Internet.
Distil.it is a content protection network that stops malicious web scraping bots from stealing content from digital publishers like CNN and Engadget.
On the Internet, web scrapers can steal what used to be unique and valuable content and as a result digital publishers lose 146 million visitors daily, said Rami Essaid, co-founder and CEO. That equates to $5.5 billion annually stolen, he said.
“Existing hardware solutions are not effective in real time,” Essaid said. “Distil is the answer.”
Distil, through customized algorithms, identifies malicious bots and stops them from taking a website’s content, he said.
“Our platform is easy to step up,” Essaid said. “Our network is extremely intelligent.”
The market in the U.S. is worth $1.3 billion, Essaid said. It has struck recent partnerships with SoftLayer, Rackspace and ZippyKid.
Next, Lew Moorman, president of Rackspace introduced Andrew Cronk, cofounder and CEO of Tempo DB.
“The demand for the solution for this problem is about to explode,” Moorman said.
Tempo DB is a big data analysis company that is a database service for time series data.
“We make it possible to store and instantly analyze the massive streams of measured data that break traditional databases,” Cronk said.
“If you thought we had big data today you haven’t seen nothing yet” Cronk said. He calls it “massive data” that is being generated by all kinds of connected device or “the Internet of things,” he said.
“This is an incredible opportunity to measure and learn more about our tools,” Cronk said.
Temp provides visualization, analysis and storage of data in a set of tools “that are an analyst’s dream” Cronk said.
“We’ve got everything you need to start getting real value from your data today,” he said.
For example, one customer, InThrMa operates smart meters that generate a half a billion data points per thermostat per year, Cronk said. With Tempo, InThrMa is able to capture and analyze that data. With the data, InThrMa is able to provide all kinds of new insights including energy use forecasting for customers.
“We are working with companies like this in three markets today – energy, networks and sensors,” Cronk said. “We’re currently streaming in over 25 million new data points everyday.”
The team includes Cronk, Michael Yagley, CTO and Justin DeLay, CMO
“We are finally building a system we wish had existed years ago,” Cronk said.
Appsembler is a platform that allows software companies to launch “Software as a Service” or “SaaS” applications in minutes, not months, said Nate Aune, the company’s CEO and founder.
Appsembler offers a “Saas in a box solution” that includes hosting, billing, support and provides and overall integrated solution, Aune said.
It already has 5,000 customers using the platform and 3,000 more on a wait list, Aune said.
Flomio makes it easy to build NFC and RFID enabled applications, said Richard Grundy, its co-founder and CEO.
“We extend the web into the physical world,” he said.
Flomio allows developers to early create NFC enabled applications and cloud-based updates are easily deployed to all devices, Grundy said.
He used a neighborhood coffee shop as an example. The owner might want to create a mobile loyalty app for the business. That’s easy to do with Flomio, Grundy said.
It has already sealed partnerships with Texas Instruments, Motorola, Trimble and ACS, he said.
The other members of the Flomio team include Jonathan Hilley and John Bullard.
Weston, chairman of Rackspace, introduced Vidmaker, an online video collaboration site.
“When you think of Vidmaker, I want you to think about one company: Instagram,” Weston said. He’s already an investor in the company, which he thinks will do for video what Instagram did for still photographs. Facebook recently bought Instagram for $1 billion.
Vidmaker makes it easy to manage and edit video on any device, anywhere with anyone, said Dale Emmons, its cofounder and CEO.
“It’s going to unleash a wave of creativity,” he said.
Vidmaker is targeted at video hobbyists and enthusiasts, Emmons said. A need exists for an easy to use collaborative video service online, he said. Everyday, people do 300,000 searches on Google for video editing software, he said.
Vidmaker hasn’t launched yet, but when it does it expects to offer a fermium version of its software for people who post content with a creative commons, allowing others to use it. It will also offer a starter package at $10 a month for 10 gigabytes of storage for a private account. It’s rates scale up from there.
Emmons and Ryan Bolyard previously worked on video editing software at Sony. The other cofounder, Yuri Zapuchlak worked at Intuit.
“When we joined TechStars we had no user interface,” Emmons said. But in three months of 18 hour days, they built a beautiful user interface and they expect to launch the site in a beta test soon.
The last company to present was introduced by Pat Condon, cofounder of Rackspace.
Cloudability was one of the most seasoned companies on the stage. It had already graduated for an incubation program in Portland, its hometown and it had closed on a $1.2 million round of financing from Trinity, Walden plus Portland investors. Cloudability makes a platform that allows companies to monitor and manage how much they spend on the cloud. It’s free for companies that earn less than $2,500 a month and pricing goes up from there with a small business edition, enterprise edition and partner edition. It has already signed up 2,200 companies in more than 80 countries.
“We want to get this tool into the hands of every cloud business user,” said J.R. Storment, cofounder with Mat Ellis and Jon Frisby.
Along those lines, Storment announced Rackspace, one of its partners, will begin offering Cloudability to all of its 175,000 users for free.
“That’s really just the beginning,” Storment said.
Cloudability has nine employees and has a clear path to profitability this year, Storment said.
BY SUSAN LAHEY
Special Contributor to Silicon Hills News
Bijoy Goswami has a strange role in Austin startups.
With his wild mop of hair and ubiquitous jeans and t-shirt, the bootstrapping guru has a rock star quality to him. He’s written a book used by Leadership Austin and made a movie. He’s known for his mental models of how the universe works. He incorporates his spiritual journey into everything he does and has officiated at the weddings of four of his friends as a member of the Universal Life Church.
People are usually inspired by his message and dazzling intellectual display, though some are disgruntled that among all the talk of journeys and anecdotes of successful bootstrapping was no concrete, five-point plan.
But Goswami isn’t about the five-point plan. He’s passionate about the bootstrap method of starting a business as a road to enlightenment. Greatly condensed, his bootstrap message is:
“I don’t know what your resources are. I don’t know what your idea is or who your customers are. I don’t know what obstacles you’re facing. But if you want to be an entrepreneur, you don’t have to wait for somebody to give you a lot of money. You can look for the right person to embark on the entrepreneurial adventure with you, build something with the resources you have, tweak it until customers are willing to buy it and begin the sometimes painful, arduous but exciting journey of birthing a business. Along the way, you will find answers, work out problems, experience emotions, grow immensely and discover yourself.”
Of course, when he says it, there’s a fugue involved, and Joseph Campbell and the Hero’s Journey, James Madison the fourth President of the United States, Apple’s Steve Wozniak and Southwest Airlines, just for starters. When he says it, many people leave feeling as if their struggles and fears are just part of the progression of something brave and exciting.
At the same time, Goswami doesn’t just pump people up with empty expectations. These days, he says, we’re moving into a period of “Entrepreneur Porn.”
“It’s like ‘I’m so cool, I’m an entrepreneur,’” he says, sucking in his cheeks and raising an eyebrow for effect. “But the truth is it’s hard fucking work. It’s a lifelong thing. And it’s even harder because most of the stories that are told are wrong. People are seduced by the story of entrepreneurship but entrepreneurship will destroy you. It will break you down. It will get you in touch with your false ego. You’re going to be transformed.”
Goswami was formally introduced to bootstrapping in the 1990s while a student at Stanford. But he was informally introduced to it long before.
He was born in Bangalore, Southern India, to a Hindu father and a Catholic mother, a duality he said set up a theme for his life. When he was in 4th grade, his parents moved to Taipei, Taiwan. He attended Catholic schools, then American schools–his mother’s idea. To afford it, she became a teacher at the school. His parents, he said, have always embraced the idea of adventure and possibility—from their intermarriage, to leaving India for Taipei, then Taipei for Hong Kong International School.
“My parents are fellow travelers on a journey… they travel all the time. Their life has been about an opening up of possibility rather than a closing down. That’s a great gift they gave us. From (my mother’s) perspective, Taiwanese schools were more rigid. They were about a stifling of creativity. She wanted her boys to get an American education. “
Goswami attended high school in Hong Kong where he met his “partner in crime” Desmond Chu, with whom he began bootstrapping. They’d get a shipment of Korean shoes and sell it to friends.
“Des was a total entrepreneur and we were living in the most free market in the world,” Goswami said. “I think that’s when I got the first inkling of the ‘Power of Two’” another model that explains the exponential growth in potential when you have two people working on the same goal. In school, Goswami served as president of the class, then president of the school, always with Chu as vice president.
From Hong Kong, he went to Stanford in the Silicon Valley when it was just emerging as the Silicon Valley.
That’s where he fell in love with bootstrapping as a path. By the time he’d arrived, venture capital had become the dominant story. But he would go out of his way to hear Scott Cook talk about the Valley’s bootstrapping history, including his own company, Intuit.
“They couldn’t get funding, so they didn’t get funding. They had to figure out how to make it work. For a while they sold printing paper for checks to survive. There was just something about that that resonated with me.”
When he finished school, he needed a sponsor to stay in the U.S. and found one with Trilogy, a company that had been bootstrapped by some people from Stanford. But they needed to send him to a town he’d never heard of called Austin, Texas.
“Austin is the city of self discovery,” he said. “It’s all about letting go of what you were holding on to before and picking up new things. No one judges you here. It’s like, ‘I can love yoga and do two-stepping?’”
The rest of his story is a merging of many things. First, his spirituality.
By the time he was 20, he was an agnostic if not an atheist, which meant “a separation from my mother on the one issue that mattered to her.” This was the beginning of a model he constructed about the way people live. First, they receive ideas about the world from the external—parents, school, a mentor, an employer. Some people stop there.
Others wind up releasing everything they’ve been taught. Laying it all down, deconstructing it. That’s the next phase.
Finally you begin to build a new idea for yourself and of yourself, incorporating as you choose, bits from your past. This could go on forever.
Bootstrapping, especially in Austin, is the same process, Bijoy said. You separate from the security of someone else’s ideas and funds and build something based on your passion, using your own ability to navigate the questions and the issues.
Austin is the best place to do that because it invites people to create not for money or power—both of which are iffy when you start a business—but for the joy of creating a business. For the journey and what you learn from it.
When you’re looking for venture capital, he said, the question is “are you going to build the next big thing?” But in bootstrapping, especially in Austin, it’s “Did you express the thing you wanted to express?”
“It’s not about getting rich…. for bootstraps, getting rich is incidental to getting to do what you’re passionate about.”
Goswami left Trilogy and started his own company, Aviri, but it didn’t take off. A half a million dollars was spent and his cofounder left. So he carried on for awhile on his own, bootstrapping, in that phase of spiritual development like Gotama Buddha when he goes to the forest. No money, no food. The hard part of enlightenment.
He kept it going for awhile and found that other people who were bootstrapping companies kept asking him to have coffee, lunch, breakfast, to talk about their challenges, discoveries and anxieties about bootstrapping. It was then that he started Bootstrap Austin. He thought it would be one meeting. It turned into a regular meetup group.
And he met…everyone.
“He is so well networked,” said Bjorn Billhardt, CEO of Enspire which was a new company with three or four people when Billhardt met Goswami. The two became fast friends and Goswami officiated at Billhardt’s wedding. “He is like the glue that pulls people together. I would say a vast network of my professional friends came through connections initially made by Bijoy. Professional recruiters charge an arm and a leg for just one connection….”
But it wasn’t only his connections that made a difference. It was the bootstrap mental model.
“I was thinking about seeking funding when I met Bijoy and he changed the way I thought about it,” said Billhardt, whose company has grown to more than 50 employees with an office in Berlin and global fortune 500 companies as clients. “It wouldn’t have been possible without Bijoy,” he said. “He lets you just talk it out and that is what a lot of entrepreneurs need. That’s one thing a lot of VC companies provide and professional coaches charge $400 an hour for. Bijoy does a lot of that work for free. He gave me advice to release a product even if it has bugs in it. Don’t be afraid to share your ideas…a lot of entrepreneurs are terribly afraid to do that. But then, Bijoy points out, if you keep a product under wraps, people don’t know about it and they don’t join your company.”
A lot of the work Goswami does—such as helping with RISE—he does for free. He does have a few clients, including Leadership Austin who use his book “The Human Fabric” with each new class of Austin leaders. The book, written with David Wolpert, focuses on identifying your ‘core energy’ and how you can use it to build something—a business or a community. Goswami also leads groups with Leadership Austin and is a cofounder with the organization’s CEO Heather McKissick, of the Austin Equation Initiative which was created to answer the question “What Makes Austin, Austin?”
“Running a small nonprofit is often like bootstrapping a startup,” McKissick said. “Bijoy’s expertise helps us understand how to do that well. In a down fundraising environment, it’s very helpful to have his unique skills and advice.”
He is everywhere. And he knows everyone. But if you ask him what his goal in life is, he’ll tell you, “It’s learning to Be Joy.”
And that’s a whole other story.